EngageMint 2022: RoAS and Retention The Marketing Mix Evolution
Created & Presented by Sachin Uppal, Co-founder at Fanvideo, at EngageMint, Asia's largest Retention Marketing Conference. Sachin shares the difference between Fans vs Fanatics, how can one identify, engage, amplify positive fanaticism & create deep personalization with AI. About the speaker: Sachin is the Co-founder at FanVideo.co. He has over 15 years of hands-on marketing and product experience across Customer Acquisition, Retention, Product, Analytics, and Brand Management. He has worked with organizations such as Convosight.com, Babydestination, RummyCircle, My11Circle, Ultimate Games, Naseba, National Instruments, Wipro HealthCare, and Wipro Technologies. You can find him here: https://www.linkedin.com/in/sachinu/?originalSubdomain=in About EngageMint: Hosted with love by WebEngage, EngageMint is a platform that brings together marketers and product managers from across Asia, passionate about one thing - giving their customers the ‘aha’ experiences they deserve. At EngageMint, we strongly believe that by equipping professionals with the right strategies, we can initiate a massive shift in the way businesses think about growth, product experiences, customer retention, and everything else in between. All our sessions are hand-curated and deep-dive into each aspect of user engagement and retention. So all you have to do is take notes and implement these learnings as soon as you get back to work! More details: https://webengage.com/engagemint/ WebEngage is a new age Retention Operating System, a single suite for marketers to store user data, provide actionable insights, orchestrate omnichannel campaigns by leveraging user insights to provide a hyper-personalized end-user experience. The platform helps brands drive more revenue from existing customers and anonymous users across 10+ communication channels. WebEngage goes above and beyond a marketing automation platform and powers the user engagement for thousands of enterprise brands worldwide, working across several industries like E-Commerce, Edtech, Fintech, Foodtech, Media & Publications, Gaming, BFSI, Healthcare, Online Retail. The key clientele includes marquee brands like HUL, Bajaj Finserv, Unacademy, ALT Balaji, MakeMyTrip, Zivame, Firstcry, and many more. ---------------------------------------------- To know more about WebEngage, visit - https://webengage.com/ Book a demo with us: https://webengage.com/register-for-demo/?utm_source=youtube&utm_medium=social&utm_campaign=engagemint22&utm_term=sachinuppal To know the latest insights on customer retention and marketing automation worldwide, follow us here: Twitter: https://twitter.com/WebEngage LinkedIn: https://www.linkedin.com/company/webengage Facebook: https://www.facebook.com/WebEngage/ Instagram: https://www.instagram.com/webengage/ #EngageMint22 #EngageMint #RetentionSimplified #SaaS #Martech #B2B
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EngageMint 2022: RoAS and Retention The Marketing Mix Evolution
- 1. Fans. Fanatics. Fear. Sachin Uppal, Co-Founder – FanVideo.co F**ks.
- 2. India has Changed. World is becomingcommunal. nation driven by Emotions. communities of action.
- 3. Fans or Fanatics what really works?
- 4. Which FMCG companies are these? Company A – Established in 2006 Company B – Established in 1936 ₹0 ₹5,000 ₹10,000 ₹15,000 ₹20,000 ₹25,000 ₹30,000 ₹35,000 ₹40,000 ₹45,000 Revenues (Crores) Company A Company B
- 6. Traits of Fanatics Louder VOICe. Forceful Action. Net results.
- 7. Positive Fanaticism Core Belief Systems Drive Fanaticism. Understand your consumers core Belief systems. creatE motivations for positive fanaticism. Leverage Fanaticism for Good.
- 8. CAC Vs CAX - Which drives better roas? Customer Vs Fan Vs Fanatic • Cost of Acquiring a Customer = CAC • Cost of Customer Advocacy and Experience = CAX • Paid Marketing CAC = (Cost spent on Paid Marketing) / (Customers Acquired) • Dn CAX = (Dn ARPU) * (Dn Retention Rate) * (Dn Paid Referrals / Customers) Here: D is days and n is the number of days. Dn CAXROAS=Dn CAX/ Dn CAC
- 9. Illustration • CAC: $100 | ARPU: $1000 | Retention Rate: 40% | Paid Referrals: 2 • ROAS = ($1000*40%) / $100 = 4 • CAX = ($1000*40%*2) / $100 = 8 The key is people driven content and retention Amplification. CAC Vs CAX - your roas driver is retention Customer Vs Fan Vs Fanatic
- 10. What’s your Competitive advantage? • Everyone has the same open auction platform access. • Compete with creative. Use authenticity. • Nothing beats retention. Advocacy drives WOM. • Retention and advocacy enables acquisition. • CAX is the competitive advantage. • Leverage AI for Retention. Your Differentiator.
- 11. Rx Amplify. GROW. Focusing on CAX – Retention and Advocacy. Higher revenues | Subsidized CAC. Compete better in the market.
- 12. driving Fanaticism for good. How to identify, engage, amplify positive fanaticism?
- 13. Evoke emotions. Sharers. Referrers. Complainers. they care and Act.
- 14. Fear. Pride. Humour. emotions drives action. Identify the right emotion. Drive FOMO for brand love.
- 16. Give F**ks Deep understanding of customers. Deep personalization with AI. Power of 1 to 1.
Editor's Notes
- Hi Guys! I am Sachin Uppal, Co-Founder at FanVideo.co. Today, I want to talk about 4Fs of Consumer behavior that are shaping Indian consumer’s buying patterns. And yes, the last word is the four letter word starting with F. So, now that I have your Attention, let’s talk about some ROAS and Retention Mix. How do we get consumers to buy again? Stick with our brand? Increase their LTV? To recommend us more?
- India has changed. While everyone knows that, I say this because: Indian consumers are spoilt for choice, at their price-point! and their-convenience! 3 Trends that I am seeing around us Our world is becoming communal. Buying decisions may no longer be based on rational logical approach. We are a Nation driven by Emotions. We act based on how we feel. And we are forming Communities around common problems and pain points on platforms like WhatsApp and Facebook Groups. And the people leading such communities are becoming the voice of purchase. And how does it all matter to us as Marketers and Leaders? We have to re-think marketing and retention.
- So lets talk about the First 2 Fs. The Fans and fanatics. Would you like to create Fans or Fanatics for your Brands? For Fans - Raise Hands For Fanatics – Raise Hands But then you might ask, what really works for your brand? What really works for higher ROAS and Retention? Let me show you something.
- Pause for 5 seconds. Now, here, I have just compared two Indian FMCG companies. One follows the approach of building Fans and other builds Fanatics. Can you guess which one is which? Any guesses?
- Those of you who said Company A, are right. Patanjali, a 15 year old company, has grown their consumer base so rapidly and is challenging a 100 year old brand for rank 1. They have over 750K consumers driving their growth. So how have they been able to do this? Who are these fanatics? What traits do they have?
- They are: Fanatics are Louder than Fans - So enable their Voices. Let them be seen. They drive forceful action. The real paying customers, spread the positive word of mouth for your brand. They drive results – Real customers are driving real results, so acknowledge and encourage them and turn them into your advocates.
- Many of us might think Fanaticism has a negative connotation. But as marketers we know, that when you feel deeply about a product, you will buy, recommend and share more. We need to understand, our consumers belief systems, as these systems are the core drivers of action. Fanatics have a deeper connect with the brand. They treat our brand as their own. And take pride in promoting. We need to empower them and create motivations for positive fanaticism. Let’s leverage fanaticism for good.
- We are all chasing numbers. Number of customers. Cost of Acquisition. Return on Ad Spends. Higher LTVs. However, I believe that driving CAX is far more powerful metric than CAC. And that’s not easy to do. Because for someone to become an advocate, they have to be your brand’s Fanatic. CAX is an encompassing metric that includes Revenue, Retention Rate and Referrals. A higher CAX shows that you are not just running after customers. A paid customer without a repeat purchase or a referral or sharing is unoptimized CAC. But building a business that’s sustainable requires us to turn our customers into Fans and Fanatics. Any questions for this slide?
- Let me show you with an example the impact of measuring CAX? With the same acquisition metrics i.e. the CAC, ARPU and Retention, A Fanatic will drive 2X the ROAS if they are constantly engaged to drive sharing and referrals. The Key here is to identify and engage your Fans and Fanatics. So I’ll repeat, Enable their Voices. Let them be seen. The real paying customers, spread the positive word of mouth for your brand. Real customers are driving real results, turn them into Advocates. And nothing does that better than people driven content! Any questions here?
- So, now lets think about Acquisition and retention mix! Everyone has access to FB, Google, Programmatic buying. In an auction, what would then matter is the creative. Use authentic creatives that drives higher CTRs. Which will lower your acquisition costs. However, nothing beats retention. Retention coupled with Advocacy will drive your CAX. With higher Advocacy, CAX becomes your Competitive Advantage. And how can you put this in practice? Your answer is AI. Leverage AI and ML to identify your Fans and Fanatics. That’s your differentiator.
- So to summarize. Focus on CAX. Drive Retention and Advocacy. It will help in driving higher Revenues and Subsidize your CAC. That will enable you to compete better in Market.
- Now, you might be wondering, how di I identify, engage and amplify positive fanaticism? Well, humans work on neurological transmitter driven actions. And what triggers these neurological transmitters?
- Emotions. Sharers, Referrers and Complainers care about your brand. They treat it as their own. That’s why they act. So, what emotions should we evoke for these Fanatics?
- Here are the three emotions that drive fanatic actions. Fear drives instant action. Pride drives consistent repeat action. And humour drives engagement. So identify the right mix through your creative and drive Brand Love. Let me show an example video made by one of my favorite people Sindhu Biswal, Digital Head at Betterhalf.ai
- Hehehe. So here is definitely where you should give an F. Deep understanding of customers through their belief systems, motivations and triggers will help you create communication that drives action. Deep 1 to 1 personalization with AI can help. Creating consumer journeys that are personalized for 1 is the only way to go.