acommerce adtech - performance marketing for ecommerce companies

Performance MarketingFor E-CommerceSheji Ho | July 2015

About aCommerce

Singapore | Thailand | Indonesia | Philippines

The Leading End-to-End Ecommerce Solutions provider in S.E. Asia

FOUNDED IN

2013With over 360 staff across Singapore,

Thailand, Indonesia, and Philippines

REVENUE

3xTripled revs in

second half of 2014

CLIENTS

100+30% are in Fortune top 1,000, 70% are recurring with 1-2 year agreements

MARKET GROWTH

30%Year-on-Year growth

for B2C and B2B Ecommerce market

in S.E. Asia

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Ecommerce Strategy & Consulting

Web & Mobile Development

Production, Photography, Copy Writing

Digital Marketing, CRM, and

Data

Channel Management on E-tailers & Marketplaces

Payment Gateways

Sourcing & Merchandising

Cross Border & Custom Clearance

ERP Integration & Accounting

Management

Customer Service & Call

Center

Warehousing and Order Fulfillment

Nationwide and Next Day Delivery with

COD

We focus on sales by providing turn-key solutions that drive a customer’s path to purchase

With our own fulfillment centers, delivery fleet, and proprietary technology we manage the entire E-commerce logistics supply chain

Demand Fulfillment

Demand Generation

Our Ecommerce Solutions


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In The Media

E-Commerce Marketing 101


Two types of marketing (Adam Gross)7

Source: https://www.gv.com/lib/product-marketing-for-startups

https://www.gv.com/lib/product-marketing-for-startups

Product-Market Fit


Product-Market Fit (Ellis, Blank, Andreessen, Ries)9

Source: http://www.startup-marketing.com/the-startup-pyramid

http://www.startup-marketing.com/the-startup-pyramid


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• $400m VC investment (Benchmark, Sequoia, Softbank, GS, Yahoo, etc.)

• Raised $375m in IPO, valued at $4.8b USD

• Cumulative revenues of $395k; losses of $50m at IPO time

• $1bn order for high-tech warehouses


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• Lack of Internet penetration

• Slow Internet

• Trust issues

• Immature logistics


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“Instacart and Postmates are both avoiding the infrastructure model mistakes. They are leveraging the existing infrastructure of grocery stores, not building their own infrastructure.

They focus on two areas, delivery and customer service, and concentrate their resources on excelling in those departments.”


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“Product-Market Fit” for E-Commerce15

1. Price

2. Product offering / SKU range

3. Payment options

4. Delivery – options, speed, price/free

5. Site user experience

6. Customer service

7. Brand


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Product-Channel Fit17

Ecosystem


Ecosystem – Rules of the game, and why it matters19


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Web 1.0 –“Homepages”22


Web 1.5 –“Self-publishing/blogging/UGC”23


Web 2.0 –“Social Media”24


SEA skipped Web 1.0/1.525

Source: http://www.boi.go.th/tir/issue/201004_20_4/42.htm, Google.com (population stats)

http://www.boi.go.th/tir/issue/201004_20_4/42.htm


Long Tail (Chris Anderson)26

• E-commerce (Amazon)

• Advertising (Google Adwords, Adsense)

• Publishing (blogs, crowdsourcing, YouTube, etc.)


Long Tail / Pareto distribution in Publishing27


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No Tail in Southeast Asia because it skipped Web 1.0/1.5

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Chicken and Egg Issue31


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No-Tail implications on ecosystem in SEA34

• Relatively simple ad tech environment

• Affiliate marketing still nascent

• Demand-side platform (DSP) market still nascent

• Accelerated development and proliferance of e-commerce and other non-ad based business models

• “Traditional” digital agencies scope reduced to executing global contracts and buying offline media (in US, these agencies still have a role to play due to complicated ad tech environment)


“Running programmatic display advertising in most of Southeast Asia is like buying a Lamborghini but driving it in the traffic jams of Jakarta”

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Reading tea leaves36


China & SEA skipped Web 1.0/1.537


Accelerated development and proliferance ofe-commerce and other non-ad based business models

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Accelerated development and proliferance ofe-commerce and other non-ad based business models

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Product-Channel Fit


Terminology41

• Digital marketing (agencies, brands)

• Internet marketing (old schoolers, e.g. eBay)

• Demand generation (fortune 500 retailers, e.g. Amazon, Apple, Dell)

• Customer acquisition / acquisition marketing (SaaS and daily deals/flash sale sites, e.g. Dropbox, Mint, Groupon, Gilt)

• Growth marketing (new schoolers, e.g. Facebook, Uber)

• Growth hacking (pretentious douchebags)

• Moneyball marketing (the shit)


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The CMO as Billy Beane

“Marketing is experiencing a similar revolution now. In the past, no substantial feedback loop existed to tie customer choices to marketing activity. Marketers had to do things by touch and feel, often betting their careers on the black-boxed “genius” of creative agencies or the fuzzy results of focus groups. Ultimately, CMOs simply had to hope that correlation was causation; that an uptick in sales was actually attributable to them and not some confounding factor.

That’s all changed. With the plethora of analytics tools, big data platforms, and precise tracking methods available today, marketers can see inside the black box. Like in baseball, sophisticated metrics have emerged to enable better decision-making.”

http://qr.ae/6CGer

http://qr.ae/6CGer


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AARRR Framework (Dave McClure)50


6 Core Pillars of Acquisition Marketing51

1. Conversion Funnel2. Channel/Portfolio Management3. Optimization4. Email5. Analytics6. User Quality


Pillar 1: Conversion Funnel52


Pillar 2: Channel / Portfolio Management53


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Recipe for Portfolio Management55

Start with the obvious choices… Google, Facebook, Retargeting, Affiliates, etc.

• Milk your “Cash Cows”

Seek out new channels to test• Identify “Stars”

BLOW out quality channels 100%• Put ALL eggs into BIG baskets… crushing it

Align spend with ROI or strategic allocation• Reallocate your eggs based on ROI• Or reallocate based on “strategic considerations”, e.g. when

investing in a new business such as mobile app

Optimize channels


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Pillar 3: Optimization57


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Pillar 4: Email59


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Pillar 5: Analytics61


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Pillar 6: User Quality63


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Cohort analysis… by channel67


Client example: Cohort analysis68


Recipe for Metrics & User Quality69

Measure stuff. Keep it simple (Dave McClure)• Focus on critical few actionable metrics

(if you don’t use the metric to make a decision, it’s not actionable)

Data quality sucks, live with it (Avinash Kaushik)• Focus on trends to drive decisions

Rely on third-party analytic tools PLUS home-grown metrics


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SEA Case Studies


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Line


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Some companies get >50% of traffic from Line


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Line Flash Sale


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Line Hot Deal Marketing Campaigns


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Line Hot Deal Marketing Campaigns


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Line Groceries


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Line Groceries


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Line Groceries


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Amazon x Line cross-border e-commerce


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Trigger Emails: Search Abandon


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Kiehl’s x Uber

Thailand Office946 Dusit Thani Building, 4th fl., Rama IV Rd. Bangrak, Bangkok, Thailand 10500

Indonesia OfficeJalan Wijaya Timur II No. 13RT 015 RW 002, Kelurahan Petogogan, Kecamatan Mampang Prapatan Jakarta

Thailand Distribution Center951/1 Soi Preeyanon, Sathupradit Road, Bangpongpang, Yannawa Bangkok 10120, Thailand

Singapore Office#05-01, Block 71 Ayer Rajah CrescentSingapore 139951


Thank You!84

Sheji HoGroup CMO, aCommerce

E: [email protected]: +66 (0)92-265-1700Skype: sheji_ho

Address:946 Dusit Thani Building, 4th fl., Rama IV Rd. Bangrak, Bangkok,10500 Thailand

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