How to Use Distributed Commerce to Maximise Conversion and Deliver Revenues from Social, Affiliate & Display Networks

1. Onsite vs Offsite eCommerce?
How to Use Distributed Commerce
to Maximise Conversion and Deliver Revenues from
Social, Affiliate & Display Networks
Neil McClements, Merchenta
© Merchenta – www.merchenta.com

2. About Merchenta
• Merchenta intelligently engages consumers with the right merchandise at
the right time – across social, affiliate and display networks.
• Our on-demand behavioural merchandising platform helps retailers
maximise consumer engagement, increase conversion rates and reduce
merchandising costs.
• Merchenta is a division of Fintech Consultants, an award winning
technology consultancy, based in London UK
– Clients include :
• Vodafone : retail kiosk/EPOS solution in 200+ UK stores
• Post Office : online self-service broadband/telco eCommerce solutions (8,000 branches +
2,000 call centre agents)
• BT : white-labelled eCommerce solutions (>GBP 400m revenue)
– Plus many others...
• Orange, Channel Five, BBC, Channel Four, Barclays Capital
• Contact us : hello@merchenta.com
© Merchenta

3. Traditional “Onsite” eCommerce
© Merchenta

4. Roll up! Roll up!
© Merchenta

5. Roll up! Roll up!
© Merchenta

6. Roll up! Roll up!
© Merchenta

7. Roll up! Roll up!
© Merchenta

8. But after all that effort...
%
© Merchenta

9. There is another way...
Distributed Commerce
• Bring the store to the consumer –
wherever they are online
• Treat consumers as individuals –
with their own preferences
• Reduce purchase friction by
enabling ‘offsite’ purchases direct
from the page
• Encourage consumer participation
to share, refer, engage others
• Integrated, joined-up approach to
onsite eCommerce, social
commerce & affiliate marketing
© Merchenta

10. The Rise of Social Commerce
• Massive retail opportunity
– Facebook >500 million active users
– 50% are daily users/~6 hours/day~
– UK 44.2% penetration+
• ‘Social Shopping’
– People trust friends’ advice$
– Average user has 130 friends*
• Profile + product = relevance
– Using behavioural merchandising
• Consumers under-served today
– 25% didn’t know social commerce
was possible#
Sources
~ Nielsen, Aug 2010 / + Inside Facebook, Aug 2010
$ GlobalWebIndex, Jan 2011 / * Facebook, Feb 2011
# Lightspeed Research, Oct 2010 © Merchenta

11. Case Study : Pia Jewellery
Conversion compared to...
• Organic : up 95%
• PPC : up 214%
• Email : up 236%
Facebook MiniStore
• Branding : ~15 minutes
• Curation : ~30 minutes
• FB Setup : ~10 minutes
© Merchenta

12. Innovations in Affiliate Marketing
• Performance marketing is win-win
– How best to integrate channels?
• Fresh, engaging creative essential
– Dynamic IAB-compliant creative
• Affiliate friendly, simple setup
– Embed and forget, self-optimising
• No product feed?
– With behavioural merchandising, no
problem!
• Use analytics for insight
– Tune & refine campaigns in real-time
© Merchenta

13. Case Study : Pia Jewellery
• Concurrent affiliate campaigns
• Range of expandable IAB-compliant
units
– Skyscrapers, Banners, IMUs, etc
– Curated & dynamic (behavioural
merchandising) units
– Network : Affiliate Future
© Merchenta

14. Behavioural Merchandising
• Treat consumers as individuals
– Respectful, one-to-one marketing
– Anonymised with opt-out/opt-in
• Anticipate consumer behaviour
– Deliver the right product to right
consumer at right time
• How does it work?
– Consumer behaviour/psychology
– Product characteristics
– Location etc
• Relevant, timely offers improve
consumer experience
© Merchenta

15. Distributed = Onsite + Offsite
• Distributed commerce improves
reach & sales
– Across social media, affiliate &
display networks
• On-page commerce reduces
friction, engages consumers
– Ideal for impulse purchases
• Simple setup drives uptake
– With or without product data feeds
• Distributed == joined-up
– Unified marketing & technology
strategies essential
© Merchenta

16. Maximise Conversion
• Dynamic spurs engagement
– Ensure creative always up-to-date,
offers are relevant
• Behavioural merchandising
drives conversion
– One-to-one, personalised
marketing to the “98%”
• Combine channels to optimise
acquisition costs
– eg Onsite + performance
marketing across social,
affiliate, display
• Use analytics to test & tune
© Merchenta

17. Thank you!
© Merchenta