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1. 3 ways to maximize your ROI on your ecommerce investments Mårten Bokedal, Director Product Strategy
2. _ 2 1500+ employees 2021 a fresh start 9000+ customers Key Product To serve the next generation of digital leaders​ 2
4. Swedish?
5. Italian?
6. Segmentation
7. Segmentation
8. • Specific needs • Attention to details vs. spontaneous • Motivation • Ability to buy • Brands he loves
9. Physical meeting and body language
10. Language City Land Purchase Log-in Keyword Persona Campaign Landing page Visits Operative system IP-adress Time Unit Digital meeting and body language
11. Consumers (N=5014) U.S. (N=1,000): 19,9% U.K. (N=1,002): 20% Germany (N=1,003): 20% Australia (N=1,002): 20% Sweden (N=1,007): 20,1%
12. Optimizely Survey Topline Agree 58% Disagree 43% Statement: My expectations for experiences with brands are higher than they used to be
13. Optimizely Survey Topline Agree 51% Disagree 49% Statement: Overall, my expectations with regard to brand experiences are not being met
14. _14 Customers demand and expects more Each time a customer is exposed to an improved experience, their expectations are reset to a new higher level. – Brendan Witcher, Forrester
15. There is a need of serving more customers in more channels in a more personalized way. _15
16. Accelerated challenges
17. 1 2023 - The Great Uncertainty
18. Inflation Lack of competency Supply chain “Tripple squeeze”
19. GROWTH (Increase revenue) RESILIENCE (Improve profitability) THEN NOW
20. Black box analytics & optimisation 3468 visitors 63 purchases 1,8%
21. Januar Mars Mai Juli September November *Konverteringsrate med trendlinje for begge kjeder 2022 Coop hire their new CRO Manager! January May September November Growth hacking: Let´s hire a CRO specialist and increase the conversion rate! July
22. 1 week 2 weeks Classpass - winback
23. Classpass winback experiment example Optimizely results page
24. Classpass win back experiment example – V1: Control Marginal CAC CAC to acquire the “next 15 members” Average CAC Retained after free trial Cost of Goods (COGS) Reactivated free trial Value 100 $15,000 (avg $150 per customer) 80 $187,50 --- – V2: Extended offer Value 125 $24,375 (avg $195 per customer) 95 $256,58 ($24,375 - $15,000) / 15= $625 Lift +25% +30% Increase in class redemtions +19% +37% relative --- Marginal CAC = $625 > ⅓ Lifetime Value (LTV)
25. Whoever can capture and understand the new consumer behavior AND launch redesigned or new digital services tailored to those needs will be the winner of tomorrow. John Ekman Conversion Rate Expert and founder of Conversionista
26. 2 How do you make more confident decisions, faster and with a higher impact?
27. Data quality Customer and business value Data quality and decision making Hig risk for bad decisions Data-driven decisions
28. Data quality and decision making Data quality Customer & Business value Opinion / Preference ”I like it when” internal single point of view
29. Highest Paid Person´s Opinion
30. Data quality and decision making Data quality Customer & Business value Industry best practices Opinion / Preference ”What experts say works” general industry advice ”I like it when” internal single point of view
31. Why not copy your competitors?
32. Does a countdown timer work for others outside of Amazon? Winner Inconclusive Loser 100% more copies sold Vote
33. Does a countdown timer work for others outside of Amazon? Winner Inconclusive Loser 100% more copies sold Vote
34. Instagram is a world leading platform So we must be able to copy elements and make it work, right? Vote
35. Instagram is a world leading platform So we must be able to copy elements and make it work, right? Vote
36. Assumption - Hyphothesis Experiment Best Sellers Proceed to checkout Countdown timers Quick navigation Scholl
37. 25% of tests are winners and the other 75% are wrong. This is just another way of saying that 75% of your assumptions are wrong. Bart Schutz Expert in online psychology, Online Dialogue
38. Data quality and decision making Data quality Customer & Business value Industry best practices Opinion / Preference Customer feedback ”What experts say works” general industry advice ”I like it when” internal single point of view ”What our customers say” voice of the customer
39. Why not just ask your customers?
40. 1: Inspiration 3: Social belonging 2: Sustainability 1: Price 2: Fast delivery 3: Smooth payment What in fact is important according to research What customers are claiming is important Why not always listen to customers?
41. Data quality and decision making Data quality Customer & Business value Analytics Industry best practices Opinion / Preference Customer feedback ”What has worked for us” your own recent data ”What experts say works” general industry advice ”I like it when” internal single point of view ”What our customers say” voice of the customer
42. Quantitative data
43. Data quality and decision making Data quality Customer & Business value Experimentation Analytics Industry best practices Opinion / Preference Customer feedback ”Which works better” Based on recent data ”What has worked for us” your own recent data ”What experts say works” general industry advice ”I like it when” internal single point of view ”What our customers say” voice of the customer
45. Innovation require failure. Without fiascos you will never succeed. Ingvar Kamprad Founder of IKEA
46. Value added through A/B-testing Gains added through A/B-testing Loss avoided through A/B-testing +x% -x% The only tests that deliver zero value are the experiments you do not learn from
47. Data quality – embracing experimentation Data quality Customer & Business value Experimentation Analytics Industry best practices Opinion / Preference Customer feedback ”Which works better” Based on recent data ”What has worked for us” your own recent data ”What experts say works” general industry advice ”I like it when” internal single point of view ”What our customers say” voice of the customer Predictive Experimentation ”What will work better” Based on segmented, real-time predictive analytics
48. The problem for marketers is that they lack the necessary data to personalize customer experiences cdp.com 2022
49. Customer Data Add the customer context to the digital experience to create better outcomes. _49
50. Behavioral data Data Demographic data Transactional data Psychographic data
51. From segmentation to individualization
52. 3 (super) basic steps to maximize ROI Make them come back (retention) Make them pay (convert) Make them stay
53. Increase motivation (CRO) • Early in the funnel (see, think) • When the product/service is new • When intent is low When should you focus on what? Reduce friction (UX) • Late in the funnel (think, do) • When the product/service is known • When intent is high
54. Language City Country Downloads Anonymous or logged in Keywords Matching persona Campaign Standard landing page Number of visits Operating system IP address Time Device What can we do to remove friction or increase motivation based on the data we have and the goals we want to achieve?
55. Revenue per visitor: $2.50 Conversion Rate: 2.5% Average Order Value: $100.00 Quantity: 2.00 Price: $50.00 Add to Cart: 5.00% Cart Checkout: 50% Revenue $10M Visitors: 4M Acquisition: 3M Retention: 33% Example e-commerce
56. 3 (super) basic steps Make them come back (retention) Make them pay (convert) Make them stay
57. It takes 0,05 seconds for website visitor to decide if they want to leave or stay
58. Need for speed
59. Searchers are converters
60. Revenue per visitor: $2.50 Conversion Rate: 2.5% Average Order Value: $100.00 Quantity: 2.00 Price: $50.00 Add to Cart: 5.00% Cart Checkout: 50% Revenue $10M Visitors: 4M Acquisition: 3M Retention: 33% Example e-commerce
62. What are you looking for?
63. • Lowest price guarantee • 120 days free return • Buy online – pick up in store “Search for heating pumps, snowplow etc” Change to hamburger like menu to make it look less busy 0.34% less bounce rate 1.74 increase in people using search 2.57% increase in conversion rate
64. • Lowest price guarantee • 120 days free return • Buy online – pick up in store “Search for heating pumps, snowplow etc” Change to hamburger like menu to make it look less busy 0.34% less bounce rate 1.74 increase in people using search 2.57% increase in conversion rate
65. Experiment wins 2.85% of total revenue
66. Revenue per visitor: $2.50 Conversion Rate: 2.5% Average Order Value: $100.00 Quantity: 2.00 Price: $50.00 Add to Cart: 5.00% Cart Checkout: 50% Revenue $10M Visitors: 4M Acquisition: 3M Retention: 33% Example e-commerce
67. 6,45% Increase in revenue per visitor _67 Navigation
68. 3 (super) basic steps Make them come back (retention) Make them pay (convert) Make them stay
69. DONATE NOW PLEASE DONATE WHY DONATE? DONATE AND GET A GIFT CONTRIBUTE
70. Unregistered Users Registered Users DONATE NOW PLEASE DONATE WHY DONATE? DONATE AND GET A GIFT CONTRIBUTE Returning Donors 0.0% 0.0% 0.0% +2.3% +16.3 +27.8% -27.8% N/A N/A +15.2% -24.6% +11.9% +8.5% +2.9% +18.4%
71. LYKO Personalize based on first time visitor
72. LYKO Personalize based on returning customer
73. Revenue per visitor: $2.50 Conversion Rate: 2.5% Average Order Value: $100.00 Quantity: 2.00 Price: $50.00 Add to Cart: 5.00% Cart Checkout: 50% Revenue $10M Visitors: 4M Acquisition: 3M Retention: 33% Example e-commerce
74. 3 (super) basic steps Make them come back (retention) Make them pay (convert) Make them stay
75. Revenue per visitor: $2.50 Conversion Rate: 2.5% Average Order Value: $100.00 Quantity: 2.00 Price: $50.00 Add to Cart: 5.00% Cart Checkout: 50% Revenue $10M Visitors: 4M Acquisition: 3M Retention: 33% Example e-commerce
76. _76 Predictive experimentation Test of premium service to loyal customers 33% Increase in revenue attributed to personalized offers
77. 6% Control (A) Variation (B) Sign-up or login
78. Old style USPs top Original New style USPs top Variation 1 Old style USPs bottom Variation 2 32% 17%
80. Why experiment? To eliminate guesswork and make better decisions To drive incremental and measurable growth To avoid rolling out harmful changes A safety-net for adventurous ideas and innovation To test bold ideas early and cost effectively To be more customer-centric Why experiment?
81. Special discount for Google Optimize customers When Google Optimize switches off, Trust Optimizely to keep you switched on Performance Edge Visual Editor Stats Engine Segmentation Traffic Source Browser Type Ad Campaign New vs Returning Device Type Geotargeting Campaign Language Multivariant Testing Traffic Allocation PCI Compliant Snippet Change History Webhooks CSV Export Dynamic Website Support Custom Attributes Stats Accelerator Single Sign-On Support Multi-Page Funnel Tests Packaging starts at $21,000 for 500K Monthly Active Users
83. Mårten Bokedal, Director Product Strategy Marten.Bokedal@optimizely.com 0704106909