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Copyright 2011 LinkShare Corporation. All rights reserved.
The Power of Customer Loyalty in
Performance Marketing
September 19th, 2011
Presented By:
Anthony Quinn
Director, Advertiser Services
Hash Tag: #A4UT11
2 Copyright 2011 LinkShare Corporation. All rights reserved.
Agenda
Introduction
Evolution Of Consumer Behaviour
Who Are Consumers Loyal To And Why?
What Can Be Learned?
3 Copyright 2011 LinkShare Corporation. All rights reserved.
Who am I?
Anthony Quinn, Director, Advertiser Services at LinkShare
Responsible for the effective management, development and growth
of LinkShare’s managed affiliate programs
Over 11 years in online marketing
Previously worked advertiser side at GAME Stores
4 Copyright 2011 LinkShare Corporation. All rights reserved.
LinkShare UK Network
Launched August 2006
Winner of ‘Most Improved Network’ at
the 2011 a4u Awards
Over 250 Advertisers
Focus on Retail & Travel
Over 140,000 Quality Publishers
Dedicated Teams
Superior Client Service
Publisher Partnership Support
5 Copyright 2011 LinkShare Corporation. All rights reserved.
Definition of Loyalty in the context of this presentation
Loyalty of Customers towards the sites that they visit
Recognition & acknowledgement of the new behaviour of
customers
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Hypothesis...
Are consumers becoming more loyal to
publisher sites than the advertisers?
And if that is the case, how and why is this happening?
How can we explain the shift?
7 Copyright 2011 LinkShare Corporation. All rights reserved.
Let’s start with a brief history focusing on:
Consumer Evolution
Advertiser Evolution
Publisher Evolution
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Consumer Evolution
Advertiser Evolution
Publisher Evolution
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Consumer Evolution
Offline Online
Consumers becoming more savvy
Finding the information they want online
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Offline Online
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Consumer Shift: Offline Online
10% annual growth expected across Europe
Online retail will pass the €100bn mark in 2012 Source: Forrester Reseach – European Online Retail Forecast 2010 - 2015
12 Copyright 2011 LinkShare Corporation. All rights reserved.
Consumers becoming more savvy
13 Copyright 2011 LinkShare Corporation. All rights reserved. Source: LinkShare Trendwatch - 2009
Consumer Shift: Consumers becoming more savvy
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Which of the following are reasons for why you prefer shopping online?
“You’re able to compare products much more”
“With much less time
to do a normal shop it’s much easier for me”
“I find it easier to change between retailers and
find the bargains I'm looking for”
“I like it because you
see a much wider choice and price of goods and spend no money on
transport”
Source: LinkShare Trendwatch - 2009
Consumer Shift: Consumers becoming more savvy
15 Copyright 2011 LinkShare Corporation. All rights reserved.
92% have more confidence in online
information than salespeople
81% are doing online research “most of the
time” before buying a product
73% conducting online product research
several times a month
Source: LinkShare Trendwatch - 2009
Finding the information they want online
16 Copyright 2011 LinkShare Corporation. All rights reserved.
Source: LinkShare Trendwatch - 2009
Finding the information they want online
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Are Consumers influenced by this information?
Source: LinkShare Information Shopper Research – August 2011
41.1%
Have you ever purchased something online that you would never
previously thought of buying, because of a voucher or offer?
0
10
20
30
40
50
60
Yes No
58.9%
Source: LinkShare Information Shopper Research – August 2011
18 Copyright 2011 LinkShare Corporation. All rights reserved.
Consumer Evolution
Advertiser Evolution
Publisher Evolution
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Advertiser Evolution
Reacting to consumer behaviour. More and more shoppers
are online
Interaction with customers
Improving the on-site customer experience through
understanding customer needs
20 Copyright 2011 LinkShare Corporation. All rights reserved.
Advertiser Evolution
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Advertiser Evolution
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Advertiser Evolution
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Advertiser Evolution
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Advertiser Evolution
Ocado: ‘Virtual Shop Window’
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Consumer Evolution
Advertiser Evolution
Publisher Evolution
26 Copyright 2011 LinkShare Corporation. All rights reserved.
Publisher Evolution
= Reacting to
consumer shift
New affiliate types:
• Voucher
• Loyalty
• Editorial Blog
• Video
All with 1 objective in mind > drive sales and custom for the advertiser
Publishers have themselves created opportunities in performance
marketing
27 Copyright 2011 LinkShare Corporation. All rights reserved.
Summary So Far…
Consumer Evolution
Advertiser & Publisher
Evolution
Who is best serving the
needs of the consumer
today?
28 Copyright 2011 LinkShare Corporation. All rights reserved.
Who is best serving the needs of the consumer today:
Advertisers?
Management of CRM systems
Loyalty strategy – newsletters that feature rewards for loyalty
Advertiser sites as destination sites (video, interaction, consumer offers)
Is this working? Potentially no – but why?
29 Copyright 2011 LinkShare Corporation. All rights reserved.
Consumers today are time poor
However –
Receiving more information than ever before from advertisers –
For Example: Advertiser newsletters featuring offers and promotions:
Hotmail recently released a new way to organise inbox (classifying
newsletters as Grey)
75% of the email messages reported as spam are really legitimate
newsletters, offers, or notifications.
Who is best serving the needs of the consumer today:
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What about publishers?
Are they best serving their purpose/shopping patterns/wants/needs?
Potentially yes……..
Who is best serving the needs of the consumer today:
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Is there a gap between the advertiser and the publisher serving
the needs of the consumer journey?
Example: multichannel experience…..
Who is best serving the needs of the consumer today:
32 Copyright 2011 LinkShare Corporation. All rights reserved.
Example of the gap:
Publisher Site Advertiser
Tracking for
compensation / reporting
A consumer multichannel experience
(69%) researched a product in a shop before buying. But 67% then turned
online when it came time to purchase – in search of better prices *
*(Kantar Media Compete’s Online Shopper Intelligence report, 2011)
33 Copyright 2011 LinkShare Corporation. All rights reserved.
Publishers provide value
With clear intentions to return time and time again as part of their
purchase journey.
Who is best serving the needs of the consumer today:
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Publishers are therefore now an integrated part of the consumers
purchase journey
Cashback / Loyalty
Voucher
Community
Shopping comparison / personalisation
Review & Recommendations
How do they provide value?
Who is best serving the needs of the consumer today:
35 Copyright 2011 LinkShare Corporation. All rights reserved.
Price Comparison Get best deal
Shopping Comparison
Find right product easily
Style Blog Trustworthy
fashion advice
Voucher Site Cost saving
Who is the consumer naturally loyal to?
Who is best serving the needs of the consumer today:
36 Copyright 2011 LinkShare Corporation. All rights reserved.
Price Comparison Get best deal
Shopping Comparison
Find right product easily
Style Blog Trustworthy
fashion advice
Voucher Site Cost saving
Loyalty comes from the VALUE that they get from a site
Creating new opportunities in affiliate marketing
37 Copyright 2011 LinkShare Corporation. All rights reserved.
Publishers provide value
Let’s look at some examples…..
Who is best serving the needs of the consumer today:
38 Copyright 2011 LinkShare Corporation. All rights reserved.
Understand the value of the publisher - POLYVORE
Traffic
10m Unique Visitors per month
2m Registered Users
140m Pageviews per month
Social presence
100k posts to Twitter & Facebook
35m monthly impression on blogs
Other
Authentic, Personal, User-Generated
Insight
Loyalty
• 12.4% of users visit 100+ times pcm
39 Copyright 2011 LinkShare Corporation. All rights reserved.
Understand the value of the publisher - SHOPSTYLE
Most popular fashion aggregator
High street and designer fashion
160+ retailers
Traffic
1.1million unique visitors per month
High conversion rate and AOV
Premium Exposure
E-shop algorithm
Sale alerts
Social Media
40 Copyright 2011 LinkShare Corporation. All rights reserved.
Personalisation Technology
Free, trusted online personal shopper
Aggregated newsletters sent with matches
according to your personal preferences
Easy shopping solution
Scour the web every day to find the best prices
on the items you’ve selected
Offers from over 200 retailers
Aggregated daily email
Traffic
Over 3 million subscribers
Over 2 billion product recommendations per
month
Understand the value of the publisher – SHOP IT TO ME
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Understand the value of the publisher – QUIDCO
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Top publisher sites now have power & are shopping destinations in
their own right:
Publishers building a legion of loyal fans
More traffic than advertisers
Extensive email databases
Community engaged members
Use distribution channels – social
media,
direct mail etc.
Committed to growth / flexible to change
43 Copyright 2011 LinkShare Corporation. All rights reserved.
Understand the value of the publisher
Assess the value of an publisher according to your own metrics:
Average Order Values
New vs. Existing Customers
Lifetime value
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Customers loyal to voucher/coupon sites expect to spend 16%
more, on average, than the typical online shopper.*
Average Order Values
16%
18%
Understand the value of the publisher
*Source: A commissioned study conducted by Forrester Consulting on behalf of WhaleShark Media August 2011
They make 18% more purchases online than the average online
shopper.*
45 Copyright 2011 LinkShare Corporation. All rights reserved.
Average Order Values
Increased
AOV by 31%*
Cashback Site
Exclusive
Free Delivery
Increased
AOV by 25%*
Voucher Site
Exclusive
£10 off £100+
Increased
AOV by 19%*
Employee Mall
Exclusive
Free Delivery *Compared to the
same period the
previous week
Understand the value of the publisher
46 Copyright 2011 LinkShare Corporation. All rights reserved.
Understand the value of the publisher
New vs Existing Customers
Increased by
27%*
Voucher Site
Exclusive
Free Delivery
Increased by
17%*
Cashback
Exclusive
Free Delivery
Increased by
14%*
Voucher Site
Exclusive
Free Delivery *Compared to the
same period the
previous week
47 Copyright 2011 LinkShare Corporation. All rights reserved.
Understand the value of the publisher
Lifetime Value
Visitors to coupon/voucher websites are an especially valuable
segment of shoppers.
Consumers who redeemed more than six coupons/vouchers in the
past 12 months, spent 80% more per year than light users
This equates to 32% more than the mean spend of all US
coupon/voucher users.*
*Source: A commissioned study conducted by Forrester Consulting on behalf of WhaleShark Media August 2011
48 Copyright 2011 LinkShare Corporation. All rights reserved.
Understand the value of the publisher
“We know customers are loyal to [coupon aggregator] sites.
We also know it drives a large number of new customers, ranging
from 18%-25% of our net new customers.”
(Sr. Online Manager, large apparel and home furnishing retailer)*
*Source: A commissioned study conducted by Forrester Consulting on behalf of WhaleShark Media August 2011
Lifetime Value
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Publishers are providing consumers with the right
information
Loyalty Value Information = =
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Summary
Consumer shopping behaviour has evolved
Publishers add value to a consumer journey
Consumers can be more loyal to the publisher than the advertiser
51 Copyright 2011 LinkShare Corporation. All rights reserved.
Some Key Takeaways
Work closely with the publishers to help them understand your
objectives for the program and strategise accordingly
Performance marketing is a proven cost effective channel for driving
new customers
However, you should utilise the channel for maintaining your existing
customers (and reward them for their loyalty to the advertiser)
Would the customer have shopped with the advertiser anyway?
Perhaps not
52 Copyright 2011 LinkShare Corporation. All rights reserved.
Thank You!
Presented By:
Anthony Quinn
Director, Advertiser Services