The document discusses the realities of gamified loyalty programs in e-commerce. It notes that while e-commerce seems simple, businesses need to focus on customer acquisition, conversion optimization, and loyalty over time. The document then presents results of a study on gamification and loyalty programs. Key findings include that most users prefer fun loyalty programs that connect brands, and attitudes towards gamification differ between countries - with users in Spain and Latin America generally more open to gamified experiences than those in the US, UK, and Canada. The conclusion is that e-commerce businesses should keep loyalty programs simple, tailor experiences to different cultures, and focus on engaging their most valuable customers.

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”

3. #GWC14 - @josek_net
But reality is always harder…

4. #GWC14 - @josek_net
You need to invest in traffic acquisition

5. #GWC14 - @josek_net
But if your product/service is not good enough you won’t sell

6. #GWC14 - @josek_net
Sales = Traffic x Conversion x AOV x Recurrence
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers

7. #GWC14 - @josek_net
First eCommerce focuses on acquisition
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers

8. #GWC14 - @josek_net
After that, you need to focus on CRO (sales optimization)
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers

9. #GWC14 - @josek_net
And then on loyalty (or how to sell more times to the same customers)
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers

10. #GWC14 - @josek_net
Sales = Traffic x Conversion x AOV x Recurrence
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers

11. #GWC14 - @josek_net
CAC vs LTV => It’s going harder as the eCommerce market matures

12. #GWC14 - @josek_net
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

13. #GWC14 - @josek_net
Just 1% of eCommerce websites have a loyalty program
Source: Adobe Digital Index Report

14. #GWC14 - @josek_net
Question and hypothesis
Why don’t you focus on the best revenue
source?
!
!
!
Could gamification be an ally for eCommerce
websites?

15. #GWC14 - @josek_net
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)

16. #GWC14 - @josek_net
So far…
> 1.000 customers surveyed
32 eCommerce Manager surveyed
Analysis of behavioral data from 5
(big) online stores

17. #GWC14 - @josek_net
Let’s see some results

18. #GWC14 - @josek_net
52% of people buys in online stores
recommended by their friends

19. #GWC14 - @josek_net
79% of users thinks it’s important
that online stores offers a loyalty
program

20. #GWC14 - @josek_net
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

21. #GWC14 - @josek_net
64% of users prefer loyalty
programs that connect several
brands

22. #GWC14 - @josek_net
Going further
Ok, ok….but that’s only loyalty…
What about gamification?

23. #GWC14 - @josek_net
It’s not everywhere the same…

24. #GWC14 - @josek_net
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!

25. #GWC14 - @josek_net
In all countries people understand
PBL (if it helps users to get what
they need)

26. #GWC14 - @josek_net
In Spain and LATAM >72% of users
liked Bonobos Scavenger Hunt; US,
UK and Canada < 24%

27. #GWC14 - @josek_net
In Spain and LATAM ~36% of users
liked Gilt Noir; US, UK and Canada ~
15%

28. #GWC14 - @josek_net
In Spain and LATAM ~51% of users
liked Best Buy’s presence on
Cityville; US, UK and Canada ~ 17%

29. #GWC14 - @josek_net
In Spain and LATAM ~73% of users
liked Arby’s (SM participation); US,
UK and Canada ~ 19%

30. #GWC14 - @josek_net
Don’t try to engage everybody, just
your target market
From the other side (eCommerce Manager perspective)

31. #GWC14 - @josek_net
What works to engage with your
target market may make a bad
impression to other users
From the other side (eCommerce Manager perspective)

32. #GWC14 - @josek_net
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)

33. #GWC14 - @josek_net
But…
…20% of the users can generate
80% of your revenues

34. #GWC14 - @josek_net
Conclusion 1: Keep it simple

35. #GWC14 - @josek_net
Conclusion 2: Different cultures, different experiences

36. #GWC14 - @josek_net
Conclusion 3: You only need “a few” customers to make the difference (~10%)

37. #GWC14 - @josek_net
Less than one month for the final report

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