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Maximize Conversions by Balancing
Your Ecommerce & Amazon Strategy
THE Q4 ECOMMERCE BRAND ACCELERATOR VIRTUAL SUMMIT
Summit Details
Tuesday, September 25th
10 - 10:45 AM PT
● CPC Strategy: Maximize Conversions by
Balancing Your Ecommerce and Amazon Strategy
11 - 11:45 AM PT
● Trustpilot: Optimizing the Path to Conversion
Leveraging Social Proof to Increase Sales
12 - 12:45 AM PT
● Nielsen Visual IQ: Crossing the New Digital
Divide: Your Guide to Marketing Effectiveness
Wednesday, September 26th
10 - 10:45 AM PT
● AdEspresso: 6 Ways To Retarget Audiences Using
Facebook Ads To Maximize Revenue During Q4
11 - 11:45 AM PT
● Privy: How Top Ecommerce Merchants Approach
Cart Abandonment
● Session Recording & Slides Will Be Sent Out
● Submit Questions to Our Panelists
● Resources Available as Handouts
● Join in the Poll Question!
Analicia Santaella
Webinar Coordinator
Today’s Logistics
Overview
Founded in 2007
Google Premier Partner
500+ Active Retail Clients
Top 50 Fastest Growing Company San Diego
D E L I V E R I N G
L A S T I N G
R E S U L T S F O R O U R
C L I E N T S
Solutions
Retail-focused PPC & Shopping
Amazon Sales Acceleration
Facebook Performance Marketing
Creative Services
About CPC Strategy
Lewis Brannon
Sr. Retail Search Manager
Today’s Speaker
Michael Ward
Lead Retail Search Manager
Today’s Agenda
● Poll
● Ecommerce 101 & Direct-to-Consumer (D2C) Benefits
● Amazon & Ecommerce Channel Comparison
● Cross-Channel Resource Allocation & Merchandising Strategies
● Integrating Insights across Channels to Maximize Performance
● Key Takeaways - Next Steps
Ecommerce 101 & D2C Benefits
Benefits of a Direct-to-Consumer Approach
● Establish your brand story
to connect with target
● Amazon matches with
premium content
Brand Equity First-Party Data Lifetime Value
● Build email lists
● Strategize repeat purchases
● Find similar customers
● Acquire new customers at a
lower cost
● Foster a direct relationship
with you customers
●Turn revenue acquisition
into customer acquisition
● Mathematical outcome of
customer relationships
Why Foster Customer Lifetime Value?
The top 1% of
customers are worth
18 times more than
the average
customer
The Likelihood of a
customer to make a
second purchase is
close to 30%, for a
third purchase it
jumps past 50%
The fastest growing
ecommerce
companies have a
customer lifetime
value 79% higher
than their peers
RJ Metrics 2017
Why Foster Customer Lifetime Value?
More than just revenue / profit acquisition, acquire customers
Why focus on CLV?
● Rising cost of customer acquisition
● Increasing competition
● Top 20% of customers generate roughly 70% of your total revenue
How to use CLV?
● Leverage first-party data
● Find similar audiences
● Acquire customers at lower cost
Amazon & Ecommerce Channel Comparison
Fish Where the Fish Are: Amazon
Why Sell on Amazon?
● 54% of product searches begin on Amazon
Why Sell on Your own site?
● Think long term: D2C Ecommerce Strategy
Jumpshot 2018
Channel Comparisons - Acquiring Traffic & Cost of Revenue
Traffic Acquisition
& Cost of Revenue
Amazon Ecommerce
● Amazon generates
● On Amazon
advertisement
● Off Amazon traffic
○ *Attribution
● Amazon fees
● Advertising costs
● Fulfillment
● Paid
● Earned
● Owned
● *Retailer is responsible
● Site Development &
Upkeep
● Advertising Costs
● Fulfillment
Channel Comparisons - Branding & Brand Equity
Branding &
Brand Equity
Amazon Ecommerce
● PDP Content
○ EBC & A+
● Amazon Storefront
● Non-Ecomm Site
● DSP (F.K.A. AAP)
● Site - Brand Launchpad &
Content Hub
● Retargeting
● Email
● Social Channels
Channel Comparisons - Branding & Brand Equity
Customer Retention
& LTV
Amazon Ecommerce
● DSP (F.K.A. AAP)
● Retargeting to past
purchasers
● Gated data sets
● Search & Display
Retargeting
● Email
● Blog
● 1st Party Data
Channel Comparisons - Strong Points
Immediate Sales
Velocity
CLV & Brand
Loyalty
Cross Channel Strategies - Resource Allocation
Resource Allocation
All about profit
Resource Allocation: Maximize Per-Channel Profit
$600K
$0
$200K
$300K
$500K
$800K
$700K
Cost per sale (Efficiency)
$30 $60$0 $120 $180
Revenues
Profits
Where
you are
$90 $150
TotalInvestment(Volume)
Maximum
profitability
Resource Allocation
Channel
Characteristics
Amazon Ecommerce
● Demand capture machine
● Product search starts here
● Limited ability to tell
brand story & foster
loyalty
● Must generate own traffic
● Brand launchpad
● Engine of customer
loyalty**
©Copyright AdDiego 2018 | Presented by CPC Strategy
=IF >
+CLV
Resource Allocation
Channel Comparisons - Strong Points
Immediate Sales
Velocity
CLV & Brand
Loyalty
* Omni-channel
Optimized
Merchant
Cross Channel Strategies - Merchandising
Merchandising - Pros of Product Launch on Ecommerce
● Take advantage of social / branding investment
by driving traffic to Ecommerce
● Collect Search / keyword data
● Create exclusivity / FOMO
Merchandising - Pros of Product Launch on Amazon
● Conversion rate highest
● Organic halo effect
● Product review generation
● Attribution is important
Merchandising Strategies - Web Exclusives
+28% lift in eComm
conversions as a result
of pushing web exclusive
offers via aligned paid
media campaigns
● FOMO
● Reward customers for
engagement
● Encourage advocacy
● Increase LTV
+36% lift in category
sales (YoY)
and +14% lift in CVR as a
result of pushing web
exclusive colorways
Integrating Insights to Maximize Performance
Integrating Insights to Maximize Performance
Keywords / Search Queries
Product Sales / Velocity / Trends
Scaled Ad Copy Learnings
Impression Share / Auction Insight
Keyword/Query
Reports
● Eliminate guesswork
● Mine for opportunities
● Accelerate growth
Sales Velocity
● Strategic bidding
● Merchandising /
Assortment insights
● Budget planning
Auction Insights
● Budget planning
● Added context for CPC
shifts
● Allow for strategic
testing
Integrated Insights - Key Reports
Integrated Insights - Omnichannel Reporting Hub
Key Takeaways
What You Should Do Next
Next Steps as an Amazon-only Seller:
● Secure your Amazon foundation is strong & profitable before launching Ecommerce
Next Steps as a Ecommerce-only Seller:
● Remember your shoppers are on Amazon too
○ Optional Strategy: Selective product release
○ Optional Strategy: Amazon as a liquidation channel with discounts
○ Optional Strategy: Amazon as full price catalog capturing active intent
Next Steps if Selling on Both:
● Integrate cross-channel Insights
● Allocate resources considering channel profitability
Channel Comparisons - Strong Points
Immediate Sales
Velocity
CLV & Brand
Loyalty
Omni-channel
Optimized
Merchant
SMALL TEXT
STACK TEXT ROW 1
STACK TEXT ROW 2
Schedule Your 1-1
Paid Search &
Ecommerce Evaluation
Questions for Today’s Speaker?
Lewis Brannon
Sr. Retail Search Manager
Michael Ward
Lead Retail Search Manager

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Maximize Conversions by Balancing Your Ecommerce & Amazon Strategy

  • 1. Maximize Conversions by Balancing Your Ecommerce & Amazon Strategy THE Q4 ECOMMERCE BRAND ACCELERATOR VIRTUAL SUMMIT
  • 2. Summit Details Tuesday, September 25th 10 - 10:45 AM PT ● CPC Strategy: Maximize Conversions by Balancing Your Ecommerce and Amazon Strategy 11 - 11:45 AM PT ● Trustpilot: Optimizing the Path to Conversion Leveraging Social Proof to Increase Sales 12 - 12:45 AM PT ● Nielsen Visual IQ: Crossing the New Digital Divide: Your Guide to Marketing Effectiveness Wednesday, September 26th 10 - 10:45 AM PT ● AdEspresso: 6 Ways To Retarget Audiences Using Facebook Ads To Maximize Revenue During Q4 11 - 11:45 AM PT ● Privy: How Top Ecommerce Merchants Approach Cart Abandonment
  • 3. ● Session Recording & Slides Will Be Sent Out ● Submit Questions to Our Panelists ● Resources Available as Handouts ● Join in the Poll Question! Analicia Santaella Webinar Coordinator Today’s Logistics
  • 4. Overview Founded in 2007 Google Premier Partner 500+ Active Retail Clients Top 50 Fastest Growing Company San Diego D E L I V E R I N G L A S T I N G R E S U L T S F O R O U R C L I E N T S Solutions Retail-focused PPC & Shopping Amazon Sales Acceleration Facebook Performance Marketing Creative Services About CPC Strategy
  • 5. Lewis Brannon Sr. Retail Search Manager Today’s Speaker Michael Ward Lead Retail Search Manager
  • 6. Today’s Agenda ● Poll ● Ecommerce 101 & Direct-to-Consumer (D2C) Benefits ● Amazon & Ecommerce Channel Comparison ● Cross-Channel Resource Allocation & Merchandising Strategies ● Integrating Insights across Channels to Maximize Performance ● Key Takeaways - Next Steps
  • 7. Ecommerce 101 & D2C Benefits
  • 8. Benefits of a Direct-to-Consumer Approach ● Establish your brand story to connect with target ● Amazon matches with premium content Brand Equity First-Party Data Lifetime Value ● Build email lists ● Strategize repeat purchases ● Find similar customers ● Acquire new customers at a lower cost ● Foster a direct relationship with you customers ●Turn revenue acquisition into customer acquisition ● Mathematical outcome of customer relationships
  • 9. Why Foster Customer Lifetime Value? The top 1% of customers are worth 18 times more than the average customer The Likelihood of a customer to make a second purchase is close to 30%, for a third purchase it jumps past 50% The fastest growing ecommerce companies have a customer lifetime value 79% higher than their peers RJ Metrics 2017
  • 10. Why Foster Customer Lifetime Value? More than just revenue / profit acquisition, acquire customers Why focus on CLV? ● Rising cost of customer acquisition ● Increasing competition ● Top 20% of customers generate roughly 70% of your total revenue How to use CLV? ● Leverage first-party data ● Find similar audiences ● Acquire customers at lower cost
  • 11. Amazon & Ecommerce Channel Comparison
  • 12. Fish Where the Fish Are: Amazon Why Sell on Amazon? ● 54% of product searches begin on Amazon Why Sell on Your own site? ● Think long term: D2C Ecommerce Strategy Jumpshot 2018
  • 13. Channel Comparisons - Acquiring Traffic & Cost of Revenue Traffic Acquisition & Cost of Revenue Amazon Ecommerce ● Amazon generates ● On Amazon advertisement ● Off Amazon traffic ○ *Attribution ● Amazon fees ● Advertising costs ● Fulfillment ● Paid ● Earned ● Owned ● *Retailer is responsible ● Site Development & Upkeep ● Advertising Costs ● Fulfillment
  • 14. Channel Comparisons - Branding & Brand Equity Branding & Brand Equity Amazon Ecommerce ● PDP Content ○ EBC & A+ ● Amazon Storefront ● Non-Ecomm Site ● DSP (F.K.A. AAP) ● Site - Brand Launchpad & Content Hub ● Retargeting ● Email ● Social Channels
  • 15. Channel Comparisons - Branding & Brand Equity Customer Retention & LTV Amazon Ecommerce ● DSP (F.K.A. AAP) ● Retargeting to past purchasers ● Gated data sets ● Search & Display Retargeting ● Email ● Blog ● 1st Party Data
  • 16. Channel Comparisons - Strong Points Immediate Sales Velocity CLV & Brand Loyalty
  • 17. Cross Channel Strategies - Resource Allocation
  • 19. Resource Allocation: Maximize Per-Channel Profit $600K $0 $200K $300K $500K $800K $700K Cost per sale (Efficiency) $30 $60$0 $120 $180 Revenues Profits Where you are $90 $150 TotalInvestment(Volume) Maximum profitability
  • 20. Resource Allocation Channel Characteristics Amazon Ecommerce ● Demand capture machine ● Product search starts here ● Limited ability to tell brand story & foster loyalty ● Must generate own traffic ● Brand launchpad ● Engine of customer loyalty**
  • 21. ©Copyright AdDiego 2018 | Presented by CPC Strategy =IF > +CLV Resource Allocation
  • 22. Channel Comparisons - Strong Points Immediate Sales Velocity CLV & Brand Loyalty * Omni-channel Optimized Merchant
  • 23. Cross Channel Strategies - Merchandising
  • 24. Merchandising - Pros of Product Launch on Ecommerce ● Take advantage of social / branding investment by driving traffic to Ecommerce ● Collect Search / keyword data ● Create exclusivity / FOMO
  • 25. Merchandising - Pros of Product Launch on Amazon ● Conversion rate highest ● Organic halo effect ● Product review generation ● Attribution is important
  • 26. Merchandising Strategies - Web Exclusives +28% lift in eComm conversions as a result of pushing web exclusive offers via aligned paid media campaigns ● FOMO ● Reward customers for engagement ● Encourage advocacy ● Increase LTV +36% lift in category sales (YoY) and +14% lift in CVR as a result of pushing web exclusive colorways
  • 27. Integrating Insights to Maximize Performance
  • 28. Integrating Insights to Maximize Performance Keywords / Search Queries Product Sales / Velocity / Trends Scaled Ad Copy Learnings Impression Share / Auction Insight
  • 29. Keyword/Query Reports ● Eliminate guesswork ● Mine for opportunities ● Accelerate growth Sales Velocity ● Strategic bidding ● Merchandising / Assortment insights ● Budget planning Auction Insights ● Budget planning ● Added context for CPC shifts ● Allow for strategic testing Integrated Insights - Key Reports
  • 30. Integrated Insights - Omnichannel Reporting Hub
  • 32. What You Should Do Next Next Steps as an Amazon-only Seller: ● Secure your Amazon foundation is strong & profitable before launching Ecommerce Next Steps as a Ecommerce-only Seller: ● Remember your shoppers are on Amazon too ○ Optional Strategy: Selective product release ○ Optional Strategy: Amazon as a liquidation channel with discounts ○ Optional Strategy: Amazon as full price catalog capturing active intent Next Steps if Selling on Both: ● Integrate cross-channel Insights ● Allocate resources considering channel profitability
  • 33. Channel Comparisons - Strong Points Immediate Sales Velocity CLV & Brand Loyalty Omni-channel Optimized Merchant
  • 34. SMALL TEXT STACK TEXT ROW 1 STACK TEXT ROW 2 Schedule Your 1-1 Paid Search & Ecommerce Evaluation
  • 35. Questions for Today’s Speaker? Lewis Brannon Sr. Retail Search Manager Michael Ward Lead Retail Search Manager