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Retention Marketing:The Next eCommerceBattleground

Steve Deckert

Co-Founder, Sweet Tooth

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Steve Deckert

@stevedeckert

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Sweet Tooth@sweettootheCommerce loyalty programs4,000 retailerssweettoothrewards.com

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Inbound > Outbound

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Outbound=

Customer Acquisition

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Outbound=

Acquisition

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eCommerce=

Acquisition

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1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase.

Pizza Hut also claims to be first to sell online.

1995: Jeff Bezos launches Amazon.com. eBay founded as AuctionWeb.

1996: Dell begins selling computers online.

1998: PayPal founded.

1999: Alibaba Group established in China. Overstock.com founded.

2002: eBay acquires PayPal for $1.5 billion.

Early eCommerce History

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1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase.

Pizza Hut also claims to be first to sell online.

1995: Jeff Bezos launches Amazon.com. eBay founded as AuctionWeb.

1996: Dell begins selling computers online.

1998: PayPal founded.

1999: Alibaba Group established in China. Overstock.com founded.

2002: eBay acquires PayPal for $1.5 billion.

2004: Inbound conceptualized by Brian Halligan & Dharmesh Shah

Early eCommerce History

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eCommerce=

Acquisition

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Outbound vs Inbound=

Cust. Acquisition vs Retention

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The companies that will win the next 5 years of eCommerce will win using customer retention.

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Why?

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Because acquisition won’t work.

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https://blog.shareaholic.com/search-visit-value-06-2014/

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http://searchengineland.com/google-showing-fewer-ads-per-search-219834

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http://www.statista.com/chart/2021/organic-reach-of-brands-facebook-posts/

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http://www.adweek.com/socialtimes/infographic-paid-reach-on-facebook-getting-more-expensive/299749

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http://www.marketingcharts.com/television/global-display-ad-spend-growth-forecast-to-outpace-paid-search-22423/zenithoptimedia-global-online-ad-spend-2010-2014-

june2012png/

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https://moz.com/blog/consumer-survey-reveals-the-efficacy-of-inbound-vs-outbound

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https://moz.com/blog/consumer-survey-reveals-the-efficacy-of-inbound-vs-outbound

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http://andrewchen.co/the-law-of-shitty-clickthroughs/

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http://www.marketingcharts.com/verticals/retail-and-e-commerce/51-of-americans-switched-service-providers-in-the-past-year-due-to-poor-customer-service-

37627/attachment/accenture-switching-service-providers-oct2013/

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Consumers have had enough of companies trying to

acquire them.

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Outbound vs Inbound=

Cust. Acquisition vs Retention

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Customer Retention

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http://success.adobe.com/assets/en/downloads/whitepaper/13926.digital_index_loyal_shoppers_report.pdf

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http://www.nielsen.com/us/en/insights/news/2013/under-the-influence-consumer-trust-in-advertising.html

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Historically, <20% of marketing budgets dedicated to retention.

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http://www.marketingcharts.com/uncategorized/customer-retention-top-marketing-priority-17975/

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http://www.marketingcharts.com/traditional/retailers-say-customer-retention-will-be-key-revenue-growth-driver-45664/attachment/kpmg-most-significant-retail-revenue-drivers-

sept2014/

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Source: 2013 Colloquy Loyalty Census

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Source: 2013 Colloquy Loyalty Census

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Source: 2013 Colloquy Loyalty Census

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The companies that will win the next 5 years of eCommerce will win using customer retention.

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Customer Retention Model

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Visitor Purchaser Repeat Purchaser

Brand Advocate

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Visitor

PurchaserRepeat Purchaser

Brand Advocate

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Visitor Purchaser Repeat Purchaser

Brand Advocate

Customer Acquisition Customer Retention

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Visitor Purchaser Repeat Purchaser

Brand Advocate

Customer Acquisition Customer RetentionTransactional Relationship Emotional Relationship

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Loyalty is an Emotion

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Visitor Purchaser Repeat Purchaser

Brand Advocate

Customer Acquisition Customer RetentionTransactional Relationship Emotional Relationship

• Good prices• Fast shipping• Site speed• Easy UI• Product Images

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Visitor Purchaser Repeat Purchaser

Brand Advocate

Customer Acquisition Customer RetentionTransactional Relationship Emotional Relationship

• Good prices• Fast shipping• Site speed• Easy UI• Product Images

Hygiene Factors

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Visitor Purchaser Repeat Purchaser

Brand Advocate

Customer Acquisition Customer RetentionTransactional Relationship Emotional Relationship

• Good prices• Fast shipping• Site speed• Easy UI• Product Images

Hygiene Factors• Loyalty programs• Lifecycle email• Amazing customer support• Personalization• Referral programs

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Visitor Purchaser Repeat Purchaser

Brand Advocate

Customer Acquisition Customer RetentionTransactional Relationship Emotional Relationship

• Good prices• Fast shipping• Site speed• Easy UI• Product Images

Hygiene Factors• Loyalty programs• Lifecycle email• Amazing customer support• Personalization• Referral programs

Delight Factors

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Visitor

PurchaserRepeat Purchaser

Brand Advocate

1. Acquisition = Outbound. Retention = Inbound.

2. Customers have had enough of companies trying to

acquire them. Acquisition becoming less effective and

more expensive.

3. Retention marketing is a good way to grow revenue and get

new customers

What Did You Learn?

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Do What You Believe

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Thank You!Questions?