Post on 09-May-2015
description
transcript
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…
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You need to invest in traffic acquisition
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But if your product/service is not good enough you won’t sell
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Sales = Traffic x Conversion x AOV x Recurrence
Browse Shop Buy Engage
Strangers Visitors Shoppers Buyers Customers
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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
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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
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Just 1% of eCommerce websites have a loyalty program
Source: Adobe Digital Index Report
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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)
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So far…
> 1.000 customers surveyed
32 eCommerce Manager surveyed
Analysis of behavioral data from 5 (big) online stores
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Let’s see some results
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52% of people buys in online stores recommended by their friends
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79% of users thinks it’s important that online stores offers a loyalty
program
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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
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64% of users prefer loyalty programs that connect several
brands
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Going further
Ok, ok….but that’s only loyalty… What about gamification?
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It’s not everywhere the same…
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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!
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In all countries people understand PBL (if it helps users to get what
they need)
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In Spain and LATAM >72% of users liked Bonobos Scavenger Hunt; US,
UK and Canada < 24%
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In Spain and LATAM ~36% of users liked Gilt Noir; US, UK and Canada ~
15%
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In Spain and LATAM ~51% of users liked Best Buy’s presence on
Cityville; US, UK and Canada ~ 17%
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In Spain and LATAM ~73% of users liked Arby’s (SM participation); US,
UK and Canada ~ 19%
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Don’t try to engage everybody, just your target market
From the other side (eCommerce Manager perspective)
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What works to engage with your target market may make a bad
impression to other users
From the other side (eCommerce Manager perspective)
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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)
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But…
…20% of the users can generate 80% of your revenues
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Conclusion 1: Keep it simple
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Conclusion 2: Different cultures, different experiences
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Conclusion 3: You only need “a few” customers to make the difference (~10%)
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Less than one month for the final report