New trends in online behavior force us to rethink digital marketing

1. Andraž Štalec
@andrazstalec
LEAN DIGITAL MARKETING

2. WHAT IS THE PRICE OF MICROWAVE OVEN
GE PROFILE ADVANTIUM 120?

3. SEARS BEST BUY AMAZON
$899,99 $809,99 currently $870,08

5. CONSUMER BEHAVIOR HAS CHANGED

7. FUNDAMENTAL CHANGE

8. +44 %
CONVERSION RATE
+160 %
REVENUE
+85 %
SESSIONS

9. MARKETING WAS NEVER EASY

10. 80 % OF CONVERSION PATHS INCLUDE
MORE THAN 1 DIGITAL CHANNEL

11. DIVERSITY
10.600 different keywords are used by users to access a website

12. EACH BUYER IS DIFFERENT
3.703 different conversion paths on average

13. UNDERSTANDING THE CUSTOMER
How to catch the important moments?

14. VGL BRAND WLTM CONSUMERS
WITH GSOH FOR LTR
VGL - Very Good Looking
WLTM - Would Like To Meet
GSOH – Good Sense Of Humour
LTR - Long Term Relationship

15. SUCCESS RATE
Only 15,15 % of website visitors start a checkout process

16. ONLY 11 % OF VISITORS
WHO START A CHECKOUT PROCESS ALSO FINISH IT

17. WHAT HAPPENS WITH THE OTHERS?
99 % USERS DO NOT FINISH THE PURCHASE

18. 89 % OF USERS ABANDON CARTS
WHAT ARE WE GOING TO DO?

19. ESTABLISH METRICS TO UNDERSTAND USERS

20. TRACKING
CONSUMER
DECISION
JOURNEY
MICRO AND
MACRO
CONVERSIONS
DATA

22. Understanding user behavior throughout the entire CDJ
Number of interactions
Length
Transactions

23. Micro & macro conversions

24. Micro & macro conversions

25. Micro & macro conversions matrix
NEW FOLLOWERS
GALLERIES BROWSED
REVIEWS & RATINGS
EMAIL SIGNUPS
SOCIAL ACTIONS
VIDEOS WATCHED
BOOKING
CONTACT FORMS SUBMITTED
CATALOGS DOWNLOADED
INFO REQUESTED
Long term
Short term
Medium term
DO
THINK
SEE

26. DOTHINKSEE
Cost per Acquisition
Bounce rate
Checkout Abandonment rate
Revenue
Macro conversion rate
CTR
Page Depth
Engagement Micro conversion rate
% of New Visitors
Reach & Frequency Events per Visit
Days to Convert
% Assisted conversions
Define metrics for all stages of CDJ

27. Discovery
Unique visitor 1 Unique visitor 2 Unique visitor 3
First purchase Return purchase Loyal purchase
Session-based analytics

28. Discovery
Unique user
First purchase Return purchase Loyal purchase
User ID: 123456789
User-centric analytics

29. FIRST CLICK
LAST CONVERSION
DISPLAY
STORE

30. 1
2
3
26 %
bounce rate
14,42
pageviews per visit
135 %
increase in CR
4 45 %
increase in number of transactions
TENISICE.HR
Conversion optimization

31. TARGETED
ADVERTISING
THROUGHOUT
THE CDJ
BETTER
PERFORMANCE
AND BETTER ROI
BETTER
UNDERSTANDING
OF USER
BEHAIVOR
Where are the benefits?

32. GET INSIGHTS

33. AGGREGATED DATA
Metrics like CPA and CR don‘t say a lot…

34. HOW ARE
USERS
BEHAVING?
WHAT
INFLUENCES
CONVERSION?
Behaviour Outcomes
WHICH
CHANNELS
DRIVE
TRAFFIC?
Acquisition
The key segments

35. HOW ARE
USERS
BEHAVING?
WHAT
INFLUENCES
CONVERSION?
Behaviour Outcomes
WHICH
CHANNELS
DRIVE
TRAFFIC?
Acquisition
The key segments

36. 38,64 %
29,11 %
11,79 %
10,79 %
6,64 %
1,42 %
1,40 %
Organic
Paid
Referral
Direct
Email
Social
Display
Income by digital channel
Ecommerce trends 2015, Red Orbit

37. MAJORITY OF „LAST CLICK“ CONVERSIONS
ARE MADE VIA BRANDED TRAFFIC
BUTOTHER CHANNELS LIKE NON-BRANDED TRAFFIC,
SOCIAL MEDIA AND DISPLAY NETWORK
PLAY CRUCIAL ROLE
AS ASSISTED CONVERSIONS

38. 64 % CONVERSION PATHS
INCLUDE NON-BRANDED VISITS

39. Outcomes report

40. Outcomes report

41. DOTHINKSEE
DISPLAY
SEARCH ADS
SEO
FACEBOOK ADS
SEO
EMAIL
DISPLAY DISPLAY
SEARCH ADS
SEO
SOCIAL
FACEBOOK ADS FACEBOOK ADS
EMAIL
Digital Channels

42. HOW ARE
USERS
BEHAVING?
WHAT
INFLUENCES
CONVERSION?
Behaviour Outcomes
WHICH
CHANNELS
DRIVE
TRAFFIC?
Acquisition
The key segments

43. When do we access internet?
Online user behaviour 2014, Red Orbit

44. What is our purchase behaviour?
Online user behaviour 2014, Red Orbit

45. Enhanced Ecommerce
WEATHER
PRODUCT DATA
PURCHASE PRICE
…

46. Blog content quality

47. 1
2
3
40 % OF VISITORS
visit webiste more than 5 times before they purchase
33 % OF TRANSACTIONS
happen within a day
54 % OF VISITORS
visit webiste more than once before they purchase
4 14 % OF PURCHASE CYCLES
last more than 7 days
How do buyers
BEHAVE

48. HOW ARE
USERS
BEHAVING?
WHAT
INFLUENCES
CONVERSION?
Behaviour Outcomes
WHICH
CHANNELS
DRIVE
TRAFFIC?
Acquisition
The key segments

49. 1x
2x
New visitors
Returning visitors
1x
2,5x
Non-branded visits
Branded visits
Conversion rate based on user segment

50. 0,44 %
0,78 %
All visitors
Visitors who clicked on a specific Ad
Influence of ad content on conversions

51. 1,58 %
1,97 %
Visitors who came through channel A
Visitors who came through channel B
2,44 %
Visitors who came through channel A and B
2,81 %
Visitors who came through channel A and C
Influence of digital channels on conversions

52. Influence of weather on conversions

53. OPTIMIZE USER
EXPERIENCE
BETTER USER
TARGETING
Behaviour Outcomes
OPTIMIZE DIGITAL
MARKETING
Acquisition
Why?

54. ADAPTING THE CONTENT
What if the user is not ready to buy?

55. HOW GOOD ARE WE?

56. if $bounce_rate >= 50 % then we suck

57. HOW? WHAT?
Think Do
WHY?
See
Types of content

58. OSKAR¸TRAVEL AGENCY
Diversify the content

59. 1
2
3
42,11 %
Increase in the number of transactions
55,00 %
Increase in income
32,96 %
Increase in organic traffic
OSKAR¸TRAVEL AGENCY
Diversify the content

60. 1
2
3
22.000
video views per month
13.000
articles are read each month
2.486 %
increase in traffic
4 37 %
bounce rate
BIGBANG.SI
info portal

61. HELPING CUSTOMERS THROUGHOUT CDJ
BUILDS YOUR REPUTATION

62. ADAPTING THE MARKETING
What is our goal?

64. TARGET GROUP GOAL USER NEED MESSAGE
DIGITAL
CHANNELS
TARGETING KPIs CONTENT
Digital Marketing Framework

65. DOTHINKSEE
People who use our, similar
or substitute products
People who use our, similar
or substitute products and
are THINKing they need a
new product
People who use our, similar
or substitute products, are
thinking they need some &
are looking to BUY THEM
RIGHT NOW
Target group

66. DOTHINKSEE
Build brand awareness
Build brand/product
preference & engagement
with a brand Increase sales
Goal

67. DOTHINKSEE
Feel connected with a brand
Learn more about the
product/category Get best deal possible
User need

68. DOTHINKSEE
Creative that builds
emotions
Creative encourages
research & engagement
Creative focusing on product
& offer
Message

69. DISPLAY
SEARCH ADS
SEO
FACEBOOK ADS
SEO
EMAIL
DISPLAY DISPLAY
SEARCH ADS
SEO
SOCIAL
FACEBOOK ADS FACEBOOK ADS
EMAIL
DOTHINKSEE
Digital channels

70. DOTHINKSEE
Affinity categories
Interest categories
Demographics
In-market buyers
Interest categories
Display keywords
Topics
Placements
Remarketing
Informational Searches
Category KWs
Mid-funnel KWs
Problem/Solution KWs
Search Remarketing
Remarketing
Transactional Searches
Brand KWs
Product names
Lower funnel KWs
Search Remarketing
Targeting

71. DOTHINKSEE
Reach & Frequency
Brand Search
% New Visits
Number of mentions
Number of leads
Engagement
Page Depth
Assisted conversions
CTR
Revenue
Conversion Rate
Profit
KPIs

72. HOW TO APPLY THIS TO DISPLAY
ADVERTISING?

73. 1
2
3
WIDE TARGETING
Affinity, demographics,...
BUILDING EMOTIONAL
CONNECTION
WIDE ORIENTED CREATIVE
Adaptation of advertising
SEE
4 BRANDING

74. Adaptation of advertising
THINK 1
2
3 ENGAGEMENT WITH A BRAND
CREATIVE WHICH
ENCOURAGES RESEARCH
4 BUILIDNG RELATIONS
SPECIFIC TARGETING
Interest, In-market, topics based

75. Adaptation of advertising
DO 1
2
3
REMARKETING, CLICK STREAM
REVENUE & SALES
FOCUSED ADS

76. 1
2
3
50 %
lower CPA
50 %
higher CR
70 %
increase in sales
4 992 %
ROI
PRINTINK.SI
Google AdWords

77. CAPTURE THE MICRO MOMENTS
Manageable strategy for every moment

78. Use The Power of
Customer Match and Remarketing

79. 1
2
3
143,18 %
higher conversion rate
28,85 %
lower costs
84,85 %
higher revenue
ADRIA AIRWAYS
AdWords Remarketing

80. ULTIMATE GOAL IS TO DECREASE CPA

81. +159 %
+17 %
+95 %
+122 %
+127 %
+14 %
Revenue
Sessions
CR
Per Session Value
Transacions
Average Order Value
Cost per transaction- 46 %
YTD results (2014 vs 2013)

82. 3 BASIC STEPS

83. Basic #1:
UNIQUE CONTENT

84. Basic #2:
ORGANIC SEARCH

85. Basic #3:
REMARKETING

86. Thank you
andraz.stalec@red-orbit.com