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Retention marketing the next e commerce battleground

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Proven ecommerce strategies like SEO, paid ads, social media, and email marketing have been effective, but competition is growing. With this increased competition comes decreased effectiveness. Because of this, a new ecommerce strategy has emerged: retention marketing. Retention marketing is the strategy of keeping more customers actively engaged for longer, and is the new battleground on which ecommerce brands will fight. In his talk, Steve Deckert addresses how you can continue to keep your customers engaged and win this fight.

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Retention marketing the next e commerce battleground

  1. 1. INBOUND15 Retention Marketing: The Next eCommerce Battleground Steve Deckert Co-Founder, Sweet Tooth
  2. 2. INBOUND15 Steve Deckert @stevedeckert
  3. 3. INBOUND15 Sweet Tooth @sweettooth eCommerce loyalty programs 4,000 retailers sweettoothrewards.com
  4. 4. INBOUND15
  5. 5. INBOUND15
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  7. 7. INBOUND15 Inbound > Outbound
  8. 8. INBOUND15 Outbound = Customer Acquisition
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  12. 12. INBOUND15 Outbound = Acquisition
  13. 13. INBOUND15 eCommerce = Acquisition
  14. 14. INBOUND15
  15. 15. INBOUND15 1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase. Pizza Hut also claims to be first to sell online. 1995: Jeff Bezos launches Amazon.com. eBay founded as AuctionWeb. 1996: Dell begins selling computers online. 1998: PayPal founded. 1999: Alibaba Group established in China. Overstock.com founded. 2002: eBay acquires PayPal for $1.5 billion. Early eCommerce History
  16. 16. INBOUND15 1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase. Pizza Hut also claims to be first to sell online. 1995: Jeff Bezos launches Amazon.com. eBay founded as AuctionWeb. 1996: Dell begins selling computers online. 1998: PayPal founded. 1999: Alibaba Group established in China. Overstock.com founded. 2002: eBay acquires PayPal for $1.5 billion. 2004: Inbound conceptualized by Brian Halligan & Dharmesh Shah Early eCommerce History
  17. 17. INBOUND15 eCommerce = Acquisition
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  22. 22. INBOUND15 Outbound vs Inbound = Cust. Acquisition vs Retention
  23. 23. INBOUND15 The companies that will win the next 5 years of eCommerce will win using customer retention.
  24. 24. INBOUND15 Why?
  25. 25. INBOUND15 Because acquisition won’t work.
  26. 26. INBOUND15 https://blog.shareaholic.com/search-visit-value-06-2014/
  27. 27. INBOUND15 http://searchengineland.com/google-showing-fewer-ads-per-search-219834
  28. 28. INBOUND15 http://www.statista.com/chart/2021/organic-reach-of-brands-facebook-posts/
  29. 29. INBOUND15 http://www.adweek.com/socialtimes/infographic-paid-reach-on-facebook-getting-more- expensive/299749
  30. 30. INBOUND15 http://www.marketingcharts.com/television/global-display-ad-spend-growth-forecast-to- outpace-paid-search-22423/zenithoptimedia-global-online-ad-spend-2010-2014- june2012png/
  31. 31. INBOUND15 https://moz.com/blog/consumer-survey-reveals-the-efficacy-of-inbound-vs-outbound
  32. 32. INBOUND15 https://moz.com/blog/consumer-survey-reveals-the-efficacy-of-inbound-vs-outbound
  33. 33. INBOUND15 http://andrewchen.co/the-law-of-shitty-clickthroughs/
  34. 34. INBOUND15 http://www.marketingcharts.com/verticals/retail-and-e-commerce/51-of-americans- switched-service-providers-in-the-past-year-due-to-poor-customer-service- 37627/attachment/accenture-switching-service-providers-oct2013/
  35. 35. INBOUND15 Consumers have had enough of companies trying to acquire them.
  36. 36. INBOUND15 Outbound vs Inbound = Cust. Acquisition vs Retention
  37. 37. #INBOUND15 Customer Retention
  38. 38. INBOUND15 http://success.adobe.com/assets/en/downloads/whitepaper/13926.digital_index_loyal_s hoppers_report.pdf
  39. 39. INBOUND15 http://www.nielsen.com/us/en/insights/news/2013/under-the-influence-consumer-trust-in- advertising.html
  40. 40. INBOUND15 Historically, <20% of marketing budgets dedicated to retention.
  41. 41. INBOUND15 http://www.marketingcharts.com/uncategorized/customer-retention-top-marketing- priority-17975/
  42. 42. INBOUND15 http://www.marketingcharts.com/traditional/retailers-say-customer-retention-will-be-key- revenue-growth-driver-45664/attachment/kpmg-most-significant-retail-revenue-drivers- sept2014/
  43. 43. INBOUND15 Source: 2013 Colloquy Loyalty Census
  44. 44. INBOUND15 Source: 2013 Colloquy Loyalty Census
  45. 45. INBOUND15 Source: 2013 Colloquy Loyalty Census
  46. 46. INBOUND15 The companies that will win the next 5 years of eCommerce will win using customer retention.
  47. 47. INBOUND15 Customer Retention Model
  48. 48. INBOUND15 Visitor Purchaser Repeat Purchaser Brand Advocate
  49. 49. INBOUND15 Visitor Purchaser Repeat Purchaser Brand Advocate
  50. 50. INBOUND15 Visitor Purchaser Repeat Purchaser Brand Advocate Customer Acquisition Customer Retention
  51. 51. INBOUND15 Visitor Purchaser Repeat Purchaser Brand Advocate Customer Acquisition Customer Retention Transactional Relationship Emotional Relationship
  52. 52. INBOUND15 Loyalty is an Emotion
  53. 53. INBOUND15 Visitor Purchaser Repeat Purchaser Brand Advocate Customer Acquisition Customer Retention Transactional Relationship Emotional Relationship • Good prices • Fast shipping • Site speed • Easy UI • Product Images
  54. 54. INBOUND15 Visitor Purchaser Repeat Purchaser Brand Advocate Customer Acquisition Customer Retention Transactional Relationship Emotional Relationship • Good prices • Fast shipping • Site speed • Easy UI • Product Images Hygiene Factors
  55. 55. INBOUND15 Visitor Purchaser Repeat Purchaser Brand Advocate Customer Acquisition Customer Retention Transactional Relationship Emotional Relationship • Good prices • Fast shipping • Site speed • Easy UI • Product Images Hygiene Factors • Loyalty programs • Lifecycle email • Amazing customer support • Personalization • Referral programs
  56. 56. INBOUND15 Visitor Purchaser Repeat Purchaser Brand Advocate Customer Acquisition Customer Retention Transactional Relationship Emotional Relationship • Good prices • Fast shipping • Site speed • Easy UI • Product Images Hygiene Factors • Loyalty programs • Lifecycle email • Amazing customer support • Personalization • Referral programs Delight Factors
  57. 57. INBOUND15 Visitor Purchaser Repeat Purchaser Brand Advocate
  58. 58. 1. Acquisition = Outbound. Retention = Inbound. 2. Customers have had enough of companies trying to acquire them. Acquisition becoming less effective and more expensive. 3. Retention marketing is a good way to grow revenue and get new customers What Did You Learn?
  59. 59. INBOUND15 Do What You Believe
  60. 60. INBOUND15 Thank You! Questions?

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