leeds online seller meetup

Leeds

online seller meetup#OSUKLEEDS7th April, 2016Leeds University

www.OnlineSellerUK.com | Landline: 029 2236 2596 | @OnlineSellerUK

In Partnership with

Speakers

Each talk lasts for 25 mins | Networking after event | All slides will be emailed

Richard Taylor-Jone |

TomKemp

VictorCorcoran |

Brought to you in

Kind support from

and

Sponsorship from

Media Partner

Hello !

I’m Prabhat ShahProject Manager, Online Seller UK& DaytodayeBay

find me @OnlineSellerUK

How did it Start ?>> Cardiff to throughout the UK

>> Helped 500+ businesses directly

Events inNewcastleManchester LeedsLondonBirminghamBristolNorwichBrightonNewport

“Helping SMEs Sell Online”

We Deliver Ecommerce & Digital Marketing Training

Please visit www.onlineselleruk.com to find out more >

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How much are your customers worth to you?

What this presentation will cover…

The value of existing customers…

- Optimising Cost Per Acquisition

- Increasing Conversion

- Increasing AOV

- Developing Customer Lifetime Value

Why are existing customers important to me?

Many retailers are constantly on the lookout for two things…

More Customers More Orders

Less is generally said about existing customers, and what they mean to the business.

Why is this so important?

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

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

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

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

How do we prove this?

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

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

Order

CPA: Cost per Acquisition CR: Conversion Rate LTV: Lifetime Value

Cus

tom

er V

alue

Acquisition Conversion Retention Win-Back

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

CPA CR AOV LTV

Average Distribution

CPA CR AOV LTV

High Value – Low Frequency

CPA CR AOV LTV

High Frequency – Low Value

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.

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

Cost Per Acquisition (CPA)

If you retail on marketplaces, this is effectively done on your behalf, and is commission +

listing fees. Circa 7% – 15%.

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

Therefore, the priority should be to cultivate your own customers, rather than eBay or Amazon’s

and divert value into your own brand.

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.

Average Order Value (AOV)

These are our essentials to encourage a higher AOV:

1. Free Delivery Threshold

2. Timed Incentives

3. Volume Discount/Multi-Buy

4. Giveaways + Thresholds

5. Loyalty & Rewards

Conversion Rate (CR)

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

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

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.

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.

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

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

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

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

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

Here are our essential mobile requirements to maximise AOV…

Optimised for touch and swipe

Optimised menu and navigation elements

Use device features for usability

Touch and mobile compatible image gallery

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

Lifetime Value (LTV)

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

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

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

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

Cost-effective, personalised communication.

Lifecycle Marketing

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

Lifecycle Marketing

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

Lifecycle Marketing

Tailor offers and messages to achieve the desired action…

Lifecycle Marketing

The aim is to convert, retain, growand reactivate.

Lifecycle Marketing

Up to a 45% click through rate.

Some Recent Lifecycle Email Statistics

Over 20% increased spend.

Some Recent Lifecycle Email Statistics

On average 3 x more valuable over time.

Some Recent Lifecycle Email Statistics

4 x the benchmark conversion rate

Some Recent Lifecycle Email Statistics

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

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

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

As a channel, email marketing is extremely responsive, and can therefore react to seasonal trends, current affairs, trending

products/topics and more.

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.

Key Takeaways

- 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

Price Matters

52% of Online Shoppers In Italy Check PriceBefore Purchasing

NO, BUT I PLAN TO IN THE NEXT 12 MONTHS

WEB RETAILER MARKET SURVEYDO YOU USE ANY REPRICING SOFTWARE?

Blackhawk Engagement Solutions Survey

The Buy Box

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

How AmazonRepricing 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

Data Received for each SKU Price Change

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

Solving the Buy Box Mystery

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

=

Repricing including Profit Margin Control on Revenue Contribution of each sale

Using a Repricing Software = Real Time Profit Optimization

Price Replication

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

Thanks for your time

Questions

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

Register Training on our website www.onlineselleruk.com

Available Training > 1ST June

Thanks !Everyone for your support.

Contact:

Prabhat Shah@OnlineSellerUKEmail: ps@onlineselleruk.comLandline: 029 2236 2596 Mobile: 0751 88 39629www.onlineselleruk.com