Jose Nino: Perry Ellis International Case Study
- 1. E-Commerce Workshop A Reviewof Successful Strategies and Promising Trends Jose Nino Perry Ellis International Director of E-Commerce Marketing jose.nino@pery.com
- 2. E-Commerce Workshop A Reviewof Successful Strategies and Promising Trends AGENDA About Perry Ellis International (PEI) PEI Online History Trends in USA E-Commerce PEI Crossborder – LATAM What has worked for PEI Omnichannel What has worked for PEI Omnichannel (Kinda) Partner Ecosystem Q&A
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- 5. Perry Ellis Int’l(Nasdaq: PERY) is a leading international manufacturer and marketer of apparel. Its diverse portfolio of brands, either wholly owned or licensed trademarks from third parties, are available through multiple distribution channels. FY14 Revenue: $912M Stores w/PEI Product: 15,000+ Licensing Agreements: 100+ FY14 Units Shipped: 70M+ FY14 DTC E-Com Growth: 45% ABOUT PEI
- 6. • In 2014,PEI received praise from a leading industry digital ranking. - Four companies received “genius” award, including COACH, Gucci, Tory Burch and Ralph Lauren. - 22 companies received “gifted” award, including Perry Ellis International, Kate Space, Burberry, Calvin Klein, Lacoste, Chanel, Giorgio Armani and others. ABOUT PEI
- 7. USA: +47% |+27% 2014 vs 2013 E-Com Growth Revenue | Traffic ALL LATAM: +72% | +63% CHINA: +4% | +23% Q1FY16 vs Q1FY15 +46% | +47% ABOUT PEI
- 8. Never be afraidto take risks, and never take the clothes you wear too seriously. “ “- PERRY ELLIS
- 9. Sept 1st, 2006| PerryEllis.com Nov 1st, 2006 | OriginalPenguin.com Mar 1st, 2009 | Cubavera.com Jan 5th, 2014 | PerryEllis.com LATAM Jan 9th, 2012 | Original Penguin UK Jan 5th, 2014 – Jan 4th, 2015 | Cubavera.com LATAM Site circa Sept, 2006 Site circa Nov, 2006 Site circa May, 2009 PEI ONLINE HISTORY
- 10. Sep 8th, 2008– Sept 30th, 2014 | Candccalifornia.com Oct 10th, 2011 | RafaellaSportswear.com Oct 27th, 2013 | CallawayApparel.com Jan 5th, 2014 – Jan 4th, 2015 | Rafaella Sportswear LATAM Site circa Oct, 2011 Site circa Sept, 2008 Site circa May, 2013 PEI ONLINE HISTORY
- 11. TRENDS IN USAE-COMMERCE INDUSTRY TRENDS • 2014 saw 12-15% average growth (depends on who you ask). - Nearly five times greater than growth in U.S. retailing (3.2%) • E-Commerce retail now accounts for 10% of total retail sales. • Consolidation continues in an attempt to maintain market share. - #1 Office supply giant Staples bought #2 office supply giant Office Depot after Office Depot bought #3 office supply giant Office Max in 2012. - Men’s clothing giant Men’s Wearhouse completed hostile takeover of Jos. A Banks in 2014. - 1-800 Flowers purchased Harry & David, a decade’s old purveyor of gourmet food and gifts. USA E-COMMERCE NEARING MATURITY
- 12. TRENDS IN USAE-COMMERCE • Age of Disruptors: Rise of online only merchants that are exclusively direct to consumer, bypassing margin eroding distribution middlemen. - Dollar Shave Club offering razors at a price point that is roughly 80% cheaper than Gillette. P&G has been forced to revise their marketing campaigns so that their relative value is emphasized. - Warby Parker has disrupted traditional eyewear conglomerates such as Visionworks and Lenscrafters by offering premium eyewear via a direct to consumer model. At roughly 70% less than comparable offline glasses, they recently deployed physical stores to augment their omni- channel fulfillment model. INDUSTRY TRENDS USA E-COMMERCE NEARING MATURITY
- 13. TRENDS IN USAE-COMMERCE • Ship to store continues to gain momentum. Proven and effective way to increase AOV, primary omni-channel driver. - PEI initial rollout underway for Perry Ellis and Original Penguin stores. - 40% of Home Depot e-commerce orders are shipped to store. Of those orders, nearly 25% of customers purchase an additional item during their store visit to pick up their web order merchandise. • Traditional retailers such as JCPenney, Sears and Best Buy continue to close physical locations and recycle savings into digital operations. - Macys turning flagships into distribution centers for e-commerce decreasing logistics cost and improving delivery times to better compete with Amazon Prime and augment their omni-channel execution . INDUSTRY TRENDS USA E-COMMERCE NEARING MATURITY
- 14. TRENDS IN USAE-COMMERCE • Flash site popularity continues to diminish, although there are some exceptions. - Stronger economy has led to decreased need for manufacturers to clear inventory. Any activity that does take place are at substantially reduced margins. - As consolidation continues, only a handful of retailers exist thereby impacting brand’s ability to guarantee favorable wholesale prices. This has had an effect on flash site business model sustainability. - After explosive growth in 2009-2011, leaders such as RueLaLa and Hautelook have posted single digit gains in 2014. Previous darlings LivingSocial and Groupon both posted double digit decreases. INDUSTRY TRENDS USA E-COMMERCE NEARING MATURITY
- 15. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY TRENDS
- 16. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2005 EXPOSURE AWARENESS DISCOVERY CONSIDERATION CONVERSION RETENTION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 60+ AUDIENCE
- 17. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2005 EXPOSURE AWARENESS DISCOVERY CONSIDERATION CONVERSION RETENTION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 60+ AUDIENCE Contextual Display Nonbranded CPC Froogle SEO Shopzilla Branded CPC Affiliates Branded CPC EMails EMails
- 18. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY CONSIDERATION CONVERSION RETENTION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 60+ AUDIENCE Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Personalization Shop Runner Omni-channel - Fulfillment - Marketing Loyalty Programs CRM/ESP LTV Analysis Behavioral Display - Retargeting Behavioral Emails - Cart Abandonment - Category Abandonment - Product Abandonment - Editorial CSEs Affiliate Marketing User Generated Content
- 19. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS 100% 70% 5 0-15 Days Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital
- 20. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS 100% 70% 5 0-15 Days Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Last Click Effectiveness: 1 Post Engagement Effectiveness: 4 Incremental Lift Value: 2 Channel Lift: Direct & SEO Last Click Effectiveness: 2 Post Engagement Effectiveness: 7 Incremental Lift Value: 4 Channel Lift: Direct & Paid Search Last Click Effectiveness: 3 Post Engagement Effectiveness: 8 Incremental Lift Value: 5 Channel Lift: Direct & Paid Search Last Click Effectiveness: 1 Post Engagement Effectiveness: 2 Incremental Lift Value: 2 Channel Lift: Direct INFLUENCER MARKETING SOCIAL | LOOKALIKE MODELING SOCIAL | CUSTOM AUDIENCES NATIVE DIGITAL
- 21. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY 100% 70% 50% 40% 30% 0-15 Days 16-30 31-45 Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping
- 22. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY 100% 70% 50% 40% 30% 0-15 Days 16-30 31-45 Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Last Click Effectiveness: 5 Post Engagement Effectiveness: 1 Incremental Lift Value: 5 Channel Lift: Direct & Paid Search Last Click Effectiveness: 4 Post Engagement Effectiveness: 6 Incremental Lift Value: 5 Channel Lift: Direct Last Click Effectiveness: 3 Post Engagement Effectiveness: 4 Incremental Lift Value: 3 Channel Lift: Direct Last Click Effectiveness: 6 Post Engagement Effectiveness: 1 Incremental Lift Value: 3 Channel Lift: Organic Last Click Effectiveness: 8 Post Engagement Effectiveness: 3 Incremental Lift Value: 7 Channel Lift: Paid Search NONBRANDED CPC PROGRAMMATIC OPEN EXCHANGE PROGRAMMATIC PRIVATE MARKETPLACE SEO GOOGLE SHOPPING
- 23. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY CONSIDERATION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Behavioral Display - Retargeting Behavioral Emails - Cart Abandonment - Category Abandonment - Product Abandonment - Editorial CSEs Affiliate Marketing User Generated Content
- 24. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY CONSIDERATION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Behavioral Display - Retargeting Behavioral Emails - Cart Abandonment - Category Abandonment - Product Abandonment - Editorial CSEs Affiliate Marketing User Generated Content Last Click Effectiveness: 7 Post Engagement Effectiveness: 3 Incremental Lift Value: 8 Channel Lift: Direct & Display Last Click Effectiveness: 6 Post Engagement Effectiveness: 3 Incremental Lift Value: 6 Channel Lift: Direct & EMail Last Click Effectiveness: 5 Post Engagement Effectiveness: 2 Incremental Lift Value: 4 Channel Lift: Paid Search Last Click Effectiveness: 9 Post Engagement Effectiveness: 2 Incremental Lift Value: 8 Channel Lift: Affiliates Last Click Effectiveness: N/A Post Engagement Effectiveness: 6 Incremental Lift Value: 3 Channel Lift: Organic BEHAVIORAL DISPLAY BEHAVIORAL EMAILS CSEs AFFILIATE MARKETING UGC
- 25. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY CONSIDERATION CONVERSION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 60+ Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Personalization Shop Runner Omni-channel - Fulfillment - Marketing Behavioral Display - Retargeting Behavioral Emails - Cart Abandonment - Category Abandonment - Product Abandonment - Editorial CSEs Affiliate Marketing User Generated Content
- 26. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY CONSIDERATION CONVERSION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 60+ Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Personalization Shop Runner Omni-channel - Fulfillment - Marketing Behavioral Display - Retargeting Behavioral Emails - Cart Abandonment - Category Abandonment - Product Abandonment - Editorial CSEs Affiliate Marketing User Generated Content Last Click Effectiveness: N/A Post Engagement Effectiveness: N/A Incremental Lift Value: 3 Channel Lift: N/A Last Click Effectiveness: N/A Post Engagement Effectiveness: N/A Incremental Lift Value: 2 Channel Lift: Direct Last Click Effectiveness: N/A Post Engagement Effectiveness: N/A Incremental Lift Value: 5 Channel Lift: Direct Last Click Effectiveness: 3 Post Engagement Effectiveness: 4 Incremental Lift Value: 2 Channel Lift: Direct & Affiliates PERSONALIZATION SHOPRUNNER OMNI-CHANNEL FULFILLMENT OMNI-CHANNEL MARKETING
- 27. TRENDS IN USAE-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY CONSIDERATION CONVERSION RETENTION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 60+ AUDIENCE Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Personalization Shop Runner Omni-channel - Fulfillment - Marketing Loyalty Programs CRM/ESP LTV Analysis Behavioral Display - Retargeting Behavioral Emails - Cart Abandonment - Category Abandonment - Product Abandonment - Editorial CSEs Affiliate Marketing User Generated Content
- 28. PERRY ELLIS CROSSBORDER | LATAM
- 29. PERRY ELLIS CROSSBORDER TODAY | LATAM Q1FY16 PEI CROSSBORDER | LATAM
- 30. PERRY ELLIS CROSSBORDER TODAY | LATAM Q1FY16 COMPS MEXICO Traffic: +72% Revenue: +46% CHILE Traffic: +72% Revenue: +46% GUATEMALA Traffic: +318% Revenue: +187% COSTA RICA Traffic: +318% Revenue: +187% BRAZIL Traffic: +52% Revenue: +146% PEI CROSSBORDER | LATAM
- 31. TRANSLATION & LOCALIZATIONRESOURCES LET TECHNOLOGY DO THE HEAVY LIFTING. THE MAIN TYPES OF TRANSLATION SOFTWARE INCLUDE: Machine Translation This is an automated translation tool, and typically renders results from a crowd sourced database. Most popular option is as Google Translate, as well as Bing Translator. CORRECT PEI CROSSBORDER | LATAM Misinterpreted contextual meaning.
- 32. Computer Assisted Tools Usedprimarily by translation and technology industries. “Translation memory” is manually created by humans, not machines, thereby allocating sensitivity around contextual misinterpretations that computers can’t decipher, yet. TBX Markup An extension of translation memory, except much more technical. Its objective is to easily integrate with XML standards for streamlined execution. PEI CROSSBORDER | LATAM LET TECHNOLOGY DO THE HEAVY LIFTING. THE MAIN TYPES OF TRANSLATION SOFTWARE INCLUDE: TRANSLATION & LOCALIZATION RESOURCES
- 33. DON’T FORGET TO“LOCALIZE” THE TRANSACTIONAL ELEMENT. International Checkout After “localizing” your content, make sure you extend the following efforts to your checkout process: Customers want to see pricing in their local currency. They also want to see VAT/Duty charges for complete transparency and decreased customs surprises. Finally, UPS/Fedex is not the only option, especially overseas where there are cheaper alternatives (DHL). PEI CROSSBORDER | LATAM TRANSLATION & LOCALIZATION RESOURCES
- 34. PERRYELLIS.COM LATAM INFRASTRUCTURE Proxybased machine translation from …………… Translation Memory Database Proxy Checkout Localization from …………….. Customer PerryEllis.com Customer in Mexico Server API Call PerryEllis.com PEI CROSSBORDER | LATAM TRANSLATION & LOCALIZATION RESOURCES
- 35. PEI CROSSBORDER |LATAM PERRYELLIS.COM LATAM INFRASTRUCTURE TRANSLATION & LOCALIZATION RESOURCES
- 36. PEI CROSSBORDER |LATAM PERRYELLIS.COM LATAM INFRASTRUCTURE IF YOU ARE IN MEXICO… TRANSLATION & LOCALIZATION RESOURCES
- 37. PEI CROSSBORDER |LATAM PERRYELLIS.COM LATAM INFRASTRUCTURE TRANSLATION & LOCALIZATION RESOURCES
- 38. LOCALIZATION vs LOCALISATION Eyeglasses Whenlocalizing your site, keep in mind there are many different interpretations for similar words. Gafas Lentes Anteojos Earrings Pendientes Aretes Aros Aretes Hangover Resaca Cruda Ratón Guayabo TRANSLATION & LOCALIZATION CONSIDERATIONS PEI CROSSBORDER | LATAM
- 39. Jeans Vaqueros Mezclilla Whenlocalizing your site, keep in mind there are many different interpretations for similar words. Vaqueros Vaqueros PEI CROSSBORDER | LATAM LOCALIZATION vs LOCALISATION TRANSLATION & LOCALIZATION CONSIDERATIONS
- 40. INTERNATIONAL PAID SEARCH Perception Mexicowill contribute majority of LATAM revenue. Reality Mexico led LATAM, but only contributed 38% of total LATAM revenue. Who was #2? ECUADOR PEI CROSSBORDER | LATAM
- 41. Perception Mexico will contributemajority of LATAM revenue. Reality Mexico led LATAM, but only contributed 38% of total LATAM revenue. Who was #2? ECUADOR Highest LATAM Conversion Rate, 3rd globally behind USA and Canada. Highest LATAM Per Session Value, 3rd globally behind USA and Canada. 42% Higher Average Order Value than USA Orders PEI CROSSBORDER | LATAM INTERNATIONAL PAID SEARCH
- 42. Perception Google is asexpensive in LATAM as it is in USA & Europe Reality Google is very affordable, and quite effective. Competition is substantially less than USA/Europe, thereby decreasing costs for complete share of voice. Perry Ellis branded keywords around about 65% less expensive than in USA. Non branded keywords are about 80% less expensive than USA. CTR (Click-thru rates) on average are 322% higher than counterparts in USA. PEI CROSSBORDER | LATAM INTERNATIONAL PAID SEARCH
- 43. Perception Display options areas varied in Mexico as they are in USA. Reality Display has yet to mature in Mexico/LATAM. Actual Display Costs in Mexico Cost per Click: $.07 - $.15 Estimated CPM: $.25 - $.50 Actual Display Costs in USA Cost per Click: $.23 - $.40 Estimated CPM: $2.25 - $3.50 PEI CROSSBORDER | LATAM INTERNATIONAL PAID SEARCH
- 44. Perception We’ll do thesame CPC efforts in LATAM as we do in USA. Reality Search programs vary greatly LATAM. Know product preferences in each region. We’ve seen products trend very differently when comparing USA best sellers and LATAM best sellers. Perfume seems to have much more traction in LATAM compared to USA, and Europe. PEI CROSSBORDER | LATAM INTERNATIONAL PAID SEARCH
- 45. Perception We’ll just dothe same CPC efforts in LATAM as we do in USA. Reality Search programs vary greatly LATAM. Know where your share is. Unlike USA, interest pockets are isolated, far and few in between. Because broadband costs are relatively expensive, it is not as penetrated as other industrialized nations. Therefore, geo-target search campaigns as necessary. PEI CROSSBORDER | LATAM INTERNATIONAL PAID SEARCH
- 46. ACTUAL VIDEO METRICS 23% 24% 22% 21% 10% Percentof People who Viewed 1/4 Length of Video. Mexico Colombia Peru Chile 21% 22% 19% 17% 21% Percent of People Who Viewed Entire Video Mexico Colombia Peru Chile PEI CROSSBORDER | LATAM INTERNATIONAL PAID SEARCH
- 47. 0% 5% 10%15% 20% 25% 30% 35% 40% Mexico Ecuador Dominican Republic Colombia Costa Rica Chile Honduras Puerto Rico El Salvador Guatemala Panama Peru Venezuela Bolivia Nicaragua Uruguay % of LATAM Population (Exc. Argentina & Brazil) % of LATAM Sites Revenue Total (Exc. Argentina & Brazil) PEI CROSSBORDER | LATAM ALL PEI LATAM SALES 2014INTERNATIONAL PAID SEARCH
- 48. 0.00% 2.00% 4.00%6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% Mexico Ecuador Dominican Republic Colombia Costa Rica Chile Honduras Puerto Rico El Salvador Guatemala Panama Peru Venezuela Bolivia Nicaragua Uruguay United States Branded Fragrances CTR PEI CROSSBORDER | LATAM ACTUAL PEI LATAM PPC YTDINTERNATIONAL PAID SEARCH
- 49. 0.00% 2.00% 4.00%6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% Mexico Ecuador Dominican Republic Colombia Costa Rica Chile Honduras El Salvador Guatemala Panama Peru Nicaragua United States Branded Dress Shirts CTR PEI CROSSBORDER | LATAM ACTUAL PEI LATAM PPC YTDINTERNATIONAL PAID SEARCH
- 50. 0.00% 5.00% 10.00%15.00% 20.00% 25.00% 30.00% Mexico Ecuador Dominican Republic Colombia Costa Rica Chile El Salvador Panama Peru Nicaragua United States Nonbranded Pants CTR PEI CROSSBORDER | LATAM ACTUAL PEI LATAM PPC YTDINTERNATIONAL PAID SEARCH
- 51. Each country hastheir own set of rules, making cross border commerce a complicated endeavor. MEXICO Credit card penetration is growing, but still very low as only 13-16% of population has credit cards. Many online currencies are preferred. IVA (Value Added Tax) is 10-16% E-Wallet, led by Mercado Libre’s “Mercado Pago”, facilitates virtual wallet use. Users can load funds via debit, bank deposits, between users and convenience stores. Paypal on steroids. PEI CROSSBORDER | LATAM PAYMENTS, TAXES & RESTRICTIONS
- 52. Each country hastheir own set of rules, making cross border commerce a complicated endeavor. CHILE Credit card penetration is growing, but still very low as only 15-18% of population has credit cards. Like Brazil, “Boletos” are an alternative online payment method. Duties range from 6-16.5%, VAT @ 19%, Luxury Tax @ 50-85% PEI CROSSBORDER | LATAM PAYMENTS, TAXES & RESTRICTIONS
- 53. $100 Basket ShippingFees 0% 5% 10% 15% 20% 25% PercentofOrderTotal PEI CROSSBORDER | LATAM PAYMENTS, TAXES & RESTRICTIONS
- 54. $100 Basket Duties& VAT PercentofOrderTotal 0% 5% 10% 15% 20% 25% 30% PEI CROSSBORDER | LATAM PAYMENTS, TAXES & RESTRICTIONS
- 55. AFFILIATE MARKETING |CJ LATAM PROGRAMMATIC DISPLAY PERSONALISED & BEHAVIORAL EMAILS Affiliate marketing currently makes up 8-10% of E-Commerce industry revenue. This number is much higher for PEI, and an excellent source of traffic. LTV benefits greatly outweigh initial promotional margin impact. Still in its infancy in LATAM. Mediadesk leading, as Mediamath and Quantcast have Mexico on its radar. Private marketplace deals have started to appear with Televisa and Time Inc (People en Espanol). Excellent method of driving upper funnel engagement towards conversion. We have spent much of the past year compiling our LATAM e-mail database, but have yet to send one single Spanish e-mail. This year we will introduce personaliSed, CRM driven newsletters in addition to behavioral e-mails based on cart, product and category abandonment. PEI CROSSBORDER | LATAM TOMORROW
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- 57. RetailMeNot Omni-Channel Couponing Objectiveis to drive in-store purchasing via online or mobile device influencing. “Creepy” technology has rendered huge results • Delivery mechanisms consist of: - Offer browsing by brand - Offer browsing by mall - Radius mapping Offer browsing by brand, note mall option tab. Nearby in-store offers based on radius from current location. OMNICHANNEL SUCCESSES MOBILE GEOFENCING
- 58. RetailMeNot Omni-Channel Couponing •Delivery mechanisms consist of: - Geofencing OMNICHANNEL SUCCESSES MOBILE GEOFENCING
- 59. RetailMeNot Users Exposedto Perry Ellis Offer: RetailMeNot Users Who Visited Perry Ellis Offer: RETAILMENOT MOBILE GEOFENCING PERFORMANCE CONCLUSIONS | PERRY ELLIS STORES - In-store focused placements helped drive user engagement through a 645% lift in average daily interactions - Mondays had the overall highest traffic for the week - 70% of mobile traffic came from outside the geo-fenced store locations, showing true “incrementality” and “Top of Funnel” user engagement OMNICHANNEL SUCCESSES MOBILE GEOFENCING
- 60. RETAILMENOT MOBILE GEOFENCINGPERFORMANCE CONCLUSIONS | PERRY ELLIS STORES OMNICHANNEL SUCCESSES Data relates to device use per coupon. - Users received promotions via traditional e-mail from RMN or geofence pushing. - Vast majority redeemed with mobile device - Geofence push rendered an impulse buy. - The tighter the radius, the higher the redemption rate. MOBILE GEOFENCING Mobile Clicks Desktop Clicks Tablet Clicks
- 61. RetailMeNot Users Exposedto Original Penguin Offer: RetailMeNot Users Who Visited Original Penguin Offer: OMNICHANNEL SUCCESSES RETAILMENOT MOBILE GEOFENCING PERFORMANCE CONCLUSIONS | ORIGINAL PENGUIN STORES - Fridays had the highest visits overall. - Mobile exposures were a key success driver for the campaign - 75% of mobile traffic came outside of geo-fenced store locations, showing true incrementally and top of funnel user engagement. MOBILE GEOFENCING
- 62. OMNICHANNEL SUCCESSES RETAILMENOT MOBILEGEOFENCING PERFORMANCE CONCLUSIONS | ORIGINAL PENGUIN STORES Data relates to device use per coupon. - Users received promotions via traditional e-mail from RMN or geofence pushing. - Vast majority redeemed with mobile device - Geofence push rendered an impulse buy. - The tighter the radius, the higher the redemption rate. MOBILE GEOFENCING
- 63. RESULTS OMNICHANNEL SUCCESSES 973 In-StoreRedemptions AOV: $104.88 (+13% VS E-COM $92.33 AOV) REVENUE: $102,048 COMMISSION: $10,204 NTF: 82% SIX MONTH LTV: $35,103 2,789 In-Store Redemptions AOV: $82.18 (+11% VS E-COM $74.12 AOV) REVENUE: $229,200 COMMISSION: $22,920 NTF: 67% SIX MONTH LTV: $82,512 MOBILE GEOFENCING
- 64. OMNICHANNEL SUCCESSES “CARDLINK” PROGRAMS OBJECTIVE:LEVERAGE U.S. CONSUMER BEHAVIOR FOR PROFILE LOOKALIKE SEGMENTING. “Switcher” Retention “Light” Change Behavior “New” Conquest Reinforce the behavior of your Frequent Customers so they continue to shop at your brands Increase visits from Infrequent Customers by enforcing brand loyalty with Perry Ellis/ Original Penguin Target and acquire New Customers for both brands Target Segment Targeting Criteria Frequent (3x or more in 6 months) Visit Perry Ellis or Original Penguin 3x or more in the past 6 months Infrequent (1-2x in 6 months) Visit Perry Ellis or Original Penguin 1-2x in the past 6 months New (0x in 6 months) New (Apparel Stores)
- 65. OMNICHANNEL SUCCESSES Vendors typicallywork with thousands of financial institutions, allowing for visibility into 150M+ “anonymous” customer data. Purchase patterns, “like” retail category purchases and target demos segment massive data pools Perry Ellis “CARDLINK” PROGRAMS
- 66. OMNICHANNEL SUCCESSES When theplatform recognizes an online user that meets the aforementioned criteria, they will be served an add like this one: “CARDLINK” PROGRAMS
- 67. OMNICHANNEL SUCCESSES When theplatform recognizes an online user that meets the aforementioned criteria, they will be served an add like this one: If users like the offer, the click the activation button and module will now integrate cask back program at customer’s financial institution when a purchase takes place at online or physical store. “CARDLINK” PROGRAMS
- 68. OMNICHANNEL SUCCESSES Target Served Customers ImpressionsTotal Trips AOV Revenue Media Fees Switcher 734 4,250 162 $89.64 $14,521 Neg Light 10,975 57,169 432 $73.13 $31,590 Neg New 4,958,374 31,895,042 1,574 $76.82 $120,917 Neg Campaign Performance: 2,168 Trips accounting for $167,028 in total revenue. 31MM+ impressions generated. 4.9 MM + unique bank customers were served with a Perry Ellis offer 12 to 1 Return on Ad Spend “CARDLINK” PROGRAMS
- 69. OMNICHANNEL SUCCESSES Target Served Customers ImpressionsTotal Trips AOV Revenue Media Fees Switcher 734 4,250 162 $89.64 $14,521 Neg Light 10,975 57,169 432 $73.13 $31,590 Neg New 4,958,374 31,895,042 1,574 $76.82 $120,917 Neg MY FAVORITE INTANGIBLES: 31MM+ impressions generated. 4.9 MM + TO BRAND NEW, HIGHLY QUALIFIED PEOPLE - While $120,917 was NTF (new to file) through this attributable record, our “direct channel” lift was up nearly 310% during active campaign rendering more than double attributable revenue from Cardlink’s desktop to store platform. “CARDLINK” PROGRAMS
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- 71. OMNICHANNEL SUCCESSES, (Kinda) Historically,PEI is a wholesale business, but direct to consumer model has become a core focus. - Nearly100 stores globally, mostly in USA with new rollouts planned. - E-Commerce now a double digit percent of entire DTC business unit, and quickly catching up to physical stores. SHIP TO STORE / PICKUP IN STORE
- 72. PROGRAM RECENTLY HADSOFT, LIMITED STORE ROLLOUT SHIP TO STORE / PICKUP IN STORE OMNICHANNEL SUCCESSES, (Kinda)
- 73. WINS Freight savings Posted shippingfees never cover true costs. Competitive landscape denies us the opportunity to do so In-store impulse purchasing Need some socks for those shoes you bought online? Higher AOV CHALLENGES Inventory Alignment In store stock is never 100% accurate due to “lost in store” items. Site / Store Messaging “New Arrivals” rarely aligns with website. Pricing / Offer Mismatch Our fault, we should operate as single entity Split Shipment Capability All or nothing fulfillment SHIP TO STORE / PICKUP IN STORE OMNICHANNEL SUCCESSES, (Kinda)
- 74. TOMORROW TOMORROW SHIP TOSTORE / PICKUP IN STORE OMNICHANNEL SUCCESSES, (Kinda)
- 75. TOMORROW 2015-16 Initiatives Single Customer View ShipFROM Store Endless Aisle Personalised Beacons SHIP TO STORE / PICKUP IN STORE OMNICHANNEL SUCCESSES, (Kinda)
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- 78. . Operation s Merchan dising Marketing PARTNER ECOSYSTEM MARKETING MERCHANDISING OPERATIONS MARKETING AFFILIATES CJ LINKSHARE SHAREASALE IMPACTRADIUS RETARGETING CRITEO ADROLL MEDIAFORGE STEELHOUSE SEO MOZ WORDSTREAM CSE SHOPPING.COM SHOPZILLA PRICEGRABBER
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- 80. . Operation s Merchan dising Marketing PARTNER ECOSYSTEM MARKETING MERCHANDISING OPERATIONS MARKETING REVIEWS POWERREVIEWS BAZAARVOICE TURNTO ANALYTICS GA PREMIUM COREMETRICS VISUAL IQ ADOMETRY CRM SALES FORCE NETSUITE MAXIMIZER SUGAR PROGRAMMATIC QUANTCAST MEDIA MATH DATA XO
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- 82. . Operation s Merchan dising Marketing PARTNER ECOSYSTEM MARKETING MERCHANDISING OPERATIONS PARTNER TIPS BE NICE Successis a true partnership. Provide constructive feedback, but also provide compliments when they are due. COMMUNICATION Email is not enough. Facetime is critical in expressing ideas that are lost in e-mail context. Brainstorm and bond with monthly meetings. SHARED ACCOUNTABILITY OWN IT! Don’t think “outsource it and forget it”. Set reasonable goals and expectations for each party. Create compensation that is based on performance. DON’T BET THE FARM Tippy toe into a sea of success. No matter how good the pitch or negotiated price, try to not commit to a long term contract without testing the waters with a trial. If the partner is confident in their offering, then they should be receptive towards a fair short term sacrifice for a long term relationship.
- 83. THANK YOU JOSE NINO JOSE.NINO@PERY.COM JOSENINO AS “ROARY”, FLORIDA INT’L UNVERSITY MASCOT | CIRCA 2007