The Reality of Gamified Loyalty in eCommerce

Smart eCommerce for Smart People

José Carlos Cortizo - @josek_net Co-founder and CMO at @brainsins_en

#GWC14 - @josek_net

eCommerce is a simple concept

“You open up an online store and sell everywhere in the world”

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But reality is always harder…

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You need to invest in traffic acquisition

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But if your product/service is not good enough you won’t sell

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Sales = Traffic x Conversion x AOV x Recurrence

Browse Shop Buy Engage

Strangers Visitors Shoppers Buyers Customers

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First eCommerce focuses on acquisition

Browse Shop Buy Engage

Strangers Visitors Shoppers Buyers Customers

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After that, you need to focus on CRO (sales optimization)

Browse Shop Buy Engage

Strangers Visitors Shoppers Buyers Customers

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And then on loyalty (or how to sell more times to the same customers)

Browse Shop Buy Engage

Strangers Visitors Shoppers Buyers Customers

#GWC14 - @josek_net

Sales = Traffic x Conversion x AOV x Recurrence

Browse Shop Buy Engage

Strangers Visitors Shoppers Buyers Customers

#GWC14 - @josek_net

CAC vs LTV => It’s going harder as the eCommerce market matures

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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

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Just 1% of eCommerce websites have a loyalty program

Source: Adobe Digital Index Report

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Question and hypothesis

Why don’t you focus on the best revenue source?

!

!

!

Could gamification be an ally for eCommerce websites?

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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)

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So far…

> 1.000 customers surveyed

32 eCommerce Manager surveyed

Analysis of behavioral data from 5 (big) online stores

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Let’s see some results

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52% of people buys in online stores recommended by their friends

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79% of users thinks it’s important that online stores offers a loyalty

program

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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

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64% of users prefer loyalty programs that connect several

brands

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Going further

Ok, ok….but that’s only loyalty… What about gamification?

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It’s not everywhere the same…

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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!

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In all countries people understand PBL (if it helps users to get what

they need)

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In Spain and LATAM >72% of users liked Bonobos Scavenger Hunt; US,

UK and Canada < 24%

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In Spain and LATAM ~36% of users liked Gilt Noir; US, UK and Canada ~

15%

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In Spain and LATAM ~51% of users liked Best Buy’s presence on

Cityville; US, UK and Canada ~ 17%

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In Spain and LATAM ~73% of users liked Arby’s (SM participation); US,

UK and Canada ~ 19%

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Don’t try to engage everybody, just your target market

From the other side (eCommerce Manager perspective)

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What works to engage with your target market may make a bad

impression to other users

From the other side (eCommerce Manager perspective)

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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)

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But…

…20% of the users can generate 80% of your revenues

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Conclusion 1: Keep it simple

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Conclusion 2: Different cultures, different experiences

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Conclusion 3: You only need “a few” customers to make the difference (~10%)

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Less than one month for the final report

@brainsins_en @josek_net josecarlos.cortizo@brainsins.com