E-commerce Marketing - PowerPoint PPT Presentation

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E-commerce Marketing. Industry Changing. 30% of floral wire orders are placed on the Internet Internet orders are less than 5% for the average florist. Today’s Discussion. Maximizing Revenues and Profits Through E-Commerce. Overview. Customer Acquisition. Advertising “Cost” side .

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E-commerce Marketing

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E-commerce Marketing


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Industry Changing

30% of floral wire orders

are placed on the Internet

Internet orders are less than 5%

for the average florist


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Today’s Discussion

Maximizing Revenues and Profits

Through E-Commerce


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Overview

Customer Acquisition

  • Advertising

  • “Cost” side

Customer Retention

  • Advertising to existing customers

  • Much more likely to buy from you

  • “Profit” side


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The Basics

Starting point: Need a good website or “Store”

Leverage existing customer traffic to create

awareness of URL / Web presence

  • In-Store P-O-P (Free w/FOL)

  • Inbound phone calls

  • Outgoing deliveries

  • Gather email addresses

Use current advertising to promote URL

  • Newspaper, Yellow Pages, Catalogs, etc.


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Customer Acquisition

Online Advertising

Primary online advertising programs

  • Shopping / ‘Portal’ Programs

  • Affiliate Program

  • Online Yellow Pages

  • Search Programs


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Customer Acquisition

Shopping / ‘Portal’ programs

Yahoo!, MSN, AOL

  • Can be very expensive

  • Advertising / ‘CPM’ model

Shopping comparison engines

  • NexTag, Shopping.com

  • Requires datafeed of product info


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Customer Acquisition

Affiliate Marketing Program

  • Facilitates revenue share relationship between Merchant

  • and the sites (“Affiliates”) linking to the Merchant.

    • As a Merchant: allows a network of Affiliates

  • to provide traffic and orders

  • - low cost order source, tracking & single payment

    • As an Affiliate: you receive % of sales revenue

    • - by promoting (non-competitive) brands on your site

      • e.g. Blue Nile, Mikasa, Omaha Steaks

  • LinkShare and Commission Junction are the

  • primary providers


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Customer Acquisition

Online Yellow Pages

  • 40% of all Online YP users make a purchase.

  • 7% of all Online YP references are for Florists.

    • Superpages38%

    • Yahoo! YP20%

    • Smartpages12%

    • AOL YP10%

    • Switchboard 8%

    • Yellowpages 5%

  • FTD provides Online YP advertising -

  • 50% off retail rates.


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Customer Acquisition

Search Marketing

  • 76% of web users use Search

User

Percentage

Search Engine

(Source: Nielsen/NetRatings)


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Customer Acquisition

Two primary types of Search results

1. “Natural” or “Algorithmic” Search

  • Site optimization (metatags / titles)

  • Can utilize specialty firm

2. Pay-for-Placement (‘Sponsored’ results)

  • Overture (Rank = CPC bid) Best place to start

  • Google (Rank = CPC bid + “relevance”)

  • Others: FindWhat, LookSmart


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Customer Acquisition

Sample Search Result: “Natural” vs. “Sponsored”


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Customer Acquisition

Pay-for-Placement

Requires active management

  • Competitive category: $2 - $4 per click!

  • Conversion rate drives CPO

  • CPC / Conversion Rate = CPO

  • Must have clear understanding of your CPO

  • threshold and ability to track


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Customer Acquisition

CPC Search Program Tips

1. Use keyword in title

2. Use local/regional Keywords

Jay’s Flowers-Toronto’sFlorist

Same-day delivery available – Order Now

www.jaysflowers.com

3. Use concise simple language, include

call to action

Balloons, Bears and more!

4. Test and monitor results frequently

2-3 different creatives for each keyword

Higher conversion rates during lunchtime spike


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Customer Retention

* Satisfy Customers at Every Transaction

* Communicate with Customers Regularly

* Relevant, Timely and Targeted


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Customer Retention

60-20-20 Rule of Response

60% - List / Audience

20% - Offer

20% - Creative


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Customer Retention

RFM – Know Your Best Customers

Recency– The newer a customer, the more

responsive they will be

Frequency – The more often a customer buys,

the more likely a good customer

Monetary - The more they spend, the more

likely that they’ll continue to buy


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Customer Retention

Email Marketing – Most cost effective form of advertising

Create customer database with email addresses

  • Collect email address on every transaction

  • Give a compelling reason - Use promotions to compile lists

  • Follow guidelines and laws

  • - Opt in /opt out capabilities

  • - DMA as a reference

Keep history of customers’ transactions

FTD provides a cost effective solution for Email

Marketing thru Constant Contact


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Customer Retention

Types of Email Marketing

1. Holidays – Showcase lead products

2. Reminder Service

- Customer Initiated

- Transaction Based

* FOL provides a reminder service and online

address book for your customers

3. Non Occasion ‘Specials’

Always make the customer feel special!


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Customer Retention

Direct Mail Marketing

More expensive and slower than email

Bulk mail saves expense

Holidays will give larger response rates

Target Best Customers - RFM

Keep your customer list clean


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Customer Retention

5% Improvement

in Retention Rates

Could Boost Profits from

25-100%


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Customer Retention

Retention efforts can pay for acquisition efforts

and add profit

Lifetime Value

  • Customer based

  • Profit/Loss of adding a customer

  • Plus Profit of all their subsequent purchases

  • Equals Lifetime Value

This is how some can spend for acquisitions


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Thank You!

Q&A


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