Together we can make the numbers work harder
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The Session
Who – 2 very different Publishers & 1 very active client
Why – everyone uses data differently, we want to showcase and discuss this with you
A couple of points from my side:
– Everyone’s place in the relationship is valid– Growth will come from increased spend, as well as innovation
Together we can make the numbers work harder
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Please tweet any questions...
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TO INCREMENTALITY...
AND BEYOND!Insight driven customer loyalty
The Educated Consumer
minority vanguard
mainstream
Seamlessly connected
Motivated by discounts
Motivated by convenience
Increasingly switchers
Immune to advertising
Trained to be disloyal
The Demanding Consumer
Perception Outcome
Perceived Customer Value The brand thinks I’m low value I’ll switch for the right offer
Priority The brand often discounts I’ll wait for a deal – or an even better deal
Perceived Brand Values Promises / Reality rarely mesh I’ll believe it when / if I see it
Information I don’t trust the brand I can trust my friends
80% of CEOs believe their brand provides a superior customer experience… 8% of their customers agree
85% of consumers say that customer experience is critical to their decision to re-purchase
10% of customers directly influence the purchasing decisions of the remaining 90%
Sources: Bain & Company, Gartner
“
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The Demanding Consumer
They’re not going to become any less aware
They’re going to share more
They’re extremely demanding
Can Affiliates Answer The New Consumer?
No direct allegiance to any one brand
Operate for the benefit of consumers
Secure the best deals for their customers
Available to everyone and anyone
Not personal, overtly general
Successful, but how to grow without giving away more?
Impersonal Benefits in exchange for registration & behavioral data
But the model is constantly challenged
Eroding traditional brand USPs?
Training consumers to expect greater and greater discounts
Making all discounts available to everyone
Limits incremental benefits
Eroding margin
The New / Old Model - Loyalty
Loy·al·ty (loil-t) n. pl. loy·al·tiesThe exchange of targeted benefits in return for incremental spend and customer level data.
The New / Old Model - Loyalty
Customer data+ insight
Understanding LTV
Know your customer
Allocate incentive spend
Targeting & response
Limit bottom line erosion with better targeting
Maximise ROI and reduce costs with soft / status benefits
Get the right message to the right customer at the right time
Drive engagement & interaction to bring customers closer to purchase
Drive improved financial performance
Data is the foundation to building this capability
From CPA to CPVA
CPA is great but there is usually only one “action” for all customers. As a result
incrementality is affected or limited to new customers
Lessons from loyalty can positively influence merchant campaigns delivered
through affiliate sites
Move from Cost Per Action to Cost Per Variable Action
Focus beyond acquisition objectives
Sophisticated targeting of the right customers based on driving incremental
performance
Shared insight to create variable offers targeted at the right customers
More demonstrable ROI.
Rewards Engine
Loyalty Capability in the Affiliate World
Affiliate sites already have the data and many of the core building blocks that
retailers spend millions of pounds on to be able to apply a loyalty model
Customer Database
Single Customer View
Content Management
Analysis Database
Customer Comms
Customer Services
Partner Management
Service Development
Programme Enrollment
Customers Transactions Channels Merchants
Loyalty Capability in the Affiliate World
We can do more to inspire customer performance with other rewards and benefits
Customer RewardsI’m recognized for
my actions
I get it early
I have a higher status
I can talk to somebody instantly
I don’t have to queue
I’m getting a discount
So is everybody
Its especially for me
Hard Benefits
Soft Benefits
Summing Up
• The affiliate marketing world is growing• Blanket discounting makes it impossible to continue to delight customers as the
masses understand the market
Techniques from customer loyalty can create a more sustainable model Create sophisticated campaigns that are:
• Targeted at the right customer at the right time• Cost effective, demonstrating incremental benefit• High performing with targeted offers• Measurable
We have the foundations. Lets start building on them.
Together we can make the numbers work harder
Search Marketing
Angela GreenwoodDirector of Account [email protected]
Mobile Search
Autoglass® mobile campaign• Mobile click-to-call campaign with optimised landing
pages• Full visibility of keyword type which triggered a call• Customised phone number from ad to landing page
Geo-targeting
• Location-based landing pages enable geo-targeted ads • Search for ‘Autoglass Reading’ or ‘Windscreen Chip
Repair Reading’ delivers relevant customer experience and quick conversion
Device type targeting
• Click tracking by phone enables optimisation by device type
• Improved CTR via segmentation by device enables improved ad rankings and reduced CPCs, and therefore reinvestment into broader keyword coverage
19%
7%
6%
68%
Jan-Sep 2011
AndroidBlackberryiPadiPhone
International targeting
Set ads to display globally
Set ads to display globally
0.41% 0.58% 1.07%1.23%
3.65%4.71%
5.17%
11.73%
71.45%
Jan-Sep 2011
Australia, NZ & PacificOtherEastern EuropeUS & CanadaAsiaSouthern EuropeMiddle EastNorthern EuropeUnited Kingdom
28.55% of revenue is generated from
outside the UK
Separate largest segments by country
2% 5% 12%
4%
9%
25%
8%
8%
7%
7%
13%
Northern Europe
AustriaBelgiumDenmarkFinlandFranceGermanyNorwayIrelandSwedenSwitzerlandNetherlands
Split out & optimise
Responding to search trends
Real-time position checks
Real-time competitor checks
Product Level Tracking
Not only the keyword that a customer converted on, but what product they bought.
Leveraging internal search data
thr xt onu
Search & Social Integration
Leveraging search learnings
• Google sales data shows when users are converting during the day.
• Peaks early morning, lunch time and in the evening.
% of Impressions % of Clickers
% Sales
0%
20%
40%
60%
80%
100%
45% 58% 68%
55% 42% 32%
F M
Search to Social
• Creative messaging tested in Google likely to work on Facebook Ads
• Geo-targeting data
Social to Search
• FB Responder profiles search keywords
• Demographics from Facebook MSN ad center, Google display network
Search & Social Integration
Results
PPC Learnings•Boosted Facebook CTR by
105%
•Dropped FB CPC by 50%
•Improved FB CR% by 30%
Facebook Learnings•Demographics set improved
Google Display campaign ROI by 115%
•Geographic set boosted PPC CR% but CTR not affected
The client perspective
Setting the scene
• Simply put, we do spend too much time producing data and not harnessing its potential
• This isn’t limited to marketing functions either
• You can see from what has just been presented, affiliates are progressive & agile as their businesses rely on our businesses
• The consumer is starting to be shared between the brand and affiliate
Data has value if the house is in order
• We can drill down into granular detail about every item bought on the website!
• How, were, when, new customer, old customer, visited the site before, how many times they have been before a purchase was made… the list goes on
• Our internal tracking tools are closely linked to those available on our affiliate networks
• Enables Matalan to make decisions in terms of investing in our affiliate programme at specific times of the year. This investment goes right down to investment on a week to week basis
Customer Value
• The data our affiliate programme produces proves value and shows the value of new customers after the initial sale through the affiliate channel
• They are placed into our CRM activity and we can put a £ value on that new customer gained through affiliates for 6 months, 12 months, 18 etc…
Data’s not all good
• On paper all the sales driven by affiliates look amazing, but when you dive into the data and get granular, you find that people who use affiliate sites love the bargains of bargains….
• Unfortunately this does have an impact on margin!
But....
• For Matalan, the affiliate channel brings something no other marketing channel does better… incremental value!
• Winning the customer is key for our brand, not by any means possible, but still ensuring profitability
Data & the budget
• I’m being a revolutionary and using the data to secure more budget for affiliates
• Stakeholders are able to physically see PPC adverts, search results, display advertising etc…
• As a growing business we had a fair challenge in growing marketing activities profitably
• So there was a little budget put aside to pay commissions, forget tenancy agreements, increases in CPA etc… the budget did not match the ambition!
• Testing delivered data...and data enabled testing, the end result being a focus on affiliates
• Once data has been produced…its quite simple you can’t argue with the numbers
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