magento live presentation v2
TRANSCRIPT
How To Grow Your Online Store
Carolyn Harrington
Chief Executive Officer
Relax I’m a professional!
• CEO of an e-commerce analytics company• Running an data analytics company for four
years• Using data to create and grow businesses for
over 8 years• I love data and what you can do with it
Boom!
• Global e-commerce B2C spending will hit $1.5 trillion USD in 2014 (20% increase)
• US spending will grow to $491 billion by 2018• Asia Pacific will out spend US online spending
in 2014
The streets aren’t paved with gold
• Can’t control your customers journey• Cost per acquisition is going up • Email click through rates are dropping• Over 700,000 e-commerce stores (six leading
e-commerce platforms)• Don’t have unlimited funds or time to succeed
So why is data so important to your online store?
Bring back old school
• Knew their customers - size, preferred manufacturer, price point, family members, about to lapse, lapsed etc
• Excelled at creating a connection with customers
• Profit focused – by customer and profit
Why use your data?
To give your online store the corner store feel!
Customer data
MRI for your business
Data shows where the holes are in your online store
Trick to customer segmentation
• Average order value• Customer lifetime value (profit)• Weeks since last purchased• Days between purchased• Recently viewed products• Number of purchase days• Discount history• Product attributes (size, colour, options, manufacturer etc)• Customers attributes (gender, location, age etc)
Use in combination not in isolation!
Scenario – New customers
• 32K customers who have purchased $5 million in 2 years• 6000 of those customers have never purchased! • Increase rate of new customers purchasing within two weeks• Use most successful coupon or your sites average discount price• Seen non purchase decrease by 12% per week
Scenario – Lapsed customers
• More accurate for customers who have purchased more than 2 times• Send email with offer at price point - average basket spend and discount• See on average customer reengagement rate up to 15%
Scenario – Product attributes
• Segment your customers by your Product attributes (manufacturer, size, garment, colour etc)
• In addition segment by discount history, average order value & by product itself• See increase in click through rates and purchase (5% to 18%)
Scenario - Most valuable customers
How to identify your VIP customers by RFM:• Recency – how long ago they shopped with you• Frequency - how often they shop • Monetary value – how much they have spent with you
Customers who score b/w 80% to 100% for RFM are most valuable – put in a program!
Applying it yourself
Using the data points mentioned previously
• Lapsed customer campaigns• VIP programs• Product driven personalised emails and subject lines• Move sale and new stock items• Create Magento customer groups
Be the corner store – don’t just send out email blasts!
Product Data02
MRI for your business
Data helps focus your efforts on what makes a difference
Why no cost?
Profit
High volume sales doesn’t equal the most effective way to grow business
Need to establish and promote most profitable products to grow your store
Must use cost field
Cost field – start using it!
Product data is important
• Manufacturer• Region (state, country, etc)• Product attributes (style, colour, brand, etc)• Customer attributes (gender, age, location etc)• Volume sold• Revenue• Category • Profit• Customer attributes (age, gender, etc)• Cover units• By channel/ad • Customer group
Use customer and product data together!!!!!
Scenario – Best sellers
• Not the volume but the profit that counts • Also analysis by product attributes (manufacturer, garment type etc)
Scenario – Dragging on P&L
• Identify poor performing stock • All of the above data points (columns) are important• Play with pricing• Problem faced by FAB• See on average 12% deduction in value of stock on hand
Better manage your merchandise
Use product data to:
• Create campaigns using high profit products• Forecasting and ordering stock• Create ads by region• Decide sale products quicker• Assign products to Magento customer groups• Don’t give real estate to poor performing products
