Post on 17-Jul-2015
Why investing!$1 in CX !is better than !$1 in Traffic
Originally presented @ eTail West 2015
#AwesomeCX Needle.com
1
What we’re talking about
Misallocating
marketing spend
toward traffic?
Improve
understanding
visitors AND visits.
Individualize
experiences for
each visit types.
Great CX during
Discovery is the key
ingredient.
2 3 4
Are you misallocating your marketing spend?
1
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>10% spent on
$50.8 Billion spent on U.S. digital media in 2014
Primary (only) objective: Drive Traffic
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What happens
when the traffic arrives?
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Only 2% buy anything
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Not all visitors are created equal.
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1-5% Intend to buy
35-40% “Conditional” intent
CONVERSION
> 10%
3-5%
< 1%
TRAFFIC SOURCE
Direct
Bought
Pai
d
Nat
ura
l R
e-t
arg
ete
d
E-m
ail
50-60% Little or no intent to buy 10% sales : 20% traffic
@ 1% conversion rate, Breakeven . . .
AOV = 100x CPA
Average 2.0%
sitewide
Biggest opportunity lies in converting traffic you’ve already paid for
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Improving conversion for target segments pays off
1-5% Intend to buy
35-40% “Conditional” intent
50-60% Little or no intent to buy
Invest here for maximum return
10% sales : 0.5ppts CR%
0.5 ppts CR% : 2-3% Engagement
CONVERSION
> 10%
3-5%
< 1%
Average 2.0%
sitewide
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53% of companies spend less than 5%
of total budget on conversion rate
optimization.
eConsultancy, 2014
And yet…
Improve understanding of your visitors.
2
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What you are doing right now tells me more about what you need than what you did before.
Understanding behavior
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Best individualized experience
Visit-based insights
Visitor Ability to act in real-time on them
Individualize experiences for different visitor types.
3
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Typical conversion improvement list
þ Place CTA above the fold & make it bigger.
þ Add more product details – visuals and videos.
þ Shorten forms & make flows frictionless.
þ Provide testimonials & other user-generated content.
þ A/B Test non-stop
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Amazon = selection, availability, price
You (today) = content, reviews, promos, recommendations
Just a bunch of noise, which leads to frustration, long lead times to discover/buy, lower trust, etc.
vs.
Plus, Amazon already has most of the content anyway.
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You (tomorrow) = individualization, simplified CX for high, low & medium propensity to buy
Get out of their way; self-service is ultra easy and quick
Automate, content-oriented, with a goal to convert to MPTB
Focus on helping them find what they had a “conditional” intent to buy Specific answers, trusted input, related items, etc.
Great CX during Discovery is the key to conversion.
4
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• Unable to get specific questions answered
• No access to real-time help
• Long, tedious ‘self-service’ discovery
• Non-contextual, impersonal reviews
• Trusted advice is elusive; in-store visits reduce convenience
• Targeted searching vs. browse
Current online experience
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• Text more, talk less
• View more, read less
• Short-form content
• Strangers over brands
• Customers over sales associates
• People who share interests
• Everything now
• Great design
• Great experiences
How consumers communicate
Who consumers trust What consumers expect
Why is CX important now
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eConsultancy & Adobe Digital Trends Report, 2015
CX is the single most exciting opportunity in 2015
Why is CX important now?
3 examples of Awesome CX
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eSalon.com
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eSalon.com
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eSalon.com
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eSalon.com
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eSalon.com
• Guided discovery
• Anticipates questions
• Visual CX
• Before/after pictures
• Ability to consult with previous buyers & stylists in the experience
Awesome Would Be Awesomer
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Free People Me
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Free People Me
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Free People Me
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Free People Me
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Free People Me
• Great social brand experience
• Easy to purchase in the discovery process
• Real-time interaction with the best community members
Awesome Would Be Awesomer
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Case Study | Needle & Nikon
Their CX challenge
• Customers need answers to detailed, technical questions.
• Lack control of brand experience across channels
• Couldn’t access and enable Nikon fans
The Needle solution
• Rule-based targeting to deliver real-time, human interaction with “conditional” shoppers.
• Sourced community of Nikon photographers, and enabled via gamified, virtual service platform
Impact to date
NPS: 73 CSAT: 9.1 Conversion Lift vs. Site: 8.9x Incremental Revenue Rate: 84%
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Nikon & Needle
TARGETED INVITES
SALES TOOLS
IN CONTEXT CHAT WINDOW
ADVOCATE PICTURE
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PERSONAL BIOS PRODUCT TRAY BASKET BUILDING
Nikon & Needle
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1
4 key takeaways
Misallocating
marketing spend
toward traffic?
Improve
understanding
visitors AND visits.
Individualize
experiences for
each visit types.
Great CX during
Discovery is the key
ingredient.
2 3 4
#AwesomeCX Needle.com
When online customers have a great experience
• >70 NPS
• 9.2 CSAT
They buy, they buy more, & they buy more often
• 6-15x Conversion
• +10-35% AOV
• 20-35% LTV
• +5-10% Total Revenue
Lack of trust and confidence
Inability to find relevant information in timely manner
Matching experience to customer’s context and situation
Enabling best people (advocates) to deliver great service
Delivering emotional and connected experiences
We solve big CX challenges… …for great brands… …with measurable impact
Needle in a nutshell
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We believe in the superpower of advocates
Learn how Taylormade & Nikon advocates –
who were onsite @ eTail West – put their superpowers to work for the brands they love.
Meet Travis Meet Jay
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Thanks!
www.needle.com
hello@needle.com
@needleit
#AwesomeCX