Leeds Online Seller Meetup
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Our first Leeds Online Seller Meetup held on 7th April in Leeds Beckett University was really successful. We had attendance of 20 online businesses and a representative from local chamber of commerce. There was an interesting mix of businesses selling fancy clothes, books to kitchen doors.
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Leeds Online Seller Meetup
- 1. Leeds online seller meetup #OSUKLEEDS 7th April, 2016 Leeds University www.OnlineSellerUK.com | Landline: 029 2236 2596 | @OnlineSellerUK In Partnership with
- 2. Speakers Each talk lasts for 25 mins | Networking after event | All slides will be emailed Richard Taylor-Jone | Tom Kemp Victor Corcoran |
- 3. Brought to you in Kind support from and Sponsorship from Media Partner
- 4. Hello ! I’m Prabhat Shah Project Manager, Online Seller UK & DaytodayeBay find me @OnlineSellerUK
- 5. How did it Start ? >> Cardiff to throughout the UK >> Helped 500+ businesses directly
- 7. We Deliver Ecommerce & Digital Marketing Training Please visit www.onlineselleruk.com to find out more >
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- 16. …
- 19. A) B)
- 21. How much are your customers worth to you?
- 22. What this presentation will cover… The value of existing customers… - Optimising Cost Per Acquisition - Increasing Conversion - Increasing AOV - Developing Customer Lifetime Value
- 23. Why are existing customers important to me?
- 24. Many retailers are constantly on the lookout for two things… More Customers More Orders
- 25. Less is generally said about existing customers, and what they mean to the business. Why is this so important?
- 26. On average, it costs 6-7x more to acquire a new customer, than to retain an existing one.
- 27. Existing customers typically spend more than double that of a new customer.
- 28. A 2% increase in retention has the same effect as decreasing costs by 10%.
- 29. Ecommerce companies in the top performing quartile have a customer lifetime value of over 5x that of the industry average.
- 30. How do we prove this?
- 31. To appreciate the value of existing customers, we must keep track of four key metrics: CPA: Cost per Acquisition CR: Conversion Rate AOV: Average Order Value LTV: Lifetime Value
- 32. In order to draw valuable conclusions, these metrics must be considered alongside the customer purchasing journey…
- 33. Order CPA: Cost per Acquisition CR: Conversion Rate LTV: Lifetime Value CustomerValue Acquisition Conversion Retention Win-Back
- 34. This is a dynamic process. There is no “right” or “wrong” combination, other than what works for your business…
- 35. CPA CR AOV LTV Average Distribution
- 36. CPA CR AOV LTV High Value – Low Frequency
- 37. CPA CR AOV LTV High Frequency – Low Value
- 38. It is only by monitoring these metrics, and examining how they affect each other, that we can truly assess the performance of a business. Whilst this may sound like a challenge, it can be easily achieved, via free tools and SaaS platforms.
- 39. Let’s take a closer look at each element, see what it is, and how it can be improved…
- 40. Cost Per Acquisition (CPA)
- 41. If you retail on marketplaces, this is effectively done on your behalf, and is commission + listing fees. Circa 7% – 15%.
- 42. However, the negative to a fixed CPA is that this will remain, regardless of turnover.
- 43. Therefore, the priority should be to cultivate your own customers, rather than eBay or Amazon’s and divert value into your own brand.
- 44. This is done with the launch of a dedicated web presence, which allows you to control and measure the cost per acquisition of various marketing channels.
- 45. Average Order Value (AOV)
- 46. These are our essentials to encourage a higher AOV:
- 47. 1. Free Delivery Threshold
- 50. 4. Giveaways + Thresholds
- 51. 5. Loyalty & Rewards
- 53. Improving your conversion rate is one of the quickest ways to generate additional revenue, from your existing traffic levels.
- 54. A dedicated web presence allows you to positively affect conversion rate, with a pro-active approach to key areas.
- 55. Currently, the biggest barrier to a higher conversion rate for most retailers user experience (UX), in particular mobile. This should also be viewed as an opportunity.
- 56. 32% of all online sales came from mobile devices in 2014. This rose to 40% in 2015 and is growing at around 30% year on year.
- 57. Desktop abandonment averages around 68%, however this increases to 72% on tablets, and 84% on mobile.
- 58. Ignoring mobile users is the equivalent of closing your shop for 3 days a week.
- 59. Over Half your marketing and advertising spend will soon be consumed by mobile.
- 60. Social media and email engagement are already mobile first channels at 80-90%
- 61. So what makes a good M-commerce experience that converts?
- 62. Here are our essential mobile requirements to maximise AOV…
- 63. Optimised for touch and swipe
- 64. Optimised menu and navigation elements
- 65. Use device features for usability
- 66. Touch and mobile compatible image gallery
- 67. In the same way the internet has revolutionised commerce, mobile and mobile payments are set to do the same.
- 69. After going to the trouble and expense of acquiring the customer, it is vital to maximise lifetime value.
- 70. This is because the true value to your business should be measured across an extended time period, in order to add perspective.
- 71. The long term aim should always be to enrich your customer data, this should include: Product Preference Gender Specific Related Purchases Age Specific Purchase Frequency
- 72. The primary area we see retailers fail to maximise customer lifetime value is Lifecycle Marketing.
- 73. Cost-effective, personalised communication. Lifecycle Marketing
- 74. Automated e-mails with bespoke messages triggered by customer activity. Lifecycle Marketing
- 75. Activities are classified according to their stage on the customer ‘lifecycle’. Lifecycle Marketing
- 76. Tailor offers and messages to achieve the desired action… Lifecycle Marketing
- 77. The aim is to convert, retain, grow and reactivate. Lifecycle Marketing
- 78. Up to a 45% click through rate. Some Recent Lifecycle Email Statistics
- 79. Over 20% increased spend. Some Recent Lifecycle Email Statistics
- 80. On average 3 x more valuable over time. Some Recent Lifecycle Email Statistics
- 81. 4 x the benchmark conversion rate Some Recent Lifecycle Email Statistics
- 82. A well structured campaign should include: Welcome Campaign Forgotten Password Abandoned Basket Order / Shipping Confirmations Search Results / Recently Viewed Campaigns Survey / Customer Service Campaigns Birthday / Seasonal Event Campaigns
- 83. The triggered touchpoints of lifecycle marketing should be complemented by regular campaigns and promotions.
- 84. Email campaigns and promotions provide the most cost effective and consistently high-performing route to market available.
- 85. As a channel, email marketing is extremely responsive, and can therefore react to seasonal trends, current affairs, trending products/topics and more.
- 86. These campaigns also provide flexibility, to promote high value products, bundles, or even slow moving stock or clearance sections. This puts you in control of your products.
- 87. Key Takeaways
- 88. - ANALYTICS : Make sure you have access to key metrics - DATA : Analyse your current data and enrich where possible - CONTROL : Minimise dependency on marketplaces and build a brand - LIFETIME VALUE : Maximise sales with regular, personalised communication Key Takeaways
- 90. Price Matters 52% of Online Shoppers In Italy Check Price Before Purchasing
- 91. NO, BUT I PLAN TO IN THE NEXT 12 MONTHS WEB RETAILER MARKET SURVEY DO YOU USE ANY REPRICING SOFTWARE?
- 92. Blackhawk Engagement Solutions Survey
- 93. The Buy Box
- 94. The Buy Box Winner The Competition Who gets the most sales? From 82% to 90% of all sales made on Amazon they happen through the BuyBox
- 95. How Amazon Repricing Works Price change in Amazon Repricing Software receives the notification from Amazon Information received get processed from the Repricing Software and the new Price is determined The New Price is pushed to Amazon Amazon update the new price received from the Repricing Software its marketplace This is a continuous 24/7 Process
- 96. Data Received for each SKU Price Change
- 97. Offer Data Received for Top 20 Sellers Seller Id - Feedback Rating - Feedback Count - Listing & Shipping Price - FBA Yes/No - New Used Amazon do not share all available information
- 98. Solving the Buy Box Mystery
- 99. How Rules-Based Repricing Works •Set your Personalized Min / Max •Define Buy Box Conditions •Repricing including desired Profit Margins •Why to consider Stock Level in the rule’s definition •Shipping Rules and Timing •Competitor Exceptions =
- 100. Repricing including Profit Margin Control on Revenue Contribution of each sale
- 101. Using a Repricing Software = Real Time Profit Optimization
- 102. Price Replication There are tools out there that allow a seller to push and pull prices from competitor sites and Amazon
- 103. Thanks for your time Questions
- 104. Did you find this event useful ? Please write your testimonials.
- 105. Register Training on our website www.onlineselleruk.com Available Training > 1ST June
- 106. Thanks ! Everyone for your support.
- 107. Contact: Prabhat Shah @OnlineSellerUK Email: ps@onlineselleruk.com Landline: 029 2236 2596 Mobile: 0751 88 39629 www.onlineselleruk.com