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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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

“

”

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 Managementangela@found.co.uk

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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