Etail asia 2014 customer journey mkkoventures.com

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e-commerce Assessing Online Marketing Channels And How They Can Be Best Used How can you grow revenue ▪What types of channels are best for which kinds of context ▪What percentage and rate of conversion can you expect from individual channels Customer journey Conversion rate optimization

Transcript of Etail asia 2014 customer journey mkkoventures.com

  • 1.Assessing Online Marketing Channels And How They Can Be Best Used ALEX BONO

2. Quick Introductions Alex Bono Partner MKKO Ventures Founding team - Groupon, Spain Since moving back to Singapore, actively involved in funding, growing and consulting in internet business in Southeast Asia. Currently growing mums.sg as COO eCommerce focused in babies and mums Used to multiple hats: from financial planning, operations, tech, marketing MKKO Ventures (consulting and execution) Consulting eCommerce Online marketing/Apps Growing startups Fund raising ALEX BONO 3. Assessing Online Marketing Channels And How They Can Be Best Used ALEX BONO 4. Today How can you grow revenue What types of channels are best for which kinds of context What percentage and rate of conversion can you expect from individual channels ALEX BONO 5. Today You will not get a solution to improve a conversion rate You will get parameters to start improving the conversion rates. ALEX BONO 6. More people are purchasing online Question: Which of the following have you done online in the past month? Purchased a product online (via any device) Source: GlobalWebIndex Q4 2013 /// Base: Global Internet Users aged 16-64 CN 382m KR 21m IN 84m SG 2m MY 7m PH 15m HK 2m TH 9m ID 32m ALEX BONO 7. What is a conversion rate? CONVERSION RATE NUMBER OF GOAL ACHIEVEMENTS= VISITS/ ALEX BONO 8. Most common conversions ALEX BONO Source: Millward Brown Digital 2013 Conversion optimization Report 9. Conversion rate ALEX BONO However in eCommerce, we focus on LEADS (signups) SALES+ 10. So, why is it critical to under the CR econo-system? Conversion Rate 101: Get more customers for free. Create the momentum allocating budget and resource to customer acquisition. ALEX BONO 11. So, why is it critical to under the CR econo-system? Conversion Rate 101: Develop an advantage over your competitors. Helps shape the mindset of always improving within the company. ALEX BONO 12. So, why is it critical to under the CR econo-system? Conversion Rate 101: Create better alignment. Bring marketing, technology and strategy together. ALEX BONO 13. So, why is it critical to under the CR econo-system? Conversion Rate 101: It makes financial sense. More revenue leads to profits. Increasing your conversion by 50% could impact profits by 500%. ALEX BONO 14. Why is it critical to under the CR econo-system? ALEX BONO PROFIT OVERHEADS COST OF SALES AD COSTS PROFIT OVERHEADS COST OF SALES AD COSTS Before After Revenue 50% increase in conversion rate 15. So, why is it critical to under the CR econo-system? Conversion Rate 101: Paid advertising is expensive. Reducing your spend on PPC means lowering CAC (Customer Acquisition Cost). ALEX BONO 16. So, why is it critical to under the CR econo-system? Conversion Rate 101: Be more customer centric. Walk in the shoes of your customers learn from them and improve the overall experience. ALEX BONO 17. So, why is it critical to under the CR econo-system? Conversion Rate 101: Attract the right affiliates and partners. They can monetize better. ALEX BONO 18. So, why is it critical to under the CR econo-system? Conversion Rate 101: Seal the bucket leakages. Once youve acquired the customer, its far easier to keep them happy than having to acquire a new one. ALEX BONO 19. Why is it critical to under the CR econo-system? Drive traffic from PPC(FaceBook and AdWords) How conversion rate affects CPA ALEX BONO Campaign Type Campaign Budget Landing Page Costs Media Spend Traffi c Conversion Rate New Customers CPA Without LP $10,000 - $10,000 10,00 0 2% (1) 200 $50 With LP $10,000 $1,000 $9,000 9,000 2.5% (2) 225 $44.4 4 With LP + Testing & Optimization $10,000 $2,000 $8,000 8,000 3% (3) 240 $41.6 7 1 Google 2 Omniture typical 25% increase in conversion 3 50% increase through testing 20. Why is it critical to under the CR econo-system? CR needs to be approached with a holistic, long term and strategic point of view It is about continuous improvement It is not a quick fix to boost sales (marketing growth hacks) Improving CR in e-commerce requires testing. Lots of it. It requires a method to test And identifying your overall aim Understanding how that aim fits your strategy? ...If you do not know your strategyDo the basics first. REVIEW YOUR STRATEGY. ALEX BONO 21. Conversion rate is not an aim. But a consequence. #1 22. Your site needs a mission. #2 23. How do people buy? 24. Case one Mums.sg: eCommerce site focused in mums, kids and babies Very targeted audience ALEX BONO 25. Example Lets take a look at the journey of a new customer at MUMS.SG. [29 year old, Jamie first time mum. During her free time at work and on the go, she tries to makes full use of it to purchase items for her baby.] ALEX BONO Awareness Consideration Purchase Preference Search Website Display Forums Social Comparison sites Website Email Online chat [customer service] Email Social Search STAGE CHANNELS 26. How do people buy? Nowadays, the customer journey is more complex. More sources of information, more variety, more competition, more choice ALEX BONO 27. How do people buy? ALEX BONO Icons design: http://www.danilodemarco.com/pittogrammi Awareness Consideration Purchase Preference 28. Channels or touch points? Touchpoints are: Ways to which customers interact with us. They can either be direct, indirect and even invisible. Each of these contribute to a larger ecosystem. ALEX BONO Source: http://www.conversionation.net/2012/04/is-touchpoint-marketing-the-only-marketing-left/ 29. Agile commerce: from channels to touch points ALEX BONO 30. What are the elements of a touch point? The person (who) (the interacting individuals, whether its with other persons or with social objects) the intention (why) (the purposes of the person, often several ones at the same time) the social objects (where) (such as content, where intent and interaction occur) the context (when) (such as the various stages in the life cycle, time and place) ALEX BONO Source: http://www.conversionation.net/2012/04/is-touchpoint-marketing-the-only-marketing-left/ 31. What is The customer journey? It is how we interact with the customer It is the before, during and after we get them to visit our site (repeatedly and recommending to others). And getting a YES (conversion) ALEX BONO 32. Why is managing touch points important? The consumer goes on a customer journey as a result of trying to get a smart decisions on the purchases As they progress through the purchase funnel, experience at each touch point can have consequence to our outcomes ALEX BONO 33. Understand the customer journey to improve your conversion rate.#3 34. Manage your touch points, ensuring good experiences at every turn will increase your conversion rates. #4 35. Number of sources used when making last purchase decision ALEX BONO 36. People who searched online for last purchase by market % ALEX BONO 37. Time to purchase - baby care online ALEX BONO 38. We are spending more time on screens ALEX BONO alex@mkkoventures.com Source: Google Research - The new multi screen world. Understanding cross-platform consumer behavior 39. We often move from one screen to another while shopping ALEX BONO Source: Google Research - The new multi screen world. Understanding cross-platform consumer behavior 40. And take a multi-device patch to purchase ALEX BONO Source: Google Research - The new multi screen world. Understanding cross-platform consumer behavior 41. Online shopping is a multi-screen activity ALEX BONO 42. Purchase is not linear. The decision making process happens through different channels and devices. #5 43. Channels and medium Channels to drive traffic (owned, paid and borrowed) Social: Facebook, twitter, pinterest, g+ Content marketing: blogs, reviews, forums Search PPC: adwords, bing, yahoo Display networks: google, yahoo... Remarketing networks: FBX, google, AdRoll, Retargeter, Chango... Email marketing (+transactional mails) Apps as a channel Shopping channel management: groupon, ... Affiliates Online PR Partnerships (banks, credit cards, other sites) Video: YouTube (content) Offline link: QR promo codes Messaging apps / Third party apps Video games (game consoles) ALEX BONO Kiosks and ATMs SMS Screens Smartphone Tablets (different sizes) Laptops/Desktops Interactive TV Smart watches (coming soon) Different ad platforms (channels) and devices deal with very different states of mind for the target audience! 44. Understanding key questionsand create your framework Which channels produce results and which only traffic? ALEX BONO 45. So Which channels do work alone and which interact to convert? ALEX BONO 46. So Which channels reduce the time to purchase/convert? ALEX BONO 47. So Which channels are enablers and which ones are finishers? ALEX BONO 48. So Which screens work better for the channel? ALEX BONO 49. Remember Channels are a mean. Touch points are interactions Factors such as: Relevance of the advertising Stage of the customer journey Audience Targeting and segmentation Location Context Condition the effectiveness of the channel driving traffic ALEX BONO 50. Invest to convert ALEX BONO 51. Multichannel (funnel) conversion paths ALEX BONO 52. Multichannel (funnel) conversion paths Attribution models Marketing channels do not work on isolation Assign conversion to the last click may be biasing the overall marketing efforts and the interaction of the channels Attribution models that can measure multichannel performance will get more relevant ALEX BONO 53. Strategise. Plan how to use channels as effective touch point to engage customers#6 54. In site optimization is key to make channels effective Landing pages segmented by channel and device Visual experience Usability Responsive or mobile site Navigation Speed Responsive marketing (bounce exchange) Are absolutely key to increase conversion rates and make touch points e