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EDAYS INTERNATIONAL E-COMMERCE CONFERENCE
M O S C O W , J U N E 4 - 5 , 2 0 1 5
The task for this presentation was to
describe our view on one of the «Latest
online marketing trends and challenges in
the Russian market »
- Personalization -
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 2
CURRENTLY FLOCKTORY IS THE LEADING REFERRAL
MARKETING AND PERSONALIZATION DRIVEN CONVERSIONS
PLATFORM IN RUSSIA, COVERING MORE THAN 60% THE
ENTERPRISE E-COMMERCE MARKET
Flocktory’s partners TODAY in different segments in Russia
Hypermarkets
Daily deals
Specialization
Banks
Travel
Electronics
Fashion
Possible KPI’s for Post-Checkout
Up to 24% increase in new
sales1)
Up to 4x times more
leads1)
Up to 8x increase in
conversion1)
Current trend level in Russia
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 3
DEPENDING ON THE COMPANIES GOALS YOU WILL FIND DIFFERENT PREACHING'S ON
PERSONALIZATION BUT THEY DON’T NECESSARY CONTRADICT EACH OTHER
Key Dimension to goals Example of Decision tree
Will the user buy
Get other
valuable
action like
Registration
Create a
reward
Feeling
Personalize
activation via
content
Help him to
earn his
purchase
Push for
secondary KPI
via motivation
Cross sell via
Feedback
Show most
marginal
Establish
loyalty via
Feedback
No Potential Yes
Returning customer New customer
Getting highest conversions
Selling with highest margins
Getting most out of traffic
(incl. secondary KPI’s)
Reducing negative KPIs
(overstock etc.)
Others
?
What to
personalize
too?
Low High
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 4
PERSONALIZATION IS KEY ON EVERY STEP OF THE CONVERSION FUNNEL BUT OFTEN
LACKS A CONSOLIDATED APPROACH INTO “ONE STORY” AND IS NOT USING ALL
AVAILABLE DATA
Level of personalization Low High
VA – Valuable Action, The reason any of us brings traffic to the website
PartofprocessProblemkey
points
• Most users come to a website as professional “lookers” but are a potential asset
• There is a clear list of things anybody needs to get from a user if not a purchase
• Personalizing can help not only with converting new traffic but also for cross + upsell etc.
• Due to the long value chain creation, personalization should be part of any step and preferably that of a “one story”
1
4 Retention Marketing (via all channels)
2 Website marketing
3
Post-purchase
service /
offering (incl.
Feedback etc.)
5
One story
approach
Traffic
acquisition
Registration as
secondary VA
Comments as
secondary VA
Shares/Likes as
secondary VA
Purchase as
main VA
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 5
USING AVAILABLE DATA THERE IS A CLEAR PATH TO PERSONALIZE NOT ONLY
CONTENT BUT ON SITE BEHAVIOR
EXAMPLE
Offer appearance or personalized communication can be segmented
using many parameters, including the following:
Any combinations of
segmentation parameters
presented can be used
Purchase history
• Client type: new (never bought) /
sleeping (have not bought
recently) / regular (buys often); by
day
• Frequency of purchases in this
store
• Average order value
• And much more
Main visitor characteristics
• Age and gender
• Geography
• Social influence
• Traffic source and UTM tags
• Landing page
• And many others
Behavior data
• Current page
• Depth and number of pages viewed
• Items in the shopping cart
• Time spent on site
• Exit intention
• And many others
Non exhaustive
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 6
ALLOWING YOU TO ACHIEVE A VARIETY OF GOALS,
INCLUDING HIGHER CONVERSION RATES, ADDITIONAL SALES AND MORE
Leads from non convertible traffic
Leads data enrichment
Learn more than name phone and e-mail to
increase the chance of conversion1)
Decrease bounce traffic Minimize cart abandonment
And much more
Increase AOV and number
of items in the shopping cart Get visitor’s recommendations
Increase conversion to
useful actions
Such as product reviews, subscriptions, fans
and much more
Cross sale (upsell new shopping categories)
Customer experience personalization
For example, formation of the landing page,
products on it and menu for visitors preferences
Growth of certain geographies
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 7
OF COURSE IT IS ONLY ABOUT A/B TESTING AND TRIAL/ERROR AS EVERYTHING HAS
TO BE CUSTOMIZED E.G. VISUALIZATIONS TO BE SHOWN MOTIVATING AND NOT IN AN
IRRITATING WAY AT THE RIGHT TIME AND PLACE
Examples of the communication visualization types
Engaging overlay
Ribbon
Banner / icon
Assistant pop-upEverything your heart
desires 
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 8
THE REAL VALUE IN PERSONALIZATION OF APPROACHES TOWARDS SECONDARY KPI’S
WE SAW FIRST USING SOCIAL REFERRALS
Original customer view
 Before we started to work with personalizations we
dealt with referral marketing
 After completing a checkout the customer sees a
popup window (or other visual elements)
 The popup window offers your customers a special
bonus for their friends incl. a bonus for themselves
(only example, highly variable)
 Doing something positive for friends adds meaning
which makes customers want to share the offer in
social networks and via other channels
 If a customer’s friend uses the offer to buy, your
original customer gets rewarded too
 But with time we saw that there was an enormous
effect in personalizing the offers depending on
factors like recency, check, SKU in basket etc which
allowed to go far beyond creating referral traffic into
cross/upsell, increase of frequency etc.
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 9
Online store increases conversion
to orders from low converting source
Online shop is trying to avoid cart
abandonment using exit intent
technology
Online shop stimulates sales of
stale goods
E-commerce retailer increases the
amount of recommendations and
attracts new customers through
existing ones
Online store struggles with cart
abandonment of returning
visitors
Cinema stimulates ticket
reservation through the website
Some cases of using Floctory Pre-Checkout on SIMPLE
personalization rules
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 10
Problem:
Trigger:
Solution:
Some traffic sources have a
high Bounce Rate2)
Source and not known client
Engaging overlay while entering the
site from a low converting source for
Unregistered users
Brand
awareness
New
leads
Higher
conversion
rates
Loyalty
increase
New
customers
KPI1)
• Coming from a low
converting source the
user is encouraged to
recommend the shop to
his/her friends and get a
discount, which gives:
• Deserved discount’
feeling which increases
chances that it will be
used
• Lead (user will have to
leave an email address to
get the discount)
• Expansion of the referral
marketing funnel
CASE STUDY #1:
ONLINE STORE INCREASES CONVERSION TO ORDERS FROM A LOW CONVERTING
TRAFFIC SOURCE
1) Key Performance Indicators
2) Bounce rate
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 11
CASE STUDY #2:
ONLINE SHOP IS TRYING TO AVOID CART ABANDONMENT USING EXIT INTENT
TECHNOLOGY
Customer
stays in the
cycle
Additional
orders
Loyalty
incense
Prevent cart
abandonment
• Banner pops up when the visitor is
ready to leave the site and
automatically adds the city of
delivery which motivates the visitor
to return to the checkout
Problem:
Trigger:
Solution:
At the checkout stage 32% of customers
leave the site not completing the order
Exit intent + geography used to personalize
the message
Engaging overlay while the user is trying to
Leave which includes a motivating offer
KPI
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 12
CASE STUDY #3:
ONLINE SHOP STIMULATES SALES OF STALE GOODS
Higher
conversion
chances
Additional
orders
• On a certain product page a motivating
message will be shown. Additional
information could be placed in this
container, such as review, delivery
conditions, promotions, discounts and
so on
Problem:
Trigger:
Solution:
Some of items couldn't be sold for a long time
Landing on the certain product page
Visual element in 6 seconds after being landed
on the product page
KPI
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 13
CASE STUDY #4:
E-COMMERCE RETAILER INCREASES THE AMOUNT OF RECOMMENDATIONS
AND ATTRACTS NEW CUSTOMERS THROUGH EXISTING ONES
Getting a recommendation from existing
customers is complicating
Click on a banner on certain page,
frequency of purchases
Banner in client’s dashboard motivating
to recommend the store to friends
• Banner varies depending on the user. That’s why we use
another trigger – the frequency of purchases.
• For the fulfillment of conditions a loyal customers will be
offered a $5 discount, rarely returning customers with
$10 coupon, etc.
Brand
awareness
New
leads
Additional
orders
Loyalty
incensement
Problem:
Trigger:
Solution:
KPI
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 14
CASE STUDY #5:
ONLINE STORE STRUGGLES WITH CART ABANDONMENT OF RETURNING VISITORS
• Once the user returns to the site with an
existing abandoned shopping cart
he/she will get a personalized offer to
complete the order right now on
“exclusive” terms, which motivate him to
checkout essentially reducing the
average amount of abandoned shopping
carts
Additional
orders
Loyalty
incensement
1) A message bar on top of the website
Visitor abandoned his shopping cart
at previous visit
Revisit, presence of items in the shopping cart
Getting maximum of available information on
visitor and personalizing the offer via a
Ribbon1), motivating to complete the order
Problem:
Trigger:
Solution:
KPI
E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 15
CASE STUDY #6:
ONLINE STORE STRUGGLES WITH CART ABANDONMENT OF RETURNING VISITORS
1) Pop-up window similar to the online consultant
Motivation to
make an order
Higher
conversion
rates
Small quantity of ticket bookings through the
website
User lands on a popular page
Tracking the number of visitors inclined to place
an order and informing them via an Assistant
pop-up1) of tickets availability or limited
reservation options
Problem:
Trigger:
Solution:
KPI

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Ilja Eisen - Latest online marketing trends and challenges in the Russian market

  • 1. EDAYS INTERNATIONAL E-COMMERCE CONFERENCE M O S C O W , J U N E 4 - 5 , 2 0 1 5 The task for this presentation was to describe our view on one of the «Latest online marketing trends and challenges in the Russian market » - Personalization -
  • 2. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 2 CURRENTLY FLOCKTORY IS THE LEADING REFERRAL MARKETING AND PERSONALIZATION DRIVEN CONVERSIONS PLATFORM IN RUSSIA, COVERING MORE THAN 60% THE ENTERPRISE E-COMMERCE MARKET Flocktory’s partners TODAY in different segments in Russia Hypermarkets Daily deals Specialization Banks Travel Electronics Fashion Possible KPI’s for Post-Checkout Up to 24% increase in new sales1) Up to 4x times more leads1) Up to 8x increase in conversion1)
  • 3. Current trend level in Russia E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 3 DEPENDING ON THE COMPANIES GOALS YOU WILL FIND DIFFERENT PREACHING'S ON PERSONALIZATION BUT THEY DON’T NECESSARY CONTRADICT EACH OTHER Key Dimension to goals Example of Decision tree Will the user buy Get other valuable action like Registration Create a reward Feeling Personalize activation via content Help him to earn his purchase Push for secondary KPI via motivation Cross sell via Feedback Show most marginal Establish loyalty via Feedback No Potential Yes Returning customer New customer Getting highest conversions Selling with highest margins Getting most out of traffic (incl. secondary KPI’s) Reducing negative KPIs (overstock etc.) Others ? What to personalize too? Low High
  • 4. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 4 PERSONALIZATION IS KEY ON EVERY STEP OF THE CONVERSION FUNNEL BUT OFTEN LACKS A CONSOLIDATED APPROACH INTO “ONE STORY” AND IS NOT USING ALL AVAILABLE DATA Level of personalization Low High VA – Valuable Action, The reason any of us brings traffic to the website PartofprocessProblemkey points • Most users come to a website as professional “lookers” but are a potential asset • There is a clear list of things anybody needs to get from a user if not a purchase • Personalizing can help not only with converting new traffic but also for cross + upsell etc. • Due to the long value chain creation, personalization should be part of any step and preferably that of a “one story” 1 4 Retention Marketing (via all channels) 2 Website marketing 3 Post-purchase service / offering (incl. Feedback etc.) 5 One story approach Traffic acquisition Registration as secondary VA Comments as secondary VA Shares/Likes as secondary VA Purchase as main VA
  • 5. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 5 USING AVAILABLE DATA THERE IS A CLEAR PATH TO PERSONALIZE NOT ONLY CONTENT BUT ON SITE BEHAVIOR EXAMPLE Offer appearance or personalized communication can be segmented using many parameters, including the following: Any combinations of segmentation parameters presented can be used Purchase history • Client type: new (never bought) / sleeping (have not bought recently) / regular (buys often); by day • Frequency of purchases in this store • Average order value • And much more Main visitor characteristics • Age and gender • Geography • Social influence • Traffic source and UTM tags • Landing page • And many others Behavior data • Current page • Depth and number of pages viewed • Items in the shopping cart • Time spent on site • Exit intention • And many others Non exhaustive
  • 6. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 6 ALLOWING YOU TO ACHIEVE A VARIETY OF GOALS, INCLUDING HIGHER CONVERSION RATES, ADDITIONAL SALES AND MORE Leads from non convertible traffic Leads data enrichment Learn more than name phone and e-mail to increase the chance of conversion1) Decrease bounce traffic Minimize cart abandonment And much more Increase AOV and number of items in the shopping cart Get visitor’s recommendations Increase conversion to useful actions Such as product reviews, subscriptions, fans and much more Cross sale (upsell new shopping categories) Customer experience personalization For example, formation of the landing page, products on it and menu for visitors preferences Growth of certain geographies
  • 7. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 7 OF COURSE IT IS ONLY ABOUT A/B TESTING AND TRIAL/ERROR AS EVERYTHING HAS TO BE CUSTOMIZED E.G. VISUALIZATIONS TO BE SHOWN MOTIVATING AND NOT IN AN IRRITATING WAY AT THE RIGHT TIME AND PLACE Examples of the communication visualization types Engaging overlay Ribbon Banner / icon Assistant pop-upEverything your heart desires 
  • 8. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 8 THE REAL VALUE IN PERSONALIZATION OF APPROACHES TOWARDS SECONDARY KPI’S WE SAW FIRST USING SOCIAL REFERRALS Original customer view  Before we started to work with personalizations we dealt with referral marketing  After completing a checkout the customer sees a popup window (or other visual elements)  The popup window offers your customers a special bonus for their friends incl. a bonus for themselves (only example, highly variable)  Doing something positive for friends adds meaning which makes customers want to share the offer in social networks and via other channels  If a customer’s friend uses the offer to buy, your original customer gets rewarded too  But with time we saw that there was an enormous effect in personalizing the offers depending on factors like recency, check, SKU in basket etc which allowed to go far beyond creating referral traffic into cross/upsell, increase of frequency etc.
  • 9. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 9 Online store increases conversion to orders from low converting source Online shop is trying to avoid cart abandonment using exit intent technology Online shop stimulates sales of stale goods E-commerce retailer increases the amount of recommendations and attracts new customers through existing ones Online store struggles with cart abandonment of returning visitors Cinema stimulates ticket reservation through the website Some cases of using Floctory Pre-Checkout on SIMPLE personalization rules
  • 10. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 10 Problem: Trigger: Solution: Some traffic sources have a high Bounce Rate2) Source and not known client Engaging overlay while entering the site from a low converting source for Unregistered users Brand awareness New leads Higher conversion rates Loyalty increase New customers KPI1) • Coming from a low converting source the user is encouraged to recommend the shop to his/her friends and get a discount, which gives: • Deserved discount’ feeling which increases chances that it will be used • Lead (user will have to leave an email address to get the discount) • Expansion of the referral marketing funnel CASE STUDY #1: ONLINE STORE INCREASES CONVERSION TO ORDERS FROM A LOW CONVERTING TRAFFIC SOURCE 1) Key Performance Indicators 2) Bounce rate
  • 11. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 11 CASE STUDY #2: ONLINE SHOP IS TRYING TO AVOID CART ABANDONMENT USING EXIT INTENT TECHNOLOGY Customer stays in the cycle Additional orders Loyalty incense Prevent cart abandonment • Banner pops up when the visitor is ready to leave the site and automatically adds the city of delivery which motivates the visitor to return to the checkout Problem: Trigger: Solution: At the checkout stage 32% of customers leave the site not completing the order Exit intent + geography used to personalize the message Engaging overlay while the user is trying to Leave which includes a motivating offer KPI
  • 12. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 12 CASE STUDY #3: ONLINE SHOP STIMULATES SALES OF STALE GOODS Higher conversion chances Additional orders • On a certain product page a motivating message will be shown. Additional information could be placed in this container, such as review, delivery conditions, promotions, discounts and so on Problem: Trigger: Solution: Some of items couldn't be sold for a long time Landing on the certain product page Visual element in 6 seconds after being landed on the product page KPI
  • 13. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 13 CASE STUDY #4: E-COMMERCE RETAILER INCREASES THE AMOUNT OF RECOMMENDATIONS AND ATTRACTS NEW CUSTOMERS THROUGH EXISTING ONES Getting a recommendation from existing customers is complicating Click on a banner on certain page, frequency of purchases Banner in client’s dashboard motivating to recommend the store to friends • Banner varies depending on the user. That’s why we use another trigger – the frequency of purchases. • For the fulfillment of conditions a loyal customers will be offered a $5 discount, rarely returning customers with $10 coupon, etc. Brand awareness New leads Additional orders Loyalty incensement Problem: Trigger: Solution: KPI
  • 14. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 14 CASE STUDY #5: ONLINE STORE STRUGGLES WITH CART ABANDONMENT OF RETURNING VISITORS • Once the user returns to the site with an existing abandoned shopping cart he/she will get a personalized offer to complete the order right now on “exclusive” terms, which motivate him to checkout essentially reducing the average amount of abandoned shopping carts Additional orders Loyalty incensement 1) A message bar on top of the website Visitor abandoned his shopping cart at previous visit Revisit, presence of items in the shopping cart Getting maximum of available information on visitor and personalizing the offer via a Ribbon1), motivating to complete the order Problem: Trigger: Solution: KPI
  • 15. E D A Y S I N T E R N A T I O N A L E - C O M M E R C E C O N F E R E N C E – M O S C O W , J U N E 4 - 5 , 2 0 1 5 15 CASE STUDY #6: ONLINE STORE STRUGGLES WITH CART ABANDONMENT OF RETURNING VISITORS 1) Pop-up window similar to the online consultant Motivation to make an order Higher conversion rates Small quantity of ticket bookings through the website User lands on a popular page Tracking the number of visitors inclined to place an order and informing them via an Assistant pop-up1) of tickets availability or limited reservation options Problem: Trigger: Solution: KPI