Unlock the Full Potential of Your Magento Store Data
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Meet Magento 2017 Indonesia - #mm17id Business - Keynote Session 10 Speaker: Clement Burghart - Emarsys
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Unlock the Full Potential of Your Magento Store Data
- 1. Unlock the Full Potential of Your Magento Store Data Clement Burghart APAC Channel Sales Manager Emarsys
- 2. #1Metrics and the Customer Lifecycle
- 3. “Increase site traffic.” “Convert shoppers into customers!” “Maximize conversion rates.” “Grow the list.” “Decrease acquisition costs” “Boost AOV.” “Capture mobile sales.” “Build loyal customers!” Making the Most of the Metrics
- 4. 1% increase in active customers could mean a 10% growth in revenue Making the Most of the Metrics 98% of visitors never convert. Of the 2% that do convert, 70% only purchase once. 30% become active buyers.
- 5. INCREASE CUSTOMER LIFETIME VALUE REVENUE TIME Engage & Grow ACTIVE CUSTOMERS Convert more leads LEADS FIRST-TIME BUYERS ACTIVE BUYERS DEFECTING CUSTOMERS 1 2 3 Increase retention and win back inactive customers Basic View of the Customer Lifecycle
- 6. (Source: Emarsys, August 2015) 7% 13% 36% 18% 6% Impact of Customer Lifecycle Status on purchase Conversion rates per Customer Lifecycle Status Lead 1st Time Buyer Active Buyer Defecting Buyer Inactive Buyer
- 8. Case Example: Indonesia Customer Data Benchmark Performance Average Open Rate 7.7% Average Click Rate 1.7% Ave order size 800,000 rupiah Profit Margin 30% (240,000 rupiah) Cost of Acquisition 300,000 rupiah Profit on first time purchase -60,000 rupiah Website Conversion Rate 1.66% Email Conversion Rate 3.43% Number of repeat vs first time purchasers Unknown Churn Rate Unknown Customer Lifetime Value Unknown
- 9. Frequency Results (3 years of data) 71.04% 28.96% FREQUENCY First Time Recurring 22% 78% REVENUE First Time Recurring• Recurring buyers spend over 5X more than first time buyers on average • Convert first time buyers to recurring customers to significantly improve revenue & margin
- 10. Recency Analysis (3 years data) 11% 46% 43 % RECENCY Active Defecting Inactive 18.3% 50.52% 31.17% REVENUE Active Defecting Inactive • Majority of customers are either lost or starting to lose • 81% of the revenue over last 3 years contributed from lost/almost lost customers • The business must acquire more than they lose, or drastically change their strategy to a retention focus
- 11. 0 50,000 100,000 150,000 200,000 250,000 300,000 Low Normal Silver Gold Platinum Contacts Revenue (per million Rp) • Managing customers by their spending status is essential, particularly for those few high spenders. • Customer spend is varied - a small group (14.93%) of customers contribute over 68% of the total revenue Monetary Analysis (3 years data)
- 12. Our recommendation after loading the Magento Data Increasing 1st buyer to active buyer Segment by Spending Status/Loyalty Prevent Defecting Customer
- 13. #2Example of first time buyer conversion to active buyer with Abandoned Cart campaign
- 14. Select Our First time Buyers Segment
- 15. Engaging Jane Not responding... Not responding… Finally made a purchase! Jane
- 16. Engaging the first time buyer, Jane Forget something? Check out your special offer. Buy 1 get 1 free! slide to view message Check out your items with the discount before it expires! Check out your items with the discount before it expires! $15 DISCOUNT
- 17. Engaging Jane with mobile push notification First time buyer Jane Normal Jane Forget something! Check out your welcome special offer. Buy 1 get 1 free! slide to view message Don’t forget to checkout your Lovely Black Dress! It’s running out of stock! slide to view message
- 18. Engaging Jane with email First time buyer Jane Normal Jane Check out your items with the discount before it expires! Your Black Dress is running out of stock. Make sure you bring it back home! $10 OFF
- 19. Engaging Jane on Facebook First time buyer Jane Normal Jane Check out your items with the discount before it expires! Black Dress is running out of stock. Make sure you bring it back home! $15 DISCOUNT $10 DISCOUNT
- 20. #3Case Study
- 21. A personalized customer experience: Decathlon
- 22. Challenges • A well known global brand but in SEA Decathlon was unheard of • Traditional Acquisition strategies were generating a negative return • Low customer growth in first 2 years • 80% of revenues from customers who made only a single purchase • Limited Marketing and Technical resources • Campaigns and marketing activities were manually driven
- 23. Revenue impact by purchase stage (Before) Close to 80% of all revenues from single purchase customers
- 24. Automated Lifecycle Programs Abandoned Cart BirthdayWelcome Abandoned Browse First Time Buyer Post Purchase Win Back
- 25. How does that look on the lifecycle?Brandinteraction Time 3 EARLY DOMANCY NOTIFICATION 1 INTRODUCTORY OFFERS WELCOME BACK 2 RE-ACTIVATION PROGRAM 3 3 SURVEY /OFFERS WELCOME PROGRAM 1 1. Customer 2. Known active customer 3. Known inactive customer 4. Lost customer LOST CUSTOMER 4 2 STATEMENTS 2 BIRTHDAY / ANNIVERSARY 2 CROSS SELL / UP SELL 1 SURVEY 1 NEWSLETTERS 1 LOYALTY OFFERS 2
- 26. Results overtime: Revenue impact by purchase stage (after) Now (50%+) revenues generated from repeat customers & increasing
- 27. Decathlon Overall ROI over 3 months 748%+ Repeat customers revenue +120% Automated Lifecycle Programs Open Rate Click Rate Birthday 34.7% 7.9% Welcome Program 76% 19.6% Abandoned cart email combined with social ads & reminder 68% 21% Abandoned Browse 62% 11% Post Purchase 71% 7.1% 1st time purchase survey & incentive 84.9% 33% Win back defecting customer 23.2% 4.2% Discovery Overlay 28% increase in spend; 75% higher conversion Website & email predictive recommendations 18% of total website revenue
- 28. The result 50%+ Total website revenue Through retention channels 120%+ Increase in revenue from repeat purchases 748% ROI after five weeks of implementation
- 29. #4Supercharge your Marketing with Emarsys for Magento
- 32. BECOME AN EMARSYS AGENCY PARTNER TODAY! ENQUIRE NOW http://bit.ly/emarsys-agency- partner And many more..
- 33. Thank you. Learn more at stand #9. Clement Burghart APAC Channel Sales Manager E: clement.burghart@emarsys.com M: +65 9787 9481 W: www.emarsys.com
Notas do Editor
- 1. Today I want to talk to you about how you can leverage on the data generated by your Magento store and how you can unlock the full potential of these data. Now, to give you a little bit of context, on average 70% of first time buyers will never repeat their purchase, and yet, accross APAC, about 80% of the marketing budgets are spent on acquiring new customers. The math doesn’t quite add up here. 2. Some businesses have already identified that gap, and you can also change that dynamic. The data generated by your Magento shop has a huge potential and the application of predictive analysis is the key to unlocking it. 3. In this session, I will share how you can leverage your data to understand your customer lifetime value and customer lifecycle stages and how you can leverage them to maximize the online performance of your platform.
- Let me start by sharing on a few metrics and explain why at Emarsys we believe that the notion of customer lifetime value and customer lifecycle stages is extremely important
- 1. Can I have a quick show of hand, how many of you are working on improving your AOV or try to improve comversion rates ? Decreasing overall acquisition costs ? 2. There you go, we all know these metrics and intend to work on them. However, here is my question: these metrics are clearly important to monitor how well you are performing, but - do they give you the full picture of how well your business is performing online ? - do you know why you are having such positive or negative metrics ? And what should you do to improve them? - are you able to identify the pool of your best customers who will drive the fastest ROI for your business ? I will try to provide some answers to these questions during my presentation, and obviously the understanding of customer lifetime value is at the center of this.
- 1. Based on Internet Retailing and google reporting, here is what we know: internet business is tough. Your competitor is only one click away and on average, only 2% of your overall traffic will convert and 98% will never purchase from you. 2. Out of these 2%, 70% will only purchase once when 30% will come back and become an active buyer for your brand. 3. And there is a great study conducted by Adobe which holds truebased on our own findings, and it shows that 1% increase in the active buyer pool can mean a 10% hrowth in revenue. You may ask me: why is that ? It is because the average lifetime value of an active buyer is just much larger than the lifetime value of a newly acquired customer.
- So when we discuss of notion of customer lifetime value, we come to a common understanding that: 1. Your customers journey doesn’t end in a single purchase, and to really justify an ROI, you expect these people to stay customers and to make purchase from us again. 2. The value of a customer is not in their latest transaction but rather the summation of their transactions over time. And in this new world of data science, machine learning and Artificial intelligence, you can even predict their future lifetime spend. 3. Naturally, any business would have the following lifecycle curve. And users are flowing through the stages naturally. Now the goal of all brands in interacting with your customer is to make sure to convert a lead into a first time buyer, a first time buyer into an active buyer and identify the defection as it happens so you can fight it and bring back your customer to active buyer. And you can start thinking to yourself, are you doing something special to address each of these lifecycle stages ? If you don’t your lifetime value curve will probably look like this, and that means that you have a good potential for an uplift.
- We believe even more in customer lifecycle stages as we have conducted a study on data set from customers in Europe and APAC, and looking at the impact of lifecycle stages on conversion rates over a time period. And the results were pretty dramatic. When you engage your client and you send them some communication, you are 5 times more likely to get a conversion on an active buyer versus a lead. Are you yourself looking into various conversion rates across your customer lifecycle stages ? Do you address them differently to maximize the conversion during each stage ?
- We often find out when we onboard customers that there are experiencing a leaky bucket phenomenon. It’s pretty explicit based on the image, but overall
- Now, I’d like to start sharing with you on a concrete scenario where we helped one of our Indonesian client to leverage on their Magento data to understand where they should focus their marketing effort to improve their online performance. We knew the assumption as per listed on the table, and not much else. What we did is take the past three year’s data generated by magento and loaded it within Emarsys so we can start to analyse this data. Here are the findings we had:
- Here we can clearly see that a small portion -15%- of the customer database (the best buyers) generate more than 68% of the revenue. The focus should be on these customer as they are more important. And you can start thinking about whether you are treating your customers differently, do you address them with different messaging ? Also, do you feel that brands are treating you differently, the ones you spend the most money on ?
- Explain colours How much do our customers spend? Impact of first time customers Small group of VIP customers Customers are different!