Upload
nosto
View
95
Download
1
Embed Size (px)
Citation preview
Survival Guide
Set out to Conquer 2017
THE ULTIMATE ECOMMERCE
Q1
–20
2 72014–10 2014–11 2014–1 2015–01 2015–02 2015–03 2015–04 2015–05 2015–06 2015–0 2015–08 2015–09 2015–10
0
20
40
60%
Dif
fere
nce
fro
m m
on
thly
ave
rag
e
Date
January - 40% drop in revenue from the dizzying heights of the festive season.
February - revenue sits at 20% less than the yearly average.
The Q1 Revenue Drop…
Here’s to turning
adversity into opportunity!
Problem #1
High level of returns due to the gift driven sales of December.
Reducing returns by 1% increases net profit by 1%.
As little as 7% of products could be driving up to 50% of
returns.
£415,000 - the amount which M&Co saved after identifying the
top 10% of frequently returned items and removing them from
active promotion.
Combat high returns by identifying troublesome products in advance.
THE SOLUTION
Problem #2
Excess of old stock that is no longer of priority to shoppers.
An alternative to longer January sales.
Create a sense of excitement and instil a sense of urgency.
Have been shown to generate a 35% lift in transaction rates.
Well-advertised flash sales that motivate shoppers to move quickly
THE SOLUTION
Caliroots - Have their flash sale as the central focus of their site,
directing all attention towards the imminent reductions.
The length of your sales • 3 hour flash sales have been shown to generate the best
transaction-to-click rates — 59% higher than other sale lengths.
Effective communication • Post a countdown to your social pages and emailing your
customers.
• Email represents 18% of the referrals to flash sales websites.
Things to consider
Timing • Flash sales are more effective if they are infrequent
• Transaction rates have been found to be 23% higher for evening
flash sales.
Preparation • If your flash sales is successful it will mean a spike in traffic to your
store make sure to load test to make sure your site is up to it.
Things to consider
Problem #3
Lower margins caused by discounting stock
Driving increases in AOV through automated, personalized recommendations including
up-selling, cross-selling and browsing history related.
THE SOLUTION
Personalized recommendations • Recommendations tailored to
an individual’s likes and dislikes
(as documented by their
behavior on your site) are more
appealing
• 54% of retailers that use
automated product
recommendations increased
their average order value year
on year.
Boomerang use 1:1 product recommendations on their homepage in the form of a “recommended for you” section, as well as curating best selling items in the “most popular lists”
Upsell • Upselling involves persuading a
shopper to spend a little more than
they had planned, and, according to
Econsultancy, can drive over 4% of
revenue.
Cross-sell • Boosts the average order value
of a customer by
recommending complementary
products to the items a shopper
is already considering.
• Drives less revenue than upsell
at 0.2%, but when automated it
is such a simple thing to do that
it would be silly not to.
Eton successfully use the cross-selling technique by offering ties to accompany the shirt being viewed.
• Reminds customers what they have engaged with but not put in
their cart.
• Makes it more difficult for customers to forget or leave behind items
that they were interested in, naturally increasing the chances of
spending more.
Browsing history reminder
Problem #4
High number of abandoning shoppers
Nosto customer Greatdays saw a 60% increase in conversion
and 18% increase in average order value from using pop-ups.
Think about when to use them and what they should offer.
Pop-ups
THE SOLUTION
Discount pop-ups
• Tempt customers to the checkout with money-off their purchases.
• 32% of customers leave because they deem the overall price to be
too expensive.
• Time-limit these to make them more effective and ask for an email
address in exchange for the discount code to allow for data capture
on top!
An offer could be just the
thing to make them reconsider leaving empty
handed.
Abandoned cart pop ups Shoppers with items in their cart
are already highly engaged - ask
for email details so that they can
save the items in their cart,
greatly increasing the chances of
their return.
Eleven.se use a pop-up triggered by exit intent to allow shoppers to save the contents of their cart, making it easier for them to return and also expanding their database.
Problem #5
Standing out above the noise
• 52% of people said that they felt overwhelmed by the
number of bargain-promoting emails they receive on a daily basis.
• Over half of all emails received are promotional.
At Nosto, we have seen that personalized triggered emails
have an average click-through rate 10x higher than the
industry standard.
Personalized newsletters
THE SOLUTION
Use tags to insert their name and
greet them personally once the email is open.
Insert their name into the
subject line.
Offer them personalized
recommendations from your inventory to maximize CTR
and conversion.
Browsing history reminder.
Browsing & buying related - Relevant pieces based on what
they looked at or previously bought.
Personalized Top Lists - Highlight the top products in your
store, ordering your recommendations according to to their
previous buying behavior.
to personalized recs that can be used in personalized newsletters
3 approaches
Wakakuu
tailor their emails to
the individual by
making product
recommendations a
central focus of their
newsletter.
Björn Borg keep their
newsletters timely
and current by
highlighting best-
sellers for both
women and men.
Problem #6
Low customer retention caused by sale driven buyers
Increase customer retention with personalized / triggered emails
THE SOLUTION
We miss you emails
Can be generated automatically and triggered by the lapse of
a set period of time since a customer’s last visit.
To cut through the inevitable email noise, make sure to
personalize the email with recommendations based on their
browsing and buying behavior.
Order follow-up
A customer becomes increasingly more likely to buy from you
as their amount of purchases increases.
Good customer service but it also gives you an opportunity to
suggest further purchase; either accessories to go with their
recent purchases or other items that their buying habits
indicate to be of interest.
Problem #7
Acquiring new customers in a period when shoppers aren’t as active
Increasing and personalizing your advertising efforts
Retargeting = ‘Online advertising [that is] is targeted to
consumers based on their previous Internet actions’.
54% of consumers find personalized ads to be more engaging
and 45% find them more memorable.
Compared to “static-one-size-fits-all” ads - automated,
dynamic product ads can generate performance
improvements of up to 400%.
THE SOLUTION
Ad types
Personal re-engagement ads
Post-purchase ads
Abandoned cart recovery ads
Best seller product ads
Highlighting real-time trending items from
your store. Nosto customer Eton, saw
13 x CTR on prospecting Best
Seller product ads.
Target customers who have visited your store previously by recommending products picked just for them based on their previous shopping
behavior. Eton saw 11 x ROAS on ads of these
type.
Encourage shoppers who selected items but didn’t quite
make it to checkout by recommending products related
to what they had in their cart. Eton saw 19 x ROAS on
Abandoned cart recovery ads.
Encourage converted customers to continue
their spree by suggesting items that are relevant to what
they have already bought.
Problem #8
Low traffic contributing to low revenue
Drive traffic to your store with social competitions
Promote your brand, encourage certain social interactions and
ultimately highlight items in your inventory in a way that is
more interesting to your customers.
THE SOLUTION
Photo or video contests • Have been shown to get the
most engagement and are a
good way to turn your
customers into promoters.
• Ask customers to include your
products in their entries and all
of a sudden they are creating
the adverts for you!
• Get them to tag your store or
use a hashtag so you, and
anyone who is interested, can
keep abreast of all the entries. Om Nom Nom Cookies encourage their social followers to take and share a photo of themselves with their product to be in with
a chance to win a t-shirt.
Social engagement posts • Spread the word by asking
customers to like or share a
post about one of your
products for a chance to win it.
• Takes advantage of network
effects and ensures your items
are making their way onto the
timeline of people who are not
yet interacting with your brand
• Get existing fans or customer
more heavily engaged. Drinkwel encourage social engagement by asking people to simply like their post to enter their product-lead competition.
Problem #9
Taking advantage of this natural lull to build your brand
Start a blog
Drives customers to your store.
Improves your website’s SEO.
Allows you to craft stories around your products, brand and industry that will help you to convert visitors.
Should be relevant but not boastful.
THE SOLUTION
Blog types
Behind the scenes • Your chance to give real insight
into your company, this shows a
level of transparency that many
shoppers find reassuring.
• Consider showing how your
products are made, or where
your materials are sourced. John Mackey Co-CEO of Whole Foods, hosts his blog directly on
the Whole Foods website and uses it to discuss the issues that matter to him and his company.
Google did a really good job of this type of storytelling in their advert series that showed small businesses such as the
Cambridge Satchel Company setting up shop, going from small home-based businesses to international best-sellers.
Company vision Talk about the ‘why’ and ‘how’ of
your company story.
Topshop interview social media star Anais Gallagher about her Christmas wish-list, which, of course, includes a number of
Topshop items.
Product lead / instructional pieces • Should promote your products
in interesting and innovative
ways.
• A form particularly suited to
food merchants, with recipe
based pieces and the fashion
vertical with “What to wear it
with” style blogs.
Problem #10
Converting shoppers into long-term sales
Knowing what drives a
customer is half of the
battle- encourage loyalty
from these otherwise fickle
shoppers by rewarding
repeat business.
Offering points in exchange
for purchases made has
been shown to increase a
shopper’s annual visit by up
to 20%.
Implement a loyalty reward scheme
THE SOLUTION Estée Lauder offer loyalty program members a discount, as well as the chance to accumulate points. This encourages repeat purchases.
Thank you!
Nosto enables online retailers to deliver their customers personalized shopping experiences at every touch point, across every device. A powerful personalization platform designed for ease of use, Nosto empowers retailers to build, launch and optimize 1:1 multi-channel marketing campaigns without the need for dedicated IT resources. Over 20,000 ecommerce professionals in over 100 countries are using Nosto to grow their business and delight their customers. Nosto supports its retailers from its offices in Helsinki, Berlin, Stockholm, London and New York.
[email protected] I +46 729-75 22 68
Magnus DahlbergBusiness Development Manager