Retention marketing the next e commerce battleground

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Retention Marketing:The Next eCommerce Battleground

Steve DeckertCo-Founder, Sweet Tooth

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Steve Deckert@stevedeckert

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Sweet Tooth@sweettootheCommerce loyalty programs4,000 retailerssweettoothrewards.com

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Inbound > Outbound

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Outbound=

Customer Acquisition

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Outbound=

Acquisition

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eCommerce=

Acquisition

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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

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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

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eCommerce=

Acquisition

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Outbound vs Inbound=

Cust. Acquisition vs Retention

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The companies that will win the next 5 years of

eCommerce will win using customer retention.

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Why?

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Because acquisition won’t work.

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https://blog.shareaholic.com/search-visit-value-06-2014/

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http://searchengineland.com/google-showing-fewer-ads-per-search-219834

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http://www.statista.com/chart/2021/organic-reach-of-brands-facebook-posts/

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http://www.adweek.com/socialtimes/infographic-paid-reach-on-facebook-getting-more-expensive/299749

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http://www.marketingcharts.com/television/global-display-ad-spend-growth-forecast-to-outpace-paid-search-22423/zenithoptimedia-global-online-ad-spend-2010-2014-june2012png/

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https://moz.com/blog/consumer-survey-reveals-the-efficacy-of-inbound-vs-outbound

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https://moz.com/blog/consumer-survey-reveals-the-efficacy-of-inbound-vs-outbound

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http://andrewchen.co/the-law-of-shitty-clickthroughs/

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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/

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Consumers have had enough of companies trying

toacquire them.

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Outbound vs Inbound=

Cust. Acquisition vs Retention

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Customer Retention

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http://success.adobe.com/assets/en/downloads/whitepaper/13926.digital_index_loyal_shoppers_report.pdf

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http://www.nielsen.com/us/en/insights/news/2013/under-the-influence-consumer-trust-in-advertising.html

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Historically, <20% of marketing budgets

dedicated to retention.

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http://www.marketingcharts.com/uncategorized/customer-retention-top-marketing-priority-17975/

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http://www.marketingcharts.com/traditional/retailers-say-customer-retention-will-be-key-revenue-growth-driver-45664/attachment/kpmg-most-significant-retail-revenue-drivers-sept2014/

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Source: 2013 Colloquy Loyalty Census

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Source: 2013 Colloquy Loyalty Census

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Source: 2013 Colloquy Loyalty Census

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The companies that will win the next 5 years of

eCommerce will win using customer retention.

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Customer Retention Model

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Visitor Purchaser

Repeat Purchas

er

Brand Advocat

e

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Visitor

Purchaser

Repeat Purchas

er

Brand Advocat

e

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Visitor Purchaser

Repeat Purchas

er

Brand Advocat

eCustomer Acquisition Customer Retention

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Visitor Purchaser

Repeat Purchas

er

Brand Advocat

eCustomer Acquisition Customer Retention

Transactional Relationship

Emotional Relationship

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Loyalty is an Emotion

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Visitor Purchaser

Repeat Purchas

er

Brand Advocat

eCustomer Acquisition Customer Retention

Transactional Relationship

Emotional Relationship

• Good prices• Fast shipping• Site speed• Easy UI• Product Images

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Visitor Purchaser

Repeat Purchas

er

Brand Advocat

eCustomer Acquisition Customer Retention

Transactional Relationship

Emotional Relationship

• Good prices• Fast shipping• Site speed• Easy UI• Product Images

Hygiene Factors

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Visitor Purchaser

Repeat Purchas

er

Brand Advocat

eCustomer 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

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Visitor Purchaser

Repeat Purchas

er

Brand Advocat

eCustomer 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

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Visitor

Purchaser

Repeat Purchas

er

Brand Advocat

e

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?

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Do What You Believe

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Thank You!Questions?