Ecommerce Marketing

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E-commerce Marketing
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Industry Changing

• 30 of floral wire orders
• are placed on the Internet
• Internet orders are less than 5
• for the average florist

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Todays Discussion
Maximizing Revenues and Profits Through E-Commerce
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Overview
Customer Acquisition

• Advertising
• Cost side

Customer Retention

• Advertising to existing customers
• Much more likely to buy from you
• Profit side

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The Basics
Starting point Need a good website or Store
Leverage existing customer traffic to
create awareness of URL / Web presence

• In-Store P-O-P (Free w/FOL)
• Inbound phone calls
• Outgoing deliveries
• Gather email addresses

Use current advertising to promote URL

• Newspaper, Yellow Pages, Catalogs, etc.

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Customer Acquisition
Online Advertising
Primary online advertising programs

• Shopping / Portal Programs
• Affiliate Program
• Online Yellow Pages
• Search Programs

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Customer Acquisition
Shopping / Portal programs
Yahoo!, MSN, AOL

• Can be very expensive
• Advertising / CPM model

Shopping comparison engines

• NexTag, Shopping.com
• Requires datafeed of product info

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Customer Acquisition
Affiliate Marketing Program

• Facilitates revenue share relationship between
  Merchant
• and the sites (Affiliates) linking to the
  Merchant.
• As a Merchant allows a network of Affiliates
• to provide traffic and orders
• - low cost order source, tracking
  single payment
• As an Affiliate you receive of sales revenue
• - by promoting (non-competitive) brands on your
  site
• e.g. Blue Nile, Mikasa, Omaha Steaks
• LinkShare and Commission Junction are the
• primary providers

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Customer Acquisition
Online Yellow Pages

• 40 of all Online YP users make a purchase.
• 7 of all Online YP references are for Florists.
• Superpages 38
• Yahoo! YP 20
• Smartpages 12
• AOL YP 10
• Switchboard 8
• Yellowpages 5
• FTD provides Online YP advertising -
• 50 off retail rates.

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Customer Acquisition
Search Marketing

• 76 of web users use Search

User Percentage
Search Engine
(Source Nielsen/NetRatings)
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Customer Acquisition
Two primary types of Search results
1. Natural or Algorithmic Search

• Site optimization (metatags / titles)
• Can utilize specialty firm

2. Pay-for-Placement (Sponsored results)

• Overture (Rank CPC bid) Best place to start
• Google (Rank CPC bid relevance)
• Others FindWhat, LookSmart

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Customer Acquisition
Sample Search Result Natural vs. Sponsored
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Customer Acquisition
Pay-for-Placement
Requires active management

• Competitive category 2 - 4 per click!

• Conversion rate drives CPO
• CPC / Conversion Rate CPO
• Must have clear understanding of your CPO
• threshold and ability to track

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Customer Acquisition

• CPC Search Program Tips
• 1. Use keyword in title
• 2. Use local/regional Keywords
• Jays Flowers-Torontos Florist
• Same-day delivery available Order Now
• www.jaysflowers.com
• 3. Use concise simple language, include
• call to action
• Balloons, Bears and more!
• 4. Test and monitor results frequently
• 2-3 different creatives for each keyword
• Higher conversion rates during lunchtime spike

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Customer Retention
Satisfy Customers at Every Transaction
Communicate with Customers Regularly
Relevant, Timely and Targeted
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Customer Retention
60-20-20 Rule of Response
60 - List / Audience
20 - Offer
20 - Creative
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Customer Retention
RFM Know Your Best Customers
Recency The newer a customer, the more
responsive they will be
Frequency The more often a customer buys,
the more likely a good
customer
Monetary - The more they spend, the more
likely that theyll continue
to buy
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Customer Retention
Email Marketing Most cost effective form of
advertising
Create customer database with email addresses

• Collect email address on every transaction
• Give a compelling reason - Use promotions to
  compile lists
• Follow guidelines and laws
• - Opt in /opt out capabilities
• - DMA as a reference

Keep history of customers transactions
FTD provides a cost effective solution for Email
Marketing thru Constant Contact
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Customer Retention
Types of Email Marketing
1. Holidays Showcase lead products
2. Reminder Service - Customer Initiated
- Transaction Based
FOL provides a reminder service and online
address book for your customers
3. Non Occasion Specials
Always make the customer feel special!
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Customer Retention
Direct Mail Marketing
More expensive and slower than email
Bulk mail saves expense
Holidays will give larger response rates
Target Best Customers - RFM
Keep your customer list clean
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Customer Retention
5 Improvement in Retention Rates Could Boost
Profits from 25-100
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Customer Retention
Retention efforts can pay for acquisition efforts
and add profit
Lifetime Value

• Customer based
• Profit/Loss of adding a customer
• Plus Profit of all their subsequent purchases
• Equals Lifetime Value

This is how some can spend for acquisitions
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• Thank You!
• QA