2. The Session
Together we can make the numbers work harder
Who – 2 very different Publishers & 1 very active client
Why – everyone uses data differently, we want to showcase and discuss this with you
A couple of points from my side:
– Everyone‟s place in the relationship is valid
– Growth will come from increased spend, as well as innovation
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3. Please tweet any questions...
If you’re shy then we have a session specific hashtag
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5. The Educated Consumer
Seamlessly connected Increasingly switchers
Motivated by discounts Immune to advertising
Motivated by convenience Trained to be disloyal
minority mainstream
vanguard
6. The Demanding Consumer
Perception Outcome
Perceived Customer
The brand thinks I‟m low value I‟ll switch for the right offer
Value
I‟ll wait for a deal – or an even
Priority The brand often discounts
better deal
Perceived Brand
Promises / Reality rarely mesh I‟ll believe it when / if I see it
Values
Information I don‟t trust the brand I can trust my friends
“
80% of CEOs believe their brand provides a superior
customer experience… 8% of their customers agree
85% of consumers say that customer experience is critical
to their decision to re-purchase
”
10% of customers directly influence the purchasing
decisions of the remaining 90%
Sources: Bain & Company, Gartner
7. The Demanding Consumer
They’re not going to become any less aware
They’re going to share more
They’re extremely demanding
8. Can Affiliates Answer The New Consumer?
Impersonal Benefits in exchange for registration &
behavioral data
No direct allegiance to any one brand
Operate for the benefit of consumers
Secure the best deals for their customers
Available to everyone and anyone
Not personal, overtly general
Successful, but how to grow without giving away more?
9. But the model is constantly challenged
Eroding traditional brand USPs?
Training consumers to expect greater and greater discounts
Making all discounts available to everyone
Limits incremental benefits
Eroding margin
10. The New / Old Model - Loyalty
Loy·al·ty (loil-t) n. pl.
loy·al·ties
The exchange of targeted
benefits in return for incremental
spend and customer level data.
11. The New / Old Model - Loyalty
Understanding LTV Allocate incentive spend
Customer data
+ insight Know your customer Targeting & response
Limit bottom line erosion with better targeting
Maximise ROI and reduce costs with soft / status benefits
Get the right message to the right customer at the right time
Drive engagement & interaction to bring customers closer to purchase
Drive improved financial performance
Data is the foundation to building this capability
12. From CPA to CPVA
CPA is great but there is usually only one “action” for all customers. As a result
incrementality is affected or limited to new customers
Lessons from loyalty can positively influence merchant campaigns delivered
through affiliate sites
Move from Cost Per Action to Cost Per Variable Action
Focus beyond acquisition objectives
Sophisticated targeting of the right customers based on driving incremental
performance
Shared insight to create variable offers targeted at the right customers
More demonstrable ROI.
13. Loyalty Capability in the Affiliate World
Affiliate sites already have the data and many of the core building blocks that
retailers spend millions of pounds on to be able to apply a loyalty model
Programme
Enrollment
Partner Service
Management Development
Single Customer Customer
Customer View Comms Services
Rewards Customer Content Analysis
Engine Database Management Database
Customers Transactions Channels Merchants
14. Loyalty Capability in the Affiliate World
We can do more to inspire customer performance with other rewards and benefits
I get it early
Soft Benefits I have a higher
status
Customer Rewards
I‟m recognized for
my actions
I can talk to
somebody instantly
I don‟t have to
queue
Hard Benefits
So is everybody
I‟m getting a
discount
Its especially for
me
15. Summing Up
• The affiliate marketing world is growing
• Blanket discounting makes it impossible to continue to delight customers as the
masses understand the market
Techniques from customer loyalty can create a more sustainable model
Create sophisticated campaigns that are:
• Targeted at the right customer at the right time
• Cost effective, demonstrating incremental benefit
• High performing with targeted offers
• Measurable
We have the foundations. Lets start building on them.
16. Together we can make the numbers work harder
Search Marketing
Angela Greenwood
Director of Account Management
angela@found.co.uk
18. Autoglass® mobile campaign
• Mobile click-to-call campaign with optimised landing
pages
• Full visibility of keyword type which triggered a call
• Customised phone number from ad to landing page
19. Geo-targeting
• Location-based landing pages enable geo-targeted ads
• Search for „Autoglass Reading‟ or „Windscreen Chip
Repair Reading‟ delivers relevant customer experience
and quick conversion
20. Device type targeting
• Click tracking by phone enables optimisation by device
type
• Improved CTR via segmentation by device enables
improved ad rankings and reduced CPCs, and therefore
reinvestment into broader keyword coverage
Jan-Sep 2011
19%
7% Android
Blackberry
iPad
6%
iPhone
68%
23. Set ads to display globally
Jan-Sep 2011 28.55% of revenue
is generated from
0.58% 1.07% outside the UK
0.41% 1.23%
3.65%
4.71%
5.17%
Australia, NZ & Pacific
11.73% Other
Eastern Europe
US & Canada
Asia
Southern Europe
Middle East
Northern Europe
71.45%
United Kingdom
24. Separate largest segments by
country
Northern Europe
13% 2% 5%
12% Austria
7% Belgium
4% Denmark
7% Finland
France
Germany
9%
Norway
8% Ireland
Sweden
Switzerland
8%
Netherlands
25%
32. Leveraging search learnings
• Google sales data
shows when users are
converting during the
day.
• Peaks early
morning, lunch time and
in the evening.
33. Search & Social Integration
Search to Social
• Creative messaging
tested in Google likely 100%
to work on Facebook Ads
80% 42% 32%
55%
• Geo-targeting data 60%
Social to Search 40%
45% 58% 68%
20%
• FB Responder profiles
search keywords 0%
% of
• Demographics from Impressions % of Clickers
% Sales
Facebook MSN ad
center, Google display F M
network
34. Results
PPC Learnings Facebook Learnings
• Boosted Facebook CTR • Demographics set
by 105% improved Google Display
campaign ROI by 115%
• Dropped FB CPC by 50%
• Geographic set
• Improved FB CR% by boosted PPC CR% but
30% CTR not affected
36. Setting the scene
• Simply put, we do spend too much time producing data and
not harnessing its potential
• This isn‟t limited to marketing functions either
• You can see from what has just been presented, affiliates are
progressive & agile as their businesses rely on our
businesses
• The consumer is starting to be shared between the brand and
affiliate
37. Data has value if the house is in order
• We can drill down into granular detail about every item bought on
the website!
• How, were, when, new customer, old customer, visited the site
before, how many times they have been before a purchase was
made… the list goes on
• Our internal tracking tools are closely linked to those available on
our affiliate networks
• Enables Matalan to make decisions in terms of investing in our
affiliate programme at specific times of the year. This investment
goes right down to investment on a week to week basis
38. Customer Value
• The data our affiliate programme produces proves value
and shows the value of new customers after the initial
sale through the affiliate channel
• They are placed into our CRM activity and we can put a
£ value on that new customer gained through affiliates
for 6 months, 12 months, 18 etc…
39. Data‟s not all good
• On paper all the sales driven by affiliates look amazing, but
when you dive into the data and get granular, you find that
people who use affiliate sites love the bargains of bargains….
• Unfortunately this does have an impact on margin!
But....
• For Matalan, the affiliate channel brings something no other
marketing channel does better… incremental value!
• Winning the customer is key for our brand, not by any means
possible, but still ensuring profitability
40. Data & the budget
• I‟m being a revolutionary and using the data to secure more budget for
affiliates
• Stakeholders are able to physically see PPC adverts, search results, display
advertising etc…
• As a growing business we had a fair challenge in growing marketing
activities profitably
• So there was a little budget put aside to pay commissions, forget tenancy
agreements, increases in CPA etc… the budget did not match the ambition!
• Testing delivered data...and data enabled testing, the end result being a
focus on affiliates
• Once data has been produced…its quite simple you can‟t argue with the
numbers
All customer loyalty is data driven by definition as creating a unique customer id is at it’s core, without which you could never track LTV, ROI, maximum spend, performance etc…
Consumers are more educated when choosing which products and services to buyHistorical magazines would have been consultedThis info is now widely availableAs is info on where to find discounts
80% of CEO’s believe of believe their brand provides a superior customer experience… 8% of their customers agree 85% of consumers say that customer experience is critical to their decision to re-purchase10% of customers directly influence the purchasing decisions of the remaining 90%.Sources: Bain & Company, Gartner
80% of CEO’s believe of believe their brand provides a superior customer experience… 8% of their customers agree 85% of consumers say that customer experience is critical to their decision to re-purchase10% of customers directly influence the purchasing decisions of the remaining 90%.Sources: Bain & Company, Gartner
Discount card schemes in eastern europe give away anywhere between 12 and 18% margin annually as their schemes grow
18 of the top 20 global retailers have a loyalty scheme, imagine how much has been invested to get these schemes operational on the promise of incremental growth
Quality is criticalReward the behaviors you seek - I want new customers?Shop again soonSpend more each visitContinue to shop with my brand
Choose which customer to invest inInvolve merchants and networks in managing customer relationship
Branding for the SchemeCustomer TokenCustomer Service ChannelsCustomer Communication MediaLoyalty Partners (places to earn points)Reward OptionsNot only shopping online, but in stores and on the move with mobile apps and devices, getting a multi channel view of how customers consumeA unique customer identifierSingle customer view and an understanding of lifetime valueSophisticated communications channelsA simple and effective mechanism to deliver rewardsA view of customer activity across categoriesA representative understanding of share of wallet across merchantsA history of activity outside of click and purchase numbersA growing bank of lifestyle data.
Rewards need to be:AttainableDesirable or attractive enough not to be insultingAffordable enough to fulfil them A pilot carried out by Colloquy and a large US retailer showed that offering a combination of hard and soft rewards was essential to achieving a positive ROI. The rationale is that customers seek both rational rewards (“I know what this is worth”) and emotional rewards (“I am recognised for my loyalty”)Flexible rewards – not just hard discountsLeveraging customer status to drive performanceOffering core status based benefits to reduce churnOffering experiential benefits
Google Sales data shows when users are converting during the dayWe can see peaks are first thing in the morning, at lunch time, and in the evening.