Etail asia 2014 customer journey mkkoventures.com

Assessing Online Marketing Channels And

How They Can Be Best Used

ALEX BONO

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

Assessing Online Marketing Channels And How They

Can Be Best Used

ALEX BONO

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

Today…

You will not get a solution to improve a

conversion rate

You will get parameters to start improving the

conversion rates.

ALEX BONO

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

2mTH

9m

ID

32m

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What is a conversion rate?

CONVERSION RATE

NUMBER OF GOAL

ACHIEVEMENTS=VISITS

/

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Most common conversions

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Source: Millward Brown Digital 2013 –Conversion optimization Report

Conversion rate

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▪ However in eCommerce, we focus on

LEADS

(signups)

SALES+

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.

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Conversion Rate 101:Develop an advantage over your competitors.Helps shape the mindset of always improving within the company.

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Conversion Rate 101:Create better alignment.Bring marketing, technology and strategy together.

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Conversion Rate 101:It makes financial sense.More revenue leads to profits.

Increasing your conversion by 50% could impact profits by 500%.

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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

Re

ve

nu

e50% increase in

conversion rate


Conversion Rate 101:Paid advertising is expensive.Reducing your spend on PPC means lowering CAC (Customer

Acquisition Cost).

ALEX BONO


Conversion Rate 101:Be more customer centric.Walk in the shoes of your customers – learn from them and improve the

overall experience.

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Conversion Rate 101:Attract the right affiliates and partners.They can monetize better.

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Conversion Rate 101:Seal the ‘bucket’ leakages.Once you’ve acquired the customer, it’s far easier to keep them happy

than having to acquire a new one.

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▪ Drive traffic from PPC(FaceBook and AdWords)

▪ How conversion rate affects CPA

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Campaign TypeCampaign

Budget

Landing Page

Costs

Media

Spend

Traffi

c

Conversion

Rate

New

CustomersCPA

Without LP $10,000 - $10,00010,00

02% (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 Google2 Omniture typical 25% increase in conversion3 50% increase through testing


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 strategy…Do the basics first.

REVIEW YOUR STRATEGY.

ALEX BONO

Conversion rate is not an aim.

But a consequence.#1

Your site needs a mission.#2

How do people buy?

Case one

▪ Mums.sg: eCommerce site focused in mums, kids and babies

▪ Very targeted audience

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Example

▪ Let’s 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.]

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Awareness Consideration Purchase Preference

Search

Website

Display

Forums

Social

Comparison

sites

Website

Email

Online chat

[customer

service]

Email

Social

Search

STAGE

CHANNELS

How do people buy?

Nowadays, the customer journey is more complex. More sources

of information, more variety, more competition, more choice…

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How do people buy?

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Icons design: http://www.danilodemarco.com/pittogrammi

Awareness Consideration Purchase Preference

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.

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Source: http://www.conversionation.net/2012/04/is-touchpoint-marketing-the-only-marketing-left/

Agile commerce: from channels to touch points

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What are the elements of a touch point?

▪ The person (who) (the interacting individuals, whether it’s 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)

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Source: http://www.conversionation.net/2012/04/is-touchpoint-marketing-the-only-marketing-left/

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)

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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

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Understand the customer

journey to improve your

conversion rate.#3

Manage your touch points,

ensuring good experiences at

every turn will increase your

conversion rates.

#4

Number of sources used when making last purchase decision

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People who searched online for last purchase by market %

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Time to purchase - baby care online

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We are spending more time on screens

ALEX BONO – [email protected]

Source: Google Research - The new multi screen world. Understanding cross-platform consumer behavior

We often move from one screen to another while shopping

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And take a multi-device patch to purchase

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Online shopping is a multi-screen activity

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Purchase is not linear.

The decision making process

happens through different

channels and devices.#5

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)

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▪ Kiosks and ATM’s

▪ 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!

Understanding key questions…and create your

framework

Which channels produce results and which only

traffic?

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So…

Which channels do work alone and which

interact to convert?

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So…

Which channels reduce the time to

purchase/convert?

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So…

Which channels are enablers and which ones

are finishers?

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So…

Which screens work better for the channel?

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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

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Invest to convert

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Multichannel (funnel) conversion paths

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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

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Strategise. Plan how to use

channels as effective touch

point to engage customers#6

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 effective

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In site optimization is key to make channels effective

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RED BUTTON

Increased 21%

conversions

A Framework to improve conversion rates

▪ STRATEGIZE

▪ PLAN

▪ MEASURE

▪ ANALYZE

▪ TEST

▪ OPTIMIZE

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Invest to convert

▪ Marketers investing 10-25% of their time in optimization have

higher conversion rates (>2%)

▪ Those investing more than 5% of their budget on optimization

tactics are more likely to have higher conversion rates >2%

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How to increase revenue 101

steps on how to increase revenue

1. maximize exisitig traffic

2. identify barriers and remove them

3. widenning the conversion funnel

4. reduce churn rate

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Example

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G+ 2% up

3 steps signup 40% up

Price 15% up

Maybe later 10%

67% uplift in sign-ups

Example

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Changing the incentive.

Conversion decreased 48%

Most popular optimization tactics

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Source: Millward Brown Digital 2013 –Conversion optimization Report

use more than

four tactics.

27%

Test and analyse (conversion flow)

▪ Analytics

▪ Experiments: A/B, MVT

▪ Behavioural tools (bounce exchange)

▪ Copywriting

▪ Personalization tests

ALEX BONO

Have a framework to test

systematically.#7

And you need technology to execute

▪ Testing, experiments and optimization (optimizely,

google…)

▪ Analytics (Kissmetrics, google analytics, comscore,

quantcast…)

▪ BI (gooddata, Rjmetrics….)

▪ Sales enablement

▪ Email marketing (mailchimp, exact target…)

▪ Mobile marketing

▪ Social and search ads tech

▪ Remarketing tools

▪ Browsing behaviour (bounce exchange…)

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Test and analyze

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▪ Some tools good to start with:

▪ Analytics/BI: Google Analytics, KissMetrics, Mixpanel, segment.io, Custora, GoodData, Omniture, Clicky,

RjMetrics

▪ Survey: Survey Monkey, Survey.io, PollDaddy

▪ User Testing: Crazy Egg, clicktale

▪ Experiments and Testing: Optimizely, Google experiments, Visual Web Optimizer

Marketing, strategy and

technology need to all work

together.#8

Take aways

The only best practice “best practices” I would recommend to optimize your conversion rate and your channels efficiency

would be to strategize, plan, test and analyse to master customer

journeys.

…listen to advises…

but

Every business is different

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Take aways

Do one step at a time

Do what you understand first

ALEX BONO

Do not master channels.

Master Customer Journeys#9

#1 Conversion rate is not an aim. But a consequence.#2 Your site needs a mission.

#3 Understand the customer journey to improve your

conversion rate.#4 Manage your touch points, ensuring good experiences at

every turn will increase your conversion rates.

#5 Purchase is not linear. The decision making process

happens through different channels and devices.

#6 Strategize. Plan how to use channels as effective touch

point to engage customers

#7 Have a framework to test systematically.#8 Marketing, strategy and technology need to all work

together.

#9 Do not master channels. Master Customer Journeys

Thank you

[email protected]

Twitter: @albono

Etail asia 2014 customer journey mkkoventures.com

Marketing

Transcript of Etail asia 2014 customer journey mkkoventures.com