Warsaw Ecommerce Tech Sessions VOL. 3

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• Startup community
• Corporate decision makers
• Senior e-commerce experts
• Knowledge sharing
• Exchange of ideas
• Effecitve networking
UP TO
SPEAKERS
6
UP TO
MINUTES
150

Secrets to customer retention and loyalty.
Indicators to track, technologies to use.
21.03.2019 SESSION #3:

PLAN FOR TODAY (21.03.2019):
Time Topic Speaker
17:45 – 18:05
ACQUISITIONVS RETENTION
INTHE FACE OFVALUE-AS-A-SERVICE ECONOMY
Michał Jędraszak
CEO
Straal
18:05 – 18:25
ABC OF CUSTOMER LOYALTY BY FLIXBUS
=AI, BI, CUSTOMER HAPPINESS (NPS)
Michał Leman
Managing Director
FlixBus Polska
18:25 – 18:45 THINK BIG: 4 KEYSTOTHE FUTUREOF RETAIL
Jarosław Sokolnicki
Retail & Consumer Goods Industries
Country Lead
Microsoft
18:45 – 19:00 ☕☕☕ COFFEE BREAK
19:00 – 19:20
GETTINGYOUR USERS OVERTHEWALL: HOWTO BUILD LOYALTY
IN SUBSCRIPTION-BASED BUSINESS
Mehmet Ozer
StrategicAccount Manager
Insider
19:20 – 19:45 HOWTOTUNEYOUR E-COMMERCETO PWA?
Michał Szklarski
Head of Digital Solutions
E-point
19:45 – 20:10 🍷🍷🍷 NETWORKING SESSION

MICHAŁ JĘDRASZAK
CHIEF EXECUTIVE OFFICER, STRAAL
ACQUISITIONVS RETENTION INTHE FACE OFVALUE-AS-A-SERVICE ECONOMY

Customer acquisition is at the heart of any marketing strategy yet winning new customers is
becoming ever more challenging
While the range of tools, solutions and service providers offering help in customer acquisition is broadening at an enormous
pace, trust - the cornerstone of commerce - is eroding
DSP platforms
Performance marketing agencies
User intelligence tools
SEO/SEM tools
Content marketing tools
Retargeting engines
Media houses
E-mail marketing tools & agencies
Mobile marketing Marketing automation tools
Influencer marketing agencies
and more…
More help in customer acquisition Erosion of trust in commerce
55%
of consumers don’t trust companies
they buy from as much as they used
to
65% of consumers don’t trust
advertisements
71% of consumers don’t trust sponsored
social media ads
Sources used: IAB, HubSpot

A conglomerate of technological and socio-economic factors is changing the way people consume
goods and think about ownership/wealth
TECH SOCIAL ECONOMIC
Enhanced access Experience first Need for lower prices
Cloud & Big Data
83% of enterprise workloads will be in the
cloud by 2020
Sources used: Forbes, Gartner, Statista, Digital Market Outlook, Goldman Sachs, Global Web Index
IoT
There will be 20.4 billion IoT devices by
2020
5G
By 2021, the number of 5G connections
to reach from
20 to 100 million
Seamless Payments
Mobile payment trx volume:
$275 billion by 2021
Millennials & Gen. Z
Millennials to outnumber Baby Boomers in
2019 and Gen. Z to outnumber Millennials by
2034
NOwnership
74% of young consumers prioritize
experiences over ownership
Digital Natives
Millennials and Gen. Z spend around 7
hours/day online
Users, not owners
Millennials and Gen. Z want to use goods
but can’t afford buying
Collaborative Consumption
Nearly 30% of 18-29-year-olds
participates in collaborative consumption
Weconomics
Projected total crowdfunding raised by
2025: $300 billion
Less to spend
Generation X and baby boomer households
have a family income that is 11 percent and
14 percent higher, respectively, than that
of demographically comparable millennial
households

The needs and expectations of both, consumers and businesses, imply the demand for a new
distribution model
Consumer Business
WANTS
• Want access to everything that’s new
• Want products and services delivered instantly
• Want superior customer experience
DON’T WANTS
• Don’t want to pay upfront
• Don’t want to make purchasing decisions too often
• Don’t want to be responsible for remembering about
replenishments etc.
WANTS
• Want revenue predictability
• Want more potential clients
• Up-selling and cross-selling opportunities
• Want lower operational risk
• Want more control over products after transaction
DON’T WANTS
• Don’t want to invest in convincing already convinced
• Don’t want to pay for re-acquisition of customers

The Value-as-a-Service model is the answer…
VaaS is a product distribution model, where companies instead of selling products, shift into providing value (until
recently inseparably bound with their products) as a service.
Consumers pay for having their needs fulfilled instead of for products meant to fulfil those needs.

Distribution of value instead of products responds to the needs of both consumers and businesses
…so, the key expectations and are met
Consumer
• Availability: Customers obtain access
to services that wouldn’t be otherwise accessible
due to high prices
• Convenience: They do not need
to worry about purchases they make regularly, nor
do they need
to make shopping decisions related
to the same products and services repeatedly
• Peace of mind: They don’t need
to worry about losing access to service
or product due to missed payments
Business
• Predictability: Predictable and regular revenue
from a stable customer base relying on an
automated payment collection system
• Range: Broader target market thanks
to offering the product at a lower price, but over a
longer period
• Customer loyalty: Profound knowledge
of customers’ preferences
and the ability to tailor marketing activities aimed
at enhancing customer loyalty

POWERED BY
The rapid development and proliferation of the Value-as-a-Service model is shifting the paradigm –
bringing new opportunities as well as new challenges
Tailoring the
product/service
Retention vs.
acquisition
Customer’s impact on
the offer
Lasting lifetime
relationship
• The subscription model is not a universal go-to solution for all types of businesses
• The frequency and regularity of the product/service usage is a crucial factor
• Customer retention and high customer satisfaction levels are of key importance as customers become
members of a club with access to a particular product or service
• Traditional customer acquisition activities are of secondary importance as they often depend on the satisfaction
of existent customers
• The offer should be constantly reviewed and tweaked to maintain high levels of customer satisfaction
• Long-standing customers have different expectations from newly acquired ones
Due to the transition from discovering value at initial purchase to a long lasting relationship, the subscription model
is much more customer-centric and nimble, i.e. :
• Fast time to value
• Product value realization and maximization
• Smooth, transparent renewal with value-add expand options
HOSTED BY

Those are featured by new (or redefined) metrics to track and take care of
CAC
LTV
MRR
Churn Rate
ARPC
Payback Time
Cost of Acquisition. A good, old acquaintance of yours.
Still requires tracking. Plays a key role in most equations.
Monthly Recurring Revenue. It includes all the money your customers pay
you every month. It does not include one-off transactions.
The estimated income generated by a single subscriber in throughout the
period they remain a subscriber.
The percentage of subscribers who’d unsubscribed in the analysed period.
Includes Voluntary and Involuntary Churn.
Average Revenue Per Customer.
Time needed to for a subscriber to generate the amount spent for their
acquisition.
Marketing Budget
No. of Acquired Customers( )
ARPC
Churn Rate( )Gross Marginx
Total Monthly Revenue
No. of Paying Customers( )

So, how to strike the balance between acquisition and retention?
LTV : CAC
1:1
3:1
4:1
5:1
You need to do something about it right now. It means that you spend too much
on acquisition as your new clients will never cover the amount you invest in
getting them in.
Your acquisition spend is optimised. However, some say that young startups
should not look at this ratio as a benchmark. While building your subscriber base,
you can accept 1:1 or even 1:2.
You should spend more on customer acquisition as you are not making the
most of your commercial potential.

So, how to strike the balance between acquisition and retention?
Acquiring a new customer is 5x as expensive as
retaining an acquired one
REDUCE CHURN
Sources used: NBRI, ChaoticFlow
Voluntary Churn Involuntary Churn
High Voluntary Churn Rate means that
subscribers either don’t like your product
or they like your competitors’ much more
Usually stems from payment-related
issues
COMMUNICATE
PROVIDE SUPPORT
BUILD A COMMUNITY
ACCOMPANY USERS THROUGHOUT
THE LIFECYCLE
AUTOMATE PAYMENTS
CHARGE CARDS SMARTLY
TRY CARD UPDATER SERVICES
COMMUNICATE (AGAIN)

Thank you
for your attention!
linkedin.com/company/straal
facebook.com/StraalPayments
@Straal_

MICHAŁ LEMAN
MANAGING DIRECTOR, FLIXBUS POLSKA
ABC OF CUSTOMER LOYALTY BY FLIXBUS = AI, BI, CUSTOMER HAPPINESS (NPS)

>350,000
Daily connections
>2,000
DestinationsMarkets
29
>7,000
Drivers Employees
>1,200>300
Passengers
>100m
1,700
Buses
4
Trains
14
OfficesTransport partners
today

Loyal customer comes back because of
the quality & product not loyalty points!
Loyalty rewards means that your quality
& product are not good enough!
FlixBus provides regular transportation
product => customer loyalty is critical!
Quality
& product
focus

NPS – one of key targets
Six specific quality dimensions
150 thousand responses per year
NPS – one of key targets
Measured on ride level
Based on customer feedback
150 thousand responses per year

Customer happiness
Business Intelligence
Artificial intelligence
LongwaytoGO

Examples
Customer Service
Pricing & yield
management
Network Planning Customer eXperience
Marketing Operations

THANKYOU FORYOUR ATTENTION!

JAROSŁAW SOKOLNICKI
RETAIL & CONSUMER GOODS INDUSTRIES COUNTRY LEAD, MICROSOFT
THINK BIG: 4 KEYSTOTHE FUTURE OF RETAIL

Industry Map
• ISV Recriutments
ZOFIA Store of The Future
• Microsoft presenting ZOFIA The Store
of the Future
Żabka Store of Tomorrow
• Customer Żabka presenting Store of
tomorrow
ZOFIA Industry Expiriece at StartBerry
• 40 ISV partners 3 zones Restaurant of
the future, fashion of the future,
grocerry of the future

Utilizesecure
device-
to-device
payment
MOBILE
CHECKOUT
Sendreal-time
offers&
notifications
basedon
customer
location
REAL-TIME
OFFERS
Retail App
Enjoy
20% Off
Our New
Line when
you buy 2
items
Enable
information-rich
experiencesin
store
DIGITAL/PHYSIC
AL INTEGRATION
Givesalesstaffthe
datatodelivera
personalized
in-storeexperience
EMPOWERED
WORKFORCE
Improveoperationsbyactingondatainsightsand
evolving
businesspracticestokeeppacewithrapidchange
ADVANCED
PLANNING
Empoweryourfield
teamswithmobile
devicesandapps
powerfulenoughto
handledaily
business
RETAIL
EXECUTION
Industry Map
Supply chain and mobile workers
Retail App
Welcome
valued
customer!
Sendreal-time
offers&
notifications
basedon
customer
location
REAL-TIME
OFFERS
Retail App
Enjoy
20% Off
Our New
Line when
you buy 2
items
20%
OFF
NEW!
$
Retail AppJack
et
Boo
ts
Dres
s
$
$
$
TOTAL:
$$$
Blue
Green
White
WISH LIST
WISH LIST
Retail App
Other
colors
available
PURCHASE
Boots $
BUY
ORDER PICKUP
INTERAC
TIVE
KIOSK
Twitter
Love these
shoes!
#Retailer
EmployeeApp
CLICK &
COLLECT
Retail App
Retail App
`
Headquarters
Plastream
MovStat
Office 365
One2Tribe
Future Mind
MessengerFox
Office 365
Billenium
Nanovo
ShelfWise
NoaTech
Future Mind
Synerise
Synerise
Cloud on Mars
Spark Beyond
Synerise
Future Mind
Office 365
Cloud on Mars
Spark Beyond
Integrateclick-and-
collectandcustomer
wishlistsinto
inventorydecisions
REAL-TIME
INVENTORY
MANAGEMENT
Collectdatathroughcustomer
opt-intopersonalizethe
shoppingexperience
PERSONALIZATION
Gaugecustomer
sentiment&trends
throughsocialmedia
SOCIAL
ENGAGEMENT

Product Customer

Intelligent
Customer
Journey

Connected
products

Project for
Whisbear -
Connected products

Individualization

LET’S HAVE SOMECOFFEE…
WE’RE BACK IN 15 MINUTES

Mehmet Ozer
STRATEGIC ACCOUNT MANAGER, INSIDER
GETTINGYOUR USERSOVERTHEWALL:
HOWTO BUILD LOYALTY IN SUBSCRIPTION-BASED BUSINESS

Outline
● Intro
● Wind of Change
○ the Traditional Monetization Model
● Where Do We Go From Here
○ New Monetization Models
● The Trade Off & The Solution
○ A Step In the Right Direction; New York Times (NYT)
○ An Example to Follow; Wall Street Journal(WSJ)
● About Insider
● Q & A

Mehmet Ozer
Strategic Account Manager
Insider

Wind
of
Change

Traditional Monetization Model
Relying solely on ad revenue through
traditional advertising to drive business,
pay salaries and stay a float.

Dawn of a New Era; AdBlock
the procrastinator who wrote
the source code of Adblock
in 2002
Adblock gets its hands on
the source code in 2006.

Where do we go from here?

New Monetization Models
● The affiliate link
○ effective and organic strategy when done successfully
● The native advertising
○ often proves to be more successful for both publishers and
advertisers

the Trade-off & the Solution

New Monetization Models
● Direct Sale approach
○ most straightforward
○ suffers from the possibility of a consumer finding the same
content for free
● Free at First(Freemium)
○ excellent strategy for short-term growth
○ unsustainable in the longer term
● Soft Paywall
○ free access to digital content for a limited time or for “x” number
of articles

What the heck is a paywall?
A paywall is a method of restricting access to content
via a paid subscription.
Beginning in the mid-2010s, newspapers started
implementing paywalls on their websites as a way to
increase revenue after years of decline in paid print
readership and advertising revenue.

A Step In the Right Direction; NYT
New York Times Model
● Step 1: 5th article
● Step 4: 10 items consumed, mandatory to
subscribe

an Example to Follow; WSJ
● Subscription prediction model that allows WSJ to show; different
visitors, who have different likelihoods of subscribing, different levels
of access to its site.
● Non-subscribed visitors to WSJ.com each receive a propensity score
based on more than 60 signals

“Your first exposure isn’t going to get you to pay $40 a
month. Instead, think about where customers are in
the journey and create an experience that meets
that journey.”
an Example to Follow; WSJ
Karl Wells
GM Wall Street Journal Membership, Subscription
Sales and Marketing

Likelihood to Engage
Recency
Content
Categor
y
Landing
Page Type
Frequenc
y
Session
Duratio
n
Pageview
/Session
Device
Type
Traffic
Chann
el
Ad
Impression
s
Reading
History

Likelihood to Engage; High
Visit
frequency
Device
Type
Traffic
Channel
Pageview
/Session

Likelihood to Engage; User Based Scoring
0
10050
Free Content
X Free Content
Left
Splash Screen
Ask for Subscription
X
Threshold is auto
adjusted and tested
by the algorithm for
optimization

About Insider

About Insider
Insider Growth Management Platform (GMP) helps digital marketers drive
growth across the funnel, from Acquisition to Activation, Revenue, and
Retention from a unified platform powered by Artificial Intelligence and
Machine Learning.
Team
Members
400+ Offices
19 Continents
4
Google Technology Partner in
the area of Website Optimization
Backed by Sequoia Capital
(Investor of top tech firms
like Facebook, Whatsapp,
Instagram, Google, and etc)

Top brands all over the world trust Insider with their digital
growth

MICHAŁ SZKLARSKI
HEAD OF DIGITAL SOLUTIONS, E-POINT
HOWTOTUNEYOUR E-COMMERCETO PWA
(PROGRESSIVEWEB APP)?

How to tune your
e-commerce to
PWA (Progressive
Web App)?

About me
Michał Szklarski
Head of Digital Solutions
+48 512 152 876
mszklarski@e-point.pl
➔ CyberSec
➔ Startups
➔ e-commerce @ e-point
➔ Research&Developme
nt: PWA, hybrid apps,
payments

78% of their time
smartphone users
spend in at most
78
% 3
applications!

Facebook Google Chrome Chat apps

Number of applications @ Google Play
Store
0
1 000
000
2 000
000
3 000
000
4 000
000
Źródło: Statista, 2018

77%of users are not
entering again
applications 72h
after installation on
their device

Customers love, when it just works...

Downloading and
installation
First open
Registration / other key activity
Usage - user retention
Searching
Awareness

Monitoring user
behaviors (feedback)
Performance - loading and
working (reaction time)
Quality, stability
Frequent and continuous
updates + bug fixes
Seamless work on many
types of devices
Simplicity in
construction,
minimalism in UI
How can we improve customer retention?

0 2 4 6 8 10 12 14
Szacowany czas ładowania strony (w
sek.)
Pre-bounce rate: how many customers will resign when loading
time is about...
100
%
80
%
60
%
40
%
20
%
0
%

If your e-commerce makes 10k EUR daily,
then 1 second of delay in reaction time might be worth a 250k EUR loss for your e-
business.
7% conversion rate
loss
1 second
of delay in reaction time of e-commerce might
cause...

v
s
Mobile WWW Dedicated mobile applications

Desktop
Smartfon
Tablet
Przeglądarka
WWW

Engagement vs. discoverability
Engagement
Discoverability
Mobile webpagesApps

Fast, reliable and working off-line
Near-instant loading. (less than 2 sec. if service
workers used). Loads instantly even if offline. Uses
pre-prepared screens or cached information to
provide operability.
Installable
Doesn’t need to be installed via App/Play Store. From
your web browser you can add it via quick action - add
to home screen.
Loads as quickly as standard desktop or mobile
application.
Mobile-first focused
Mobile first approach - flexible UX, tailored for
smaller screens and gestures. As native-like as
possible, this is main goal.
PWA - web as application
PWA - Progressive Web
App is a site which uses
state of the art
technologies to make an
app look and feel like a
fast, pre-downloaded
desktop or mobile
application.

manifest.json
{ "name": "MojaApka",
"short_name": "MyApp",
"start_url": ".",
"display": "standalone",
"background_color": "#fff",
"description": "A simple MyApp.",
"icons": [{
"src": "images/touch/homescreen48.png",
"sizes": "48x48",
"type": "image/png"
} , …] }

Case I
FULL PWA & MOBILE
EXPERIENCE
For complex/high performance needs &
solutions
● Assumes replacement of existing site/application interface with
customized version based on front-end frameworks (Angular,
React, Vue)
● Intended for implementation in following application spaces:
○ Customer Service
○ Transaction processing systems
○ News portals
○ Business / Customer B2B Interface

Case II
PWA TUNING
of existing Site/App - baseline
PWA● Based only on your existing site/www app
● 3 main phases & key deliverables:
○ Situation analysis, PWA audit (Lighthouse) & findings report
○ Adaptation of existing interface to PWA requirements
○ Post-implementation report, site monitoring & „best practices”
suggestions

Alibaba.com
Alibaba.com is the world’s largest
online business-to-business (B2B)
trading platform, serving 200+
countries over multiple regions.
After upgrading to PWA
(Progressive Web App),
Alibaba saw up to 74%
increase in total mobile
conversions

George.com is a leading UK clothing
brand, part of the Walmart group.
After upgrading to PWA, George.com
experienced:
★ 3.8x - faster average page load
times
★ 2x - fewer
rejections/”bounces”
★ +31% - increase in site
conversion rate

Konga
Launched in 2012, Konga is a leading e-
commerce website in Nigeria that sells
everything from books to fridges to mobile
phones . Site serves around 1,000,000
users monthly. After migrating to PWA,
Konga saw:
★ 92% less data used in first load vs.
native app
★ 82% less data used to complete
transaction vs. native

Mobile WWW +
AMP
PWA Hybris Apps Native

THANKYOU FORYOUR ATTENTION
IT’STIMETO RELAXAND DO SOME NETWORKING
We’d much appreciate your feedback
hello@wets.com.pl

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Warsaw Ecommerce Tech Sessions VOL. 3

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