Retention marketing the next e commerce battleground
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Retention Marketing:The Next eCommerce Battleground
Steve DeckertCo-Founder, Sweet Tooth
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Steve Deckert@stevedeckert
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Sweet Tooth@sweettootheCommerce loyalty programs4,000 retailerssweettoothrewards.com
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Inbound > Outbound
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Outbound=
Customer Acquisition
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Outbound=
Acquisition
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eCommerce=
Acquisition
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1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase. Pizza Hut also claims to be first to sell online.1995: Jeff Bezos launches Amazon.com. eBay founded as AuctionWeb.1996: Dell begins selling computers online.1998: PayPal founded.1999: Alibaba Group established in China. Overstock.com founded.2002: eBay acquires PayPal for $1.5 billion.
Early eCommerce History
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1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase. Pizza Hut also claims to be first to sell online.1995: Jeff Bezos launches Amazon.com. eBay founded as AuctionWeb.1996: Dell begins selling computers online.1998: PayPal founded.1999: Alibaba Group established in China. Overstock.com founded.2002: eBay acquires PayPal for $1.5 billion.2004: Inbound conceptualized by Brian Halligan & Dharmesh Shah
Early eCommerce History
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eCommerce=
Acquisition
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Outbound vs Inbound=
Cust. Acquisition vs Retention
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The companies that will win the next 5 years of
eCommerce will win using customer retention.
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Why?
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Because acquisition won’t work.
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https://blog.shareaholic.com/search-visit-value-06-2014/
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http://searchengineland.com/google-showing-fewer-ads-per-search-219834
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http://www.statista.com/chart/2021/organic-reach-of-brands-facebook-posts/
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http://www.adweek.com/socialtimes/infographic-paid-reach-on-facebook-getting-more-expensive/299749
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http://www.marketingcharts.com/television/global-display-ad-spend-growth-forecast-to-outpace-paid-search-22423/zenithoptimedia-global-online-ad-spend-2010-2014-june2012png/
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https://moz.com/blog/consumer-survey-reveals-the-efficacy-of-inbound-vs-outbound
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https://moz.com/blog/consumer-survey-reveals-the-efficacy-of-inbound-vs-outbound
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http://andrewchen.co/the-law-of-shitty-clickthroughs/
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http://www.marketingcharts.com/verticals/retail-and-e-commerce/51-of-americans-switched-service-providers-in-the-past-year-due-to-poor-customer-service-37627/attachment/accenture-switching-service-providers-oct2013/
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Consumers have had enough of companies trying
toacquire them.
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Outbound vs Inbound=
Cust. Acquisition vs Retention
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Customer Retention
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http://success.adobe.com/assets/en/downloads/whitepaper/13926.digital_index_loyal_shoppers_report.pdf
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http://www.nielsen.com/us/en/insights/news/2013/under-the-influence-consumer-trust-in-advertising.html
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Historically, <20% of marketing budgets
dedicated to retention.
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http://www.marketingcharts.com/uncategorized/customer-retention-top-marketing-priority-17975/
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http://www.marketingcharts.com/traditional/retailers-say-customer-retention-will-be-key-revenue-growth-driver-45664/attachment/kpmg-most-significant-retail-revenue-drivers-sept2014/
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Source: 2013 Colloquy Loyalty Census
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Source: 2013 Colloquy Loyalty Census
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Source: 2013 Colloquy Loyalty Census
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The companies that will win the next 5 years of
eCommerce will win using customer retention.
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Customer Retention Model
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Visitor Purchaser
Repeat Purchas
er
Brand Advocat
e
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Visitor
Purchaser
Repeat Purchas
er
Brand Advocat
e
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Visitor Purchaser
Repeat Purchas
er
Brand Advocat
eCustomer Acquisition Customer Retention
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Visitor Purchaser
Repeat Purchas
er
Brand Advocat
eCustomer Acquisition Customer Retention
Transactional Relationship
Emotional Relationship
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Loyalty is an Emotion
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Visitor Purchaser
Repeat Purchas
er
Brand Advocat
eCustomer Acquisition Customer Retention
Transactional Relationship
Emotional Relationship
• Good prices• Fast shipping• Site speed• Easy UI• Product Images
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Visitor Purchaser
Repeat Purchas
er
Brand Advocat
eCustomer Acquisition Customer Retention
Transactional Relationship
Emotional Relationship
• Good prices• Fast shipping• Site speed• Easy UI• Product Images
Hygiene Factors
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Visitor Purchaser
Repeat Purchas
er
Brand Advocat
eCustomer Acquisition Customer Retention
Transactional Relationship
Emotional Relationship
• Good prices• Fast shipping• Site speed• Easy UI• Product Images
Hygiene Factors• Loyalty programs• Lifecycle email• Amazing customer
support• Personalization• Referral programs
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Visitor Purchaser
Repeat Purchas
er
Brand Advocat
eCustomer Acquisition Customer Retention
Transactional Relationship
Emotional Relationship
• Good prices• Fast shipping• Site speed• Easy UI• Product Images
Hygiene Factors• Loyalty programs• Lifecycle email• Amazing customer
support• Personalization• Referral programs
Delight Factors
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Visitor
Purchaser
Repeat Purchas
er
Brand Advocat
e
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1.Acquisition = Outbound. Retention = Inbound.2.Customers have had enough of companies trying
to acquire them. Acquisition becoming less effective and more expensive.
3.Retention marketing is a good way to grow revenue and get new customers
What Did You Learn?
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Do What You Believe
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Thank You!Questions?