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Differen'ate Instead Of Discount
WEBINAR SPONSORED BY:
#NoMoreDiscounts
#NoMoreDiscounts
On24
Presenta=on Slide Deck
• Website link
• White Paper
• Interac=ve Infographic
• Webinar
#NoMoreDiscounts
Follow The Webcast On TwiJer
#NoMoreDiscounts @RTouchPoints
@SDL
#NoMoreDiscounts
About Retail TouchPoints ü Launched in 2007
ü Over 30,000 subscribers
ü To provide executives with relevant,
insightful content across a variety of
digital medium
#NoMoreDiscounts
Today’s Panelists
Lauren Turner Product Marketing Manager,
eCommerce & Retail, SDL
Alicia Fiorletta Senior Editor,
Retail TouchPoints
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Powering campaigns
for 400+ global brands
3200 Employees Worldwide
Founded in 1992
Driving $16B in annual online revenue with our eCommerce technology
Leader in WCM, receiving top analyst rankings since 2001
Enabling companies to communicate in 100+ countries
7 BILLION words translated every month
70 offices
38 countries
1500 enterprise customers
SDL powers over 350 global retail brands, driving more than $16b in annual online retail sales.
400 partners
#NoMoreDiscounts
• CX is our only business • Focus on en=re customer experience • Faster =me to market • We make global simple • Language is our DNA
How SDL is Different
SDL Proprietary and Confidential
Differentiate Instead of Discount Leverage Data To Get Strategic About Couponing And Create More Meaningful Customer Experiences Lauren Turner, SDL P
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More than 75 percent of retail goods were sold at a discount in 2013. --National Retail Federation
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Everyone’s Doing it… but Discounting is Harmful to Your Brand
It squeezes already narrow margins
It attracts primarily price-driven customers
It lowers brand perception
It “trains” customers to wait for deals
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…and Flash Sale and Daily Deal Sites are Really More Bark than Bite
• Focused more on customer acquisition than retention: once consumers subscribe and have deals sent to them via email, nearly half said they rarely use the daily deals they receive.
• Mediocre Customer Service: of the 2,776 comments posted across 11 of the top U.S. flash site Facebook pages, 44% were negative
• Negligible growth of new entrants in 2014 • None of the current models are profitable
12
Plus, One Size Discounting Doesn’t Fit “All” Buys one $10 item
Buys $500 worth of product. Won’t shop again until the next
sale.
“Why not 50% off?”
Buys $1000 worth of product; would have
paid full price
13
How to get the Most out of Discounting
14
Other Key
Types of Data
• Social
Media Activity
• Other sites frequented
• Reviews posted
• Size of social network
Step 1: Collect Customer Data
Type of Data Typically Collected by Retailers to Gauge Customer Experience
15
Step 2 Leverage Customer Data to Create and Rank Profiles
Savvy Susan
• Age 25-34 • Shops on Multiple Devices • Follows Trends • $75k income • Active Twitter user • Buys online 2x/month
Broke Ben
• Age 45-54 • Showrooms • Lowest price • $15k income • Not on social media • Buys 1x/year
Luxury Lisa
• Age 35-44 • Shops mainly in-store • Quality and Service #1 • $500k income • Active LinkedIn user • Buys online weekly
16
Step 3: Tailor Offers to your Most Appealing Profiles
Savvy Susan
• Suggest a blouse similar to the one she purchased, and offer 15% off
• Get $10 back when she refers a friend who purchases
• Free 2 day shipping as a surprise thank-you for writing an online review
Broke Ben
NO DEALS FOR YOU!
Luxury Lisa
• Suggest shoes to match the suit she purchased, and offer free next-day shipping
• Sneak preview of products before they become publicly available
• Emails from company VP’s address
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Step 4: Test and Refine
Only 37% of Retailers
Regularly Test!
Beat the Competition by
Finding the Formula that
Works for You and Your
Customers
Some Testing Variables to
Consider:
• Product vs Customer Profile
• Different Offers
• Product placement on page
18
Merchandising and Customer Experience Alternatives to Discounting
19
Approximately 8 out of every 10 consumers are consistently looking for deals while they shop
We Know Consumers are Price Sensitive, and use Social Media to Find and Share Deals
• The majority (64%) use daily deal sites to get a coupon;
• More than half (54%) use a coupon found on social media;
• More than one third (39%) share and trade coupons with others via social media
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However, Price Often isn’t the Deciding Factor for Purchases; Customer Experience is.
21 2014 SDL Holiday Shopper Study
The New Customer Mandate: Experience is more important than price
According to a CEI survey, only 1% of customers feel that vendors consistently meet their expectations.-Forbes Surpass their CX expectations, and be rewarded!
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For Stellar CX, You Need to Know This Shopper
Relevant to my needs “In the moment”
Remember all our interactions, including purchases and brand preferences
Know Me
Optimized for my device of choice
I want it fast
What I want…now, and what I don’t know I want yet
Targeted to my Local store
In my language, and culturally correct
Introduce me to cool new stuff
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1. Use Your Data to Drive More Profitable Purchases
Determine your highest margin items, and feature them the most prominently.
Out of stock items are among consumer’s biggest pet peeves when shopping online. When an item is out of stock, remove it from view!
Moving an item one row in your search page can have the same affect as
offering a discount of 6%-21%
on that item.
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2. Show the Right Products to the Right Shoppers
Using data available to you –– you can intelligently
determine the rankings on your
search list page to display the most relevant products
Creating rules to
determine what products get
recommended, and to whom, can boost
average order value by 50%
25
3. Combine Content, Commerce and Community
Make your site a destination hub
that goes beyond selling to offer interesting and relevant content that draws traffic, engages visitors
and inspires shopping.
26
Example #1 Halfords (460 stores, 30k products)
Navigable content
Content linked to products
Searching for “road bikes” delivers articles and advice on bike selection, in addition to displaying the road bikes for sale.
Combining car data with online search and merchandising for personal experience
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Shoppers can sort and refine by: • Dress Type • Dress Shape • Length • Color • Size • Price Range (slider) • Brand (alphabetically)
Recommendations/Details Include: • Accessories to match • Similar styles • Fit • Video of dress on
runway • Zoom
Example #2 ASOS (9.1M customers, 98M visits/month)
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4. Remain Engaged Throughout the Shopper’s Journey Referred to
eCommerce site from Pinterest
Lands on the vintage section
Filters on “Color”
Selects “retro jeans”
Creates wishlist
Consumer checks the
reviews
Select products are promoted
Signs up to receive deals
Non-relevant items are hidden from consumer in navigation
Unknown à Understood Identified as “Retro Girl”
Targeted with a profile rule to contextualize next visit
Receives and opens the
targeted email
Website experience (video) tailored based on historic
browsing data and profile data
Decides to buys the product
Finishes the checkout process
Understood à Known
Shares her experience on Pinterest and we reward her
Receives confirmation email
Known à Customer
Customer à Advocate
Confirmation email send
29
Requirements o Deliver mass personalization
to over 7 million Loyalty Members
o Power the omnichannel retail platform with customer data and analytics
o Create a single view of the customer
Example #3 Specialty Fashion Group 7M customers, 900 stores, 8 websites)
For the first time SFG was able to gain a
single-view of their customers and deliver personalized, targeted
communications based on the behavior of individual customers.
ROI of 2,200% on electronic direct
marketing campaigns.
Winner of Australian Retail Association's 2013 Australian Multichannel Retailer of
the Year award
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Key Takeaways 1. Blanket discounting leaves money on the table.
2. Customer experience is the most critical lever retailers can pull
relative to driving revenues and consumer loyalty
3. Integrate all your sources of customer data for better insight and analysis, then segment your market based on shopping behavior, demographics and profitablility
4. Strategic visual merchandising and relevant content tailored to your customer will result in higher sales and greater profitability than discounting.
5. Test your assumptions to find out if a particular ecommerce strategy is working, then adjust accordingly.
6. Use touchpoints throughout the customer’s shopping journey, not just through the initial conversion
SDL Proprietary and Confidential
Thank You!
#NoMoreDiscounts
Q & A // Panelists
Lauren Turner Product Marketing Manager,
eCommerce & Retail, SDL
Alicia Fiorletta Senior Editor,
Retail TouchPoints
Thank You For Joining Us! View this presenta=on on-‐demand at: h@p://rtou.ch/nomorediscounts