EDAYS INTERNATIONAL E-COMMERCE CONFERENCE MOSCOW, JUNE 4-5, 2015

The task for this presentation was to describe our view on one of the «Latest online marketing trends and challenges in the Russian market »

- Personalization -

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 2

CURRENTLY FLOCKTORY IS THE LEADING REFERRAL MARKETING AND PERSONALIZATION DRIVEN CONVERSIONS PLATFORM IN RUSSIA, COVERING MORE THAN 60% THE ENTERPRISE E-COMMERCE MARKET

Flocktory’s partners TODAY in different segments in Russia

Not all partners

Hypermarkets

Daily deals

Specialization

Banks

Travel

Electronics

Fashion

Possible KPI’s for Post-Checkout

Up to 24% increase in new sales1)

Up to 4x times more leads1)

Up to 8x increase in conversion1)

Current trend level in Russia

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 3

DEPENDING ON THE COMPANIES GOALS YOU WILL FIND DIFFERENT PREACHING'S ON PERSONALIZATION BUT THEY DON’T NECESSARY CONTRADICT EACH OTHERKey Dimension to goals Example of Decision tree

Will the user buy

Get other valuable

action like Registration

Create a reward Feeling

Personalize activation via

content

Help him to earn his purchase

Push for secondary

KPI via motivation

Cross sell via Feedback

Show most marginal

Establish loyalty via Feedback

No Potential Yes

Returning customer New customer

Getting highest conversions

Selling with highest margins

Getting most out of traffic (incl. secondary KPI’s)

Reducing negative KPIs (overstock etc.)

Others

?What to

personalize too?

Low High

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 4

PERSONALIZATION IS KEY ON EVERY STEP OF THE CONVERSION FUNNEL BUT OFTEN LACKS A CONSOLIDATED APPROACH INTO “ONE STORY” AND IS NOT USING ALL AVAILABLE DATA

Level of personalization Low High

VA – Valuable Action, The reason any of us brings traffic to the website

Part

of

pro

cess

Pro

ble

m

key

poin

ts

• Most users come to a website as professional “lookers” but are a potential asset

• There is a clear list of things anybody needs to get from a user if not a purchase

• Personalizing can help not only with converting new traffic but also for cross + upsell etc.

• Due to the long value chain creation, personalization should be part of any step and preferably that of a “one story”

1

4Retention Marketing (via all channels)

2 Website marketing

3

Post-purchase service / offering (incl. Feedback etc.)

5

One story approach

Traffic acquisition

Registration as secondary

VA

Comments as secondary VA

Shares/Likes as secondary

VA

Purchase as main VA

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 5

USING AVAILABLE DATA THERE IS A CLEAR PATH TO PERSONALIZE NOT ONLY CONTENT BUT ON SITE BEHAVIOR

EXAMPLE

Offer appearance or personalized communication can be segmented using many parameters, including the following:

Any combinations of segmentation parameters

presented can be used

Purchase history• Client type: new (never

bought) / sleeping (have not bought recently) / regular (buys often); by day

• Frequency of purchases in this store

• Average order value• And much more

Main visitor characteristics• Age and gender• Geography• Social influence• Traffic source and UTM tags• Landing page• And many others

Behavior data• Current page• Depth and number of pages

viewed• Items in the shopping cart• Time spent on site• Exit intention• And many others

Non exhaustive

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 6

ALLOWING YOU TO ACHIEVE A VARIETY OF GOALS, INCLUDING HIGHER CONVERSION RATES, ADDITIONAL SALES AND MORE

Leads from non convertible traffic

Leads data enrichmentLearn more than name phone and e-mail

to increase the chance of conversion1)

Decrease bounce traffic Minimize cart abandonment

And much more

Increase AOV and numberof items in the shopping cart Get visitor’s recommendations

Increase conversion touseful actionsSuch as product reviews, subscriptions, fans and much more

Cross sale (upsell new shopping categories)

Customer experience personalizationFor example, formation of the landing page, products on it and menu for visitors preferences

Growth of certain geographies

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 7

OF COURSE IT IS ONLY ABOUT A/B TESTING AND TRIAL/ERROR AS EVERYTHING HAS TO BE CUSTOMIZED E.G. VISUALIZATIONS TO BE SHOWN MOTIVATING AND NOT IN AN IRRITATING WAY AT THE RIGHT TIME AND PLACEExamples of the communication visualization types

Engaging overlay

Ribbon

Banner / icon

Assistant pop-upEverything your heart desires

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 8

THE REAL VALUE IN PERSONALIZATION OF APPROACHES TOWARDS SECONDARY KPI’S WE SAW FIRST USING SOCIAL REFERRALSOriginal customer view

Before we started to work with personalizations we dealt with referral marketing

After completing a checkout the customer sees a popup window (or other visual elements)

The popup window offers your customers a special bonus for their friends incl. a bonus for themselves (only example, highly variable)

Doing something positive for friends adds meaning which makes customers want to share the offer in social networks and via other channels

If a customer’s friend uses the offer to buy, your original customer gets rewarded too

But with time we saw that there was an enormous effect in personalizing the offers depending on factors like recency, check, SKU in basket etc which allowed to go far beyond creating referral traffic into cross/upsell, increase of frequency etc.

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 9

Online store increases conversion to orders from low converting source

Online shop is trying to avoid cart abandonment using exit intent technology Online shop stimulates sales

of stale goods

E-commerce retailer increases the amount of recommendations and attracts new customers through existing ones

Online store struggles with cart abandonment of returning visitors

Cinema stimulates ticket reservation through the website

Some cases of using Floctory Pre-Checkout on SIMPLE personalization rules

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 10

Problem:

Trigger:

Solution:

Some traffic sources have ahigh Bounce Rate2)

Source and not known client

Engaging overlay while entering thesite from a low converting source for

Unregistered users

Brandawareness

Newleads

Higher conversion

rates

Loyalty increase

New customers

KPI1)

• Coming from a low converting source the user is encouraged to recommend the shop to his/her friends and get a discount, which gives:

• Deserved discount’ feeling which increases chances that it will be used

• Lead (user will have to leave an email address to get the discount)

• Expansion of the referral marketing funnel

CASE STUDY #1:ONLINE STORE INCREASES CONVERSION TO ORDERS FROM A LOW CONVERTING TRAFFIC SOURCE

1) Key Performance Indicators2) Bounce rate

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 11

CASE STUDY #2:ONLINE SHOP IS TRYING TO AVOID CART ABANDONMENT USING EXIT INTENT TECHNOLOGY

Customer stays in the

cycle

Additionalorders

Loyalty incense

Prevent cartabandonment

• Banner pops up when the visitor is ready to leave the site and automatically adds the city of delivery which motivates the visitor to return to the checkout

Problem:

Trigger:

Solution:

At the checkout stage 32% of customers leave the site not completing the order

Exit intent + geography used to personalizethe message

Engaging overlay while the user is trying to

Leave which includes a motivating offer

KPI

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 12

CASE STUDY #3:ONLINE SHOP STIMULATES SALES OF STALE GOODS

Higher conversion

chances

Additionalorders

• On a certain product page a motivating message will be shown. Additional information could be placed in this container, such as review, delivery conditions, promotions, discounts and so on

Problem:

Trigger:

Solution:

Some of items couldn't be sold for a long time

Landing on the certain product page

Visual element in 6 seconds after being landed

on the product page

KPI

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 13

CASE STUDY #4:E-COMMERCE RETAILER INCREASES THE AMOUNT OF RECOMMENDATIONS AND ATTRACTS NEW CUSTOMERS THROUGH EXISTING ONESGetting a recommendation from existing

customers is complicating

Click on a banner on certain page,frequency of purchases

Banner in client’s dashboard motivatingto recommend the store to friends

• Banner varies depending on the user. That’s why we use another trigger – the frequency of purchases.

• For the fulfillment of conditions a loyal customers will be offered a $5 discount, rarely returning customers with $10 coupon, etc.

Brandawareness

Newleads

Additionalorders

Loyalty incenseme

nt

Problem:

Trigger:

Solution:

KPI

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 14

CASE STUDY #5:ONLINE STORE STRUGGLES WITH CART ABANDONMENT OF RETURNING VISITORS

• Once the user returns to the site with an existing abandoned shopping cart he/she will get a personalized offer to complete the order right now on “exclusive” terms, which motivate him to checkout essentially reducing the average amount of abandoned shopping carts

Additionalorders

Loyalty incenseme

nt

1) A message bar on top of the website

Visitor abandoned his shopping cartat previous visit

Revisit, presence of items in the shopping cart

Getting maximum of available information on visitor and personalizing the offer via a

Ribbon1), motivating to complete the order

Problem:

Trigger:

Solution:

KPI

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 15

CASE STUDY #6:ONLINE STORE STRUGGLES WITH CART ABANDONMENT OF RETURNING VISITORS

1) Pop-up window similar to the online consultant

Motivation tomake an

order

Higher conversion

rates

Small quantity of ticket bookings through the website

User lands on a popular page

Tracking the number of visitors inclined to place an order and informing them via an Assistant pop-up1) of tickets availability

or limited reservation options

Problem:

Trigger:

Solution:

KPI