THE EVOLUTION OF CUSTOMER

BEHAVIOUR
1901-1920 SIMPLE TIMES – ORGANIC ADS ON PRINT
Commerce is dominated by newspapers, magazines and billboards.
Awareness campaigns are mainly organic.

1920-1950 RADIO ADS

Transition from written news to spoken news. It is the begining of radio ads.

1950-1965 THE BOOM OF TV ADS

It’s the boom post-war. TV reaches the mass. It is the era of the TV ads and
credit cards creation.

1965-1975 ADS MONITORED

With the the economic boom, ads consumption are on the rise and start being
monitored for honesty.
1975-2001 TV ADS AND NEW TECHNOLOGIES
It’s time for the multichannels and TV ads boom. Computers are released in 1977 and online shops are
introduced in the 1980’s.

2002-2009 MOBILE CONSUMPTION

Smartphones begin to play an important role in advertising and virtual commerce.

2009 SOCIAL MARKETING

- Present In 2009, Facebook intoduces ads and is soon followed by other social networks.
HOW THE GENERATIONS BEHAVE
BABY BOOMERS (1946 -1964)
• Have high expectations over customer service and prefer their favorite site when buying.
• Visit the physical store before buying online and love convenience above anything else.
• Buy in the first day or up to one week after finding a product.
• The generation that most uses credit card.

GENERATION X (1965 -1980)

• More conservative, Gen X considers price and brand when buying and give more relevance to the
customer experience than any other generation. Research extensively.
• Prefer to buy offline when the delivery is too long.
• Prefer PayPal for security reasons.

MILLENNIALS (1981 -1997)

• Give preference to an omniapproach and tend to visit the physical store before buying online more
than any other generation.
• Price is the main decisive factor.
• Prefer debit card.
• Go to friends, family and online to look for reviews and recommendations.
 of consumers prefer
57 % desktop computers and
laptops when purchasing
online.
-
Only 17% prefer mobile
 TOP TRENDS IN COMMERCE

TECHNOLOGY
IS CHANGING
THE MOBILE
CUSTOMER SHOPPING
CREATING A
EXPERIENCE CONTINUES
MEANINGFUL PERSONALIZA
TO GROW
EXPERIENCE IS TION IS THE
CRUCIAL FUTURE ATTRACTING &
RETAINING
TALENT
 PHASES UNTIL THE PURCHASE

1. 2. 3. 4.
AWARENESS CONSIDERATION PURCHASE EVALUATION
Triggers and influences Products and research Where and how to buy Experience and feedback
Short decision time
influence prospect 71 %
Of the purchases happen in the
clients. first week.

1/3 in the same DAY.

* source: KPMG
 WHY PEOPLE BUY ONLINE
58 %
Ability to shop 24 / 7
58 %
Ability to compare prices
46 %
Online sales/ better price
40 %
To save time
39 %
Convenience of not going to shops
29 %
Greater variety / Selection
29 %
Free shipping offer
27 %
Convenience of everything in one place
20 %
To locate hard to find items
15 %
To avoid crowds
15 %
Products are not sold in my city / country
11 %
To avoid checkout lines

Convenience Ease of selection Price - Related

Free shipping Push from offline Only option to buy

* source: KPMG
CUSTOMER ANALYTICS ALLOW:

Single view over a customer,

Increase in retention and loyalty,
Boost in sales,
Increase in the customer life cycle.
SEGMENTS

GEOGRAPHIC – where they are.

DEMOGRAPHIC – gender, age and income.
PSYCHOGRAPHIC – social class, personality.
BEHAVIOURAL– how much they spend, which
products, frequency, preferences.
 EXAMPLES OF SEGMENTATION

ADDED AN ITEM TO
ENGAGED VISITORS LOYAL VISITORS
THE CART
Users that have visited the e-shop but Did not purchase. But left email.
Added item, but did not purchase
do not purchase. Unidentified.
CAMPAIGNS:
CAMPAIGNS:
Email – weekly best seller products
CAMPAIGNS: Email reminder
newsletter
Email collection weblayer Weblayer reminder
Welcoming program – WHAT?
Voucher Limited offer – e.g. free shipping
Limited voucher.
 CUSTOMER LIFECYCLE
CHAMPIONS

$$$$$$
Can‘t Loose
Them
LOYAL CUSTOMERS
$$$$$
At Risk

POTENTIAL LOYALISTS
$$$$
Needs
PROMISING CUSTOMERS

REACTIVATE
Attention

$$$
About to
RECENT CUSTOMERS
Sleep

$$
LOYAL VISITORS Hibernating

ENGAGED VISITORS
FIRST-TIME CUSTOMERS $$
Lost

ACQUIRE RETAIN INCREASE CHERISH

VALUE
 MAIN KPIs / METRICS

Average purchase order value Conversion rate – Return visitors rate (40% Bounce rate
By channel, product and overall more willing to buy)

Abandoned cart rate Customer lifetime value Identified vs unidentified Churn

visitors

Website Traffic ROI per marketing channel

 PRACTICAL EXERCISE
Imagine you have the following data about an online shop:

- The average purchase value is: 22 euros

- The average number of items added to cart is: 2
- From the consumers that ordered only 1 item, the average value of the purchase was 11
- From those that bought 3 items or more, the maximum value was 53 euros.
- The abandoned cart rate is: 55% (GDN and Facebook), 20% (Organic and E-mail).
- The month with the lowest sales volume is March.
- The months with the highest sales volume are November and December.

- Segments for this e-commerce

- What channels could be used to increase sales?
- What are the best months to launch campaigns?
 POSSIBLE OUTCOMES
- Segments - Frequent buyers (more than 1 purchase)
- One time buyers
- Campaign visitors (potential to purchase organically later on)

- Channels - E-mail
- GDN and Facebook after improving targeting to reduce abandoned
cart rate

- Best months - January – discounts (increase average value per purchase)

- March – special offers
“ Consumers are in charge today and they are looking at
personalization of services. Today’s consumer is more similar to
the 1920’s consumer with a personal relationship with
shopkeepers. Therefore, big data is important – retailers should
understand what individual consumers buy and what they do.
They should cater to consumers as individuals
”
— Paul Martin, UK Head of Retail, KPMG in the UK
 ALL STARTS WITH CUSTOMER
ANALYTICS

THE RELEVANT PRODUCT TO THE RELEVANT PERSON AT A RELEVANT TIME

UNDERSTAND YOUR CUSTOMER‘S SEGMENT

and create the optimal customer journey
77% of consumers expect
product offers that meet
their needs and preferences.

Companies that offer personalized experiences sell

up to 19% more.

* source: KPMG
 ABOUT PERSONALIZATION

Growth Increase in sales 77 % of Increase in

2-3x faster between 6-10 % consumers are willing
to pay more
market
share
 PHASES OF THE PERSONALIZED
MARKETING

CUSTOMER DIGITAL MARKETING PERSONALIZATION MARKETING

ANALYTICS /TRAFFIC AUTOMATION
 CHANNELS OVERVIEW

FACEBOOK LINKEDIN TWITTER GDN PAID SEARCH YOUTUBE CHATBOT

 DIGITAL
CONSUMER WEBSITE VISIT ANALYTICS PERSONALIZATION
MARKETING

REMARKETING
WHY PEOPLE ABANDONED CARTS

Shipping and
44 % handling costs 41 % Saved for later

Wanted to compare prices

27 % on other sites 25 % Item was priced to high

IN ADDITION:
- Credit card security
- Need to create an account
- Complicated checkout process
HOW TO IMPROVE ABANDONED
CART RATES

Keep cart visible

Show shipping information

Build trust

Offer exit intent discounts

Send email reminders

Simplify the checkout process

 According to the Harvard Business Review,
wrong targeting and customer experience are
the main responsibles for churn.
HOW TO REDUCE CHURN

Improve your customer service with chat options [live ou

bot], social media support, etc.

Increase the final product value by offering extra or unique

services.

Engage with your customers.

Improve your targeting.

 Visited the website by accident.

Difficult navigation and design.

WHY PEOPLE Unappeling content - images, text, etc.
BOUNCE
OUT? Takes too long to load.

There is no CTA.

Wrong ad targeting.

Not mobile friendly.

28% of consumers
stop a purchase
because the checkout
process is too
complicated.
-
The Baymard Institute
 HOW TO SIMPLIFY CHECKOUT
Reduce the number of requested information
details. Some sites request only an email to
register.

Avoid requesting for duplicated

details, such as billing and
delivery address.

Include a guest checkout option

until the last step of the process.

Let payment amount visible and

make it a 3 step journey.
CONSUMERS THAT PURCHASED ONLY
ONCE

Offer discounts or special deals via email.

Special offer via social media ads (remarketing).

Keep the communication active.

HOW?
 DON’T FORGET ABOUT UX
01
DON’T MAKE PEOPLE WAIT TO VIEW YOUR SITE
“Forty percent of buyers will abandon a site that takes more than three seconds to load. And a one-second delay in page response can lower
conversions by seven percent,” says Ray Grady, executive vice president, CloudCraze.

02
MAKE IT EASY TO FIND PRODUCTS
Use clear categories, subcategories and search options
(autofill) and mega menu.
03
USE HIGH-QUALITY AND INFORMATIVE IMAGES
Give your potential customer a good idea of what he is about to
buy.

04
OFFER VIRTUAL ASSISTANCE
Chatbots or live chats
05
PROVIDE A SIMPLE CHECKOUT PROCESS
Minimize the steps and use navigation systems to show in what stage of the purchase your customer is at. Ideally, this process will have
3 steps.

06
USE PROMINENT CTAs AND PRODUCT DESCRIPTION
Make CTAs noticeable, relevant and in contrast with other elements of the
page.
TICKETPORTAL – CHALLENGE 1

CHALLENGE:
Sales of rock/pop concert tickets

SOLUTION:
Weblayer displaying a countdown banner of a premium
concert

TRIGGER:
Display the offer to visitors that are in the category
rock/pop and have previously purchased a rock ticket.
 CHALLENGE 2
CHALLENGE:
Abandoned cart high rate

SOLUTION:
Weblayer with a reminder countdown

TRIGGER:
Display the offer to visitors that added an item to the
cart, but didn‘t finish the purchase in whithin 10
min.
RESULTS:
51% increase in cart view.
15% higher conversion rate.
ANDREASHOP – CHALLENGE 1
CHALLENGE:
Visitors purchasing less than 40 EUR did a single
purchase

SOLUTION:
Weblayer displaying a limited offer - “free delivery.“

TRIGGER:
Display the offer to all visitors that added an item to cart with value
under 39,- EUR
RESULTS:
- Cart view increase by 51%.
- Conversion rate 16% higher.
- 22% of the consumers added a new
item to the cart.
ANDREASHOP – CHALLENGE 2

CHALLENGE:
High abandoned cart rate.

SOLUTION:
Before the visitor leaves the website, display a weblayer with a
reminder.

TRIGGER:
Visitors that have added an item to card, but did not finish the
purchase.
RESULTS:
15% increase in purchases completed.
ANDREASHOP – CHALLENGE 3

CHALLENGE:
Orders from a specific city.

SOLUTION:
Weblayer with specific offer based on GEO location.

TRIGGER:
Display the offer to all visitors from selected city or area/
RESULTS:
10% increase in sales for the region.
 CHALLENGE
CHALLENGE:
Visitors do not seach for other titles.
SOLUTION:
While navigating through a specific category, visitors are offered
a weblayer banner with book recommendations, based on the
same category. Email for identified users.
TRIGGER:
Website visitors that did only one search
RESULTS:
5% increase in visits to the
recommended title and average
purchase value.
 O2 – CHALLENGE 1
CHALLENGE:
How to promote new service “internet connection!“ to
anonymous visitors, based on specific location.

SOLUTION:
Real-time weblayer promoting the new service to specific
locations. Monitoring of anonymous customers based on URL
visits and sources, and offers in order to collect contact
information.

TRIGGER:
Anonymous visitors from specific locations.
 O2 – DESAFIO NO.

RESULTS:
12% sales increase.
 O2 – CHALLENGE 2
CHALLENGE:
How to increase marketing campaign results, based on
propensity to purchase

SOLUTION:
Real-time weblayer based on targeting modeling considering the
propensity of purchase.

TRIGGER:
Segmented visitors.
RESULTS:
Increase in marketing efficiency
and sales.
DATACONCEPT & DATASENSE
LET‘S TALK HOW WE CAN HELP:
pavol@datasense.at
zuzana.ooms@datasense.at
+43 1 717 28541