GWC14: Jose Carlos Cortizo - "The reality of gamified loyalty in eCommerce"
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The document discusses the realities of gamified loyalty programs in e-commerce. It notes that while e-commerce seems simple, businesses need to focus on customer acquisition, conversion optimization, and loyalty over time. The document then presents results of a study on gamification and loyalty programs. Key findings include that most users prefer fun loyalty programs that connect brands, and attitudes towards gamification differ between countries - with users in Spain and Latin America generally more open to gamified experiences than those in the US, UK, and Canada. The conclusion is that e-commerce businesses should keep loyalty programs simple, tailor experiences to different cultures, and focus on engaging their most valuable customers.
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GWC14: Jose Carlos Cortizo - "The reality of gamified loyalty in eCommerce"
- 1. The Reality of Gamified Loyalty in eCommerce Smart eCommerce for Smart People José Carlos Cortizo - @josek_net Co-founder and CMO at @brainsins_en
- 2. #GWC14 - @josek_net eCommerce is a simple concept “You open up an online store and sell everywhere in the world”
- 3. #GWC14 - @josek_net But reality is always harder…
- 4. #GWC14 - @josek_net You need to invest in traffic acquisition
- 5. #GWC14 - @josek_net But if your product/service is not good enough you won’t sell
- 6. #GWC14 - @josek_net Sales = Traffic x Conversion x AOV x Recurrence Browse Shop Buy Engage Strangers Visitors Shoppers Buyers Customers
- 7. #GWC14 - @josek_net First eCommerce focuses on acquisition Browse Shop Buy Engage Strangers Visitors Shoppers Buyers Customers
- 8. #GWC14 - @josek_net After that, you need to focus on CRO (sales optimization) Browse Shop Buy Engage Strangers Visitors Shoppers Buyers Customers
- 9. #GWC14 - @josek_net And then on loyalty (or how to sell more times to the same customers) Browse Shop Buy Engage Strangers Visitors Shoppers Buyers Customers
- 10. #GWC14 - @josek_net Sales = Traffic x Conversion x AOV x Recurrence Browse Shop Buy Engage Strangers Visitors Shoppers Buyers Customers
- 11. #GWC14 - @josek_net CAC vs LTV => It’s going harder as the eCommerce market matures
- 12. #GWC14 - @josek_net Traffic and sales of recurring customers 0 12,5 25 37,5 50 Due to recurring customers (% over total) 47% 8% Traffic Sales Source: Adobe Digital Index Report
- 13. #GWC14 - @josek_net Just 1% of eCommerce websites have a loyalty program Source: Adobe Digital Index Report
- 14. #GWC14 - @josek_net Question and hypothesis Why don’t you focus on the best revenue source? ! ! ! Could gamification be an ally for eCommerce websites?
- 15. #GWC14 - @josek_net Just test the hypothesis… 2.552 users from US, UK, Canada, Spain, Mexico, Chile, Colombia, Brazil 300 eCommerce Managers (same countries) Analysis of behavioral data from 200 online stores (same countries)
- 16. #GWC14 - @josek_net So far… > 1.000 customers surveyed 32 eCommerce Manager surveyed Analysis of behavioral data from 5 (big) online stores
- 17. #GWC14 - @josek_net Let’s see some results
- 18. #GWC14 - @josek_net 52% of people buys in online stores recommended by their friends
- 19. #GWC14 - @josek_net 79% of users thinks it’s important that online stores offers a loyalty program
- 20. #GWC14 - @josek_net 74% of users belongs to a loyalty program. But only 30% belongs to a loyalty program of an online store Only 5% if we don’t take into account Amazon Prime
- 21. #GWC14 - @josek_net 64% of users prefer loyalty programs that connect several brands
- 22. #GWC14 - @josek_net Going further Ok, ok….but that’s only loyalty… What about gamification?
- 23. #GWC14 - @josek_net It’s not everywhere the same…
- 24. #GWC14 - @josek_net In Spain and LATAM 69% of users prefer a fun user experience => Make it fun! In US, UK and Canada, less than 25% => Make it transactional!
- 25. #GWC14 - @josek_net In all countries people understand PBL (if it helps users to get what they need)
- 26. #GWC14 - @josek_net In Spain and LATAM >72% of users liked Bonobos Scavenger Hunt; US, UK and Canada < 24%
- 27. #GWC14 - @josek_net In Spain and LATAM ~36% of users liked Gilt Noir; US, UK and Canada ~ 15%
- 28. #GWC14 - @josek_net In Spain and LATAM ~51% of users liked Best Buy’s presence on Cityville; US, UK and Canada ~ 17%
- 29. #GWC14 - @josek_net In Spain and LATAM ~73% of users liked Arby’s (SM participation); US, UK and Canada ~ 19%
- 30. #GWC14 - @josek_net Don’t try to engage everybody, just your target market From the other side (eCommerce Manager perspective)
- 31. #GWC14 - @josek_net What works to engage with your target market may make a bad impression to other users From the other side (eCommerce Manager perspective)
- 32. #GWC14 - @josek_net At the end of the day money is king: is the main reason for repeated purchases (67%) and 78% of users would buy in another online store if it’s cheaper From the other side (eCommerce Manager perspective)
- 33. #GWC14 - @josek_net But… …20% of the users can generate 80% of your revenues
- 34. #GWC14 - @josek_net Conclusion 1: Keep it simple
- 35. #GWC14 - @josek_net Conclusion 2: Different cultures, different experiences
- 36. #GWC14 - @josek_net Conclusion 3: You only need “a few” customers to make the difference (~10%)
- 37. #GWC14 - @josek_net Less than one month for the final report