the power of customer loyalty in performance marketing - anthony quinn

Copyright 2011 LinkShare Corporation. All rights reserved.

The Power of Customer Loyalty in

Performance Marketing

September 19th, 2011

Presented By:

Anthony Quinn

Director, Advertiser Services

Hash Tag: #A4UT11

2 Copyright 2011 LinkShare Corporation. All rights reserved.

Agenda

Introduction

Evolution Of Consumer Behaviour

Who Are Consumers Loyal To And Why?

What Can Be Learned?


Who am I?

Anthony Quinn, Director, Advertiser Services at LinkShare

Responsible for the effective management, development and growth

of LinkShare’s managed affiliate programs

Over 11 years in online marketing

Previously worked advertiser side at GAME Stores


LinkShare UK Network

Launched August 2006

Winner of ‘Most Improved Network’ at

the 2011 a4u Awards

Over 250 Advertisers

Focus on Retail & Travel

Over 140,000 Quality Publishers

Dedicated Teams

Superior Client Service

Publisher Partnership Support

http://cli.linksynergy.com/cli/publisher/programs/advertiser_detail.php?oid=120349&mid=2043&offerNid=1&controls=1:1:0:1:1:0


Definition of Loyalty in the context of this presentation

Loyalty of Customers towards the sites that they visit

Recognition & acknowledgement of the new behaviour of

customers


Hypothesis...

Are consumers becoming more loyal to

publisher sites than the advertisers?

And if that is the case, how and why is this happening?

How can we explain the shift?


Let’s start with a brief history focusing on:

Consumer Evolution

Advertiser Evolution

Publisher Evolution


Consumer Evolution


Publisher Evolution


Consumer Evolution

Offline Online

Consumers becoming more savvy

Finding the information they want online


Offline Online


Consumer Shift: Offline Online

10% annual growth expected across Europe

Online retail will pass the €100bn mark in 2012 Source: Forrester Reseach – European Online Retail Forecast 2010 - 2015


Consumers becoming more savvy

13 Copyright 2011 LinkShare Corporation. All rights reserved. Source: LinkShare Trendwatch - 2009

Consumer Shift: Consumers becoming more savvy


Which of the following are reasons for why you prefer shopping online?

“You’re able to compare products much more”

“With much less time

to do a normal shop it’s much easier for me”

“I find it easier to change between retailers and

find the bargains I'm looking for”

“I like it because you

see a much wider choice and price of goods and spend no money on

transport”

Source: LinkShare Trendwatch - 2009

Consumer Shift: Consumers becoming more savvy


92% have more confidence in online

information than salespeople

81% are doing online research “most of the

time” before buying a product

73% conducting online product research

several times a month




Are Consumers influenced by this information?

Source: LinkShare Information Shopper Research – August 2011

41.1%

Have you ever purchased something online that you would never

previously thought of buying, because of a voucher or offer?

0

10

20

30

40

50

60

Yes No

58.9%

Source: LinkShare Information Shopper Research – August 2011


Consumer Evolution


Publisher Evolution



Reacting to consumer behaviour. More and more shoppers

are online

Interaction with customers

Improving the on-site customer experience through

understanding customer needs



Ocado: ‘Virtual Shop Window’


Consumer Evolution


Publisher Evolution


Publisher Evolution

= Reacting to

consumer shift

New affiliate types:

• Voucher

• Loyalty

• Editorial Blog

• Video

All with 1 objective in mind > drive sales and custom for the advertiser

Publishers have themselves created opportunities in performance

marketing


Summary So Far…

Consumer Evolution

Advertiser & Publisher

Evolution

Who is best serving the

needs of the consumer

today?


Who is best serving the needs of the consumer today:

Advertisers?

Management of CRM systems

Loyalty strategy – newsletters that feature rewards for loyalty

Advertiser sites as destination sites (video, interaction, consumer offers)

Is this working? Potentially no – but why?


Consumers today are time poor

However –

Receiving more information than ever before from advertisers –

For Example: Advertiser newsletters featuring offers and promotions:

Hotmail recently released a new way to organise inbox (classifying

newsletters as Grey)

75% of the email messages reported as spam are really legitimate

newsletters, offers, or notifications.



What about publishers?

Are they best serving their purpose/shopping patterns/wants/needs?

Potentially yes……..



Is there a gap between the advertiser and the publisher serving

the needs of the consumer journey?

Example: multichannel experience…..



Example of the gap:

Publisher Site Advertiser

Tracking for

compensation / reporting

A consumer multichannel experience

(69%) researched a product in a shop before buying. But 67% then turned

online when it came time to purchase – in search of better prices *

*(Kantar Media Compete’s Online Shopper Intelligence report, 2011)


Publishers provide value

With clear intentions to return time and time again as part of their

purchase journey.



Publishers are therefore now an integrated part of the consumers

purchase journey

Cashback / Loyalty

Voucher

Community

Shopping comparison / personalisation

Review & Recommendations

How do they provide value?



Price Comparison Get best deal

Shopping Comparison

Find right product easily

Style Blog Trustworthy

fashion advice

Voucher Site Cost saving

Who is the consumer naturally loyal to?



Price Comparison Get best deal

Shopping Comparison

Find right product easily

Style Blog Trustworthy

fashion advice

Voucher Site Cost saving

Loyalty comes from the VALUE that they get from a site

Creating new opportunities in affiliate marketing


Publishers provide value

Let’s look at some examples…..



Understand the value of the publisher - POLYVORE

Traffic

10m Unique Visitors per month

2m Registered Users

140m Pageviews per month

Social presence

100k posts to Twitter & Facebook

35m monthly impression on blogs

Other

Authentic, Personal, User-Generated

Insight

Loyalty

• 12.4% of users visit 100+ times pcm


Understand the value of the publisher - SHOPSTYLE

Most popular fashion aggregator

High street and designer fashion

160+ retailers

Traffic

1.1million unique visitors per month

High conversion rate and AOV

Premium Exposure

E-shop algorithm

Sale alerts

Social Media


Personalisation Technology

Free, trusted online personal shopper

Aggregated newsletters sent with matches

according to your personal preferences

Easy shopping solution

Scour the web every day to find the best prices

on the items you’ve selected

Offers from over 200 retailers

Aggregated daily email

Traffic

Over 3 million subscribers

Over 2 billion product recommendations per

month

Understand the value of the publisher – SHOP IT TO ME


Understand the value of the publisher – QUIDCO


Top publisher sites now have power & are shopping destinations in

their own right:

Publishers building a legion of loyal fans

More traffic than advertisers

Extensive email databases

Community engaged members

Use distribution channels – social

media,

direct mail etc.

Committed to growth / flexible to change


Understand the value of the publisher

Assess the value of an publisher according to your own metrics:

Average Order Values

New vs. Existing Customers

Lifetime value


Customers loyal to voucher/coupon sites expect to spend 16%

more, on average, than the typical online shopper.*


16%

18%


*Source: A commissioned study conducted by Forrester Consulting on behalf of WhaleShark Media August 2011

They make 18% more purchases online than the average online

shopper.*



Increased

AOV by 31%*

Cashback Site

Exclusive

Free Delivery

Increased

AOV by 25%*

Voucher Site

Exclusive

£10 off £100+

Increased

AOV by 19%*

Employee Mall

Exclusive

Free Delivery *Compared to the

same period the

previous week




New vs Existing Customers

Increased by

27%*

Voucher Site

Exclusive

Free Delivery

Increased by

17%*

Cashback

Exclusive

Free Delivery

Increased by

14%*

Voucher Site

Exclusive

Free Delivery *Compared to the

same period the

previous week



Lifetime Value

Visitors to coupon/voucher websites are an especially valuable

segment of shoppers.

Consumers who redeemed more than six coupons/vouchers in the

past 12 months, spent 80% more per year than light users

This equates to 32% more than the mean spend of all US

coupon/voucher users.*




“We know customers are loyal to [coupon aggregator] sites.

We also know it drives a large number of new customers, ranging

from 18%-25% of our net new customers.”

(Sr. Online Manager, large apparel and home furnishing retailer)*


Lifetime Value


Publishers are providing consumers with the right

information

Loyalty Value Information = =


Summary

Consumer shopping behaviour has evolved

Publishers add value to a consumer journey

Consumers can be more loyal to the publisher than the advertiser


Some Key Takeaways

Work closely with the publishers to help them understand your

objectives for the program and strategise accordingly

Performance marketing is a proven cost effective channel for driving

new customers

However, you should utilise the channel for maintaining your existing

customers (and reward them for their loyalty to the advertiser)

Would the customer have shopped with the advertiser anyway?

Perhaps not


Thank You!

Presented By:

Anthony Quinn

Director, Advertiser Services

[email protected]

the power of customer loyalty in performance marketing - anthony quinn

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