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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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Presentation Transcript
industry changing
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



Customer Acquisition

  • Advertising
  • “Cost” side

Customer Retention

  • Advertising to existing customers
  • Much more likely to buy from you
  • “Profit” side

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.

Customer Acquisition

Online Advertising

Primary online advertising programs

  • Shopping / ‘Portal’ Programs
  • Affiliate Program
  • Online Yellow Pages
  • Search Programs

Customer Acquisition

Shopping / ‘Portal’ programs

Yahoo!, MSN, AOL

  • Can be very expensive
  • Advertising / ‘CPM’ model

Shopping comparison engines

  • NexTag,
  • Requires datafeed of product info

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

Customer Acquisition

Online Yellow Pages

  • 40% of all Online YP users make a purchase.
  • 7% of all Online YP references are for Florists.
    • Superpages 38%
    • Yahoo! YP 20%
    • Smartpages 12%
    • AOL YP 10%
    • Switchboard 8%
    • Yellowpages 5%
  • FTD provides Online YP advertising -
  • 50% off retail rates.

Customer Acquisition

Search Marketing

  • 76% of web users use Search



Search Engine

(Source: Nielsen/NetRatings)


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

Customer Acquisition

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


Customer Acquisition


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
customer acquisition
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

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


Customer Retention

* Satisfy Customers at Every Transaction

* Communicate with Customers Regularly

* Relevant, Timely and Targeted


Customer Retention

60-20-20 Rule of Response

60% - List / Audience

20% - Offer

20% - Creative


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


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


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!


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


Customer Retention

5% Improvement

in Retention Rates

Could Boost Profits from



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