N E T TA @ C U S T O R A . C O M1 Q U E S T I O N S ?

What sets e-commerce stars apart?

Corey Pierson, CEO Brett Robbins, Head of Business Development Netta Kivilis, Head of Marketing

W E B I N A R

N E T TA @ C U S T O R A . C O M2 Q U E S T I O N S ?

60 Minutes

1. Quick Intro 2. Case studies

3. Getting it done 4. Quiz + PRIZES 5. Q & A

T O D A Y

N E T TA @ C U S T O R A . C O M3 Q U E S T I O N S ?

Big Data What are we talking about?

N E T TA @ C U S T O R A . C O M4 Q U E S T I O N S ?

We’re working with sharp teams. Teams taking control of their data,

4 N E T TA @ C U S T O R A . C O MQ U E S T I O N S ?

N E T TA @ C U S T O R A . C O M5 Q U E S T I O N S ?

Teams taking control of their data,are growing 2.5x faster than peers.

5 N E T TA @ C U S T O R A . C O MQ U E S T I O N S ?

N E T TA @ C U S T O R A . C O M6 Q U E S T I O N S ?

A few stories

Q U I C K O N E S

C O N F I D E N T I A L

N E T TA @ C U S T O R A . C O M7 Q U E S T I O N S ?

Acquisition (Bonobos)

1) Making smarter real estate investments based on CLV. 2) Acquiring more valuable customers and increasing long-term ROI on marketing spend.

N E T TA @ C U S T O R A . C O M8 Q U E S T I O N S ?

What’s the ROI on our marketing spend?

N E T TA @ C U S T O R A . C O M9 Q U E S T I O N S ?

C

Fee $1A

B

Fee $10

Fee $3

C

Acquisition (“Fishing in the right pond”)

N E T TA @ C U S T O R A . C O M1 0 Q U E S T I O N S ?

Acquisition (“Fishing in the right pond”)

C

Pond A

Pond B

Pond C

$ 1 0 0

$ 1 5 0

$ 2 5 0

Customers Acquired

Total Spend

1 0 0

5 0

2 5

Cost per Customer Acquired

$ 1

$ 3

$ 1 0

Fee $1A

B

Fee $10

Fee $3

CPricey?

N E T TA @ C U S T O R A . C O M1 1 Q U E S T I O N S ?

Acquisition (“Fishing in the right pond”)

Fee $1A

C

B

Fee $10

Fee $3

Pond A

Pond B

Pond C

$ 1 0 0

$ 1 5 0

$ 2 5 0

Customers Acquired

CLV per Customer

Total Customer Value

Value from Channel

Total Spend

1 0 0

5 0

2 5

Cost per Customer Acquired

$ 1

$ 3

$ 1 0

$ 1 0

$ 3 0

$ 2 0 0

$ 1 , 0 0 0

$ 1 , 5 0 0

$ 5 , 0 0 0

$ 9 0 0

$ 1 , 3 5 0

$ 4 , 7 5 0

N E T TA @ C U S T O R A . C O M1 2 Q U E S T I O N S ?

1) Making smarter real estate investments based on CLV. 2) Acquiring more valuable customers and increasing long-term ROI on marketing spend.

Predictive Customer Lifetime Value analysis

Re-allocated spend across social and affiliate programs

20% Increase in overall CLV

Acquisition (Bonobos) Acquisition (Bonobos) Acquisition (Bonobos)

N E T TA @ C U S T O R A . C O M1 3 Q U E S T I O N S ?

Activation (Sole Society and thredUP)

Increasing conversion rate for new email list subscribers.

$10

N E T TA @ C U S T O R A . C O M1 4 Q U E S T I O N S ?

How do we improve email activation rates?

N E T TA @ C U S T O R A . C O M1 5 Q U E S T I O N S ?

How do we improve email activation rates?

Highest

Fashion Discount Business Trend

High

Medium

Low

Lowest

PR

ED

ICT

ED

CO

NV

ER

SIO

N $ 5

BAGS

BAGS

$ 5

$ 5

$ 1 0

$ 1 0

NONE

SHOES

$ 1 0 N O N E

N O N EN O N E

$ 1 0

SHOES

SHOES

$ 2 5

DENIM$ 2 5

$ 2 5

P E R S O N A S

$ 5 O F F

N E W P A N T S

$ 1 0 O F F

N E W B A G S

$ 2 5 O F F

N E W S H O E S

C O N N E C T E D T O M A R K E T I N G

T O O L S

C U S T O R A

N E T TA @ C U S T O R A . C O M1 6 Q U E S T I O N S ?

Increasing conversion rate for new email list subscribers.

Individual conversion rate prediction; Offer discounts only to email sub-scribers with low predicted conversion rate

Sole Society: Combined 3.5% revenue lift, improved profitability. thredUP: Combined 2% revenue lift, 12X ROI.

Activation (Sole Society and thredUP)

$10

N E T TA @ C U S T O R A . C O M1 7 Q U E S T I O N S ?

Discovering what behavioral charac-teristics and purchasing preferences are unique to high value customers.

Customer insights (Confidential)

N E T TA @ C U S T O R A . C O M1 8 Q U E S T I O N S ?

What makes high value customers unique?

N E T TA @ C U S T O R A . C O M1 9 Q U E S T I O N S ?

Customer Lifetime Value Expected Orders (2 yrs) Value Tier

Product Preferences

Men’s Suits iOS

Men’s Shoes Android

Athletic PC

Device Type

$845.35 5.2 Platinum

What makes high value customers unique?

N E T TA @ C U S T O R A . C O M2 0 Q U E S T I O N S ?

Discovering what behavioral charac-teristics and purchasing preferences are unique to high value customers.

Demographic, behavioral, persona analysis

Informed merchandising and store lay-out decisions. Changing media buying strategy for TV and other localized channels.

Customer insights (Confidential)

N E T TA @ C U S T O R A . C O M2 1 Q U E S T I O N S ?

Cultivation (One Kings Lane)

Personalizing email campaigns and onsite experience based on price sensitivity, product preferences and the customer’s buying lifecycle.

N E T TA @ C U S T O R A . C O M2 2 Q U E S T I O N S ?

How can we tailor engagement programs?

N E T TA @ C U S T O R A . C O M2 3 Q U E S T I O N S ?

Expected Repeat Order Size

Expected Repeat Order Size

Product Preferences

Product Preferences

Email Frequency

Email Frequency

$245.35

$12.60

1 / week

4 / weekSocks

Men’s Suits

Underwear

Dress Shoes

Tees

Athletic

Cultivate longer relation-ships by leveraging: - Price sensitivity - Product preferences - Email frequency - More...

So

cks

n S

tuff

All

Bu

sin

ess

How can we tailor engagement programs?

N E T TA @ C U S T O R A . C O M2 4 Q U E S T I O N S ?

Personalizing email campaigns and onsite experience based on price sensitivity, product preferences and the customer’s buying lifecycle.

Accurately predicting a customer’s behavior after the first purchase.

Increased average repeat purchase rate.

4% Overall revenue growth.

Cultivation (One Kings Lane)

N E T TA @ C U S T O R A . C O M2 5 Q U E S T I O N S ?

Cultivation (Backcountry)

Sending seasonal catalogs in a more cost effective way.

N E T TA @ C U S T O R A . C O M2 6 Q U E S T I O N S ?

How do we max return on catalog mailers?

N E T TA @ C U S T O R A . C O M2 7 Q U E S T I O N S ?

How do we max return on catalog mailers?

N E T TA @ C U S T O R A . C O M2 8 Q U E S T I O N S ?

Cultivation (Backcountry)

Sending seasonal catalogs in a more cost effective way - targeting custom-ers likely to covert and refining profile to include more high-value prospective customers.

Identify the most profitable customer segments to target, based on predictive churn detection and historical direct- mail results

Lower cost per conversion, higher lift in revenue and profit per mailing. (Final results still TBD!)

N E T TA @ C U S T O R A . C O M2 9 Q U E S T I O N S ?

Retention (Nasty Gal)

Automatically sending win-back emails at the optimal time for every individual.

N E T TA @ C U S T O R A . C O M3 0 Q U E S T I O N S ?

How do we effectively reduce churn?

N E T TA @ C U S T O R A . C O M3 1 Q U E S T I O N S ?

25 Days

65 Days

We miss you... Here’s 15% off your next order.

Automatic triggers send messages to specific customers — right when they need them.

How do we effectively reduce churn?

N E T TA @ C U S T O R A . C O M3 2 Q U E S T I O N S ?

Retention (Nasty Gal)

Automatically sending win-back emails at the optimal time for every individual.

Individual predictive churn detection

Email campaign A/B testing (Automated)

11% revenue lift over control group 17% re-activation lift over control

N E T TA @ C U S T O R A . C O M3 3 Q U E S T I O N S ?

E-commerce today

Big Data

Big Potential

Big Headache

It’s clear that Big Data represents a huge opportunity

N E T TA @ C U S T O R A . C O M3 4 Q U E S T I O N S ?

Do the numbers add up?

76% of marketers say CLV is an important metric for their org ... but less than half or these organizations are currently trying to measure CLV. 94% of CMOs plan to use predictive analytics ... but 82% feel underprepared to deal with big data. 71% of marketers want to want to know who their best customers will be, and how to target them ... yet only 15% have the right tools/processes in place.

N E T TA @ C U S T O R A . C O M3 5 Q U E S T I O N S ?

Understanding and anticipating individual customer behavior enables marketers to build stronger, longer relationships.

N E T TA @ C U S T O R A . C O M3 6 Q U E S T I O N S ?

Navigating the sea of products and vendors with overlapping features and fuzzy descriptions.

The landscape

Order Management

Crazy-Expensive Custom

Analytics tools

Mobile E-Commerce

Web Content Management Systems

Customer Analytics

Email Marketing

Customer Segmentation

Web Content Testing Tools

Personalization Software and Engines

Payments

Web Analytics

Analytics and Reporting

Search

Omni-Channel Personalization

Automated Retention

Social Shopping

Anti-Social Shopping :)

Marketing Automation

N E T TA @ C U S T O R A . C O M3 7 Q U E S T I O N S ?

Alignment

Teams

Tools

Data

Customer- Centric

Marketing

N E T TA @ C U S T O R A . C O M3 8 Q U E S T I O N S ?

Building a customer- centric “engine”

V R O O O O M

N E T TA @ C U S T O R A . C O M3 9 Q U E S T I O N S ?

Customer Data

Web Analytics

Email Data Customer info Email Transaction Website

Data

It starts with the data.

N E T TA @ C U S T O R A . C O M4 0 Q U E S T I O N S ?

Customer Data

Web Analytics

Customer Insight / Segmentation

Email Data Customer info Email Transaction Website

Data

Customer Insight / Segmentation

Layer 1: Customer Insight

What makes customers unique?

N E T TA @ C U S T O R A . C O M4 1 Q U E S T I O N S ?

Customer Data

Web Analytics

Customer Insight / Segmentation

Acquisition Cultivation Retention

Email Data

Acquisition Cultivation

Customer info Email Transaction Website

Data

Customer Insight / Segmentation

Retention

Layer 2: Acquisition and retention

Leveraging those insights.

N E T TA @ C U S T O R A . C O M4 2 Q U E S T I O N S ?

Customer Data

Web Analytics

Customer Insight / Segmentation

Acquisition Cultivation Retention

Email Data

Acquisition Cultivation

Customer info Email Transaction Website

Data

Customer Insight / Segmentation

Retention

Layer 2: Acquisition and retention

Leveraging those insights.

Teams

Tools

Data

CCM

N E T TA @ C U S T O R A . C O M4 3 Q U E S T I O N S ?

Customer Data

Web Analytics

Customer Insight / Segmentation

Acquisition Cultivation Retention

Email Data

Acquisition Cultivation

Customer info Email Transaction Website

Data

Customer Insight / Segmentation

Retention

OUTPUT / INTEGRATIONS

DATA

MARKETING /

CUSTOMER TOUCHPOINTS

Email Service Provider

CRM Systems

Website

Data flow: Engine running

N E T TA @ C U S T O R A . C O M4 4 Q U E S T I O N S ?

Test yourself: Are you a customer-centric marketer?

Chat your score for a chance to win a $50 Amazon Gift Card + a free 1-hour marketing diagnostic session

1. Do you know the lifetime value of your customers?

2. Do you know who your most valuable customers are, and what makes them unique?

3. Do you know which acquisition channels attract your most valuable customers?

4. Does your email marketing acknowledge customer lifecycle stages?

5. Do you use customer segmentation to create more personalized messages?

6. Do you use individual winback messages to reduce customer churn?

7. Do you offer free guacamole to your best customers?

8. Do you have a 360 degree view of your customer across channels and devices?

9. Can you easily compare offline and online customer behavior?

10. Do you measure and optimize metrics such as Customer Equity, Early Repeat Rate,

and Leaky Bucket Ratio?

N E T TA @ C U S T O R A . C O M4 5 Q U E S T I O N S ?

Add’l resources What next?

Custora U

Custora Blog

Custora Pulse

Expert Network

Workshop Demo

N E T TA @ C U S T O R A . C O M4 6 Q U E S T I O N S ?

Add’l resources

Custora U Courses

Customer-Centric Marketing

Customer Lifetime Value

Segmentation

Lifecycle Marketing

Cohort Analysis

Predictive Analytics

Custora E-commerce Pulse

Mobile E-commerce Report 2014

Add’l educational resources

N E T TA @ C U S T O R A . C O M4 7 Q U E S T I O N S ?

THANKS!

T H E E N D