Cyber Monday 2013

Cyber Monday 2013

Cyber Monday is in the books.

comScore said Cyber Monday reached $1.735 billion in desktop online spending, up 18%. IBM said Cyber Monday the biggest online shopping day in history with a 20.6% increase in online sales.
Adobe said Cyber Monday ecommerce sales increased by 16% year-over-year to $2.29 billion. A record 18.3% of sales came from mobile devices, an increase of 80% year-over-year that no one even thought possible when Cyber Monday was born in 2005.

Black Friday Shifts to Cyber Friday

isolated woman hands holding a phone and make online shopping

Survey Analytics and Ipsos Loyalty conducted a mobile consumer shopping survey to capture customer experience in real-time on Black Friday. Turns out 62% of Black Friday shoppers they polled did their shopping online, and 33% shopped on mobile phones. The most used browsers were Mobile Safari (28%), Chrome (26%) and Firefox (17%).

ebay_marketplaces_ipad_logo

Consumers are buying from Amazon and eBay, and merchants that have latched on as marketplace sellers have reaped the benefits. ChannelAdvisor clients who sell on in third-party marketplaces saw tremendous growth. Over Cyber Weekend, ChannelAdvisor’s clients saw 34.9% growth in Amazon sales, and 29.7% in eBay sales growth.

Now that Google has a full year of its revamped Google Shopping platform under its belt, the benefits are paying off. ChannelAdvisor’s clients saw a 125% sales increase on Google Shopping over the Cyber Five when compared to the same period in 2012. One major reason for the success there: Amazon.com does not list products in Google Shopping. ChannelAdvisor CEO Scot Wingo says that gives merchants a rare advantage over Amazon.

Please (don’t) wait, an agent will be with you…

holiday contact center rep

From Black Friday until Cyber Monday, StellaService Analysts interacted with 60 of the most popular online retailers via phone five times a day collecting metrics on speed (time to reach a live agent) and quality (issue resolution). Net-A-Porter.com held the title of top ranked retailer over the four day period (19 seconds), although Dillards ranked first on Black Friday (19 seconds) and Cyber Monday (11 seconds).

(Excerpted from Multi Channel Merchant.  For the complete article go to: http://multichannelmerchant.com/ecommerce/10-things-learned-cyber-weekend-2013-04122013/

 

Digital Marketing Analysis

Digital marketing is overtaking traditional print marketing for many direct marketers.  We know that many of our clients would like to be out of catalog publishing and focusing exclusively on web marketing.

Digital marketing analysis tracks all types of online marketing.  This is an example of outbound email marketing analysis.

Digital marketing analysis

 

Customer selections and marketing

Customer selections for marketing – this is one campaign with 6 segments. 

Customer selections to build a campaign

Customer selections to build a campaign

 

Each segment allows choices on all customer history and attributes. 

Customer selectable details

Customer selectable details

 

Customers may also be selected by comparing their activity over time.  These are customers with decreasing sales over time. 

Customer comparisons

Customer comparisons

Operations dashboard

The Directions operations dashboards show an overview of daily operations in real time.

  • Orders by channel
  • Orders by call center associate
  • Orders printed, picked, packed, and shipped
  • Sales by category
  • eBay item status

Each of these dashboard metrics has underlying detail to quickly identify an operations issue.  For example, if orders are backing up at the packing area, you can view each packers’ productivity .  If sales in a promotional category are taking off, you can contact the vendor or issue work orders.

Orders by channel and user

Orders by channel and user

Orders by channel and user

 

Orders printed, picked, packed, and shipped

 

Orders printed, picked, packed, and shipped

Orders printed, picked, packed, and shipped

 

 

 

Sales by category

Sales by category

Sales by category

Responsive web site design

Responsive design is the current hottest topic in web design.  A responsive web site serves the the same pages to many device sizes from the same URL.  A completely responsive site is good for the “party trick” of opening the site on a desktop browser, and automatically resizing and positioning content as you make the browser window shrink to smart phone size.  Note that a completely responsive site is more expensive to build than a desktop site and a mobile site.

In reality, there are not many good, responsive, shopping sites.  Even the big guys like LL Bean and Target haven’t gone responsive.

We chose a more middle-of-the-road approach – let’s call it “hybrid responsive”.  The Directions web framework has built in logic to detect device size before presenting any page.  Every web framework consists of hundreds of programs that work together to present categories of items and allow customers to buy them.  The Directions framework choses between full-size browser session and various mobile devices – from tablets to smart phones.  This first decision determines the responsive full-size or mobile page presentation.  The full size pages are responsive to one range of device sizes, the mobile pages are responsive to another range of device sizes.

Apple Barn Mobile

Apple Barn Mobile

 

Apple Barn full site

Apple Barn full site

Abandoned Cart programs. Subtle, Simple and Effective

Want to increase order rates for your website by 2 – 3%?  Abandoned cart reminders are the answer.

We are starting with a simple system that will let you build a more complex program when you are comfortable with the process.  Directions is flexible and lets you start with a subtle email that reminds the customer  that he left items in the cart an hour after the cart was abandoned.  No response elicits a “thank you for browsing” email three days later.

As you see how the abandoned card emails are received by your customers, you can target market to them when an item they abandoned goes on sale.  Or after a couple of months of inactivity, you can send an email  coupon or free shipping offer.  The options are endless.

The idea is that you know your customers  best, and can tailor your abandoned cart program to fit their profile.  With an email scheduler, you can try out different options and see which work for your business.  The system works seamlessly with the rest of the Directions software—no intervention or monitoring required.  As the sales team develops and tests new scenarios, you will be able to see the results in the metrics which are generated by the system—-you’ll know what works right away.

Abandoned cart emails—another way to reach out to the customer’s that have shown  you what they are shopping for.  It’s a cost effective way to drive another 2-3% in sales.  And who couldn’t use that?

Customer RFM analysis

We researched the leading industry methods of scoring or ranking customers in a direct marketing database.  There is no one “best” method. Customers need to be scored on many attributes and we do not have all the required information on every customer from the fulfillment history.

We score customers on the three classic attributes: recency, frequency, and monetary values for behavior.

Every customer has three base scores from 5, for the best, to 1 for the least. The best customers have scores of 5 for most recent, 5 for most frequent, and 5 for highest value. These scores are then weighted to give each customer a single value from 100 to down to 20.  Customers are re-scored every evening and just before any mailing or promotional activity.

Recency  (John Wirth, PhD.)
Customers will be scored based on their most recent purchase.  Customers who have purchased in the last 90 days are scored 5. Buyers 4 to 6 months old are scored as 4, 7 to 12 months are scored as 3, 13 to 24 months are scored as 2, and the rest are 1.  Most direct marketers consider recency to be the primary indicator of “propensity to buy.”

Frequency  (Ted Miglautsch)
Frequency scoring is based on behavioral quintile scoring or segmenting customers into five groups.  Customers with only one purchase are given a score of 1.  The remaining customers’ total number of purchases is averaged and all those customers having a number of purchases below the average are scored 2. This process is repeated with the remaining customers two more times until all customers are scored.

Monetary (John Wirth, PhD.)
Monetary scoring is also based on segmenting customers into five groups.  Total customers’ sales are divided by 5 to give the total sales for each segment.  Customers are then ranked by total sales.  Starting with the most valuable customer, customers are scored as 5 until the total customers sales equals that segment total, the next customers are scored as 4 to fill that segment until the last customers are scored as 1.  As in the previous attributes, this gives us 5 groups of customers and each group has similar behavior for that attribute.

Weighting RFM

Every customer now has three scores.  The best customers are 5-5-5.  They have purchased in the last 90 days, most frequently, and highest total sales. The least productive customers are 1-1-1.
We could just add these scores to give every customer a rank from 15 to 3.  Most direct marketers give recency much more value than either frequency or monetary.  The most recent customers are most valuable.  Frequency is also considered more valuable than monetary. Customers that order more often are more likely to order again.
Weighting recency, frequency, and monetary is accomplished by multiplying the scores by 9.9, 6.6, and 3.3.  This gives our best customers (5 x 9.9) + (5 x 6.6) + (5 x 3.3) a score of 99 down to 19.8 for our least productive customers.

What do you do with the scores now? 

Now we market to our customers.  You can run reports listing the numbers of customers with each score with a cumulative total.  To produce a mailing file you just select customers with scores through the quantity you want to mail.

This scoring seamlessly works in conjunction with all other selection criteria such as zip code or product category selections.