Learn how the conversion funnel works and how you acquire traffic to your website, converts traffic to customers and retain customers for maximum profitability.
Opticon 2015-Best Practices in Programmatic Ad Buying and Conversion Funnel O...Optimizely
Featuring speakers from Netflix
Patrick McGrath, Product Manager of Ad Technology, Netflix
As of 2015, 50% of the display advertising market is executed programmatically. Without the proper tracking and monitoring setup, optimization efforts start to lose impact and even worse, can yield inaccurate results. This talk affords guidance to companies seeking to grow their programmatic efforts in a controlled manner, while still maintaining A/B and conversion funnel optimization rigor. Points of discussion: 1) Tracking and appropriately scaling a programmatic marketing program via a variety of ad platforms (notably - Google and Facebook). 2) Customer, marketing campaign, and A/B segmentation strategies 3) Audience creation and targeting management 4) A/B optimization and building a programmatic feedback loop.
Whether you're selling items on your website or trying to catch leads, you have a conversion funnel. Understanding the path and drop off points in that path are the key to success to optimize your conversion funnel. We will talk about the easiest ways to track this funnel and how to make sense of all the data you have collected. We will even talk about methods to discover why your users are dropping off and the most effective ways to address it. This talk will also look at the different tools including Google Analytics, HotJar, Mixpanel and Kissmetrics and how each of them can help you track your conversion funnel.
Presented at WordPress Orlando Meetup on July 26th 2016
Lead Gen & Customer Conversions - Filling the Funnel and Getting RevenueJoe Gelata
This presentation gives a high level overview of funnel theory then dives into methods to fill, convert, and enhance your revenue funnel. It finishes with some tips and lessons learned.
Building a Sales and Marketing machine for a B2B software company involves many functions working together. This slide deck explores the process of funnel design that is highly buyer centric. It looks at the Buyer journey, and how to successfully construct a buying process that they buyer will enjoy going through, which is very different from the typical sale process that is designed from the vendors standpoint, and fails because the buyer is not motivated to go through the steps.
Opticon 2015-Best Practices in Programmatic Ad Buying and Conversion Funnel O...Optimizely
Featuring speakers from Netflix
Patrick McGrath, Product Manager of Ad Technology, Netflix
As of 2015, 50% of the display advertising market is executed programmatically. Without the proper tracking and monitoring setup, optimization efforts start to lose impact and even worse, can yield inaccurate results. This talk affords guidance to companies seeking to grow their programmatic efforts in a controlled manner, while still maintaining A/B and conversion funnel optimization rigor. Points of discussion: 1) Tracking and appropriately scaling a programmatic marketing program via a variety of ad platforms (notably - Google and Facebook). 2) Customer, marketing campaign, and A/B segmentation strategies 3) Audience creation and targeting management 4) A/B optimization and building a programmatic feedback loop.
Whether you're selling items on your website or trying to catch leads, you have a conversion funnel. Understanding the path and drop off points in that path are the key to success to optimize your conversion funnel. We will talk about the easiest ways to track this funnel and how to make sense of all the data you have collected. We will even talk about methods to discover why your users are dropping off and the most effective ways to address it. This talk will also look at the different tools including Google Analytics, HotJar, Mixpanel and Kissmetrics and how each of them can help you track your conversion funnel.
Presented at WordPress Orlando Meetup on July 26th 2016
Lead Gen & Customer Conversions - Filling the Funnel and Getting RevenueJoe Gelata
This presentation gives a high level overview of funnel theory then dives into methods to fill, convert, and enhance your revenue funnel. It finishes with some tips and lessons learned.
Building a Sales and Marketing machine for a B2B software company involves many functions working together. This slide deck explores the process of funnel design that is highly buyer centric. It looks at the Buyer journey, and how to successfully construct a buying process that they buyer will enjoy going through, which is very different from the typical sale process that is designed from the vendors standpoint, and fails because the buyer is not motivated to go through the steps.
Social Commerce 101 - From Conversations to SalesBrunner
An overview of social commerce
How the traditional purchase funnel has changed
The basic elements of your social commerce toolkit
How to use social commerce to generate prospects, convert buyers and harness brand advocates
Five things you can do today to kick start your social commerce efforts
This article written by Diarmaid Byrne, Editor, STQ, was published in issue 06 of Social Technology Quarterly.
Summary: The consumer generated megaphone gives insights into what consumers really feel about a brand, which should be a focal point for brands.
Tweaking the Purchase Funnel and Some of Our Campaign ObjectivesFrank Wong
- Does “awareness” exist only at the top of the purchase funnel?
- Is Awareness and Direct Response the only way to categorize our campaigns?
- How should we factor in the element of “time” when measuring success?
- Where does social play as part of the purchase funnel?
The social media conversion funnel - How to get more likes on FacebookHisocial
Know how to get more likes on facebook with HiSocial. You can create all kinds of promotions such as contests, sweepstakes, coupons and more on the social media.
"From Awareness to Loyalty: How To Optimize the Online Purchase Funnel" - Str...Tealium
Learn how StraighterLine is using the Tealium AudienceStream solution to engage visitors in real time and move them more effectively through the online purchase process. #tagmanagement #digitalmarketing #realtime #data
Building the Case for ERP and E-Commerce Integration: More than meets the eyei95Dev
More often than not, businesses perceive ERP and e-commerce integration as an IT and Operations project. But nothing could be further from the truth. While integration usually begins as an exercise to address the IT and operational challenges of data transfers between two systems, integration has far reaching benefits that should not be underestimated.
10 Ways Investing in CX can Drive Your Business’ GrowthRAYA CX
There’s always talk about customer experience and spending, but is the ROI there?
Numerous studies show customer satisfaction leads to increased revenue and profit, and it doesn’t end there. When a comprehensive CX strategy is put in place with the right CX provider you can enter a stage of limitless growth for your brand and company.
Enhancing your customer experience may seem like another added cost, however, this isn’t true. Strengthening your CX strategy and customer journey mapping can and will increase your customers, revenue, profits, and customer loyalty that then contributes to all the previous.
Know that investing in CX initiatives has the potential to double your revenue. Our infographic touches on the top 10 ways investing in CX can drive your business’ growth. Find out how.
Getting it Right in Mobile: How to Use Mobile to Build RelationshipsWaterfall Mobile
Key goals for effective and efficient customer relationship management have not changed - acquire new customers, build loyalty, and reduce costs. With the advent of cell phones, consumers are forcing businesses to expand their thinking to now include the mobile channel to meet and further those fundamental objectives.
The mobile channel is evolving from one-time, one-off projects to Mobile CRM, where marketers are optimizing one-to-one customer communications and developing more meaningful relationships through this emerging medium.
Here the slides for the talk I am giving at an event organized by Enterprise Ireland. I am quite honored to speak together with Prof Henry Chesbrough, author of Open Business Models... He is opening the conference with his talk, while I am concluding.
Every publisher we speak with wants to know how we drive such high ad performance with our optimization layer. Although we’ve always been completely candid with our publishers in our meetings, we’ve never revealed our trade secrets around our performance in a documented form – until now.
The truth is, performing the optimizations we do for Upsight requires some very proprietary technology, so we feel we can comfortably reveal our optimization secrets. To that end, VP Mediation Platform, Darren Keyes, decided to sit down and write ‘The Art & Science of Ad Optimization’. He explains in painful detail all the tricks of our industry-leading trade.
Social Commerce 101 - From Conversations to SalesBrunner
An overview of social commerce
How the traditional purchase funnel has changed
The basic elements of your social commerce toolkit
How to use social commerce to generate prospects, convert buyers and harness brand advocates
Five things you can do today to kick start your social commerce efforts
This article written by Diarmaid Byrne, Editor, STQ, was published in issue 06 of Social Technology Quarterly.
Summary: The consumer generated megaphone gives insights into what consumers really feel about a brand, which should be a focal point for brands.
Tweaking the Purchase Funnel and Some of Our Campaign ObjectivesFrank Wong
- Does “awareness” exist only at the top of the purchase funnel?
- Is Awareness and Direct Response the only way to categorize our campaigns?
- How should we factor in the element of “time” when measuring success?
- Where does social play as part of the purchase funnel?
The social media conversion funnel - How to get more likes on FacebookHisocial
Know how to get more likes on facebook with HiSocial. You can create all kinds of promotions such as contests, sweepstakes, coupons and more on the social media.
"From Awareness to Loyalty: How To Optimize the Online Purchase Funnel" - Str...Tealium
Learn how StraighterLine is using the Tealium AudienceStream solution to engage visitors in real time and move them more effectively through the online purchase process. #tagmanagement #digitalmarketing #realtime #data
Building the Case for ERP and E-Commerce Integration: More than meets the eyei95Dev
More often than not, businesses perceive ERP and e-commerce integration as an IT and Operations project. But nothing could be further from the truth. While integration usually begins as an exercise to address the IT and operational challenges of data transfers between two systems, integration has far reaching benefits that should not be underestimated.
10 Ways Investing in CX can Drive Your Business’ GrowthRAYA CX
There’s always talk about customer experience and spending, but is the ROI there?
Numerous studies show customer satisfaction leads to increased revenue and profit, and it doesn’t end there. When a comprehensive CX strategy is put in place with the right CX provider you can enter a stage of limitless growth for your brand and company.
Enhancing your customer experience may seem like another added cost, however, this isn’t true. Strengthening your CX strategy and customer journey mapping can and will increase your customers, revenue, profits, and customer loyalty that then contributes to all the previous.
Know that investing in CX initiatives has the potential to double your revenue. Our infographic touches on the top 10 ways investing in CX can drive your business’ growth. Find out how.
Getting it Right in Mobile: How to Use Mobile to Build RelationshipsWaterfall Mobile
Key goals for effective and efficient customer relationship management have not changed - acquire new customers, build loyalty, and reduce costs. With the advent of cell phones, consumers are forcing businesses to expand their thinking to now include the mobile channel to meet and further those fundamental objectives.
The mobile channel is evolving from one-time, one-off projects to Mobile CRM, where marketers are optimizing one-to-one customer communications and developing more meaningful relationships through this emerging medium.
Here the slides for the talk I am giving at an event organized by Enterprise Ireland. I am quite honored to speak together with Prof Henry Chesbrough, author of Open Business Models... He is opening the conference with his talk, while I am concluding.
Every publisher we speak with wants to know how we drive such high ad performance with our optimization layer. Although we’ve always been completely candid with our publishers in our meetings, we’ve never revealed our trade secrets around our performance in a documented form – until now.
The truth is, performing the optimizations we do for Upsight requires some very proprietary technology, so we feel we can comfortably reveal our optimization secrets. To that end, VP Mediation Platform, Darren Keyes, decided to sit down and write ‘The Art & Science of Ad Optimization’. He explains in painful detail all the tricks of our industry-leading trade.
Creating And Measuring A Compelling Path To PurchaseJustin Adler
An e-commerce site faces different challenges compared to selling through a brick and mortar shop. Should your business sink time into an inbound strategy or rely on paid traffic? How effective is each and what are the pitfalls you should watch out for? This talk will discuss the most effective ways to prospect new customers, benchmark the expected results of each, and explore why your business need to invest in acquisition overall. Attendees will learn about different attributional models (and their applications) as well as key metrics for benchmarking channel performance. Ultimately, we will explore the optimal model for sustainable e-commerce growth.
Managing the Monetization and UA Cycle | David CohenJessica Tams
Delivered at Casual Connect USA 2016. Finding the right audience for your app is no easy feat – monetizing them with tact is equally as difficult. But to stay relevant, you must balance the two. Join us and explore several ways developers today are cohesively maximizing their UA and monetization efforts to fuel growth and drive revenue.
The Evolving Role of Payments In a Customer Centric World Chargebee
Chargebee's presentation from our recent talk at the Worldpay Rethink workshop held in Chennai, India.
The presentation, titled 'Evolving Role of Payments in a Customer Centric World', will take you through why we think pricing and payments are integral components of any recurring revenue relationship.
Fast and Furious Customer Journey Mapping
Erinnert sich jemand an das Marken-Erlebnis, dass Sie bieten und redet darüber? Hört eigentlich jemand ihre Botschaft und glaubt dieser auch? In dieser Session lernen Sie einen einfachen Ansatz, entwickelt von der Standford University, der Ihre Marke vom Mitbewerb absetzt. Kommunizieren Sie mit Kunden und Mitarbeitern auf emotionaler Ebene zum perfekten Zeitpunkt. In unserer „Ich-Hier-Jetzt”-Wirtschaft ist Journey Mapping das Werkzeug um ihre Investitionen dort zu konzentrieren wo sie die besten Ergebnisse erzielen. Und Spaß macht es auch.
In this talk we will discuss an ensemble technique for machine learning known as stacking and how it can be used for predictive modeling. The use case we will focus on is to predict an internet user's likelihood of responding to online advertising. We will describe ensemble learning in general and then stacking more specifically. We will introduce techniques to improve the predictive power of a stacked model. Finally, we will discuss how we deploy our stacked models in production at scale.
Landing page design and landing page optimization are probably the most important elements of your digital marketing strategy. Especially for startups.
This presentation is part of the "Making Your Funnel Work" program of Startupbootcamp and E-commercemanagers.com
Visit our website for more information:
https://e-commercemanagers.com/landingpage-optimization/
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
1. AARHUS
UNIVERSITY
E-CRM: THE CONVERSION FUNNEL
Jacob L. Orquin, Ph.D.
Department of Business Administration
Aarhus University
ASB AU
MAPP
2. AARHUS
UNIVERSITY
OVERVIEW
The talk will cover three areas of e-CRM:
1. Acquisition
How to acquire traffic/visitors
2. Conversion
How to convert visitors to customers
3. Retention
How to retain customers
ASB AU
MAPP
3. AARHUS
UNIVERSITY
THE (E)CRM CYCLE
“What is e-CRM? Customer Relations Management with an ´e´? Ultimately, E-CRM cannot be separated from CRM,
it needs to be integrated and seamlessly. However, many organisations do have specific E-CRM initiatives or staff
responsible for E-CRM”
Smith & Chaffey (2005)
ASB AU
MAPP
4. AARHUS
UNIVERSITY
PART 1: ACQUISITION
Acquire web site traffic
› Cost Per Click (CPC)
› Search Engine Optimization (SEO)
Acquire customers
› Cost Per Action/Acquisition (CPA)
Create brand awareness
› Cost Per Mile (CPM)
› Viral marketing
ASB AU
MAPP
5. AARHUS
UNIVERSITY
BUDGETING FOR ACQUISITION
Borrowed from Hoffman & Novak (2000) note that there are no budget
allocation for SEM, that would be quite unusual in 2009.
ASB AU
MAPP
6. AARHUS
UNIVERSITY
ACQUISITION
An overview of traffic sources.
Chaffey (2007)
ASB AU
MAPP
7. AARHUS
UNIVERSITY
COST PER CLICK
Advertisers pay only per click/visitor.
ASB AU
MAPP
8. AARHUS
UNIVERSITY
SEARCH ENGINE OPTIMIZATION
Advertisers seek to optimizie their ”organic” position on specific
search words.
ASB AU
MAPP
9. AARHUS
UNIVERSITY
COST PER ACTION/ACQUISITION
Advertisers pay per action or conversion only
ASB AU
MAPP
10. AARHUS
UNIVERSITY
COST PER ACTION/ACQUISITION
Advertisers pay only per action or conversion
Chaffey & Smith (2008)
ASB AU
MAPP
11. AARHUS
UNIVERSITY
COST PER MILLE
Advertisers pay per 1000 impressions
ASB AU
MAPP
12. AARHUS
UNIVERSITY
COST PER MILLE
The impact of interactive advertising; the click-through has gone from 7 % in 1996
to 0.7 % in 2002. (Drèze & Husherr 2003)
ASB AU
MAPP
13. AARHUS
UNIVERSITY
VIRAL MARKETING
Advertisers are guaranteed a minimum amount of impressions. If the
viral spread is obtained there will be an extra ”free” exposure.
ASB AU
MAPP
14. AARHUS
UNIVERSITY
TRAFFIC SOURCES
Web site traffic is almost always distributed on several sources, e.g.
CPC, SEO, CPA, CPM etc.
ASB AU
MAPP
15. AARHUS
UNIVERSITY
PART 2: CONVERSION
Conversion rate
The ration of web site visitors who
complies with a desired action, e.g.
submitting an order.
Example:
A webshop has 256 customers and
12.300 unique visitors during one month.
This results in the following conversion
rate; 256/12.300 = 2,08 %
ASB AU
MAPP
16. AARHUS
UNIVERSITY
THE CONVERSION RATE
Funnel conversion rate
The image shows a funnel conversion
rate on a typical webshop. The
conversion rate depends on price,
assortment depth, and web site
parameters like usability and credibility.
ASB AU
MAPP
17. AARHUS
UNIVERSITY
ATTRITION
Reasons for attrition frequencies Self-reported reasons for
Unexpected higher price 32 abandoning the website after
Usability issues 28 having reached the shopping
Other people’s opinions 23 cart. (N = 125)
Lacking service options 22
Low trust 21
Delivery time 17 69 % had visited the same
Uncertainty about transaction security 15 website posterior to abandoning
Limited assortment 15 the cart.
Unclear business and transaction terms 14
Negative experiences 11
Uncertainty about foreign websites 6
Lacking e-mærke (trust seal) 4
Difficulties in buying the goods online 4
Total 212
ASB AU
MAPP
18. AARHUS
UNIVERSITY
OPTIMIZING CONVERSION RATE
Optimizing the conversion rate is often a question of designing the
user experience.
ASB AU
MAPP
19. AARHUS
UNIVERSITY
WHAT TO OPTIMIZE
www.conversion-rate-experts.com/articles/101-google-website-optimizer-tips/ ASB AU
MAPP
20. AARHUS
UNIVERSITY
ONLINE MARKETING ROI
The ROI on online marketing activities depends to a large extent on
the conversion rate.
Example for e-commerce:
ROI = (X * R * av.val) / (X * mkt.cost)
X being the number of visitors
R being the conversion rate
av.value being the average value of a conversion
mkt.cost being the average cost per visitor
ASB AU
MAPP
21. AARHUS
UNIVERSITY
PART 3: LOYALTY & RETENTION
ASB AU
MAPP
22. AARHUS
UNIVERSITY
SATISFACTION AND LOYALTY
Satisfaction is a strong predictor of customer loyalty both offline and online.
ASB AU
MAPP
23. AARHUS
UNIVERSITY
COGNITIVE/BEHAVIORAL LOYALTY
Del Giudice (2005) found that cognitive and behavioral loyalty is affected
by website performance and functions as a positive switching cost.
ASB AU
MAPP
24. AARHUS
UNIVERSITY
RETENTION IS (VERY) PROFITABLE!
A 10 % change in repeat customer conversion
leads to a 10 % change in net present value
according to Agrawal et al (2001) E-
performance
ASB AU
MAPP
25. AARHUS
UNIVERSITY
AN ANALYSIS OF RETENTION AND ROI
Retention activity Hours per month Relevance to retention Cost
E-mail newsletter 16 100 % 4.000
Customer support on orders 15 50 % 3.750
Support on phone 125 50 % 15.625
Support on e-mail 75 50 % 9.375
Read and reply to customer reviews 4 80 % 800
Updating website 100 70 % 12.500
Correcting errors in orders 3 100 % 750
Copy writing for website 50 30 % 3.750
Total per month 50.550
Total annual retention costs 606.600
ASB AU
MAPP
26. AARHUS
UNIVERSITY
AN ANALYSIS OF RETENTION AND ROI
Retention rate: 20 %
Retention costs: 606.600
10 % increase in the retention rate costs1:
(606.600/20)*10 = 303.300 ,-
1 assuming a simple linear relation between retention costs and retention rate
ASB AU
MAPP
27. AARHUS
UNIVERSITY
AN ANALYSIS OF RETENTION AND ROI
10 % increase in the retention rate: 1500 more sales per year.
Value of repeat purchases: 750,-
Profit margin: 40 %
Increase in turnover with a 10 % increase in retention rate:
(1500*750)*0.40 = 450.000,-
ASB AU
MAPP
28. AARHUS
UNIVERSITY
AN ANALYSIS OF RETENTION AND ROI
Net present value:
Where:
t - the time of the cash flow
i - the discount rate
Rt - the net cash flow at time t
ASB AU
MAPP
29. AARHUS
UNIVERSITY
AN ANALYSIS OF RETENTION AND ROI
10 % increase costs: 303.300,-
10 % increase leads to: 450.000,-
Discount rate: 5 %
Annual turnover: 1.100.000,-
NPV with 10 % increase:
(450.000 – 303.300) / (1 + 0.05) ^1 = 139.714,-
Increase in NPV: 139.714/1.100.000 = 12,7 %
ASB AU
MAPP
30. AARHUS
UNIVERSITY
AN ANALYSIS OF RETENTION AND ROI
Conclusion: A 10 % increase in retention rate could lead to a
10 % increase in NPV.
But … the ROI on the investment is only:
(450.000 – 303.300) / 303.300 = 48 %
ASB AU
MAPP
31. AARHUS
UNIVERSITY
AN ANALYSIS OF RETENTION AND ROI
So what should you do about retention then? …. As always, that
depends:
(anderson & mittal, 2000) ASB AU
MAPP
32. AARHUS
UNIVERSITY
FACTORS AFFECTING LOYALTY
Reibstein (2002). ASB AU
MAPP
34. AARHUS
UNIVERSITY
CUSTOMER ACTIVITY
Customers can be segmented into:
• New users (registered within 60 days)
• Active users (has visited within 60 days)
• Dormant users (has not visited within 60 days)
• Inactive users (registered but not used)
ASB AU
MAPP
35. AARHUS
UNIVERSITY
SERVICE QUALITY
There are three major steps in improving service quality:
• Understand expectations
• Setting and communicating the service promise
• Delivering the service promise
Touchpoint mapping is a nice and easy way
To get a feel of customer experiences and
service deliverfy.
ASB AU
MAPP
36. AARHUS
UNIVERSITY
SEGMENTATION
Purchased Active :
7 E-responsive
Segmentation into customer
Purchased
lifecycle groups allows for targeted 6 Inactive
communications for each level. Purchased
5 Once or nTimes
Registered
4 Visitor
Newly
3 registered visitor
Return
2 visitor
First-time
1 visitor
Chaffey (2009) ASB AU
MAPP
37. AARHUS
UNIVERSITY
SENSE AND RESPOND
Sense » Respond » Adjust
• Monitor customer actions
• Reacting with appropriate messages or offers to
encourage desired actions
• Monitor responses and adjust messages
Did they click? Savvy e-mail marketers track user
behavior and adjusts messages for different groups of
users (1-to-1).
ASB AU
MAPP
38. AARHUS
UNIVERSITY
RFM ANALYSIS
Customers are segmented into:
• Recency - when was the last purchase made?
• Frequency - how often were purchases made?
• Monetary value - what was the amount of the purchase?
http://renditionx.com/mastering/2007/06/recency_frequency_monetary_val.html
ASB AU
MAPP
39. AARHUS
UNIVERSITY
E-MAIL MARKETING AND LOYALTY
E-mail marketing as loyalty strategy:
ASB AU
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40. AARHUS
UNIVERSITY
E-MAIL MARKETING AND LOYALTY
Response rates in e-mail marketing
Chaffey & Smith (2008)
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41. AARHUS
UNIVERSITY
ECONOMIC INCENTIVES AND LOYALTY
Free music has (had) a positive effect on churn:
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42. AARHUS
UNIVERSITY
SOCIAL MEDIA AS LOYALTY STRATEGY
Engaged visitors are loyal customers:
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43. AARHUS
UNIVERSITY
RETENTION AND ROI
Retaining customers has a high ROI. CPA is lower, conversion
rate is higher and the average value is also often higher for
returning customers.
ROI = (X * ↑R * ↑av.val) / (X * ↓mkt.cost)
X being the number of visitors
R being the conversion rate
av.value being the average value of a conversion
mkt.cost being the average cost per visitor
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44. AARHUS
UNIVERSITY
NEW VS. RETURNING VISITORS
Profit = (aX * R * av.val – aX * mkt.cost)
+ (bX * R * av.val – bX * mkt.cost)
a being the percentage of new visitors
b being the percentage of returning visitors
X being the number of visitors
R being the conversion rate
av.value being the average value of a conversion
mkt.cost being the average cost per visitor
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45. AARHUS
UNIVERSITY
VISITOR SEGMENTATION
The distribution of new vs. CPA
returning visitors is important
for the profitability of the
company.
New
visitors
Av.val
Returning
visitors
CPA = 100/R * mkt.cost
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46. AARHUS
UNIVERSITY
NEW VS. RETURNING VISITORS
Profit = (0,426X * 0,0307 * av.val – 0,426X * mkt.cost)
+ (0,574X * 0,0134 * av.val – 0,574X * mkt.cost)
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47. AARHUS
UNIVERSITY
NEW VS. RETURNING VISITORS
Profit = (0,426X * 0,0307 * 754,50 – 0,426X * mkt.cost)
+ (0,574X * 0,0134 * 727,23 – 0,574X * mkt.cost)
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48. AARHUS
UNIVERSITY
ESTIMATING MKT.COSTS
Estimating mkt.costs for new and returning visitors can be a mess. We estimate
that 42 % of source 2, 50 % of source 3, and 100 % of sources 1 and 6 are
returning visitors ≈ 57,4 % of total visitors.
SEO
SEO
CPC
SEO
CPM
Mail
CPC
CPA
CPC
SEO
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49. AARHUS
UNIVERSITY
ESTIMATING MKT.COSTS
Estimated mkt.costs for returning visitors ≈ 0,7 DKK
Estimated mkt.costs for new visitors ≈ 5,4 DKK
Source Est. mkt.cost
SEO 0,5
SEO 0,5
CPC 5,3
SEO 0,5
CPM 4,8
Mail 1,6
CPC 6,4
CPA 110,5
CPC 5,5
SEO 0,5
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50. AARHUS
UNIVERSITY
ROI ON NEW VS. RETURNING VISITORS
Profit = (0,426X * 0,0307 * 754,50 – 0,426X * 5,4)
+ (0,574X * 0,0134 * 727,23 – 0,574X * 0,7)
→ (333.499 – 184.858) + (1.068.029 – 32.276)
= 148.641 + 1.035.753
ROI on returning visitors: 3209 %
ROI on new visitors: 80 %
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51. AARHUS
UNIVERSITY
CONTACT
Jacob L Orquin, Ph.D.
Department of Business Administration
Aarhus University
E-mail: jalo@asb.dk
Check out my company:
www.userpilot.dk
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