Most entrepreneurs still think of their e-commerce site as a shop selling goods, like the old days, when they should be thinking of them as marketing machines. In this video I give you lots to think about.

1. Alessandro Daliana
Managing Your
e-Commerce
Business
ROKC Capital
Leadership | Strategy | Portfolio Management
rokc.co
© 2017 Chokti Inc.

2. Site Set Up

3. You Wait

4. Pull Marketing

5. Contact Points
Search
Engines
BacklinksPaid Advertising
Bloggers
Email
Marketing
Social Networks
Events
Instant
Messaging
The Team
Clients Vendors
Traditional Media
Snail Mail

6. The Marketing Machine

7. Customer Journey
Contact Points
Landing page
Product page
Shopping cart page
Delivery page
Payment processing
Thank you page

8. 6 Degrees of Separation
You $$$$$$

9. What is the Process?
1. Ideation - having the idea of using a contact point
2. Conception - deciding what approach to use, strategy
3. Buy-in - presenting the idea, concept, and ROI to others to green light the campaign
4. Teamwork - coordinating, cooperating, and collaborating in pursuit of a common
goal (design, color palette, copy, images,…)
5. Testing - A/B testing your messaging until it works they way it needs to, or abandon
it
6. Launching - launch campaign and letting it run the agreed upon time
7. Monitoring - use analytics track campaign to see how it is performing with respect to
expectations
8. Profitability - track financial results, ROI

10. Building a Page That Works

14. Three Cost Components
✓ Campaign overhead Costs
❖ Cost of the processes
✓ Page Cost
❖ Direct cost of setting up the page
✓ Transitions costs
❖ Click cost

15. Process Cost
People Manhours Remuneration Cost
Ideation Mary 5 25.00 125.00
Conception Mary, Bud 25 20.00 500.00
Buy-in Mary, Bud, John, Pascal 5 35.00 175.00
Teamwork
Mary, Bud, Steve, Jenny,
Michela 80 17.00 1,360.00
Testing Sally 10 10.00 100.00
Launching Mary, Paolo 2 15.00 30.00
Monitoring Paolo 10 10.00 100.00
Profitability Pascal 3 30.00 90.00
Total 2,480.00

16. Effectiveness & Efficiency
Page
(views/hits)
Effectiveness
(clicks)
Effectiveness
(Off Path)
Efficiency (seconds)
Ave./Tar. 1 2-5 6-15 16-30 31+
Contact Point 1280 786 -
Landing page 786 289 497 208/180 300 117 80 40 249
Product page 289 127 162 18/120 62 100 50 67 10
Shopping cart 127 13 114 15/10 67 42 13 0 5
Delivery page 13 10 3 75/45 3 0 0 0 10
Payment
processing 10 7 3 89/45 0 1 1 1 7
Thank you
page 7 5 2 8/5 2 1 1 2 1

17. Cost of Acquiring a Customer
Page Cost Transition Cost Page Hits Effectiveness Page Cost Transition Cost Total Cost
$ $ Clicks $ $ $
Contact Point 0.07 0.20 1280 786 89.60 157.20 246.80
Landing page 0.03 0.00 786 289 23.58 0.00 23.58
Product page 0.03 0.00 289 127 8.67 0.00 8.67
Shopping cart 0.01 0.00 127 13 1.27 0.00 1.27
Delivery page 0.01 0.00 13 10 0.13 0.00 0.13
Payment
processing 0.01 0.00 10 7 0.10 0.00 0.10
Thank you page 0.01 0.00 7 0.07 0.00 0.07
123.42 157.20 280.62
Cost per
Customer 17.63 22.46 40.09
Conversion Rate 0.547%

18. Campaign Profitability
❖ Cost of Acquiring a Customer (example, $40.09)
❖ Profitability
❖ Gross margin on product sold (example, $50.09)
❖ net of customer acquisition costs (example, $10.00)
❖ Campaign overhead costs (example, $2,480)
❖ Breakeven (example, 248 units )
❖ Conversion Rate (example, 0.587%)
❖ Reach 42,250 for breakeven

19. Repeat Sales
❖ Contacts Points:
✓ Email marketing/Newsletters (open rates, click rates,
coupon codes)
✓ Mailings (click rate, coupon codes)
✓ Organic sales
✓ Meetups (coupon codes)

20. Lifetime Value of a Customer
❖ Gross Margin at acquisition $50.09
❖ Repeat sales
❖ Average 3 future purchases
❖ Total gross margin $128.00
❖ Lifetime Value of a Customer = 178.09

21. Lifetime Value - Cost of
Acquiring = Campaign
Profitability
$178.09 - $40.09 = $138.00

22. Managing Complexity
❖ Use standards & KPIs
❖ Manage & analyze separately:
❖ Contact points
❖ Partners/affiliates
❖ Geographic/language markets
❖ Only good CRM and Analytics tools will help you.

23. Thank you. Q&A starts.