Assignment 1

Presentation by Puneet Sharma

Content

• E Commerce

• E-Commerce in 2009

• Events in E-commerce history

• Social Commerce

• Future of Social Commerce

• Affiliate and Affiliate Networks

• Indiplum.com

• Quidco: a case study with user and merchant’s perspective

E- Commerce

• An industry where buying and selling of product or service isconducted over electronic systems such as the Internet and othercomputer networks.(wiki says so.)

• Activities done on Mobile phones, tablets, internet, smart TV,even fax comes under e-commerce.

Why Learn about E-Commerce?

E-Commerce Sites: Create Consumer / Business Demand Invest in Conversion & Acquisition Strategies Understand Shoppers Needs Promote Best Selling Items Follow Trends & Economic Conditions Reward You on Conversion!

What do Merchants Want?

Customer AcquisitionConversions Pay for Performance Model Reduction of CostsMargin Preservation Behavioral Analysis Ability to Market Directly

Image credit – macys.com

What do Affiliates Want?

Image credit - getentrepreneurial.com

Affiliate IncomeHigh Conversions Low RiskVisitor Information Ability to Remarket

The E-Commerce Flow

BUSINESS

EcommerceMerchant

Affiliate Affiliate

SearchEngines

Social Media

MobileOther

CONSUMER

E- Commerce in 2009

Market Conditions 2009

Top 500 Merchants Revenue $115.8B (+11.7%)Top 100 Merchants Revenue $98.6B (55% of total)Amazon.com Revenue $19.17B (+29.5%) Economic Forces Luxury is Out & Necessity is In (changing)Winners are investing in Technology Social Media & Mobile is changing landscape

Source: Internet Retailer 2009 Edition

Source: Internet Retailer 2009 Edition

Top E-Commerce Trends

Personalization Mobile E-Commerce Segmentation Behavioral Profiles Sharing - Social Media (Facebook, Twitter) Building Loyalty Search Product Reviews Product Guides Video

1995:JeffBezos launches Amazon.com and the first commercial-free 24 hour. eBay is founded by computer

programmer Pierre Omidyar as AuctionWeb

1996: IndiaMart B2B marketplace established in India.

1996: Ecplaza: Launched in Korea;

1999: Alibaba Groups launched in China;Napster Launched;Business.com launched.

2002: Ebay acquire paypal fro $1.5 billion;Wayfair and Netshop: founded with the concept of selling products through several targeted domains, rather than a central portal.

According to Forrester Research, e-commerce sales are expected to grow at an average of 9 per cent a year through 2017, to $370 billion

In the ‘retailers and general merchandise’ industry, Amazon stands apart in the same year as Google’s biggest spender. Amazon - Spent $55.2 million on Google AdWordsEbay - Spent $42.8 million on Google AdWordsMacys - Spent $35.6 million on Google AdWordsSears - Spent $34.3 million on Google AdWordsJC Penny - Spent $30.9 million on Google AdWords

Google Shopping Express is the experiment done by google in e-commerce

Social Commerce

:Social Integration

• Social Commerce is meant to be the use of social media for commercially activities or inclusion of social networking to your e-commerce portal.

Should we open the gates?

What will happen to our safe, controlled site if we open the gates to Social Media?

The Three Dimensionsof Social Commerce

• Social Shopping: Group shopping sites (like Groupon),recommendation engines and online marketplaces all bring customers together in a central location and allow for an interactive, social experience.

• Customer Reviews: By harnessing the wisdom of crowds, positive reviews can be game changers in a customer’s decision to choose your brand.

• Peer-to-Peer Referrals: This has proven to be the most effective way of driving new sales, as potential customers trust close friends more than an anonymous review on your site.

Web Infrastructure

Marketing Sales Service

Social Marketing

Social Commerce

Service Communities

Social Marketing

Mngmt

Social CRM

Social WCMS

Community Mngmt

Future of Social Commerce

According to

Forrester Research

Affiliate

What is an affiliate?

• Has anyone heard of:

Affiliates are:

“Companies, groups and individuals who promote merchants

through one, or many of the various forms of affiliate marketing”

Affiliate Types

13%

6%3%

8%

4%

31%

7%

28%

% Proportion

Search

E mail Marketing

Media Broker

Portal ISP

Price Comparison

Reward/Loyalities

Shopping Directories

Content

6,500 active affiliates with circa 1,000 active affiliates each month

Source; Tradedoubler

Acquiring our share

A recent IAB study of 140 advertisers showed:

• 77% of respondents said that marketing spend for affiliates had grown and 71% expected it to grow again in the coming year.

• 19% of respondents are paying out over £100k month in affiliate commissions

• Over ¼ of respondents spend more than 20% of online marketing budgets on the affiliate channel

IAB Survey December 2011

Where does affiliate fit into my online strategy?

AffiliateMarketing

Affiliate Software

Affiliate Network

Publisher

Publisher

Publisher

Co

nsu

mer

Search Engine

Marketing

DisplayE mail

MarketingMobile

MarketingSocial media

Affiliate Marketing

A typical customer journey?

Consumer Affiliate Network Merchant

1

1 1 1

2

6

3

45

Traffic

Payments

Payments are made by Tradedoubler to each affiliate, this data is available to them through our interface, affiliates can access using their unique login details.6

Courtesy: tradedoubler

Implications for merchants

• The benefit for the merchant is simple;

– They only pay out on results

–Guaranteed ROI

– Zero risk strategy

Implications for affiliates

• Affiliate’s need to become experts in driving relevant traffic to merchants websites in order to maximise return for themselves.

• The affiliate spends their own time and money driving traffic to the merchant and only gets paid if they deliver results.

Implications for networks

• Must work with a large number of affiliates

• Only make money if they can drive sales for the merchants

• Networks must have accurate reporting and tracking

The Affiliate Network

What is an affiliate network?

“affiliate networks provide their clients(merchants) with a

gateway to large numbers of individual affiliates and enable all parties to track results through the use of their technology”

Biggest Verticals

• Financial Service

• Travel

• Broadband

• Telecom

• Retail

• Gaming

• Recruitment

Types of Affiliate Programs

CPA

CPL

CPC

Metrics

Performance based: only pay for conversions, clicks, leads,

sales

Tracking required: usually done through an affiliate network

Cost per Acquisition, cost per click, cost per lead, cost per

download, cost per view, cost per Facebook like

Social affiliate

Cost per click- Social Ads on Facebook. These ads can be

micro-targeted, there is no “Like” feature here.

Cost per Like- Social ads and sponsored stories that are

micro-targeted. The likes are published as social

interactions into the newsfeeds of users. A user can

additionally like a Facebook page after click through.

Cost per connect- using Facebook Connect button, gives

access to certain user information. The user double opts-

in to allow access to the information requested by the

advertiser, whether it’s basic user info or more detailed

like e-mail address and access to their calendar.

Cost per download/lead/action- offers are distributed

ingame to drive CPL, CPA, and CPI in exchange for

Facebook Credits.

Top 5 Affiliate Network 2013:

• Google Affiliate Network

• Amazon Associates

• Clickbank

• Commission Junction

• LinkShare

Google Affiliate Network

• Google Affiliate Network is one of the top affiliate network 2013.

• Google Affiliate Network Allow you to promote Up to 800 Merchants from all over the word.

• Have thousand of publisher from all over the world.

• As a Google Affiliate or Publisher will earn commission when people click their ads or make a

purchase.

• Fully automated system.

• Google affiliate Network

Google Affiliate Network Details:Number Of Offers: 800++Type: CPA,CPL,CPSPayment Method: CheckPayment Period: Monthly

Amazon Associates

• Amazon Associates is a affiliate network which one attract affiliate who want to make money by promoting Amazon Product Using their own website.

• Have Unlimited number of products to promote.

• Amazon Make affiliate marketing easy. You can earn lots of money through Amazon Associate.

Amazon Associates Details:

• Number Of Offers: Unlimited

• Type: CPS

• Payment Method: ACH (Direct Deposit), Check

• Payment Period: 60 Day

ClickBank

• Clickbank is a Largest online Digital Marketplace.

• One can Promote up to 10,000++ digital product such as: E-book, Software, Services from clickbank.

• One can earn up to 75% commission per transaction.

• Clickbank Is Most Popular affiliate networks.

ClickBank Details:

• Number of Products: 10,000++

• Type: CPS

• Payment Method: ACH (Direct Deposit), Check

• Payment Period: Weekly

Commission Junction

• Commission Junction or CJ is the one of largest affiliate network.

• 1500+ Product available there.

• Commission Junction Provides lots of useful features that make you more comfortable With commission Junction.

• Commission Junction Approve instant account activation.

Commission Junction Details:

• Number of Offers: 1500+

• Type: CPA,CPL,CPS

• Payment Method: ACH (Direct Deposit), Check

• Payment Period: 20 to 30 Day

LinkShare

• As a LinkShare publisher you have access up to 1000+ product to promote.

• LinkShare also organize great customer support.

• LinkShare Offers comparable feature to make you comfortable with LinkShare.

LinkShare Details:

• Number of Offers: 1000+

• Type: CPA,CPL,CPS,CPC

• Payment Method: ACH (Direct

Some Other Important

Affiliate Networks

RetailMeNot.com

RetailMeNot.com

Popular Stores

Today’s Top Coupons

Share on Social Media

Win the Gift Card

Excellent SearchQuick Poll Newsletter & Email Alerts Power Tools to Share

CouponCabin.com Our Favorite Coupons

Social Media sharing

Most Popular Coupons (community popularity)

Coupons by Email

Live Help (Helping before ecommerce transaction)

Offers.com

Integrates Articles (adds value to sales process)

Integrates DataFeed to show Savings (prepares consumer in advance)

Countdown (creates Amazon like experience)

Weekly Newsletter

Affiliate Network sites in India

• Affiliate Curry - Supposedly India’s first affiliate network offering a small range of Indian affiliate programs.

• Affiliate Network – Offers affiliate network and provides commission to affiliates on a click basis

• Cine Chance- At the Starting you will get Rs. 5 for every confirmed registered member of Cine Chance who comes from a banner/text link on your site. If they get satisfied with your conversion rate, they can increase your commission upto Rs 10 per free registration.

• ClixGalore India – Offers five scaled levels of affiliate recruitment and promotional services to their merchants with a small but growing position in the India Affiliate Marketing industry. Network access to the USA, Japan, Australia, India and the UK.

• dgm India - A wholly own subsidiary of Deal Group, part of dgm Holdings Plc. The Company’s principal activity is the delivery of ROI through affiliate marketing, search engine marketing, display inventory and email, either as individual channels, or as a complete solution.

• Media Marketing Online – Provider of Online Marketing services and Sales Solutions with various services like Search Engine Optimization , website optimization services, Search Engine Marketing solutions, PPC Management Services etc based in India with host of services for Advertisers, Publishers and Agencies.

• Tyroo – Offers pay per click ads. Generate tags for various categories on your website after identifying the size and type of ads that you want us to serve.

• Webshree – Network of web sites and representatives selling your product on a commission-only basis.

Individual websites providing affiliate prog.

• Bazaar of India –You can earning 20% commission when your reference buy its herbal products.

• Bharatmatrimony.com – India’s leading matrimony site offering banner ads, text ads, and email marketing. Earn commissions of upto 50% of the paid subscriptions fee. You earn when visitors reach BharatMatrimony from your website and becomes a paid subscriber.

• Career khazana – Whenever any employer visits the site through your link and becomes a premium member, you earn 25% of a net membership fee.

• ChennaiBazaar – Earn 8% commissions on sale value on every successful sale generated.

• ClickAunty – 25% of each order placed by a referral. 15% of each renewal order.

• Crafts in India – Craftsinindia invites queries from the organizations interested in being its affiliates.

• ebay – You can refer ebay to friends and earn USD 3 per active confirmed registered user. You can also sell ebay products on your site. There is now a ebay India, so people can trade in INR as well. ebay also has partnerships with other global affiliate networks like Commission Junction and Auction Ads.

• http://www.flipkart.com/affiliate/(Flipkart)

• Ferns n petals – Earn up to 15% commission on referred merchandise sales with a 10 day cookie for return visitors. You get commission on all sales that take place up to 10 days after you send someone to Fernsnpetals. For example, if a customer visits your site and clicks on its banner ad and doesn’t buy anything right away, but purchases something at Fernsnpetals a few days later, you still get credited for the sale.

• Fropper – Add a link on your site to Fropper. Whenever someone visits Fropper.com through this link and becomes a premium member, you can earn up to 50% of the fee.

• India club – Online shopping site. You can sell Indian Books, Music, Paintings and Multimedia on your site and earn up to 10% in referral fees.

• India Herbs – Paying you 40% commission on sales generated from your referrals. Paying you 10% commission on all sales generated on the websites of your referrals.

• Indiatimes –You get paid 10% of sale by simply referring a visitor to this online shopping portal.

• IndianFriendfinder – It pays you USD 1.00 for each woman and USD 0.50 for each man that signs up for a free membership. The more traffic you send, the more you earn with its percentage program. You earn an extra 10% when other affiliates sign up under your broker ID.

• IndianKarma – Pays you 40% commission for each member who signs up for a paid membership.

• IndianMatromonialNetwork – Based on a set performance. The higher the performance, the more you will earn! The base commission is 40%.

• IndianMatrimonials – With its affiliates program, you earn 30% on all sales referred by your site. That means if someone signs up for one of its Deluxe accounts, you earn up to USD 17.70 per sale without doing anything. Once a month all affiliates with referral revenues of at least USD 25.00 are paid.

• Indianplaza – Link your site to products on Indianplaza and and it will pay you a fee for every item sold through a referral coming from your site.

• IndianOnNet – As soon as your referral pay its fees, it sends you 40% of the fees as your commission. Your referrals might in turn ask their friends to subscribe to the paid services of IndiansOnNet. If these friends of theirs join, then you receive 15% of the fees.

• India travel – Opportunity to earn rewards for sending customers who register with Indiatravel and who book trips.

• JeevanSathi- All you need to do is to provide a Banner link on your website that fetches free and paid registrations to JeevanSathi. For every Free as well as Paid Registration you will be entitled to a commission.

• Lifepartner India –You can place its links on your site. When users registered at Lifepartners India and becomes a premium member, you earn 50% commission.

• Makemytrip – MakeMyTrip.com is an online travel company and among the most successful Internet companies in the country. It provides an affiliate service for which you have to write to the site explaining your business details.

• Matri-Money The Matri-Money Affiliate Network offers multiple Indian Affiliate Programs across 14 Matrimony sites, offering up to 50% commission on paid registrations.

• Money cosmos – It pays you up to USD 1.00 for each user who registers for free. It also pays you a whopping 20% extra for transactions generated by members referred by you.

• Organic India – Its affiliate program allows you to sell tea and other natural products. You can receive 10% commission for every item sold through your site.

• rishte hi rishte –You will earn Rs 15.00 for each member referred by you who signs up for free in its matrimonial section.You will earn Rs. 3.00 for each member who signs up for free in its matrimonial section referred by affiliates under you.

• Salwar Kameez – All Affiliates, Super-Affiliates, SEO’s, Asssociates, Distributors, Dealers, Representatives, Agents are welcome to join its International team and share the profits.

• Shaadi.com – Earn upto USD 0.55 on every free profile and upto 40% revenue share – USD 44 for every paid membership.

• TajOnline – 5% revenue share on every purchase made on Tajonline through your website. Advance Program: 5% revenue share + recurring commission on purchases made by an individual for 1 year.

• Techtribe frontFoot – With frontFoot, companies post high-paying job opportunities that they are looking to fill, and techTribe members refer people in their network for those opportunities. If the company hires a candidate that was referred, the person who made the referral is rewarded financially.

Affiliate marketing drove

£4.62bn in online sales during

2010, a 12% increase on

2009(£4.13bn)

This means affiliate marketing

drove 8%of all online retail sales

Market Size & Trends

Affiliate

Marketing:

Market Size

Infograph

Affiliate Strategies to Implement

Basic Segmentation

Organize Popular Sections

Shadow the Merchant

Integrate Social Media

Add Shopping Guides

Best Sellers

Surveys

Live Help

Advanced

• Personalization

• Account Registration

• Enhanced Search

• Mobile Applications

• Cross Sell & Related

• Email Alerts

• Loyalty

• International

Indiplum.com

• Indiplum.com is an “online social product discovery platform” focused on online shopping in India

• Indiplum has about 40 online merchants in India participating in the Indiplum.com “Plum and Earn” program currently, but is actively expanding its online merchant network, with the aim to eventually cover the entire Indian ecommerce industry.

What makes one love Indiplum!!!

• Product discovery on the site is very easy and fun.

• Things organised in contextual and intuitive manner.

• The best thing is one get to know is what my friends are plumming, liking and commenting on!! (Social Factor)

• By the “plum and Earn” program, the company has given one more good reason to be stuck to the site and making good bucks along with making great boards.

A few things that I suggest

1. The upper left image is of G+ page which has a 3D separation in the options tab with underlining of the options chosen where as it is not so with our site.

• We also need to be working on our User Interface because for a site like indiplum which has 3600 visitors per day an awesome UI will be beneficial in retaining our visitors.

(I don’t say its mandatory because we can see sites like Quora with a simpe UI are still doing great.)

• “Google +” integration.( I just love G+ !! )

QUIDCO.

What is Quidco?

• Quidco is basically a referral site that pays cashback for purchases you make at online stores, and it works like this.

1. You visit Quidco and log into/create your account

2. Choose your online merchant, from shops such as O2, HMV, play.com to utility companies like npower and British Gas, and look at the cashback offers

3. If you see an offer you like, click the link and it will take you to the vendor's site.

4. You then browse the site as if you had typed in the web address yourself.

5. If you make a purchase, that falls under the cashback terms, you should then get cashback credited to your account.

Quidco: Cashback affiliates UK

• Quidco is a cashback affiliate established in UK

• One browse through thousand of retailers and offers on the site and if one goes to the retailer’s site through cashback button and purchases then he is given the refferral sales commission.

• Similarly HOT DEALS, WAY TO SAVE and VOUCHER works with money back strategy of the company.

• They have mastered the fields of printable vouchers, in-store cashback, mobile apps

• Quidco Compare is similar to comparative shopping where one seeks for quotes from different retailers of the same product.

• Now even provides 2€ bonus on sign up

• The idea of site is relatively simple. You register with the site and when you buy online you visit the same retailers as usual, but via a link on your cashback site. When you make a purchase, the retailer pays a commission to your cashback site, who in turn gives you a cut of the money

FEATURES

• Cashback deals — Retailers pay us a commission to generate sales for them and we pay this straight into your bank account. Whether it’s a fixed cash sum or a percentage of the purchase price we aim to credit your account as quickly as possible.

• In-store cashback — Register your debit and credit cards with us and receive instant discounts on selected retailers and purchases when you visit their stores.

• Voucher codes — Use our voucher codes for instant discounts when making online payments with listed retailers. Moreover, with over 95% of our codes working in tandem with cashback offers you’re set to make even bigger savings.

• Printable vouchers — Print vouchers from our site to get instant discounts when you’re out and about on the high street stores or grabbing a bite to eat at restaurants.

• Quidco Compare — Save time and money with our insurance comparison tool which not only sources the best deals but also offers cashback

• Quidco mobile app — Our free app not only informs you of vouchers and money-off deals in your GPS located area, but also pays you cash in return for simply walking in to certain stores. The 'check-in' for cash function is entirely new to the UK.

• ClickSnap — Get paid cashback on your everyday supermarket shopping. Browse our offers and redeem them either in-store and/or online. Shop in-store, buy the featured products, snap and upload a picture of your receipt within 7 days or click through to your favoured online supermarket via ClickSnap and buy the featured products.

HISTORY

• Introduction Quidco is a cashback and voucher code website based in the UK. Paul and Jennifer Nikkel co-founded Quidco whilst studying at the University of Sheffield in 2005 as a way of saving students money as they shopped online. The website launched in Sheffield in May 2005 with the London office opening in 2007.

• Cashback The site takes the commission (termed ‘cashback’) usually paid by retailers to third-party referrers and passes it on to Quidco members. The first £5 of cashback is retained each year in order to fund the running of Quidco.

• Voucher codes and printable vouchers Quidco launched voucher codes and printable vouchers in July 2010 as an additional service to cashback.

• In-store cashback In-store cashback was launched in November 2009, allowing Quidcomembers to earn cashback from selected retailers when shopping on the high street.

• Egg Cash Back Store The Egg Cash Back Store was launched in June 2010 as a joint project between Egg Banking and Quidco, offering Egg Card holders membership of a co-branded Quidco website.

• Apps Quidco’s iPhone app was released on the 1st of June 2011 in the iTunes Store. The app offers cashback, voucher code and a UK first of paying individuals to ‘check-in’ to retailer outlets and received ‘Consumer app of the week’ from the Guardian and ‘App of the day’ from Pocketlint.com. The iPad version of the Quidco app was released on the 6th of July 2011.

What Quidco. do: A merchant’s perspective

• They promote your brand based on CPA increases / exclusive codes or offers

• Or ideally – a combination of all!

Benefits of Cashback and Vouchers

• Immediate effect on sales

• Grow revenue from existing / focus on new customers

• Target your promotions to a brand, segment, product range or product

• AOV tends to be higher through this channel

• Raising awareness - massive audiences now

• Active communities - social media power (i.e. Moneysaving Expert, HotUk Deals, Facebook and Twitter)

Case Studies - New Brand and new to Quidco

• New Wine merchant

• New Brand to the market

• Came in with a strong offer,invested in the site, regular promotions

• Great growth in sales.

Case Studies - Well established merchant

• Experimented with increasing rates and increasing exposure.

• Social media had a huge effect here. (HotUK deals, Moneysaving expert)

• Focused on grabbing market share.

Case Study - Positive Loop hole

• Purposely created loop hole

• Created an offer of “free product” or “money generating” purchase

• Seeded out through communities, spread fast & achieved ambitious targets.

• Quantity v/s Quality

Case Study – Exclusive and Extra Incentive

• High CPA merchant• Limit to the amount of cashback

merchant wishes to offer• Used Quidco exclusively in the

2nd period• 22% increase in daily sales in the

2nd period even though cashback was £5 less