The Magic of Online Marketing

Michelle Lam, Founder of Spoilt City University of Hong Kong

Friday October 14th 2011

www.spoilt.com.hk Unique Experiences :: Memorable Events

Gifts of Experience

Formula Racing Driving Experience 方程式賽車訓練

Make Your Own CD 灌錄個人大碟

Food & Mood: Aphrodisiacs 101 浪漫情人烹飪班

Deep Sea Fishing Experience 深海釣魚體驗

Experiences :

Unique activities in HK

= Gifts of Experience

I need to take a girl out and impress her.

Chocolate Master Class for Two

The ultimate chocolate indulgence

Artisan chocolate making master class

Free-flowing Champagne

Personalised chef’s jackets

“Seriously. This is

hands down the

best experience to

take a date on.” !

 -­‐  Michael  1st  May  2010  

OR

AND

Why do business on the internet?

There are 4 major business models for internet businesses

Content Based Site e.g. Yahoo, Blogs

Software as a Service (Saas)

e.g. Salesforce.com, Mailchimp, Google Docs

Broker e.g. Ebay, Tao Bao, Property listing sites

E-Commerce e.g. Amazon

** Excluding Games and Mobile Apps

User Experience (UX) design is the first impression of your brand

•  Achieve objectives

•  User friendly layout

•  Design to minimum number of clicks

•  Relevance – seasonal, trends, personal

Design to short attention spans! Average Time on site 2.16 minutes

Average 3.10 pages/visit

Marketing drives the traffic, Sales close the deals, CRM draws repeat clients

Awareness Consideration Purchase Loyalty Advocacy

WEB TRAFFIC

MARKETING SALES CRM

* CRM = Customer Relationship Management

Good Search Engine Optimisation (SEO) is like occupying prime location

Search Engine Marketing (SEM) is to run campaigns on Google and Yahoo

Pay per click (PPC) Google - HK$3.63 per click Yahoo – HK$1.58 per click

SEO and SEM are the largest drivers of traffic for Spoilt

SEM 31%

SEO 46%

Others 23%

Source of web traffic to spoilt.com.hk: Feb 2010-October 2011

Traffic from direct marketing to existing client base converts well

Open rate – 46% Click rate – 6.4%

Breakdown of click performance Food & Mood: Aphrodisiacs 101- 23% Scrapbooking Workshop for Two – 18% Make Your Own CD – 3% Spa Massage at Home for Two – 18%

Social network presence enable word-of-mouth traffic

Press coverage is also a big driver of traffic to the Spoilt website

Sudden Weekly 忽然一週, February 2011, Feature on Scrapbooking Workshop

TVB 財經透視, February 2011, Valentine’s Day special on experience gifts, featured Make Your Own CD

Now TV Lifetival, February 2011, Feature on Healthy Cooking Class at Harilela Mansion

RTHK Gimme 5, February 2011, Feature on Tea Appreciation Workshop

SCMP, December 2010, Feature on Experience Gifts

TVB 財經透視 featured Spoilt in a Valentine’s Day special

Watch online: http://youtu.be/8rUM8NOSiVg

Marketing drives the traffic, Sales close the deals, CRM draws repeat clients

Awareness Consideration Purchase Loyalty Advocacy

WEB TRAFFIC

MARKETING SALES CRM

* CRM = Customer Relationship Management

Sales process is prepared for different types of customers

Different types of customers observed

Western / Western-educated •  Like to research products online •  Happy with placing order directly online, used to

online shopping •  Prefer to communicate by email

Local Hong Kong •  Like to call and talk to a real human to answer

questions •  Sometimes prefer not to pay online via credit card

because of perceived security issue

New project: Live Chat

Effective of marketing efforts is measured by the conversion rate

Awareness Consideration Purchase Loyalty Advocacy

MARKETING SALES CRM

* CRM = Customer Relationship Management

CONVERSION RATE

Best-in-class websites do >3 times better than average in conversion rates

5

14.1

17.6

Average websites Proflowers.com (Jan '08) Amazon.com (December '07)

Website Sales Conversion Rate (Source: Nielson Online)

KE

EP

IN T

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Facebook.com/spoiltHK

@spoiltHK

hello@spoilt.com.hk

+852 2882 4881