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THE FOUR CUSTOMER JOURNEYS IN
“WANT”-BASED ECOMMERCE
Alex Greifeld
@Heyitsalexp
“WANT”-BASED ECOMMERCE
= NOT NECESSITIES
= NOT MANY COMPLICATED TECH SPECS
= BUYING CYCLE > ONE YEAR
LAST 5 YEARS = CUSTOMER JOURNEY OBSESSION
SOURCE: GOOGLE SEARCH TRENDS, 2015-2020
CUSTOMER JOURNEYS ARE TYPICALLY REPRESENTED AS
SOMETHING HIGHLY COMPLEX
BUT I LIKE TO PUT THINGS INTO
BIG, CAUSATIVE BUCKETS
CUSTOMER LIFECYCLECUSTOMER JOURNEY
STARTS WITH FIRST
BRAND ENCOUNTER
IN THE BUYING CYCLE
ENDS WITH THE
PURCHASE
STARTS WITH THEIR
FIRST PURCHASE
ENDS THE LAST TIME
THEY PURCHASE
FROM YOU…EVER
CUSTOMER JOURNEYS PLAY OUT ON TWO
DIMENSIONS:
1. LEVEL OF IMPULSE
2. LEVEL OF PROMOTION
LEVEL OF IMPULSE
HIGH LOW
• IN MARKET
• READY TO BUY
• “LETS GO TO THE MALL”
MENTALITY
• DOESN’T FEEL THE
SHOPPING ITCH
• MAY NOT HAVE THE
FUNDS RIGHT NOW
LEVEL OF IMPULSE – REAL JOURNEYS
HIGH LOW
NOTE: MANY COOKIES HAVE A 30 DAY LIFETIME & WON’T CAPTURE THE ENTIRE JOURNEY
LEVEL OF PROMOTION
HIGH LOW
BUYS AT
FULL
PRICE
ONLY BUYS AT
DEEP
DISCOUNT
CAN’T AFFORD
TO BUY AT FULL
PRICE FROM
YOU, BUT DOES
BUY SOME
THINGS AT FULL
PRICE
75% OF US SHOPPERS HAVE SHOPPED AT AN OFF-PRICE
RETAILER LIKE TJ MAXX.
71% OF LUXURY SHOPPERS HAVE SHOPPED AT AN OFF-PRICE
RETAILER.
SOURCE: HTTPS://QZ.COM/733345/NOBODY-IN-THE-US-WANTS-TO-PAY-FULL-PRICE-FOR-CLOTHES-ANYMORE/
THE FOUR CUSTOMER JOURNEYS IN ECOMMERCE
HOT ITEM
SHOPPER
CLEARANCE
SHOPPER
DISCOVERY
SHOPPER
ASPIRATIONAL
SHOPPER
LEVELOFIMPULSE
LEVEL OF PROMOTION
SO WHAT CAN WE DO WITH THIS
INFORMATION?
HOW EACH TYPE PERCEIVES THE BRAND
HOT ITEM SHOPPER
• In “lets go to the mall”
mentality
• Product-focused, brand is an
afterthought
CLEARANCE SHOPPER
• Looking for the dopamine hit
of “scoring a deal”
• Promo-focused, brand is an
afterthought
DISCOVERY SHOPPER
• Loves the brand/ product but
not ready to buy
• May return when they feel
spendy or need “x”
ASPIRATIONAL SHOPPER
• Loves the brand but can’t
afford it at full price
• Obsessively tracks favorite
items, waiting for a sale
LEVELOFIMPULSE
LEVEL OF PROMOTION
INTERNAL TEAM MOST CRITICAL TO WINNING EACH TYPE
HOT ITEM SHOPPER
Design & Merchandising
CLEARANCE SHOPPER
Pricing & Production
(Made for Outlet strategy)
DISCOVERY SHOPPER
Brand Marketing & Digital
Marketing
ASPIRATIONAL SHOPPER
Brand Marketing & Planning
(Markdown Strategy, Product
Extensions)
LEVELOFIMPULSE
LEVEL OF PROMOTION
A NOTE ON DIGITAL/PERFORMANCE MARKETING & CRM:
YOUR JOB IS TO UNDERSTAND HOW TO TAILOR YOUR STRATEGY
TO EACH TYPE OF JOURNEY.
YOU CAN’T MARKET YOUR WAY OUT OF A BAD ASSORTMENT OR
PRICING STRATEGY.
KEY CONCERNS FOR EACH TYPE
HOT ITEM SHOPPER
• More likely to be a “one and
done” customer
• How to build loyalty post-
purchase
CLEARANCE SHOPPER
• Churn inventory but
contribute little to no profit
• How to reduce cost to retain
and leverage strategically
DISCOVERY SHOPPER
• Front-loaded relationship
building = higher loyalty
• Don’t sabotage yourself via
bad post-purchase experience
ASPIRATIONAL SHOPPER
• Loyal but low frequency, low
margin contribution
• How to win additional share
of wallet for more margin
LEVELOFIMPULSE
LEVEL OF PROMOTION
PAYOFF PROFILE FOR EACH TYPE
HOT ITEM SHOPPER
• Low marketing investment
• High margin contribution
CLEARANCE SHOPPER
• Low marketing investment
• Low margin contribution
DISCOVERY SHOPPER
• High marketing investment
• High margin contribution
ASPIRATIONAL SHOPPER
• High marketing investment
• Med-low margin contribution
LEVELOFIMPULSE
LEVEL OF PROMOTION
WHERE TO INVEST PRE-PURCHASE
HOT ITEM SHOPPER
• Capturing them via key item-
focused performance digital
marketing
CLEARANCE SHOPPER
• Low cost performance digital
marketing
• Marketing to relevant
retained customers
DISCOVERY SHOPPER ASPIRATIONAL SHOPPER
LEVELOFIMPULSE
LEVEL OF PROMOTION
• Reach them where they discover brands (probably online)
• Paid & owned multichannel marketing to create the
impression that the “right” people are talking about you
• Digital dialogue channels – social feeds, email
WHERE TO INVEST POST-PURCHASE
HOT ITEM SHOPPER
• Post-purchase experience and
marketing to win the second
purchase
CLEARANCE SHOPPER
• Inventory planning & outlet
strategy to increase margin
contribution
DISCOVERY SHOPPER
• Fulfillment operations, post-
purchase support and
unboxing to maintain brand
impression
ASPIRATIONAL SHOPPER
• Assortment strategy – lower
priced line extensions to
capture incremental margin
while maintaining cache
LEVELOFIMPULSE
LEVEL OF PROMOTION
WHERE DOES YOUR ECOMMERCE DEMAND COME FROM?
TODAY’S DEMAND
MORE PREDICTABLE
REVENUE
• Impulse Shoppers
• Easy to attribute/
measure within a 7 day
window
LESS PREDICTABLE
REVENUE
• End of long customer
journeys
• Difficult to measure
when the journey started
THE PROPORTION OF THESE TWO SOURCES VARIES BY BRAND
YOUNG DTC BRAND
• Minimum viable assortment
• Growth driven by performance marketing
• Mostly hot item demand
MATURE BRAND
• Complex assortment
• Brand is more widely known
• More discovery demand
More
Predictable
Less
Predictable
More
Predictable
Less
Predictable
NOTE: AS A BRAND MATURES, ITS MULTIPLE YEARS OF RETAINED
CUSTOMERS BECOME AN ADDITIONAL SOURCE OF
PREDICTABILITY.
DESIGN STRATEGIES THAT WORK WITH
CONSUMER BEHAVIOR, NOT AGAINST IT
THE HOT ITEM SHOPPER: COMMON MISSTEPS
• Many retailers point traffic to new arrivals or homepage, via broad campaign creative.
• Need a strategy to hero products that are best sellers or have potential.
ADS CAN’T ALL BE THIS NEED TO MIX IN SOME OF THIS
Brand’s
Homepage
Espadrille
Category
Page
THE HOT ITEM SHOPPER: BONUS TIP
• Your product page is your landing page/sales page for these customers. So make it
function like one.
• Critical product information and add to cart button are visible above the fold.
THE DISCOVERY SHOPPER: COMMON MISSTEPS
• Longer customer journey does not mean we need to be in every channel
• Need to understand who your target customer is, what channels actually matter to
them/are influential
• Cut channels that are not delivering profitable customers
X
X
X
THE ASPIRATIONAL SHOPPER: COMMON MISSTEPS
• If your entire marketing and product strategy is based on aspirational customers (“going
younger”) you will wind up with a lot of one and done customers.
• The Aspirational Shopper is an incremental unlock, not a core customer.
THE CLEARANCE SHOPPER: COMMON MISSTEPS
• When brands do deep end of season clearance events on their main site, they pollute
their core advertising pixels, email lists and customer files.
• If you email-gate your “sample sale” (a growing trend recently), you’ll end up with an
email file full of people who will never purchase at full price.
• Clearance is not a valid customer acquisition event, even if CACs are really low.
THIS IS JUST THE START.
USE THIS FRAMEWORK TO EVALUATE HOW YOU ATTRACT AND
RETAIN CUSTOMERS.
DIVERSIFY YOUR CUSTOMER MIX ACCORDING TO YOUR OWN
UNIQUE PRODUCT AND BRAND NARRATIVE.

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The Four Customer Journeys In Ecommerce

  • 1. THE FOUR CUSTOMER JOURNEYS IN “WANT”-BASED ECOMMERCE Alex Greifeld @Heyitsalexp
  • 2. “WANT”-BASED ECOMMERCE = NOT NECESSITIES = NOT MANY COMPLICATED TECH SPECS = BUYING CYCLE > ONE YEAR
  • 3. LAST 5 YEARS = CUSTOMER JOURNEY OBSESSION SOURCE: GOOGLE SEARCH TRENDS, 2015-2020
  • 4. CUSTOMER JOURNEYS ARE TYPICALLY REPRESENTED AS SOMETHING HIGHLY COMPLEX
  • 5. BUT I LIKE TO PUT THINGS INTO BIG, CAUSATIVE BUCKETS
  • 6. CUSTOMER LIFECYCLECUSTOMER JOURNEY STARTS WITH FIRST BRAND ENCOUNTER IN THE BUYING CYCLE ENDS WITH THE PURCHASE STARTS WITH THEIR FIRST PURCHASE ENDS THE LAST TIME THEY PURCHASE FROM YOU…EVER
  • 7. CUSTOMER JOURNEYS PLAY OUT ON TWO DIMENSIONS: 1. LEVEL OF IMPULSE 2. LEVEL OF PROMOTION
  • 8. LEVEL OF IMPULSE HIGH LOW • IN MARKET • READY TO BUY • “LETS GO TO THE MALL” MENTALITY • DOESN’T FEEL THE SHOPPING ITCH • MAY NOT HAVE THE FUNDS RIGHT NOW
  • 9. LEVEL OF IMPULSE – REAL JOURNEYS HIGH LOW NOTE: MANY COOKIES HAVE A 30 DAY LIFETIME & WON’T CAPTURE THE ENTIRE JOURNEY
  • 10. LEVEL OF PROMOTION HIGH LOW BUYS AT FULL PRICE ONLY BUYS AT DEEP DISCOUNT CAN’T AFFORD TO BUY AT FULL PRICE FROM YOU, BUT DOES BUY SOME THINGS AT FULL PRICE
  • 11. 75% OF US SHOPPERS HAVE SHOPPED AT AN OFF-PRICE RETAILER LIKE TJ MAXX. 71% OF LUXURY SHOPPERS HAVE SHOPPED AT AN OFF-PRICE RETAILER. SOURCE: HTTPS://QZ.COM/733345/NOBODY-IN-THE-US-WANTS-TO-PAY-FULL-PRICE-FOR-CLOTHES-ANYMORE/
  • 12. THE FOUR CUSTOMER JOURNEYS IN ECOMMERCE HOT ITEM SHOPPER CLEARANCE SHOPPER DISCOVERY SHOPPER ASPIRATIONAL SHOPPER LEVELOFIMPULSE LEVEL OF PROMOTION
  • 13. SO WHAT CAN WE DO WITH THIS INFORMATION?
  • 14. HOW EACH TYPE PERCEIVES THE BRAND HOT ITEM SHOPPER • In “lets go to the mall” mentality • Product-focused, brand is an afterthought CLEARANCE SHOPPER • Looking for the dopamine hit of “scoring a deal” • Promo-focused, brand is an afterthought DISCOVERY SHOPPER • Loves the brand/ product but not ready to buy • May return when they feel spendy or need “x” ASPIRATIONAL SHOPPER • Loves the brand but can’t afford it at full price • Obsessively tracks favorite items, waiting for a sale LEVELOFIMPULSE LEVEL OF PROMOTION
  • 15. INTERNAL TEAM MOST CRITICAL TO WINNING EACH TYPE HOT ITEM SHOPPER Design & Merchandising CLEARANCE SHOPPER Pricing & Production (Made for Outlet strategy) DISCOVERY SHOPPER Brand Marketing & Digital Marketing ASPIRATIONAL SHOPPER Brand Marketing & Planning (Markdown Strategy, Product Extensions) LEVELOFIMPULSE LEVEL OF PROMOTION
  • 16. A NOTE ON DIGITAL/PERFORMANCE MARKETING & CRM: YOUR JOB IS TO UNDERSTAND HOW TO TAILOR YOUR STRATEGY TO EACH TYPE OF JOURNEY. YOU CAN’T MARKET YOUR WAY OUT OF A BAD ASSORTMENT OR PRICING STRATEGY.
  • 17. KEY CONCERNS FOR EACH TYPE HOT ITEM SHOPPER • More likely to be a “one and done” customer • How to build loyalty post- purchase CLEARANCE SHOPPER • Churn inventory but contribute little to no profit • How to reduce cost to retain and leverage strategically DISCOVERY SHOPPER • Front-loaded relationship building = higher loyalty • Don’t sabotage yourself via bad post-purchase experience ASPIRATIONAL SHOPPER • Loyal but low frequency, low margin contribution • How to win additional share of wallet for more margin LEVELOFIMPULSE LEVEL OF PROMOTION
  • 18. PAYOFF PROFILE FOR EACH TYPE HOT ITEM SHOPPER • Low marketing investment • High margin contribution CLEARANCE SHOPPER • Low marketing investment • Low margin contribution DISCOVERY SHOPPER • High marketing investment • High margin contribution ASPIRATIONAL SHOPPER • High marketing investment • Med-low margin contribution LEVELOFIMPULSE LEVEL OF PROMOTION
  • 19. WHERE TO INVEST PRE-PURCHASE HOT ITEM SHOPPER • Capturing them via key item- focused performance digital marketing CLEARANCE SHOPPER • Low cost performance digital marketing • Marketing to relevant retained customers DISCOVERY SHOPPER ASPIRATIONAL SHOPPER LEVELOFIMPULSE LEVEL OF PROMOTION • Reach them where they discover brands (probably online) • Paid & owned multichannel marketing to create the impression that the “right” people are talking about you • Digital dialogue channels – social feeds, email
  • 20. WHERE TO INVEST POST-PURCHASE HOT ITEM SHOPPER • Post-purchase experience and marketing to win the second purchase CLEARANCE SHOPPER • Inventory planning & outlet strategy to increase margin contribution DISCOVERY SHOPPER • Fulfillment operations, post- purchase support and unboxing to maintain brand impression ASPIRATIONAL SHOPPER • Assortment strategy – lower priced line extensions to capture incremental margin while maintaining cache LEVELOFIMPULSE LEVEL OF PROMOTION
  • 21. WHERE DOES YOUR ECOMMERCE DEMAND COME FROM? TODAY’S DEMAND MORE PREDICTABLE REVENUE • Impulse Shoppers • Easy to attribute/ measure within a 7 day window LESS PREDICTABLE REVENUE • End of long customer journeys • Difficult to measure when the journey started
  • 22. THE PROPORTION OF THESE TWO SOURCES VARIES BY BRAND YOUNG DTC BRAND • Minimum viable assortment • Growth driven by performance marketing • Mostly hot item demand MATURE BRAND • Complex assortment • Brand is more widely known • More discovery demand More Predictable Less Predictable More Predictable Less Predictable
  • 23. NOTE: AS A BRAND MATURES, ITS MULTIPLE YEARS OF RETAINED CUSTOMERS BECOME AN ADDITIONAL SOURCE OF PREDICTABILITY.
  • 24. DESIGN STRATEGIES THAT WORK WITH CONSUMER BEHAVIOR, NOT AGAINST IT
  • 25. THE HOT ITEM SHOPPER: COMMON MISSTEPS • Many retailers point traffic to new arrivals or homepage, via broad campaign creative. • Need a strategy to hero products that are best sellers or have potential. ADS CAN’T ALL BE THIS NEED TO MIX IN SOME OF THIS Brand’s Homepage Espadrille Category Page
  • 26. THE HOT ITEM SHOPPER: BONUS TIP • Your product page is your landing page/sales page for these customers. So make it function like one. • Critical product information and add to cart button are visible above the fold.
  • 27. THE DISCOVERY SHOPPER: COMMON MISSTEPS • Longer customer journey does not mean we need to be in every channel • Need to understand who your target customer is, what channels actually matter to them/are influential • Cut channels that are not delivering profitable customers X X X
  • 28. THE ASPIRATIONAL SHOPPER: COMMON MISSTEPS • If your entire marketing and product strategy is based on aspirational customers (“going younger”) you will wind up with a lot of one and done customers. • The Aspirational Shopper is an incremental unlock, not a core customer.
  • 29. THE CLEARANCE SHOPPER: COMMON MISSTEPS • When brands do deep end of season clearance events on their main site, they pollute their core advertising pixels, email lists and customer files. • If you email-gate your “sample sale” (a growing trend recently), you’ll end up with an email file full of people who will never purchase at full price. • Clearance is not a valid customer acquisition event, even if CACs are really low.
  • 30. THIS IS JUST THE START. USE THIS FRAMEWORK TO EVALUATE HOW YOU ATTRACT AND RETAIN CUSTOMERS. DIVERSIFY YOUR CUSTOMER MIX ACCORDING TO YOUR OWN UNIQUE PRODUCT AND BRAND NARRATIVE.