Our first Leeds Online Seller Meetup held on 7th April in Leeds Beckett University was really successful. We had attendance of 20 online businesses and a representative from local chamber of commerce. There was an interesting mix of businesses selling fancy clothes, books to kitchen doors.

1. Leeds
online seller meetup
#OSUKLEEDS
7th
April, 2016
Leeds University
www.OnlineSellerUK.com | Landline: 029 2236 2596 | @OnlineSellerUK
In Partnership with

2. Speakers
Each talk lasts for 25 mins | Networking after event | All slides will be emailed
Richard
Taylor-Jone |
Tom
Kemp
Victor
Corcoran |

3. Brought to you in
Kind support from
and
Sponsorship from
Media Partner

4. Hello !
I’m Prabhat Shah
Project Manager, Online Seller UK
& DaytodayeBay
find me @OnlineSellerUK

5. How did it Start ?
>> Cardiff to throughout the UK
>> Helped 500+ businesses directly

6. Events in
Newcastle
Manchester
Leeds
London
Birmingham
Bristol
Norwich
Brighton
Newport
“Helping
SMEs Sell
Online”

7. We Deliver Ecommerce & Digital Marketing Training
Please visit www.onlineselleruk.com to find out more >

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16. …

19. A)
B)

21. How much are your customers worth to you?

22. What this presentation will cover…
The value of existing customers…
- Optimising Cost Per Acquisition
- Increasing Conversion
- Increasing AOV
- Developing Customer Lifetime Value

23. Why are existing customers important to me?

24. Many retailers are constantly on the lookout for two things…
More Customers More Orders

25. Less is generally said about existing customers, and what
they mean to the business.
Why is this so important?

26. On average, it costs 6-7x more to acquire a new
customer, than to retain an existing one.

27. Existing customers typically spend more than
double that of a new customer.

28. A 2% increase in retention has the same
effect as decreasing costs by 10%.

29. Ecommerce companies in the top performing
quartile have a customer lifetime value
of over 5x that of the industry average.

30. How do we prove this?

31. To appreciate the value of existing customers, we must keep
track of four key metrics:
CPA: Cost per Acquisition CR: Conversion Rate
AOV: Average Order Value LTV: Lifetime Value

32. In order to draw valuable conclusions, these metrics must be
considered alongside the customer purchasing journey…

33. Order
CPA: Cost per Acquisition CR: Conversion Rate LTV: Lifetime Value
CustomerValue
Acquisition Conversion Retention Win-Back

34. This is a dynamic process. There is no “right” or “wrong”
combination, other than what works for your business…

35. CPA CR AOV LTV
Average Distribution

36. CPA CR AOV LTV
High Value – Low Frequency

37. CPA CR AOV LTV
High Frequency – Low Value

38. It is only by monitoring these metrics, and examining how
they affect each other, that we can truly assess the
performance of a business.
Whilst this may sound like a challenge, it can be easily
achieved, via free tools and SaaS platforms.

39. Let’s take a closer look at each element, see
what it is, and how it can be improved…

40. Cost Per Acquisition (CPA)

41. If you retail on marketplaces, this is effectively
done on your behalf, and is commission +
listing fees. Circa 7% – 15%.

42. However, the negative to a fixed CPA is that
this will remain, regardless of turnover.

43. Therefore, the priority should be to cultivate your
own customers, rather than eBay or Amazon’s
and divert value into your own brand.

44. This is done with the launch of a dedicated web presence,
which allows you to control and measure the cost per
acquisition of various marketing channels.

45. Average Order Value (AOV)

46. These are our essentials to encourage a higher AOV:

47. 1. Free Delivery Threshold

48. 2. Timed Incentives

49. 3. Volume Discount/Multi-Buy

50. 4. Giveaways + Thresholds

51. 5. Loyalty & Rewards

52. Conversion Rate (CR)

53. Improving your conversion rate is one of the quickest ways to
generate additional revenue, from your existing traffic levels.

54. A dedicated web presence allows you to positively affect
conversion rate, with a pro-active approach to key areas.

55. Currently, the biggest barrier to a higher conversion rate for
most retailers user experience (UX), in particular mobile.
This should also be viewed as an opportunity.

56. 32% of all online sales came from mobile devices in 2014.
This rose to 40% in 2015 and is growing at around 30%
year on year.

57. Desktop abandonment averages around 68%, however
this increases to 72% on tablets, and 84% on mobile.

58. Ignoring mobile users is the equivalent of
closing your shop for 3 days a week.

59. Over Half your marketing and advertising
spend will soon be consumed by mobile.

60. Social media and email engagement are already
mobile first channels at 80-90%

61. So what makes a good M-commerce
experience that converts?

62. Here are our essential mobile requirements to maximise AOV…

63. Optimised for touch and swipe

64. Optimised menu and navigation elements

65. Use device features for usability

66. Touch and mobile compatible image gallery

67. In the same way the internet has revolutionised commerce,
mobile and mobile payments are set to do the same.

68. Lifetime Value (LTV)

69. After going to the trouble and expense of acquiring the
customer, it is vital to maximise lifetime value.

70. This is because the true value to your business should be measured
across an extended time period, in order to add perspective.

71. The long term aim should always be to enrich your customer data, this
should include:
Product Preference Gender Specific Related Purchases Age Specific Purchase Frequency

72. The primary area we see retailers fail to maximise customer lifetime
value is Lifecycle Marketing.

73. Cost-effective, personalised communication.
Lifecycle Marketing

74. Automated e-mails with bespoke messages
triggered by customer activity.
Lifecycle Marketing

75. Activities are classified according to their
stage on the customer ‘lifecycle’.
Lifecycle Marketing

76. Tailor offers and messages to achieve the
desired action…
Lifecycle Marketing

77. The aim is to convert, retain, grow
and reactivate.
Lifecycle Marketing

78. Up to a 45% click through rate.
Some Recent Lifecycle Email Statistics

79. Over 20% increased spend.
Some Recent Lifecycle Email Statistics

80. On average 3 x more valuable over time.
Some Recent Lifecycle Email Statistics

81. 4 x the benchmark conversion rate
Some Recent Lifecycle Email Statistics

82. A well structured campaign should include:
Welcome Campaign
Forgotten Password
Abandoned Basket
Order / Shipping Confirmations
Search Results / Recently Viewed Campaigns
Survey / Customer Service Campaigns
Birthday / Seasonal Event Campaigns

83. The triggered touchpoints of lifecycle marketing should be
complemented by regular campaigns and promotions.

84. Email campaigns and promotions provide the most cost effective
and consistently high-performing route to market available.

85. As a channel, email marketing is extremely responsive, and can
therefore react to seasonal trends, current affairs, trending
products/topics and more.

86. These campaigns also provide flexibility, to promote high value
products, bundles, or even slow moving stock or clearance sections.
This puts you in control of your products.

87. Key Takeaways

88. - ANALYTICS : Make sure you have access to key metrics
- DATA : Analyse your current data and enrich where possible
- CONTROL : Minimise dependency on marketplaces and build a brand
- LIFETIME VALUE : Maximise sales with regular, personalised communication
Key Takeaways

90. Price Matters
52% of Online Shoppers In Italy Check Price
Before Purchasing

91. NO, BUT I PLAN TO IN THE NEXT 12
MONTHS
WEB RETAILER MARKET SURVEY
DO YOU USE ANY REPRICING
SOFTWARE?

92. Blackhawk Engagement Solutions Survey

93. The Buy Box

94. The Buy
Box
Winner
The Competition
Who gets the most sales?
From 82% to 90%
of all sales made on Amazon
they happen through the BuyBox

95. How Amazon
Repricing Works
Price change in
Amazon
Repricing
Software
receives the
notification
from Amazon
Information
received get
processed from the
Repricing Software
and the new Price is
determined
The New Price
is pushed to
Amazon
Amazon update the
new price received
from the Repricing
Software its
marketplace
This is a
continuous 24/7
Process

96. Data Received for each SKU Price Change

97. Offer Data Received for Top 20
Sellers
Seller Id - Feedback Rating - Feedback Count - Listing & Shipping Price - FBA Yes/No -
New Used
Amazon do not share all available information

98. Solving the Buy Box Mystery

99. How Rules-Based Repricing Works
•Set your Personalized Min /
Max
•Define Buy Box Conditions
•Repricing including desired
Profit Margins
•Why to consider Stock Level
in the rule’s definition
•Shipping Rules and Timing
•Competitor Exceptions
=

100. Repricing including Profit Margin
Control on Revenue Contribution of each sale

101. Using a Repricing Software = Real Time Profit Optimization

102. Price Replication
There are tools out there that allow a seller to push
and pull prices from competitor sites and Amazon

103. Thanks for your time
Questions

104. Did you find this event useful ?
Please write your testimonials.

105. Register Training on our website www.onlineselleruk.com
Available
Training > 1ST
June

106. Thanks !
Everyone for your support.

107. Contact:
Prabhat Shah
@OnlineSellerUK
Email: ps@onlineselleruk.com
Landline: 029 2236 2596 Mobile: 0751 88 39629
www.onlineselleruk.com