How to deliver sustainable growth for eCommerce websites: 1. Measure the right KPIs 2. Set strategic Objectives 3. Brainstorm and generate strategic initiatives 4. Prioritization 5. Experimentation

1. How to deliver sustainable growth for
eCommerce websites

2. 1. The maturity phases of an eCommerce
2. RFM Model
3. Retention hacks
4. Let’s get to action

3. > Serial entrepreneur from Bucharest, Romania
> Passionate about psychology, data, relations & change
Valentin Radu
CEO & founder Omniconvert

4. WHAT DO WE REMEMBER
?
My life tests:
> 17 different jobs
> 4 companies
> 30 relationships
> raising 2 kids
> (Thank God!) - having one wife

5. eCommerce is not a
one-night stand

6. is about
habit-forming

7. Being data-driven

8. Not acting
on old
assumptions

9. Maturity levels
of an eCommerce

10. 0-1 years
Focus
on traffic

11. 1-2 years
Focus
on orders

12. >2 years
Focus
on customers

13. >10 years
Focus
on
survival/innovation

16. “After 24 months, 50% of the revenue is
generated by returning customers”

18. Intr-un e-commerce matur...

19. The average eCommerce
retention rate
Is 30%

20. If you have an eCommerce with a YoY
growth of 50% for new customers

21. 60% retention rate
40% retention rate
20% retention rate
10% retention rate
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Annualrevenue

22. After 6 years, 90% of the revenue is
generated by returning customers,
at a 60% retention rate

23. Customer-centricity phases
Awareness Research Strategy Execution
Business Intelligence
(NPS, RFM segmentation, Lifetime
Value vs Customer Acquisition cost)
Budget
(Retention programs, operations
team, new technologies)
Team
Technology
(to track, report,, personalize the
experience)
Business Intelligence Platform
Business Analyst
Personalization
BI Tool Survey tools
Data Analyst Data Analyst
Devs, UX, Customer
Support
Low Low Medium High

24. Awareness Research Strategy Experimentation1 2 3 4
Previous performance,
Revenue per visitor,
Conversion rate
Funnel drops, purchase
Intent, ads ROI,
Insights impact, time,
number of hypothesis
Experimentation velocity,
incremental uplifts, time to
Deploy the winning tests
Conversion Rate Optimization Framework
Measure
Find
Change
Create
Eliminate
Hypothesis & new
opportunities
Internal processes, roles,
Company priorities
Internal processes & roles,
experimentation team,
backlog, methodology,
customer-centric reports
Useless process, positions,
traffic -centric reports
What works, what’s not,
new hypothesis & clues.
Customer experience, website
communication, support,
return policies
New customer journey,
Internal awareness,
gamification, Personalized
experiences
Old-ways to treat customers
on all the touchpoints
Uncertainty, old ways
company defines success
Methods to track conversion
& customer satisfaction
Internal confusion,
doubt
Conversion-focused
objectives
Company mindset
Data anomalies &
patterns
Internal mindset towards
buyer persona, ways to
collect & interpret data
Best customers groups,
barriers, buying patterns,
data insights

25. INSIGHTS
bit.ly/CROinsights

26. Awareness phase
1

27. https://goo.gl/8Ttyv9
Monitor the
right KPI’s
1
2
3
4
5
Set strategic
goals
Strategic
Initiatives
Prioritise
Execute & repeat

28. Strategic initiative
OS 1:
increase NPS
to 75
OS2:
Decrease
return rate to
10%
OS 3:
Increase LTV
to $3400
OS 4: Increase
conversion rate
to 1.4%
OS 5:
Increase
retention rate
to 65%
Total
impact
score
Personalized thank-you letter after the first
order 5 1 3 0 4 13
PPC Hacking 0 0 0 2 0 4
Build / hire a growth team 3 2 2 3 3 16
Retention optimization audit 3 1 2 3 3 10
Activate a new payment method 0 0 0 2 2 4
Find out the buyer persona with on site surveys 1 0 1 3 3 8

29. Cohort Analysis (how customers are churning through time)

30. Retention Rate impact

31. https://goo.gl/8Ttyv9

32. Retention Rate Optimization
methodology
2

33. Awareness Research Strategy Experimentation1 2 3 4
LTV, Cohorts, CAC,
Retention Rate.
Buyer Persona,
RFM Segments,
Barriers.
Insights impact, time
to impact, number of
hypothesis.
Experimentation
velocity, incremental
uplift, retention rate.
Retention Rate Optimization Framework
What to
determine?
Tools
Team
BI Tool,
Web Analytics.
Web Analytics,
Omniconvert Surveys,
BI Tool.
Jira,
Experiment Engine
Growth Hackers, etc.
Omniconvert A/B
Testing &
Personalization,
Web Analytics.
eCommerce Manager,
Business Analyst.
Data Analyst,
Web Developer, QA.
eCommerce Manager,
Business Analyst,
Data Analyst
Project Manager, Data
Analyst, Copywriter,
Developer, QA,

34. Build the
RFM model
Analyze the impact
(NPS, Retention, LTV)
Don’t stop until you
have 100 ideas
Understand your
Buyer Persona:
surveys for each
important segment
Hygiene step:
Treat the pains
(product / services)
Start brainstorming
based on your budget
Cosmetics step:
Do the math - how much
can you invest to keep a
customer vs to acquire a
new one?
Execute
Restart

35. RFM Segmentation > Buyer Persona
3

36. Recency - How recent is the last order?
Frequency - How often that customer bought?
Monetary Value - What is the total revenue you got from the customer?

37. Customer Recency Frequency Monetary Value RFM
John Doe 3 4 2 9
Joan Doe 2 3 3 8
Geena Doe 4 1 1 6

38. Who’s your Buyer Persona?
Why are they (not) buying anymore?

39. How many of your customers
are placing the 2nd order?

40. Why?

41. From the ones which are not ordering anymore, how
many are not placing an order because of
> your products
From which categories?
Bad quality / false expectations?
> your services
Delivery time, experience, return policy, packaging, etc?

42. How to do it?
> On-site surveys
> Post-order emails
> Post-order remarketing FB ads
(with proper capping)

44. How can we use an RFM model?

45. Identify the best customers
Proper retention program
Higher retention rate
Higher revenue
Data-driven growth

46. Under-promise, over-delivery
On every touch-point:
personalization
4

47. Hand-written thank-you letter

48. Surprise gift

49. That’s for you to understand how happy
we are that you’ve placed your second
order on our website.

50. Courtesy call after the 1st order

51. A welcome-back surprise
according to recency score

52. Your homework
1. Emotions will build relations
2. You should make someone responsible for retention
3. Focus on habit-forming
4. You can’t grow retention (and anything else) if you don’t
monitor it. What you don’t measure, doesn’t count
5. Be good

55. Interested in our BI &
personalization plugin for Magento?
https://www.omniconvert.com/magento-retention-plugin

56. A/B testing - wysiwyg editor, split
URL testing, multi-page testing
Actionable Surveys - Cart abandonment
surveys with real time objection treatment,
Net Promoter Score, Buyer Persona
identification
Web Personalization - change the visitor's experience
in real time using on-page variables based on Customer
Lifetime Value, Geo location, behaviour, Weather
conditions, etc.
Interactions - pop-ups, bars, widgets which can be
triggered on load, on scroll, on the exit intent of the
visitors
Business Insights - Track & monitor the
most important eCommerce KPIs, Llifetime
Value, RFM segment, cohort analysis, ROI,
YoY growth

57. Proud to work with:

58. Valentin Radu
www.omniconvert.com
https://uk.linkedin.com/in/valentinradu
Thank you!