General Principles of Intellectual Property: Concepts of Intellectual Proper...
The power of customer loyalty in performance marketing - Anthony Quinn
1. The Power of Customer Loyalty in
Performance Marketing
Hash Tag: #A4UT11
September 19th, 2011
Presented By:
Anthony Quinn
Director, Advertiser Services
Copyright 2011 LinkShare Corporation. All rights reserved.
2. Agenda
Introduction
Evolution Of Consumer Behaviour
Who Are Consumers Loyal To And Why?
What Can Be Learned?
Copyright 2011 LinkShare Corporation. All rights reserved. 2
3. Who am I?
Anthony Quinn, Director, Advertiser Services at LinkShare
Responsible for the effective management, development and growth
of LinkShare’s managed affiliate programs
Over 11 years in online marketing
Previously worked advertiser side at GAME Stores
Copyright 2011 LinkShare Corporation. All rights reserved. 3
4. LinkShare UK Network
Launched August 2006
Winner of ‘Most Improved Network’ at
the 2011 a4u Awards
Over 250 Advertisers
Focus on Retail & Travel
Over 140,000 Quality Publishers
Dedicated Teams
Superior Client Service
Publisher Partnership Support
Copyright 2011 LinkShare Corporation. All rights reserved. 4
5. Definition of Loyalty in the context of this presentation
Loyalty of Customers towards the sites that they visit
Recognition & acknowledgement of the new behaviour of
customers
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6. Hypothesis...
Are consumers becoming more loyal to
publisher sites than the advertisers?
And if that is the case, how and why is this happening?
How can we explain the shift?
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7. Let’s start with a brief history focusing on:
Consumer Evolution
Advertiser Evolution
Publisher Evolution
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8. Consumer Evolution
Advertiser Evolution
Publisher Evolution
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9. Consumer Evolution
Offline Online
Consumers becoming more savvy
Finding the information they want online
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11. Consumer Shift: Offline Online
10% annual growth expected across Europe
Online retail will pass the €100bn mark in 2012
Copyright 2011 LinkShare Corporation. All rights reserved. Source: Forrester Reseach – European Online Retail Forecast 2010 - 2015 11
13. Consumer Shift: Consumers becoming more savvy
Copyright 2011 LinkShare Corporation. All rights reserved. Source: LinkShare Trendwatch - 2009 13
14. Consumer Shift: Consumers becoming more savvy
“With much less time
to do a normal shop it’s much easier
for me”
“I find it easier to
change between retailers and
find the bargains I'm looking for”
“I like it because you
see a much wider choice and price of
goods and spend no money on
transport”
“You’re able to compare
products much more”
Which of the following are reasons for why you prefer shopping online?
Source: LinkShare Trendwatch - 2009
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15. Finding the information they want online
92% have more confidence in online
information than salespeople
81% are doing online research “most of the
time” before buying a product
73% conducting online product research
several times a month
Copyright 2011 LinkShare Corporation. All rights reserved. Source: LinkShare Trendwatch - 2009 15
16. Finding the information they want online
Source: LinkShare Trendwatch - 2009
Copyright 2011 LinkShare Corporation. All rights reserved. 16
17. Are Consumers influenced by this information?
Have you ever purchased something online that you would never
previously thought of buying, because of a voucher or offer?
58.9%
60
41.1%
50
40
30
20
10
0
Yes No
Source: LinkShare Information Shopper Research – August 2011
Copyright 2011 LinkShare Corporation. All rights reserved. Source: LinkShare Information Shopper Research – August 2011 17
18. Consumer Evolution
Advertiser Evolution
Publisher Evolution
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19. Advertiser Evolution
Reacting to consumer behaviour. More and more shoppers
are online
Interaction with customers
Improving the on-site customer experience through
understanding customer needs
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24. Advertiser Evolution
Ocado: ‘Virtual Shop Window’
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25. Consumer Evolution
Advertiser Evolution
Publisher Evolution
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26. Publisher Evolution
Publishers have themselves created opportunities in performance
marketing
New affiliate types:
Reacting to
consumer shift = •
•
•
•
Voucher
Loyalty
Editorial Blog
Video
All with 1 objective in mind > drive sales and custom for the advertiser
Copyright 2011 LinkShare Corporation. All rights reserved. 26
27. Summary So Far…
Consumer Evolution
Who is best serving the
Advertiser & Publisher needs of the consumer
Evolution
today?
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28. Who is best serving the needs of the consumer today:
Advertisers?
Management of CRM systems
Loyalty strategy – newsletters that feature rewards for loyalty
Advertiser sites as destination sites (video, interaction, consumer offers)
Is this working? Potentially no – but why?
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29. Who is best serving the needs of the consumer today:
Consumers today are time poor
However –
Receiving more information than ever before from advertisers –
For Example: Advertiser newsletters featuring offers and promotions:
Hotmail recently released a new way to organise inbox (classifying
newsletters as Grey)
75% of the email messages reported as spam are really legitimate
newsletters, offers, or notifications.
Copyright 2011 LinkShare Corporation. All rights reserved. 29
30. Who is best serving the needs of the consumer today:
What about publishers?
Are they best serving their purpose/shopping patterns/wants/needs?
Potentially yes……..
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31. Who is best serving the needs of the consumer today:
Is there a gap between the advertiser and the publisher serving
the needs of the consumer journey?
Example: multichannel experience…..
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32. Example of the gap:
A consumer multichannel experience
(69%) researched a product in a shop before buying. But 67% then turned
online when it came time to purchase – in search of better prices *
Publisher Site Advertiser
Tracking for
compensation / reporting
*(Kantar Media Compete’s Online Shopper Intelligence report, 2011)
Copyright 2011 LinkShare Corporation. All rights reserved. 32
33. Who is best serving the needs of the consumer today:
Publishers provide value
With clear intentions to return time and time again as part of their
purchase journey.
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34. Who is best serving the needs of the consumer today:
Publishers are therefore now an integrated part of the consumers
purchase journey
Cashback / Loyalty
Voucher
Community
Shopping comparison / personalisation
Review & Recommendations
How do they provide value?
Copyright 2011 LinkShare Corporation. All rights reserved. 34
35. Who is best serving the needs of the consumer today:
Price Comparison Get best deal
Shopping Find right
Comparison product easily
Trustworthy
Style Blog
fashion advice
Voucher Site Cost saving
Who is the consumer naturally loyal to?
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36. Creating new opportunities in affiliate marketing
Price Comparison Get best deal
Shopping Find right
Comparison product easily
Trustworthy
Style Blog
fashion advice
Voucher Site Cost saving
Loyalty comes from the VALUE that they get from a site
Copyright 2011 LinkShare Corporation. All rights reserved. 36
37. Who is best serving the needs of the consumer today:
Publishers provide value
Let’s look at some examples…..
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38. Understand the value of the publisher - POLYVORE
Traffic
10m Unique Visitors per month
2m Registered Users
140m Pageviews per month
Social presence
100k posts to Twitter & Facebook
35m monthly impression on blogs
Other
Authentic, Personal, User-Generated
Insight
Loyalty
• 12.4% of users visit 100+ times pcm
Copyright 2011 LinkShare Corporation. All rights reserved. 38
39. Understand the value of the publisher - SHOPSTYLE
Most popular fashion aggregator
High street and designer fashion
160+ retailers
Traffic
1.1million unique visitors per month
High conversion rate and AOV
Premium Exposure
E-shop algorithm
Sale alerts
Social Media
Copyright 2011 LinkShare Corporation. All rights reserved. 39
40. Understand the value of the publisher – SHOP IT TO ME
Personalisation Technology
Free, trusted online personal shopper
Aggregated newsletters sent with matches
according to your personal preferences
Easy shopping solution
Scour the web every day to find the best prices
on the items you’ve selected
Offers from over 200 retailers
Aggregated daily email
Traffic
Over 3 million subscribers
Over 2 billion product recommendations per
month
Copyright 2011 LinkShare Corporation. All rights reserved. 40
41. Understand the value of the publisher – QUIDCO
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42. Publishers building a legion of loyal fans
Top publisher sites now have power & are shopping destinations in
their own right:
More traffic than advertisers
Extensive email databases
Community engaged members
Use distribution channels – social
media,
direct mail etc.
Committed to growth / flexible to change
Copyright 2011 LinkShare Corporation. All rights reserved. 42
43. Understand the value of the publisher
Assess the value of an publisher according to your own metrics:
Average Order Values
New vs. Existing Customers
Lifetime value
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44. Understand the value of the publisher
Average Order Values
Customers loyal to voucher/coupon sites expect to spend 16%
16% more, on average, than the typical online shopper.*
They make 18% more purchases online than the average online
18% shopper.*
*Source: A commissioned study conducted by Forrester Consulting on behalf of WhaleShark Media August 2011
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45. Understand the value of the publisher
Average Order Values
Increased Increased Increased
AOV by 31%* AOV by 25%* AOV by 19%*
Cashback Site Voucher Site Employee Mall
*Compared to the
Exclusive Exclusive Exclusive
same period the Free Delivery £10 off £100+ Free Delivery
previous week
Copyright 2011 LinkShare Corporation. All rights reserved. 45
46. Understand the value of the publisher
New vs Existing Customers
Increased by Increased by Increased by
27%* 17%* 14%*
Voucher Site Cashback Voucher Site
*Compared to the
Exclusive Exclusive Exclusive
same period the Free Delivery Free Delivery Free Delivery
previous week
Copyright 2011 LinkShare Corporation. All rights reserved. 46
47. Understand the value of the publisher
Lifetime Value
Visitors to coupon/voucher websites are an especially valuable
segment of shoppers.
Consumers who redeemed more than six coupons/vouchers in the
past 12 months, spent 80% more per year than light users
This equates to 32% more than the mean spend of all US
coupon/voucher users.*
*Source: A commissioned study conducted by Forrester Consulting on behalf of WhaleShark Media August 2011
Copyright 2011 LinkShare Corporation. All rights reserved. 47
48. Understand the value of the publisher
Lifetime Value
“We know customers are loyal to [coupon aggregator] sites.
We also know it drives a large number of new customers, ranging
from 18%-25% of our net new customers.”
(Sr. Online Manager, large apparel and home furnishing retailer)*
*Source: A commissioned study conducted by Forrester Consulting on behalf of WhaleShark Media August 2011
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49. Publishers are providing consumers with the right
information
Information = Value = Loyalty
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50. Summary
Consumer shopping behaviour has evolved
Publishers add value to a consumer journey
Consumers can be more loyal to the publisher than the advertiser
Copyright 2011 LinkShare Corporation. All rights reserved. 50
51. Some Key Takeaways
Work closely with the publishers to help them understand your
objectives for the program and strategise accordingly
Performance marketing is a proven cost effective channel for driving
new customers
However, you should utilise the channel for maintaining your existing
customers (and reward them for their loyalty to the advertiser)
Would the customer have shopped with the advertiser anyway?
Perhaps not
Copyright 2011 LinkShare Corporation. All rights reserved. 51
52. Thank You!
Presented By:
Anthony Quinn
Director, Advertiser Services
anthony.quinn@linkshare.com
Copyright 2011 LinkShare Corporation. All rights reserved. 52