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N E T TA @ C U S T O R A . C O M1 Q U E S T I O N S ?
What sets e-commerce stars apart?
Corey Pierson, CEO Brett Robbins, Head of Business Development Netta Kivilis, Head of Marketing
W E B I N A R
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N E T TA @ C U S T O R A . C O M2 Q U E S T I O N S ?
60 Minutes
1. Quick Intro 2. Case studies
3. Getting it done 4. Quiz + PRIZES 5. Q & A
T O D A Y
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N E T TA @ C U S T O R A . C O M3 Q U E S T I O N S ?
Big Data What are we talking about?
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N E T TA @ C U S T O R A . C O M4 Q U E S T I O N S ?
We’re working with sharp teams. Teams taking control of their data,
4 N E T TA @ C U S T O R A . C O MQ U E S T I O N S ?
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N E T TA @ C U S T O R A . C O M5 Q U E S T I O N S ?
Teams taking control of their data,are growing 2.5x faster than peers.
5 N E T TA @ C U S T O R A . C O MQ U E S T I O N S ?
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N E T TA @ C U S T O R A . C O M6 Q U E S T I O N S ?
A few stories
Q U I C K O N E S
C O N F I D E N T I A L
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N E T TA @ C U S T O R A . C O M7 Q U E S T I O N S ?
Acquisition (Bonobos)
1) Making smarter real estate investments based on CLV. 2) Acquiring more valuable customers and increasing long-term ROI on marketing spend.
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N E T TA @ C U S T O R A . C O M8 Q U E S T I O N S ?
What’s the ROI on our marketing spend?
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N E T TA @ C U S T O R A . C O M9 Q U E S T I O N S ?
C
Fee $1A
B
Fee $10
Fee $3
C
Acquisition (“Fishing in the right pond”)
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N E T TA @ C U S T O R A . C O M1 0 Q U E S T I O N S ?
Acquisition (“Fishing in the right pond”)
C
Pond A
Pond B
Pond C
$ 1 0 0
$ 1 5 0
$ 2 5 0
Customers Acquired
Total Spend
1 0 0
5 0
2 5
Cost per Customer Acquired
$ 1
$ 3
$ 1 0
Fee $1A
B
Fee $10
Fee $3
CPricey?
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N E T TA @ C U S T O R A . C O M1 1 Q U E S T I O N S ?
Acquisition (“Fishing in the right pond”)
Fee $1A
C
B
Fee $10
Fee $3
Pond A
Pond B
Pond C
$ 1 0 0
$ 1 5 0
$ 2 5 0
Customers Acquired
CLV per Customer
Total Customer Value
Value from Channel
Total Spend
1 0 0
5 0
2 5
Cost per Customer Acquired
$ 1
$ 3
$ 1 0
$ 1 0
$ 3 0
$ 2 0 0
$ 1 , 0 0 0
$ 1 , 5 0 0
$ 5 , 0 0 0
$ 9 0 0
$ 1 , 3 5 0
$ 4 , 7 5 0
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N E T TA @ C U S T O R A . C O M1 2 Q U E S T I O N S ?
1) Making smarter real estate investments based on CLV. 2) Acquiring more valuable customers and increasing long-term ROI on marketing spend.
Predictive Customer Lifetime Value analysis
Re-allocated spend across social and affiliate programs
20% Increase in overall CLV
Acquisition (Bonobos) Acquisition (Bonobos) Acquisition (Bonobos)
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N E T TA @ C U S T O R A . C O M1 3 Q U E S T I O N S ?
Activation (Sole Society and thredUP)
Increasing conversion rate for new email list subscribers.
$10
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N E T TA @ C U S T O R A . C O M1 4 Q U E S T I O N S ?
How do we improve email activation rates?
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N E T TA @ C U S T O R A . C O M1 5 Q U E S T I O N S ?
How do we improve email activation rates?
Highest
Fashion Discount Business Trend
High
Medium
Low
Lowest
PR
ED
ICT
ED
CO
NV
ER
SIO
N $ 5
BAGS
BAGS
$ 5
$ 5
$ 1 0
$ 1 0
NONE
SHOES
$ 1 0 N O N E
N O N EN O N E
$ 1 0
SHOES
SHOES
$ 2 5
DENIM$ 2 5
$ 2 5
P E R S O N A S
$ 5 O F F
N E W P A N T S
$ 1 0 O F F
N E W B A G S
$ 2 5 O F F
N E W S H O E S
C O N N E C T E D T O M A R K E T I N G
T O O L S
C U S T O R A
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N E T TA @ C U S T O R A . C O M1 6 Q U E S T I O N S ?
Increasing conversion rate for new email list subscribers.
Individual conversion rate prediction; Offer discounts only to email sub-scribers with low predicted conversion rate
Sole Society: Combined 3.5% revenue lift, improved profitability. thredUP: Combined 2% revenue lift, 12X ROI.
Activation (Sole Society and thredUP)
$10
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N E T TA @ C U S T O R A . C O M1 7 Q U E S T I O N S ?
Discovering what behavioral charac-teristics and purchasing preferences are unique to high value customers.
Customer insights (Confidential)
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N E T TA @ C U S T O R A . C O M1 8 Q U E S T I O N S ?
What makes high value customers unique?
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N E T TA @ C U S T O R A . C O M1 9 Q U E S T I O N S ?
Customer Lifetime Value Expected Orders (2 yrs) Value Tier
Product Preferences
Men’s Suits iOS
Men’s Shoes Android
Athletic PC
Device Type
$845.35 5.2 Platinum
What makes high value customers unique?
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N E T TA @ C U S T O R A . C O M2 0 Q U E S T I O N S ?
Discovering what behavioral charac-teristics and purchasing preferences are unique to high value customers.
Demographic, behavioral, persona analysis
Informed merchandising and store lay-out decisions. Changing media buying strategy for TV and other localized channels.
Customer insights (Confidential)
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N E T TA @ C U S T O R A . C O M2 1 Q U E S T I O N S ?
Cultivation (One Kings Lane)
Personalizing email campaigns and onsite experience based on price sensitivity, product preferences and the customer’s buying lifecycle.
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N E T TA @ C U S T O R A . C O M2 2 Q U E S T I O N S ?
How can we tailor engagement programs?
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N E T TA @ C U S T O R A . C O M2 3 Q U E S T I O N S ?
Expected Repeat Order Size
Expected Repeat Order Size
Product Preferences
Product Preferences
Email Frequency
Email Frequency
$245.35
$12.60
1 / week
4 / weekSocks
Men’s Suits
Underwear
Dress Shoes
Tees
Athletic
Cultivate longer relation-ships by leveraging: - Price sensitivity - Product preferences - Email frequency - More...
So
cks
n S
tuff
All
Bu
sin
ess
How can we tailor engagement programs?
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N E T TA @ C U S T O R A . C O M2 4 Q U E S T I O N S ?
Personalizing email campaigns and onsite experience based on price sensitivity, product preferences and the customer’s buying lifecycle.
Accurately predicting a customer’s behavior after the first purchase.
Increased average repeat purchase rate.
4% Overall revenue growth.
Cultivation (One Kings Lane)
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N E T TA @ C U S T O R A . C O M2 5 Q U E S T I O N S ?
Cultivation (Backcountry)
Sending seasonal catalogs in a more cost effective way.
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N E T TA @ C U S T O R A . C O M2 6 Q U E S T I O N S ?
How do we max return on catalog mailers?
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N E T TA @ C U S T O R A . C O M2 7 Q U E S T I O N S ?
How do we max return on catalog mailers?
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N E T TA @ C U S T O R A . C O M2 8 Q U E S T I O N S ?
Cultivation (Backcountry)
Sending seasonal catalogs in a more cost effective way - targeting custom-ers likely to covert and refining profile to include more high-value prospective customers.
Identify the most profitable customer segments to target, based on predictive churn detection and historical direct- mail results
Lower cost per conversion, higher lift in revenue and profit per mailing. (Final results still TBD!)
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N E T TA @ C U S T O R A . C O M2 9 Q U E S T I O N S ?
Retention (Nasty Gal)
Automatically sending win-back emails at the optimal time for every individual.
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N E T TA @ C U S T O R A . C O M3 0 Q U E S T I O N S ?
How do we effectively reduce churn?
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N E T TA @ C U S T O R A . C O M3 1 Q U E S T I O N S ?
25 Days
65 Days
We miss you... Here’s 15% off your next order.
Automatic triggers send messages to specific customers — right when they need them.
How do we effectively reduce churn?
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N E T TA @ C U S T O R A . C O M3 2 Q U E S T I O N S ?
Retention (Nasty Gal)
Automatically sending win-back emails at the optimal time for every individual.
Individual predictive churn detection
Email campaign A/B testing (Automated)
11% revenue lift over control group 17% re-activation lift over control
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N E T TA @ C U S T O R A . C O M3 3 Q U E S T I O N S ?
E-commerce today
Big Data
Big Potential
Big Headache
It’s clear that Big Data represents a huge opportunity
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N E T TA @ C U S T O R A . C O M3 4 Q U E S T I O N S ?
Do the numbers add up?
76% of marketers say CLV is an important metric for their org ... but less than half or these organizations are currently trying to measure CLV. 94% of CMOs plan to use predictive analytics ... but 82% feel underprepared to deal with big data. 71% of marketers want to want to know who their best customers will be, and how to target them ... yet only 15% have the right tools/processes in place.
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N E T TA @ C U S T O R A . C O M3 5 Q U E S T I O N S ?
Understanding and anticipating individual customer behavior enables marketers to build stronger, longer relationships.
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N E T TA @ C U S T O R A . C O M3 6 Q U E S T I O N S ?
Navigating the sea of products and vendors with overlapping features and fuzzy descriptions.
The landscape
Order Management
Crazy-Expensive Custom
Analytics tools
Mobile E-Commerce
Web Content Management Systems
Customer Analytics
Email Marketing
Customer Segmentation
Web Content Testing Tools
Personalization Software and Engines
Payments
Web Analytics
Analytics and Reporting
Search
Omni-Channel Personalization
Automated Retention
Social Shopping
Anti-Social Shopping :)
Marketing Automation
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N E T TA @ C U S T O R A . C O M3 7 Q U E S T I O N S ?
Alignment
Teams
Tools
Data
Customer- Centric
Marketing
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N E T TA @ C U S T O R A . C O M3 8 Q U E S T I O N S ?
Building a customer- centric “engine”
V R O O O O M
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N E T TA @ C U S T O R A . C O M3 9 Q U E S T I O N S ?
Customer Data
Web Analytics
Email Data Customer info Email Transaction Website
Data
It starts with the data.
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N E T TA @ C U S T O R A . C O M4 0 Q U E S T I O N S ?
Customer Data
Web Analytics
Customer Insight / Segmentation
Email Data Customer info Email Transaction Website
Data
Customer Insight / Segmentation
Layer 1: Customer Insight
What makes customers unique?
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N E T TA @ C U S T O R A . C O M4 1 Q U E S T I O N S ?
Customer Data
Web Analytics
Customer Insight / Segmentation
Acquisition Cultivation Retention
Email Data
Acquisition Cultivation
Customer info Email Transaction Website
Data
Customer Insight / Segmentation
Retention
Layer 2: Acquisition and retention
Leveraging those insights.
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N E T TA @ C U S T O R A . C O M4 2 Q U E S T I O N S ?
Customer Data
Web Analytics
Customer Insight / Segmentation
Acquisition Cultivation Retention
Email Data
Acquisition Cultivation
Customer info Email Transaction Website
Data
Customer Insight / Segmentation
Retention
Layer 2: Acquisition and retention
Leveraging those insights.
Teams
Tools
Data
CCM
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N E T TA @ C U S T O R A . C O M4 3 Q U E S T I O N S ?
Customer Data
Web Analytics
Customer Insight / Segmentation
Acquisition Cultivation Retention
Email Data
Acquisition Cultivation
Customer info Email Transaction Website
Data
Customer Insight / Segmentation
Retention
OUTPUT / INTEGRATIONS
DATA
MARKETING /
CUSTOMER TOUCHPOINTS
Email Service Provider
CRM Systems
Website
Data flow: Engine running
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N E T TA @ C U S T O R A . C O M4 4 Q U E S T I O N S ?
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1. Do you know the lifetime value of your customers?
2. Do you know who your most valuable customers are, and what makes them unique?
3. Do you know which acquisition channels attract your most valuable customers?
4. Does your email marketing acknowledge customer lifecycle stages?
5. Do you use customer segmentation to create more personalized messages?
6. Do you use individual winback messages to reduce customer churn?
7. Do you offer free guacamole to your best customers?
8. Do you have a 360 degree view of your customer across channels and devices?
9. Can you easily compare offline and online customer behavior?
10. Do you measure and optimize metrics such as Customer Equity, Early Repeat Rate,
and Leaky Bucket Ratio?
![Page 45: WEBINAR What sets e-commercepages.custora.com/rs/custora/images/140821_E-commerce Stars.pdf · marketing spend. Predictive Customer Lifetime Value analysis Re-allocated spend across](https://reader031.vdocuments.net/reader031/viewer/2022041015/5ec6389b7929877f812ed3f6/html5/thumbnails/45.jpg)
N E T TA @ C U S T O R A . C O M4 5 Q U E S T I O N S ?
Add’l resources What next?
Custora U
Custora Blog
Custora Pulse
Expert Network
Workshop Demo
![Page 46: WEBINAR What sets e-commercepages.custora.com/rs/custora/images/140821_E-commerce Stars.pdf · marketing spend. Predictive Customer Lifetime Value analysis Re-allocated spend across](https://reader031.vdocuments.net/reader031/viewer/2022041015/5ec6389b7929877f812ed3f6/html5/thumbnails/46.jpg)
N E T TA @ C U S T O R A . C O M4 6 Q U E S T I O N S ?
Add’l resources
Custora U Courses
Customer-Centric Marketing
Customer Lifetime Value
Segmentation
Lifecycle Marketing
Cohort Analysis
Predictive Analytics
Custora E-commerce Pulse
Mobile E-commerce Report 2014
Add’l educational resources
![Page 47: WEBINAR What sets e-commercepages.custora.com/rs/custora/images/140821_E-commerce Stars.pdf · marketing spend. Predictive Customer Lifetime Value analysis Re-allocated spend across](https://reader031.vdocuments.net/reader031/viewer/2022041015/5ec6389b7929877f812ed3f6/html5/thumbnails/47.jpg)
N E T TA @ C U S T O R A . C O M4 7 Q U E S T I O N S ?
THANKS!
T H E E N D