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What's being hidden in your Magento - MeetMagento Cluj 2018
The document discusses how businesses grow through customer loyalty and retention strategies, highlighting the significance of lifetime value and customer journeys in ecommerce. It emphasizes the importance of understanding buyer personas and employing RFM (Recency, Frequency, Monetary) segmentation to improve advertising costs, retention rates, and product relevance. Additionally, it provides insights into identifying key customer segments, such as 'true lovers' and 'ex-lovers,' to enhance overall business performance.
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What's being hidden in your Magento - MeetMagento Cluj 2018
- 1. What's being hidden in yourMagento Photo by N. ellladee from Unsplash
- 2. 1. Why businessesgrow 2. Types of customer journeys 3. Hidden gems in Magento 4. Let’s get to action
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- 4. www.omniconvert.com A Starbucks customer havea lifetime value of $16.000with an average order value of $8. That means he’s returning and buys from Starbucks 200 times. That’s their engine of growth.
- 5. Thanks to repeatbusiness. Lifetime value. Retention rate.
- 7. With the same50% new business Yoy growth rate...
- 8. 60% retention rate 40% retention rate 20%retention rate 10% retention rate Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Annualrevenue
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- 10. 1 Demand Generation 2 3 4 StandardCustomer Journey for an eCommerce 1st Order Is placed Send Order Confirmation Order is Delivered 6 2nd order is placed (15% of the customers) 5 Ad remarketing & Email blasting with discounts
- 11. Advanced Customer Journeyfor an eCommerce Order is Placed Order is Delivered Treat any objections that might appear Personalized ad, email & web experiences 1 2 3 4 65 87 9 Demand Generation Customer satisfaction survey / NPS Enroll in the Retention programme Send Order Confirmation 2nd order is Placed (50% of the customers)
- 12. Main BrandsMain ProductCategories Calculate your customer acquisition cost Generate insights Buying Patterns Research Execute! Understanding your eCommerce buyer persona Net Promoter Score Demographics Services satisfaction Product satisfaction Reasons to abandon Reasons to buy Customer Satisfaction Surveys Qualitative research Channels Brainstorm ideas eMail Website Custom audiences (FB, GDN) Phone calls 1 Find out your average gross margin 2 RFM Segmentation 3 Quantitative research (Value of true lovers, share of revenue vs share of margin, etc.) 4 5 6 7 8 9
- 13. More about howto build your buyer persona: https://www.omniconvert.com/blog/how-to-really-understand-yo ur-buyer-persona.html
- 14. What’s being hidden inyour Magento?
- 15. Recency - Howrecent is the last order? Frequency - How often that customer bought? Monetary Value - What is the total revenue you got from the customer?
- 16. Points Recency (dayssince last purchase) Frequency / Monetary values (number of orders and orders value) 5 within the last month customers who are in the top 5% in the database 4 within the last 3 months customers who are in the top 20% in the database 3 within the last 6 months customers who are in the top 30% in the database 2 in the last year customers who are in the top 60% in the database 1 more than a year ago the customers who spent and bought the least
- 19. True Lovers These customersbought: > most recent > highest frequency > large income R F M5= 5= 5= www.omniconvert.com
- 20. True Lovers: ±15% ofthe margin comes from ±2.5% of your customers
- 21. Ex-lovers These customers bought: >Long time ago > Very frequent > Large income R F M1= = =5 5
- 22. Ex-Lovers: ±20% of themargin comes from ±9% of your customers
- 23. Who’s your BuyerPersona? Why are they (not) buying anymore?
- 24. Why do youneed an RFM Segmentation?
- 25. 1. Know yourideal customer profile Why? Because you segment them with RFM, you can understand the true lovers: survey them and ask their demographics, barriers and reasons to buy from your website
- 26. 2. Better advertisingcosts Why? Because you understand who’s your ideal customer ans focus on acquiring more relevant customers with more relevant messages and products for them Photo by Marten Bjork on Unsplash
- 27. 3. Higher retentionrate & customer lifetime value Why? Because you understand who to focus at, offer special prices & experiences to who matters and acquire more customers you actually want Photo by Mathias Konrath on Unsplash
- 28. 4. More relevantproducts Why? Because you find the brands, products and categories that make your customers churn
- 29. 5. Better customerservice Why? Because you can understand who matters and provide priority support, better response rates or tailor-made return programmes
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- 33. Proud to workwith:
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