INBOUND15

Retention Marketing:The Next eCommerce Battleground

Steve DeckertCo-Founder, Sweet Tooth

INBOUND15

Steve Deckert@stevedeckert

INBOUND15

Sweet Tooth@sweettootheCommerce loyalty programs4,000 retailerssweettoothrewards.com

INBOUND15

INBOUND15

INBOUND15

INBOUND15

Inbound > Outbound

INBOUND15

Outbound=

Customer Acquisition

INBOUND15

INBOUND15

INBOUND15

INBOUND15

Outbound=

Acquisition

INBOUND15

eCommerce=

Acquisition

INBOUND15

INBOUND15

1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase. Pizza Hut also claims to be first to sell online.1995: Jeff Bezos launches Amazon.com. eBay founded as AuctionWeb.1996: Dell begins selling computers online.1998: PayPal founded.1999: Alibaba Group established in China. Overstock.com founded.2002: eBay acquires PayPal for $1.5 billion.

Early eCommerce History

INBOUND15

1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase. Pizza Hut also claims to be first to sell online.1995: Jeff Bezos launches Amazon.com. eBay founded as AuctionWeb.1996: Dell begins selling computers online.1998: PayPal founded.1999: Alibaba Group established in China. Overstock.com founded.2002: eBay acquires PayPal for $1.5 billion.2004: Inbound conceptualized by Brian Halligan & Dharmesh Shah

Early eCommerce History

INBOUND15

eCommerce=

Acquisition

INBOUND15

INBOUND15

INBOUND15

INBOUND15

INBOUND15

Outbound vs Inbound=

Cust. Acquisition vs Retention

INBOUND15

The companies that will win the next 5 years of

eCommerce will win using customer retention.

INBOUND15

Why?

INBOUND15

Because acquisition won’t work.

INBOUND15

https://blog.shareaholic.com/search-visit-value-06-2014/

INBOUND15

http://searchengineland.com/google-showing-fewer-ads-per-search-219834

INBOUND15

http://www.statista.com/chart/2021/organic-reach-of-brands-facebook-posts/

INBOUND15

http://www.adweek.com/socialtimes/infographic-paid-reach-on-facebook-getting-more-expensive/299749

INBOUND15

http://www.marketingcharts.com/television/global-display-ad-spend-growth-forecast-to-outpace-paid-search-22423/zenithoptimedia-global-online-ad-spend-2010-2014-june2012png/

INBOUND15

https://moz.com/blog/consumer-survey-reveals-the-efficacy-of-inbound-vs-outbound

INBOUND15

https://moz.com/blog/consumer-survey-reveals-the-efficacy-of-inbound-vs-outbound

INBOUND15

http://andrewchen.co/the-law-of-shitty-clickthroughs/

INBOUND15

http://www.marketingcharts.com/verticals/retail-and-e-commerce/51-of-americans-switched-service-providers-in-the-past-year-due-to-poor-customer-service-37627/attachment/accenture-switching-service-providers-oct2013/

INBOUND15

Consumers have had enough of companies trying

toacquire them.

INBOUND15

Outbound vs Inbound=

Cust. Acquisition vs Retention

#INBOUND15

Customer Retention

INBOUND15

http://success.adobe.com/assets/en/downloads/whitepaper/13926.digital_index_loyal_shoppers_report.pdf

INBOUND15

http://www.nielsen.com/us/en/insights/news/2013/under-the-influence-consumer-trust-in-advertising.html

INBOUND15

Historically, <20% of marketing budgets

dedicated to retention.

INBOUND15

http://www.marketingcharts.com/uncategorized/customer-retention-top-marketing-priority-17975/

INBOUND15

http://www.marketingcharts.com/traditional/retailers-say-customer-retention-will-be-key-revenue-growth-driver-45664/attachment/kpmg-most-significant-retail-revenue-drivers-sept2014/

INBOUND15

Source: 2013 Colloquy Loyalty Census

INBOUND15

Source: 2013 Colloquy Loyalty Census

INBOUND15

Source: 2013 Colloquy Loyalty Census

INBOUND15

The companies that will win the next 5 years of

eCommerce will win using customer retention.

INBOUND15

Customer Retention Model

INBOUND15

Visitor Purchaser

Repeat Purchas

er

Brand Advocat

e

INBOUND15

Visitor

Purchaser

Repeat Purchas

er

Brand Advocat

e

INBOUND15

Visitor Purchaser

Repeat Purchas

er

Brand Advocat

eCustomer Acquisition Customer Retention

INBOUND15

Visitor Purchaser

Repeat Purchas

er

Brand Advocat

eCustomer Acquisition Customer Retention

Transactional Relationship

Emotional Relationship

INBOUND15

Loyalty is an Emotion

INBOUND15

Visitor Purchaser

Repeat Purchas

er

Brand Advocat

eCustomer Acquisition Customer Retention

Transactional Relationship

Emotional Relationship

• Good prices• Fast shipping• Site speed• Easy UI• Product Images

INBOUND15

Visitor Purchaser

Repeat Purchas

er

Brand Advocat

eCustomer Acquisition Customer Retention

Transactional Relationship

Emotional Relationship

• Good prices• Fast shipping• Site speed• Easy UI• Product Images

Hygiene Factors

INBOUND15

Visitor Purchaser

Repeat Purchas

er

Brand Advocat

eCustomer Acquisition Customer Retention

Transactional Relationship

Emotional Relationship

• Good prices• Fast shipping• Site speed• Easy UI• Product Images

Hygiene Factors• Loyalty programs• Lifecycle email• Amazing customer

support• Personalization• Referral programs

INBOUND15

Visitor Purchaser

Repeat Purchas

er

Brand Advocat

eCustomer Acquisition Customer Retention

Transactional Relationship

Emotional Relationship

• Good prices• Fast shipping• Site speed• Easy UI• Product Images

Hygiene Factors• Loyalty programs• Lifecycle email• Amazing customer

support• Personalization• Referral programs

Delight Factors

INBOUND15

Visitor

Purchaser

Repeat Purchas

er

Brand Advocat

e

1.Acquisition = Outbound. Retention = Inbound.2.Customers have had enough of companies trying

to acquire them. Acquisition becoming less effective and more expensive.

3.Retention marketing is a good way to grow revenue and get new customers

What Did You Learn?

INBOUND15

Do What You Believe

INBOUND15

Thank You!Questions?