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My presentation at Gamification World Congress 2014, focused on the results of a survey that analyzes the actual state of gamified loyalty in eCommerce.
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The Reality of Gamified Loyalty in eCommerce
Smart eCommerce for Smart People
José Carlos Cortizo - @josek_net Co-founder and CMO at @brainsins_en
#GWC14 - @josek_net
eCommerce is a simple concept
“You open up an online store and sell everywhere in the world”
#GWC14 - @josek_net
But reality is always harder…
#GWC14 - @josek_net
You need to invest in traffic acquisition
#GWC14 - @josek_net
But if your product/service is not good enough you won’t sell
#GWC14 - @josek_net
Sales = Traffic x Conversion x AOV x Recurrence
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers
#GWC14 - @josek_net
First eCommerce focuses on acquisition
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers
#GWC14 - @josek_net
After that, you need to focus on CRO (sales optimization)
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers
#GWC14 - @josek_net
And then on loyalty (or how to sell more times to the same customers)
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers
#GWC14 - @josek_net
Sales = Traffic x Conversion x AOV x Recurrence
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers
#GWC14 - @josek_net
CAC vs LTV => It’s going harder as the eCommerce market matures
#GWC14 - @josek_net
Traffic and sales of recurring customers
0
12,5
25
37,5
50
Due to recurring customers (% over total)
47%
8%
Traffic Sales
Source: Adobe Digital Index Report
#GWC14 - @josek_net
Just 1% of eCommerce websites have a loyalty program
Source: Adobe Digital Index Report
#GWC14 - @josek_net
Question and hypothesis
Why don’t you focus on the best revenue source?
!
!
!
Could gamification be an ally for eCommerce websites?
#GWC14 - @josek_net
Just test the hypothesis…
2.552 users from US, UK, Canada, Spain, Mexico, Chile, Colombia, Brazil
300 eCommerce Managers (same countries)
Analysis of behavioral data from 200 online stores (same countries)
#GWC14 - @josek_net
So far…
> 1.000 customers surveyed
32 eCommerce Manager surveyed
Analysis of behavioral data from 5 (big) online stores
#GWC14 - @josek_net
Let’s see some results
#GWC14 - @josek_net
52% of people buys in online stores recommended by their friends
#GWC14 - @josek_net
79% of users thinks it’s important that online stores offers a loyalty
program
#GWC14 - @josek_net
74% of users belongs to a loyalty program. But only 30% belongs to a loyalty program of an online store
Only 5% if we don’t take into account Amazon Prime
#GWC14 - @josek_net
64% of users prefer loyalty programs that connect several
brands
#GWC14 - @josek_net
Going further
Ok, ok….but that’s only loyalty… What about gamification?
#GWC14 - @josek_net
It’s not everywhere the same…
#GWC14 - @josek_net
In Spain and LATAM 69% of users prefer a fun user experience =>
Make it fun!
In US, UK and Canada, less than 25% => Make it transactional!
#GWC14 - @josek_net
In all countries people understand PBL (if it helps users to get what
they need)
#GWC14 - @josek_net
In Spain and LATAM >72% of users liked Bonobos Scavenger Hunt; US,
UK and Canada < 24%
#GWC14 - @josek_net
In Spain and LATAM ~36% of users liked Gilt Noir; US, UK and Canada ~
15%
#GWC14 - @josek_net
In Spain and LATAM ~51% of users liked Best Buy’s presence on
Cityville; US, UK and Canada ~ 17%
#GWC14 - @josek_net
In Spain and LATAM ~73% of users liked Arby’s (SM participation); US,
UK and Canada ~ 19%
#GWC14 - @josek_net
Don’t try to engage everybody, just your target market
From the other side (eCommerce Manager perspective)
#GWC14 - @josek_net
What works to engage with your target market may make a bad
impression to other users
From the other side (eCommerce Manager perspective)
#GWC14 - @josek_net
At the end of the day money is king: is the main reason for
repeated purchases (67%) and 78% of users would buy in another
online store if it’s cheaper
From the other side (eCommerce Manager perspective)
#GWC14 - @josek_net
But…
…20% of the users can generate 80% of your revenues
#GWC14 - @josek_net
Conclusion 1: Keep it simple
#GWC14 - @josek_net
Conclusion 2: Different cultures, different experiences
#GWC14 - @josek_net
Conclusion 3: You only need “a few” customers to make the difference (~10%)
#GWC14 - @josek_net
Less than one month for the final report
