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Together we can make the
numbers work harder
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




                                                                                          Kundenlogo
Please tweet any questions...


           If you’re shy then we have a session specific hashtag




                                                                   Kundenlogo
Insight driven customer loyalty
The Educated Consumer

       Seamlessly connected          Increasingly switchers
       Motivated by discounts        Immune to advertising
       Motivated by convenience      Trained to be disloyal




    minority                                      mainstream
   vanguard
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
The Demanding Consumer




  They’re not going to become any less aware
         They’re going to share more
        They’re extremely demanding
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?
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
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.
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
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.
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
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
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.
Together we can make the numbers work harder
Search Marketing

Angela Greenwood
Director of Account Management
angela@found.co.uk
Mobile Search
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
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
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%
International targeting
Set ads to display globally
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
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%
Split out & optimise
Responding to search trends
Real-time position checks
Real-time competitor checks
Product Level Tracking
Not only the keyword that a customer converted on,
           but what product they bought.
Leveraging internal search data


               thr uxt on
Search & Social Integration
Leveraging search learnings

• Google sales data
  shows when users are
  converting during the
  day.

• Peaks early
  morning, lunch time and
  in the evening.
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
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
The client perspective
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
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
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…
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
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
#A4UB2



         Kundenlogo

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Together we can make the numbers work harder - Gary Bicker, Angela Greenwood, Chris Catchpole and Tom McLaughlin

  • 1. Together we can make the numbers work harder
  • 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 Kundenlogo
  • 3. Please tweet any questions... If you’re shy then we have a session specific hashtag Kundenlogo
  • 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%
  • 22. Set ads to display globally
  • 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%
  • 25. Split out & optimise
  • 29. Product Level Tracking Not only the keyword that a customer converted on, but what product they bought.
  • 30. Leveraging internal search data thr uxt on
  • 31. Search & Social Integration
  • 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
  • 41. #A4UB2 Kundenlogo

Notes de l'éditeur

  1. 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…
  2. 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
  3. 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
  4. 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
  5. Discount card schemes in eastern europe give away anywhere between 12 and 18% margin annually as their schemes grow
  6. 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
  7. Quality is criticalReward the behaviors you seek - I want new customers?Shop again soonSpend more each visitContinue to shop with my brand
  8. Choose which customer to invest inInvolve merchants and networks in managing customer relationship
  9. 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.
  10. 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
  11. 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.