Shop.org 2012 Annual Summit - Session Handout
9/12/2012
15+ SPECIFIC (ONLINE MERCHANDISING) THINGS YOU CAN DO TO MAKE MORE MONEY NEXT WEEK Moderator(s): Allan Dick (Vintage Tub & Bath) Speaker(s): Amy Africa (Eight by Eight), Brian Klais (Pure Oxygen Labs), Larry Kavanagh (Kalio), Sean Cook (ShopVisible, LLC), Sheldon Gilbert (Proclivity Media) September 2012
Amy Africa CEO, Eight by Eight Amy Africa has been in the forefront of web usability studies, web design improvement, and successful e-commerce for over 15 years. Amy has been widely published in industry magazines and has been featured at conferences around the globe. Her depth of knowledge, backed by intensive field testing and web user studies, has earned her the reputation of a voice to be heard on Internet topics ranging from site improvement, traffic building and analytics to mobile and email marketing.
15+ SPECIFIC (ONLINE MERCHANDISING) THINGS YOU CAN DO TO MAKE MORE MONEY NEXT WEEK *** Amy Africa, Eight By Eight 802-881-0061 * Twitter: @amyafrica Blog: www.amyafrica.com Email:
[email protected]
September 2012
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
FOR MOBILE SUCCESS… • Speed • Navigation • Action directives and forms (including cart/checkout)
MOBILE TRANSFER • Looks at how many people start on your mobile site and finish elsewhere (i.e., your desktop site.) It’s critical because of abandoned cart/lead form rate increases. • Works just like regular transfer, it’s just a little more complicated to measure • You can segregate this into several buckets: smartphones, feature phones, tablets, traditional desktop site, live chat, instigated chat, email, etc.
HOW DO YOU DO IT? • Cart mimicry • Make sure the first step of your lead/cart process is to collect email addresses and mobile numbers • Develop a special abandoned cart email program for mobile users • Use carthoppers • Push people to the phone or chat
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Shop.org 2012 Annual Summit - Session Handout
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WHY BOTHER? • The #1 secret that nobody tells you about mobile is that if you work the transfer, your CC (combined conversion) will be higher. • Very few folks are doing this right now. The biggest wins will come in the next 12-16 months.
NAVIGATION Most used navigational elements: top nav, bottom nav, left nav, P/S (problem/solution) nav, recently viewed items, breadcrumbs, carousels and plugs (non-animated banners.) If those are inadequate, the user resorts to text search. Unfortunately, text search is the most difficult to get right.
SIZE MATTERS…
The size of the search box makes a huge difference in the success. The position of the box determines how and when it will be used. If your users aren’t great at searching, consider a split.
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Shop.org 2012 Annual Summit - Session Handout
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SIMPLIFY RESULTS The presentation of the results is more important than the results themselves. Use refinements strategically, not just because everyone else uses them. Limit your facets (categories) and the number of choices. Offer generic recommendations for no-finds.
WORD CONNECT This is one of THE most underestimated things in conversion and optimization today. It’s imperative to separate the direct/no referrer from the rest of your traffic.
EMAIL IS NOT MEANT TO BE READ… “Best” (aka average) Practice: At least one BIG, bold, inyour-face action directive on every view.
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Shop.org 2012 Annual Summit - Session Handout
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MAJORITY OF YOUR SUCCESS WILL COME FROM “OUTSIDE THE ENVELOPE” • • • • •
Deliverability Format To address From address Subject line
THEN IT’S THE FIRST TWO… • First two inches • First two lines
LIVE TIME IS MORE LIMITED THAN EVER…
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Shop.org 2012 Annual Summit - Session Handout
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WHAT CAN YOU DO THIS SEASON? * Implement a preferences center and strong opt-out messages * Develop a reactivation program * Track/work your timing on mobile emails.
THANK YOU! *** Amy Africa, Eight By Eight 802-881-0061 * Twitter: @amyafrica Blog: www.amyafrica.com Email:
[email protected]
Larry Kavanagh Chief E-Commerce Strategy Officer, Kalio Larry is Chief E-commerce Strategy Officer of Kalio, Inc. and is regarded as an industry expert on internet marketing for mid-market e-commerce companies. He is a frequent conference speaker on running a successful online business and driving website sales. Larry has also authored many articles for direct marketing industry publications. Larry has deep roots in the e-commerce industry. He founded D.M.insite in 1999, which merged with Moyo Group in 2011 to form Kalio. As Kalio's Chief E-commerce Strategy Officer, he now puts that expertise to good use helping Kalio clients thrive online through his focus on e-commerce consulting and product strategy. Larry ran a successful mail order consulting firm, serving clients ranging from traditional catalogers to newsletter marketers to pure play internet companies. He also served as General Manager and Director of Marketing for Gardens Alive!, a large multi-title mail order catalog company. Under Larry's leadership, the company achieved seven consecutive years of increased revenue and profits. Larry earned his Master's of Business Administration from Xavier University.
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
Shop.org Presentation: Specific (Online Merchandising) Things You Can Do to Make More Money Next Week
Larry Kavanagh September 11, 2012
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About Larry Kavanagh •
Chief E-commerce Strategy Officer for Kalio, an e-commerce platform used by 70+ mid-market online retailers. • Founder and former CEO of DMinSite, e-commerce platform company that merged with another company to form Kalio last year.
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Provided strategic consulting and tactical support to a wide range of online retailers over 14 years to help grow online traffic, sales and profits.
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Frequent speaker with 50+ published articles in industry journals.
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Ecommerce Geek who loves to test, mine data and use segmentation to increase online sales.
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Kalio Tips for Making More Money
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Place Trust Marks on your product page
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Shop.org 2012 Annual Summit - Session Handout
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Trust Marks on product Click Use to edit Master title style page
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Sample Trust Marks
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Trust Marks on product Click Use to edit Master title style page
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Trust marks are often used in checkout
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trustMaster marks on product Click Use to edit title style page
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Shop.org 2012 Annual Summit - Session Handout
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Bonus Tip: Add-to-Cart above product info Get another 5% increase in add-to-cart rate by moving the add-tocart button above the product information
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Kalio Tips for Making More Money
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Send traffic away from Categories of Death and into top converters Page Value Metric Shop.org Presentation
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Categories of Death Click Avoid to edit Master title style
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Go to Content Site Content All Pages. Select Non-bounce Visits from Advanced Segments
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Shop.org 2012 Annual Summit - Session Handout
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Categories of Death Click Avoid to edit Master title style
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Add two filters: the first on page to include only category pages. The second on unique page views to just get the most viewed category pages.
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Categories of Death Click Avoid to edit Master title style
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Sort by page value to find top and bottom categories
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Categories of Death Click Avoid to edit Master title style
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Feature “Get a raise” categories with drop down photos and put them into slots on the home page with more traffic. Remove (or fix) Categories of Death.
Result: Online sales for top categories increased by 25+%, bottom categories down 4-8%.
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Shop.org 2012 Annual Summit - Session Handout
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Kalio Tips for Making More Money
Skip the Cart
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the Master Cart Click Skip to edit title style
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the Master Cart Click Skip to edit title style
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Shop.org 2012 Annual Summit - Session Handout
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the Master Cart Click Skip to edit title style
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Kalio Tips for Making More Money
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Get the surly teenage clerk off your site
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the surly teenage ClickGet to edit Master titleclerk styleoff your site
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Errors? Big, scary red warnings? Can’t you be nicer and more helpful, Really Good Stuff?
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Shop.org 2012 Annual Summit - Session Handout
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the surly teenage ClickGet to edit Master titleclerk styleoff your site
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Can you even see the message in the discount code box? “Invalid Promotional Code, please try again”.
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the surly teenage ClickGet to edit Master titleclerk styleoff your site
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Have some fun!
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Whitepaper offer! Receive a whitepaper co-authored by Larry and Fit For Commerce on the people and practices you need to run a successful ecommerce business by e-mailing:
[email protected]
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
Sean Cook CEO, SHOPVISIBLE As CEO of ShopVisible, Sean envisions an aligned evolution of commerce - creating an ecosystem that continually expands the limits and connections to customers on all levels. Sean Cook drives constant innovation through extensibility, agility and the iterative enhancements of the ShopVisible technology and the best practices of the ShopVisible team. He assures that the solution is robust, responds in real time, and adapts to changing market and technology conditions faster than the competition. He is a frequent presenter and educator on the topic of integrated touch point commerce. Additionally, he has published articles in tier-one publications such as Forbes, 1to1 Magazine and Internet Retailer and his commentary has been included in popular retail and ecommerce publications like Website Magazine, Ecommerce Times, Mobile Marketer and DMNews. In 2011, Sean was listed as a top 25 Entrepreneur to watch, by Business to Business Magazine. Before taking the helm at ShopVisible, he led the online channel growth for multiple companies including EarthLink. Sean's professional experience ranges from retail, to manufacturing, consumer package goods, and consulting; he has successfully run several new ventures.
SEAN COOK CEO, SHOPVISIBLE Evolving Commerce for Clients Like:
TACTIC 1
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
Tactic 1: The What • Offer alternative payment options in addition to traditional payment methods - especially on mobile!
Tactic 1: The Why • Reduce transaction friction – make it easy on your consumers • Remove obstacles to conversion • Give your consumers options to increase conversions
ShopVisible Study: Alternative Payments Web-only transactions – 62% Credit Card – 38% Alternative Payment • 17% PayPal • 13% Amazon • 8% Google Checkout
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
ShopVisible Study: Alternative Payments Mobile Transactions – 78% Alternative Payment • 46% PayPal • 32% Amazon
– 22% Credit Card
CHECKOUT
Align options to user experience • Our study showed: • Mobile users preferred “single click” alternative payment options on mobile devices
Relevance To You? Opportunity for conversions are being missed! Web: Alternative Payments
100% 90%
Mobile Optimized
100%
Mobile Optimized: Alternative Payments
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
Mobile Optimized: Alternative Payments
90%
80%
10%
0%
0% Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
Note: Retailers who offered alternative payments on non-mobile optimized sites were not counted as having mobile alternative payments
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
Tactic 1: The How • If on a commerce platform – Talk to your provider about enabling the functionality for your site(s) and secure the applicable merchant accounts
• If using an in-house solution – Contact alternative payment provider directly – Their step-by-step process takes you through implementation
TACTIC 2
Tactic 2: The What • Open the door for conversions by simplifying how they get to checkout • Make access fast and easy – implement low friction functionality like social sign-in
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Shop.org 2012 Annual Summit - Session Handout
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Tactic 2: The Why Barriers annoy consumers and drive increased transaction abandonment - Let them get to where they want to be quickly
66% of consumers prefer to use an existing account rather than create a new one - Blue Research, Dec 2010 Sign in with your social account
Relevance to You? • Look at Social Sign-in - Your consumers do! – 150% increase in average page views by those who accessed with social credentials • source: Gigya customer averages 2011
– 10%-50% increase in conversion rates for marketers using social sign-in • source: Janrain customer average 2011
• Yes that’s a “B”!
1.46+ Billion Users!
– Consumers use these outlets so leverage this to simplify their ability to get to you!
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
Tactic 2: The How • Talk to your commerce provider – Implement their native functionality, if available – Leverage partnerships they have already established with vendors such as Gigya and Janrain
• If using in-house commerce solution – Talk to specialized solution vendors
TACTIC 3
Tactic 3: The What • Alternate pricing and products by channel to maximize on your merchandising success • In a brick & mortar environment product placement is critical – just as important online
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
Tactic 3: The Why Marketplace
Possible Drivers and Motivators
Looking for specific brands Loves the thrill of the auction format VIP program member loyalty: Prime Convenience of local pickup
Consumers have different drivers…
Tactic 3: The Why Comparison Shopping Engines
Tactic 3: Relevance to You? Traffic Generated
Revenue Generated
Source: CPCStrategy.com - The Top 10 CSEs Compared - Q1 2012
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Shop.org 2012 Annual Summit - Session Handout
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Real World Example - Pricing Scenario: • High volume, large inventory retailer in a highly competitive and crowded market Actions: • Apply incremental price changes to determine best channel to drive sales without deteriorating margins – Changes performed hourly
Results: • Better control over inventory management – moving formally low velocity inventory • Identified demand curve inflection points per CSE to maximize profitability margins
Real World Example - Product Scenario: • Retailer with products that scale from low cost/low consideration to high cost/high consideration wanted to accelerate online sales Actions: • Strategically placed lower cost “gateway” products on CSEs Results: • Identified that if a lower price point product was purchased, consumer was 4x more likely to purchase a higher price point product in the future
Tactic 3: The How • Review performance metrics for each CSE • Look at the performance of same product across CSEs • Dig into the details – Are you priced higher than your competition? – Are you crowded by competition with similar products?
• Make your feed changes accordingly
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Shop.org 2012 Annual Summit - Session Handout
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Thank You! Sean Cook CEO, ShopVisible www.shopvisible.com @shopvisble
Brian Klais Founder & CEO, Pure Oxygen Labs Brain Klais is CEO and Founder of Pure Oxygen, a consulting and technology firm that works with clients to develop high-performance mobile search, social, app, and QR code marketing initiatives. Brian was previously Vice President of Product at Covario, an SEO/SEM provider to Fortune 500 brands. He joined Covario through the acquisition of Netconcepts, the SEO firm he co-founded and led as COO. Under his leadership, the firm pioneered the "Enterprise SEO Automation" field, launched award-winning SaaS optimization technology used by brands like Lenovo, Ann Taylor, Cabela's, Verizon Wireless, and more, to drive sales through desktop and mobile SEO.
Mobile Merchandizing 3 Keys to Making More Mobile Money Next Week Brian Klais | Pure Oxygen
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
Welcome to the Mobile Matrix
#1: Give Mobile Users Mobile Pages Mobile Channels
Deep “m.” Pages Deep Desktop Links
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
#1: Give Mobile Users Mobile Pages Look at your analytics data – – – –
Identify pages with high mobile usage Do mobile-optimized versions exist? Talk to email, social, search teams If high mobile-abandonment exists:
If so, fix mobile routing. Three ways: – Insert iOS/Android redirect logic on server – Insert iOS/Android Javascript on pages – Use URL tools to create “smart” iOS/Android links
#2: Simplify Discovery of Your App
#2: Simplify Discovery of Your App Do the math – Use Google’s Adwords tool – Quantify mobile demand – Select your app keyword target
Build smart links to your app – Always use brand in link anchor text – Avoid linking through app store graphics – Link to app page from prominent pages
Promote to mobile visitors – Target promotion by OS – Make sure link it’s bot friendly!
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Shop.org 2012 Annual Summit - Session Handout
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#3: Link Mobile Web to Shopping App Device OS
If app’s installed…
If not installed…
#3: Link Mobile Web to Shopping App Add the “meta tag” to your iOS/Android app – It’s technically called a URL scheme – Examples: twitter:// or fb:// – Release an app update
Insert this “app link” on mobile pages – When installed, app opens automatically – When not installed, user gets app store Measure traffic, clicks, sales
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Shop.org 2012 Annual Summit - Session Handout
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Thank You! Brian Klais | Founder, CEO Pure Oxygen | @brianklais
[email protected]
Sheldon Gilbert Founder and CEO, Proclivity Media Sheldon Gilbert is the Founder and CEO of Proclivity Systems, a revolutionary company dedicated to helping marketers promptly discover what their customers want and at what price. An inventor and innovator in the areas of consumer analytical modeling and predictive behavioral commerce, Mr. Gilbert was previously responsible for creating the analytical and predictive models that helped drive business intelligence for Bluefly.com. Prior to serving Bluefly as the Director of Business Intelligence, Mr. Gilbert was a lead developer at Fort Point Partners. He has been featured in The New York Times and Fast Company and is a frequent speaker at industry events, discussing the power of technology to forecast the interests, preferences, purchasing likelihoods and econometric dynamics of consumers. A graduate of Yale with a Bachelor of Arts in molecular biochemistry and biophysics, Mr. Gilbert spent several years as a research assistant in molecular genetics at several leading research institutions. He deferred his pursuit of a Master’s of Science degree in Computational Genomics at NYU to pursue his passion for analytical modeling and predictive behavioral commerce
The Rise of Commerce Advertising 6 Critical Tips to Drive your Bottom-line by Buying Media in Real-Time!
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Shop.org 2012 Annual Summit - Session Handout
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Marketplace Advantage: Profits generated with Data & Speed 30 milliseconds
180 days
Technology Shift in Financial Markets Stock Broker
Automated Stock Trading
Ad Agency
Automated Media Buying
Technology Shift in Advertising Markets
Auction-Driven Advertising • The ability to bid and buy individual ad units in real-time from publishers • Ability to bid on hundreds of variables (shopping intent, location, season, device, publisher, gender, product price, etc.) Display, Mobile & Video Marketing (2010-Present)
Search Marketing (1999-Present)
Auction-Driven Advertising: Search Marketing Bid: $1.00 per click Search Marketing (1999-Present)
Yield: $2.00 per click
Auctioned Item: consumer intent Ad Unit: keywords (“Baby Sweater”) Ad Price: dynamic; driven by other buyers in the market (and Google) Sales & ROI: based on bid value Auction Volume & Cycle: 500MM impressions/24-hours
GROWING LIMITATIONS: • Dominance by incumbent large volume buyers • Higher Prices; lower ROI due to keyword bid saturation
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
Auction-Driven Advertising: Display & Mobile Bid: $5.00 CPM Display, Mobile, Video Advertising (2010-Present)
Yield: $7.00 RPM
Auctioned Item: consumer intent Ad Unit: display ad Ad Price: dynamic; driven by other buyers in the market (and publisher) Sales & ROI: based on bid value Auction Volume & Cycle: 50 Billions impressions/30 milliseconds
GROWING OPPORTUNITIES: • E-retailers comprise <10% of Real-time advertising volume despite their significant information and bid advantage • Greater opportunity for all retailers due to bidprice leverage not impression volume leverage
Auction-Driven Advertising: Display & Mobile Ad Exchanges
Advertisers (BUY ADS)
Publishers (SELL ADS)
$3 CPM
Real-Time Media Bidding Platforms
$7 CPM
Real-Time Media Bidding Platforms
$12 CPM
Tip 1: Align your Display Ads with your Search Ads
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Don’t Drive Sales to Competitors: display programs may lead to search traffic and sales for other retailers (potential competitors)
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Improve Keyword ROI: can drive traffic to search to improve performance of branded and non-branded keywords as well as long-tail keywords
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
Tip 2: Tablets are “killer apps” and “killer ad sales channels”
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Major Sales Channel: 15%-22% of website sales occurring on tablet devices
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Advertising Gold Mine: tablet display ads yield higher CTR, AOV and Order Conversion Rates than desktop display ads and cost about the same---act quickly before prices go up!
Tip 3: Get Access (if you can) to Ads on Private Publisher Exchanges Private Ad Exchanges (100s of publishers)
Public Ad Exchanges (100,000s of publishers)
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Major Branding & ROI: Massive reach, strong brand equity, and 30% increase in ROI
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VIP Access for the smartest media buyers: invitation-only for select advertisers at premium prices
Tip 4: Bid on Actual Value not Arbitrary Costs Search Aug 1 Sales: $20,000 ROI: 3X
Sept 1
$15 CPM Bid
Sales: $1,000 ROI: 10X
Display Bidding on arbitrary and static media costs will lead to negative ROI over time. $1 CP C Bid
$1 CPC Bid
Bidding static $1.00 CPC can lead to erratic sales and ROI…..
Let your platform bid dynamic CPMs based on performance targets ($50,000 at 5X ROI) in real-time.
$0.25CPM Bid
Instead bid on specific sales ($50,000) and ROI targets (3X) and make dynamic bids
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
Tip 5: Invest Abroad: Drive Sales with Real-time Advertising in Global Markets Ad Costs across real-time Global Ad Exchanges
Ad Revenue across real-time Global Ad Exchanges
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Untapped Advertising Opportunity: media costs are 70% lower than in U.S. and the revenue yield is just as high leading to higher ROIs.
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Hot Spots: Brazil, Mexico, Germany, Australia, Peru, Hungary, Slovenia, China, Sinapore, Mid-East
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Key Insights: China-“Singles Day”/November 11 and “Night of 7s”/August 7 India- “Diwali” (October/November)
BONUS TIP: Adjust Language settings to Increase Sales Abroad
English Only
Multi-lingual Targeting
Bonus Quick Tip: when buying media in foreign markets, change language settings (defaulted to English) in browser to expand addressable market. Can lead to 2X-3X increase in sales abroad.
Thank You and Get into the Real-Time Ad Market!
For more information on how to get your own seat on these exciting highperformance ad markets feel free to reach me with the contact information below.
Sheldon Gilbert Founder & CEO of Proclivity Media
[email protected] http://www.proclivitymedia.com
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Shop.org 2012 Annual Summit - Session Handout
9/12/2012
Thank you to our fantastic moderator, organizer, and creator of our tactics session and long-time Shop.org member, Mr. Allan Dick! Allan Dick, EVP, Merchandising, Vintage Tub & Bath Allan Dick began researching and implementing SEO/SEM techniques when he joined Vintage Tub and Bath as General Manager in January 2001. Since then, Vintage Tub and Bath (www.vintagetub.com) has increased gross revenues 1,700% and is now a leading supplier of reproduction bathroom fixtures. Mr. Dick regularly speaks at Search Engine Strategies and Shop.org meetings and has been quoted in Wired, Internet Marketing Report, and Business Week among other publications. Prior to joining Vintage Tub and Bath, Mr. Dick was a sales manager for five years at a new car dealership and a stockbroker for three years. He has a B.A. from Washington & Lee University and graduated from Outward Bound alpine mountaineering school.
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