Exceeding Customer Expectations with Personalization - They Key to increasing CLV

Exceeding Customer Expectations with Personalization

- THE KEY TO INCREASING CLTV

Jan Soerensen Head of Customer Success at Nosto

Nosto is a Magento Gold Technology Partner providing ecommerce

professionals a complete personalization solution.

nosto.com I [email protected]

“Mission

A little bit about Nosto

Making it easy for retailers to deliver their customers personalized shopping experiences, wherever they are.

2011founded

15K+retailers

60team

5offices

Founded originally by retailers Nosto has developed into a complete personalization solution.

Today trusted by over 15,000 retailers in over 150 countries

A Team of 60 people with 20+ nationalities

Offices in New York, London, Stockholm, Berlin and Helsinki

SOME OF OUR

CLIENTS

Ecommerce professionals aren’t adapting fast enough

to customer expectations.

The traditional ecommerce conversion funnel

of marketing budgets are spent on acquiring

new traffic

90%

The inverted ecommerce conversion funnel

3%Shift your focus to the

that are driving your revenue

3%Shift your focus to the

that are driving your revenue

Shift your focus

Shift your focus

3%Shift your focus to the

that are driving your revenue

The question is:Are you using it to increase CLTV?

In today’s webinar you will learn…

The true power behind personalization

Why personalization is a holistic long-term strategy, necessary to drive a successful ecommerce business

To use personalization to attract, convert and retain ideal customers to generate an effective return on your marketing spend

To exceed customer expectations and increase your CLTV

Agenda

1. Evolved Customer Expectations‣ Why and how do ecommerce

professionals need to adapt?

2. A Proven Solution: Personalization

‣ Why and how does it work?

3. Exceeding Customer Expectations

‣ Using the ACRO model to increase CLTV

• Attract • Convert • Retain • Optimize

‣ Best Practice examples

4. Q&A

Evolved Customer Expectations‣ Why and how do ecommerce professionals need to adapt?

Purchase pathways can be extremely complex

We live in a super-connected multi-device world, driven by

mobile devices…

of people accessing the Internet globally use more

than one device

70%

Customers don’t think about channels

42%

43%

20%

Research online, purchase offline

Check prices online while in store

Of online purchases are picked up in store

43%

44%

71%

Would be encouraged to make a purchase after seeing an item on social media

Feel social media is a good source for product reviews and recommendations

Read peer reviews and recommendations

Customers don’t think about channels

42%

43%

20%

Research online, purchase offline

Check prices online while in store

Of online purchases are picked up in store

Personalization is not fully understood by those who would

benefit most from using it.

A proven solution: Personalization ‣ Why and how does it work?

Personalization is becoming expected, at all touchpoints

43%

42%

42%

Choice was influenced by personalized recommendations/ promotions/deals

Expect to receive real time personalized product recommendations and promotions

Want to receive tailored discount codes based on previous purchases

OTHER CHANNELS

CS / CRM / ERP / ESP

SOCIAL MEDIA

FB / PINTEREST / TWITTER

ONLINE STORE

SEARCH ENGINES

BRICK & MORTAR

3rd PARTY SITES

Analyzing all touchpointsEMAILS

APPS

DESKTOP / TABLET / SMARTPHONE POS / CRM / ERP / IOT

MOBILE / GAMES / TV

GOOGLE / YAHOO / BING

BLOGS / MEDIA SITES

TRIGGERED / NEWSLETTERS

OTHER CHANNELS

CS / CRM / ERP / ESP

SOCIAL MEDIA

FB / PINTEREST / TWITTER

ONLINE STORE

SEARCH ENGINES

BRICK & MORTAR

3rd PARTY SITES

Analyzing all touchpointsEMAILS

APPS

DESKTOP / TABLET / SMARTPHONE POS / CRM / ERP / IOT

MOBILE / GAMES / TV

GOOGLE / YAHOO / BING

BLOGS / MEDIA SITES

TRIGGERED / NEWSLETTERS

Exceeding Customer Expectations‣ Using the ACRO model to increase CLTV

‣ Best Practice examples

The ACRO model

‣ Prospecting Facebook ads

AttractDrive qualified traffic to

your store.

Attract

‣ Display prospecting Facebook ad campaigns to a

predefined demographic based on interests that

match that of your business.

‣ Target potential customers with highly similar

profiles to those of your current customer base.

Did you know?On average, automated, dynamic

product ads generate performance

improvements of more than

400%

How?

compared to static ads

Eton‣ Display best sellers to

prospects. As the items with

the highest proven conversion

rate these are the ones most

likely to cut through the noise.

‣ Target lookalike audiences,

those similar to their current

customerbase, to attract

shoppers who are more likely

to convert.

‣ Display real-time ads that are

dynamically optimized

according to current behavior

and interactions - reflecting

trends as and when they

happen.

The ACRO model

‣ Prospecting Facebook ads

AttractDrive qualified traffic to

your store.

Convert Inspire visitors with

highly relevant products and promotions.

‣ Personalized re-engagement ads ‣ Product recommendations incl.

personalized, best seller, search. ‣ Behavioral Pop-ups ‣ Personalized emails ‣ Email personalization widgets

‣ Display onsite Product Recommendations to guide customers to

the most relevant products based on their unique user behaviour.

‣ Engage your customers in social media by recommending

products picked just for them based on their previous shopping

behavior.

‣ Enable behavioral pop-ups to reduce site abandonment and

create a sense of urgency with time-limited special offers and

one-time discounts.

‣ Personalize your email marketing efforts to speak to each

customer individually

Did you know?Personalization can increase

conversion on average by

65%

How?

Convert

‣ Display onsite Product Recommendations to guide customers to

the most relevant products based on their unique user behaviour.

‣ Engage your customers in social media by recommending

products picked just for them based on their previous shopping

behavior.

‣ Enable behavioral pop-ups to reduce site abandonment and

create a sense of urgency with time-limited special offers and

one-time discounts.

‣ Personalize your email marketing efforts to speak to each

customer individually

Did you know?Personalization can increase

conversion on average by

65%

How?

Convert

Zalando

‣ Visually enticing

‣ Fully personalized based on the

individual customer’s tastes

‣ Self learning; it places more

weight on items, brands and

styles liked in the underlying

algorithms

‣ Ensures that currently hot items

are always displayed

Eton

‣ Mastering the art of cross-selling

‣ Offering brick-and-mortar level

customer service

‣ Offering both alternative and

complementary items to increase

AOV & generate happy customers

that find what they are looking for.

How?

Convert

‣ Display onsite Product Recommendations to guide customers to

the most relevant products based on their unique user behaviour.

‣ Engage your customers in social media by recommending

products picked just for them based on their previous shopping

behavior.

‣ Enable behavioral pop-ups to reduce site abandonment and

create a sense of urgency with time-limited special offers and

one-time discounts.

‣ Personalize your email marketing efforts to speak to each

customer individually

Did you know?Personalization can increase

conversion on average by

65%

Yumi Kim

‣ Displaying personal re-engagement ads to cut

through the noise

‣ Places more weight on items that

have been shown most interest in

by the individual customer

‣ Targeting a specific audience to

maximise ROAS

How?

‣ Display onsite Product Recommendations to guide customers to

the most relevant products based on their unique user behaviour.

‣ Engage your customers in social media by recommending

products picked just for them based on their previous shopping

behavior.

‣ Enable behavioral pop-ups to reduce site abandonment and

create a sense of urgency with time-limited special offers and

one-time discounts.

‣ Personalize your email marketing efforts to speak to each

customer individually

Did you know?Personalization can increase

conversion on average by

65%

Convert

Geggamoja

‣ Increases the likelihood of a

purchase by offering a time-

limited discount

‣ Delights new customers

‣ Allows for re-marketing at a

later stage

How?

‣ Display onsite Product Recommendations to guide customers to

the most relevant products based on their unique user behaviour.

‣ Engage your customers in social media by recommending

products picked just for them based on their previous shopping

behavior.

‣ Enable behavioral pop-ups to reduce site abandonment and

create a sense of urgency with time-limited special offers and

one-time discounts.

‣ Personalize your email marketing efforts to speak to each

customer individually

Did you know?Personalization can increase

conversion on average by

65%

Convert

Golf Discount

‣ Sends out a personalized

newsletter ensuring each

recipient is met with the most

relevant items.

‣ Promotes right products to the

right audience

Produce loyal customers and inspire repeat (return) visits

to your store.

Retain

‣ Order follow-up email ‣ Abandoned cart email ‣ We miss you email

The ACRO model

‣ Prospecting Facebook ads

AttractDrive qualified traffic to

your store.

Convert Inspire visitors with

highly relevant products and promotions.

‣ Personalized re-engagement ads ‣ Product recommendations incl.

personalized, best seller, search. ‣ Behavioral Pop-ups ‣ Personalized emails ‣ Email personalization widgets

How?

‣ Set up automatic follow-up emails which include items

relevant to those items previously purchased

‣ Allow customers to conveniently continue shopping

where they left off by sending out abandoned cart

emails

‣ Give customers a reason to come back by automatically

sending customers who haven’t visited your store for a

while a ”We Miss You” email

Did you know?personalized triggered emails have an

average click-through rate

10xhigher than the industry standard.

Retain

How?

‣ Set up automatic follow-up emails which include items

related and relevant to items previously purchased

‣ Allow customers to conveniently continue shopping

where they left off by sending out abandoned cart

emails

‣ Give customers a reason to come back by automatically

sending customers who haven’t visited your store for a

while a ”We Miss You” email

Did you know?personalized triggered emails have an

average click-through rate

10xhigher than the industry standard.

Retain

Melvin & Hamilton

‣ Offers a convenient way back to

the online store

‣ Reminds customers of interesting

items left in their cart

‣ Recommends other interesting

items based on the shopping

behavior of the individual

customer as well

Retain

How?

‣ Set up automatic follow-up emails which include items

related and relevant to items previously purchased

‣ Allow customers to conveniently continue shopping

where they left off by sending out abandoned cart

emails

‣ Give customers a reason to come back by automatically

sending customers who haven’t visited your store for a

while a ”We Miss You” email

Did you know?personalized triggered emails have an

average click-through rate

10xhigher than the industry standard.

Melvin & Hamilton

‣ Reach back out to customers if

they haven’t been online in 90

days

‣ Offer items the customer has

showed the most interest in, or

pieces relevant to these

‣ Display currently popular items,

enticing the customer to discover

more styles.

Produce loyal customers and inspire repeat (return) visits

to your store.

Retain

‣ Order follow-up email ‣ Abandoned cart email ‣ We miss you email

‣ Prospecting Facebook ads

AttractDrive qualified traffic to

your store.

Convert Inspire visitors with

highly relevant products and promotions.

The ACRO model

Continually improve performance.

Optimize

‣ Analyse your KPIs ‣ Conduct split tests ‣ In-depth analytics

tools

‣ Personalized re-engagement ads ‣ Product recommendations incl.

personalized, best seller, search. ‣ Behavioral Pop-ups ‣ Personalized emails ‣ Email personalization widgets

How?

‣ Continuously analyse your KPIs

‣ Conduct split tests

‣ Use in-depth analytics and reporting tools

to improve your performance

Optimize

Produce loyal customers and inspire repeat (return) visits

to your store.

Retain

‣ Order follow-up email ‣ Abandoned cart email ‣ We miss you email

‣ Prospecting Facebook ads

AttractDrive qualified traffic to

your store.

Convert Inspire visitors with

highly relevant products and promotions.

The ACRO model

Continually improve performance.

Optimize

‣ Analyse your KPIs ‣ Conduct split tests ‣ In-depth analytics

tools

‣ Personalized re-engagement ads ‣ Product recommendations incl.

personalized, best seller, search. ‣ Behavioral Pop-ups ‣ Personalized emails ‣ Email personalization widgets

Congrats! You should now

Understand the power behind personalization

Understand why personalization is a holistic long-term strategy that is a necessity to drive a successful ecommerce business

Know how to use personalization to attract, convert and retain ideal customers to generate an effective return on your marketing spend

Be able to exceed customer expectations and increase your CLTV

Nosto is a Magento Gold Technology Partner providing ecommerce

professionals a complete personalization solution.

nosto.com I [email protected]

Q&A

Thank you!Jan Soerensen

[email protected]