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3 ways to maximize your ROI on
your ecommerce investments
Mårten Bokedal,
Director Product Strategy
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_
2
1500+
employees
2021
a fresh start
9000+
customers
Key Product
To serve the next generation of digital leaders
2
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Swedish?
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Italian?
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Segmentation
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Segmentation
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• Specific needs
• Attention to details vs. spontaneous
• Motivation
• Ability to buy
• Brands he loves
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Physical
meeting and
body language
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Language
City
Land
Purchase
Log-in
Keyword
Persona
Campaign
Landing page
Visits
Operative system
IP-adress
Time
Unit
Digital meeting
and body language
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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%
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Optimizely Survey Topline
Agree 58%
Disagree 43%
Statement: My expectations for experiences with brands
are higher than they used to be
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Optimizely Survey Topline
Agree 51%
Disagree 49%
Statement: Overall, my expectations with regard to
brand experiences are not being met
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_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
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There is a need of
serving more customers
in more channels in a
more personalized way.
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Accelerated challenges
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1
2023 - The Great Uncertainty
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Inflation
Lack of competency
Supply chain
“Tripple squeeze”
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GROWTH
(Increase revenue)
RESILIENCE
(Improve profitability)
THEN NOW
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Black box analytics & optimisation
3468
visitors
63
purchases
1,8%
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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
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1
week
2
weeks
Classpass - winback
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Classpass winback
experiment example
Optimizely results page
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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)
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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
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2
How do you make more confident decisions,
faster and with a higher impact?
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Data quality
Customer and business value
Data quality and decision making
Hig risk for
bad decisions
Data-driven
decisions
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Data quality and decision making
Data quality
Customer & Business value
Opinion / Preference
”I like it when”
internal single point of view
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Highest Paid
Person´s Opinion
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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
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Why not copy your
competitors?
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Does a countdown
timer work for
others outside
of Amazon?
Winner Inconclusive Loser
100% more
copies sold
Vote
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Does a countdown
timer work for
others outside
of Amazon?
Winner Inconclusive Loser
100% more
copies sold
Vote
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Instagram is a
world leading
platform
So we must be able to copy elements
and make it work, right?
Vote
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Instagram is a
world leading
platform
So we must be able to copy elements
and make it work, right?
Vote
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Assumption -
Hyphothesis
Experiment
Best Sellers
Proceed to checkout
Countdown timers
Quick navigation
Scholl
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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
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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
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Why not just ask
your customers?
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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?
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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
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Quantitative data
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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
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Innovation require failure. Without fiascos
you will never succeed.
Ingvar Kamprad
Founder of IKEA
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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
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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
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The problem for marketers is that they lack the necessary
data to personalize customer experiences
cdp.com 2022
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Customer Data
Add the customer context to the digital experience to
create better outcomes.
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Behavioral
data
Data
Demographic
data
Transactional
data
Psychographic
data
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From segmentation to
individualization
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3 (super) basic steps to maximize ROI
Make them come back (retention)
Make them pay (convert)
Make them stay
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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
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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?
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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
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3 (super) basic steps
Make them come back (retention)
Make them pay (convert)
Make them stay
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It takes 0,05 seconds for website
visitor to decide if they want to
leave or stay
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Need for speed
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Searchers are converters
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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
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No content
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What are you
looking for?
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• 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
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• 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
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Experiment
wins
2.85% of total
revenue
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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
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6,45%
Increase in revenue
per visitor
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Navigation
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3 (super) basic steps
Make them come back (retention)
Make them pay (convert)
Make them stay
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DONATE NOW
PLEASE DONATE
WHY DONATE?
DONATE AND GET A GIFT
CONTRIBUTE
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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%
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LYKO
Personalize based
on first time visitor
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LYKO
Personalize based
on returning
customer
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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
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3 (super) basic steps
Make them come back (retention)
Make them pay (convert)
Make them stay
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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
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Predictive experimentation
Test of premium service
to loyal customers
33%
Increase in revenue
attributed to
personalized offers
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6%
Control (A) Variation (B)
Sign-up or login
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Old style USPs top
Original
New style USPs top
Variation 1
Old style USPs bottom
Variation 2
32%
17%
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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?
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Special discount
for Google
Optimize
customers
When Google Optimize switches off, Trust Optimizely to keep you switched on
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Visual Editor
Stats Engine
Segmentation
Traffic Source
Browser Type
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New vs Returning
Device Type
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Language
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PCI Compliant Snippet
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Custom Attributes
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Tests
Packaging starts at
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No content