José Carlos Cortizo's presentation from his talk at Gamification World Congress 2014

1. The Reality of Gamified Loyalty in
eCommerce
Smart eCommerce for Smart People
José Carlos Cortizo - @josek_net
Co-founder and CMO at @brainsins_en

2. #GWC14 - @josek_net
eCommerce is a simple concept
“You open up an online store and sell everywhere in the world”

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But reality is always harder…

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You need to invest in traffic acquisition

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But if your product/service is not good enough you won’t sell

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Sales = Traffic x Conversion x AOV x Recurrence
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers

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First eCommerce focuses on acquisition
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers

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After that, you need to focus on CRO (sales optimization)
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers

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And then on loyalty (or how to sell more times to the same customers)
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers

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Sales = Traffic x Conversion x AOV x Recurrence
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers

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CAC vs LTV => It’s going harder as the eCommerce market matures

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Traffic and sales of recurring customers
0
12,5
25
37,5
50
Due to recurring customers (% over total)
47%
8%
Traffic Sales
Source: Adobe Digital Index Report

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Just 1% of eCommerce websites have a loyalty program
Source: Adobe Digital Index Report

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Question and hypothesis
Why don’t you focus on the best revenue
source?
!
!
!
Could gamification be an ally for eCommerce
websites?

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Just test the hypothesis…
2.552 users from US, UK, Canada,
Spain, Mexico, Chile, Colombia, Brazil
300 eCommerce Managers (same
countries)
Analysis of behavioral data from
200 online stores (same countries)

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So far…
> 1.000 customers surveyed
32 eCommerce Manager surveyed
Analysis of behavioral data from 5
(big) online stores

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Let’s see some results

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52% of people buys in online stores
recommended by their friends

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79% of users thinks it’s important
that online stores offers a loyalty
program

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74% of users belongs to a loyalty
program. But only 30% belongs to a
loyalty program of an online store
Only 5% if we don’t take into
account Amazon Prime

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64% of users prefer loyalty
programs that connect several
brands

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Going further
Ok, ok….but that’s only loyalty…
What about gamification?

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It’s not everywhere the same…

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In Spain and LATAM 69% of users
prefer a fun user experience =>
Make it fun!
In US, UK and Canada, less than
25% => Make it transactional!

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In all countries people understand
PBL (if it helps users to get what
they need)

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In Spain and LATAM >72% of users
liked Bonobos Scavenger Hunt; US,
UK and Canada < 24%

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In Spain and LATAM ~36% of users
liked Gilt Noir; US, UK and Canada ~
15%

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In Spain and LATAM ~51% of users
liked Best Buy’s presence on
Cityville; US, UK and Canada ~ 17%

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In Spain and LATAM ~73% of users
liked Arby’s (SM participation); US,
UK and Canada ~ 19%

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Don’t try to engage everybody, just
your target market
From the other side (eCommerce Manager perspective)

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What works to engage with your
target market may make a bad
impression to other users
From the other side (eCommerce Manager perspective)

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At the end of the day money is
king: is the main reason for
repeated purchases (67%) and
78% of users would buy in another
online store if it’s cheaper
From the other side (eCommerce Manager perspective)

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But…
…20% of the users can generate
80% of your revenues

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Conclusion 1: Keep it simple

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Conclusion 2: Different cultures, different experiences

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Conclusion 3: You only need “a few” customers to make the difference (~10%)

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Less than one month for the final report

38. @brainsins_en
@josek_net
josecarlos.cortizo@brainsins.com