April 8, 2020
e-Commerce Conference 2018 I Vicky Zachareli’s Speech

e-Commerce Conference 2018 I Vicky Zachareli’s Speech


Good evening, I am Vicky Zachareli, Generation Y’s Head of Market Research … and together we will go through Delikaris Sport case study. And why are we going to do that? First of all, we all agree that gathering data is the best way to start when we want to build a marketing strategy. If we want, however, to move a step forward and make the difference, we need to understand the person itself. How he or she feels while acting online or offline. I will start saying a few words about our partner and us. Delikaris sport has 25 years of experience in the field of casual and sports clothing & shoes, 2 points of sales (physical shop and e-shop) and of course cooperation with the largest brands. Generation Y has 18 years of experience in e-commerce, we are industry leaders with exports in 24 countries, and as you can see, all this experience gained all these years, through so many different countries and cultures… and respectively many industries, allows us to have gained important knowledge, which we gladly return to our clients’ network. Delikaris sport, came to us asking one thing: to build a successful strategy for its’ e-shop growth, giving us full freedom to propose and do, whatever we thought it was most adequate. After discussions, brainstorming and questionnaires… we decided that the strategy we were going to follow was that of long-term growth, thus we would invest to infrastructure which can assure long term growth, as well as current KPI’s improvement. The actions we followed were: Primary Market Research, UI/UX Analysis and Digital Marketing. Regarding the market research, we created 2 basic pillars. Starting with the quantitative Primary Market Research, we made an online questionnaire for our clients, which -after lots of testing in order to assure the quality of data- gave us more than 2000 valid answers, forming the final results. These results were: We created 4 personas among our customers. Not only taking into consideration quantitative and demographic characteristics… but mostly behavioural characteristics, thus, how these personas differed one from another based on each behaviour. In the end of this quantitative research we could know very well our clients demographic-wise, and I am not referring only to gender and age, but also income, family status, living conditions, profession, etc. as well as their behaviour concerning online shopping and sports market, their attitudes concerning loyalty, meaning what they require in order to stay loyal to a brand, also how they understand competition and how they perceive us relating to competition, and finally we could have a really good picture of what our client think of us. If they think we are good, bad, if we can improve or which are the fields where we do really well. No need to mention that all the above was per persona. At this point we were quite satisfied, having a thorough picture of our client. So, we could have just stopped the research there. But this, probably, would not differentiate us from competition. What we wanted was to delve into more qualitative characteristics, the user’s psychological profile. And we made this, through focus groups. So, we formed some discussion groups, where we talked about their mentality, what they think and how they feel when they buy something, we gave them some scripts to analyse and all these were applied to 3 of the 4 initial personas, because the 4th one was considered of low interest, since it was not returning real value fast enough. Through focus groups many conclusions were reached, of course everyone realizes that there are several commercial criteria, since some people care for the price, some others for quality, brand… However, we focused to the fact that all these criteria come from each customer’s different emotions. Why someone cares only for the price? It is because they can’t afford to buy something more expensive, or they feel it doesn’t worth it and also, what can we offer, so that they feel that it does worth it after all, even paying 20 euros more? So, at the end of focus groups, we could talk straight to the consumer’s heart. We finished with the analysis and then the design took over, analysing in turn these personas, matching them with the flows taken from Google Analytics. In this way, we could know what people think, while navigating through our e-shop, why they click to whatever they click. We realised the parts we would could get better at, we detected pain points through navigation, we created new wireframes for a redesign, which we did not get live right away, but we also used usability tests with real users, who were asked to try our new design, then we made a fine-tuning and finally we went live. Our design department suggested some changes, I will describe some of them. Some of them were for purely commercial purposes, others were for functional reasons. For example, concerning the commercial part, if someone checks now Delikaris shop e-shop, they will see that none of the banners, campaigns, promotions, sales in homepage are placed by chance. Everything is placed based on the personas we created and analysed. Each persona has its own space in our e-shop in line with the prioritization we have set. As far as the functional part is concerned, there also were some touches, such as inline validation through checkout which permits users to check if what they are writing is valid, so that we avoid errors during the last steps of purchase, which would ruin the user’s experience. We knew which our audience was, we had segmented it, we knew how it thinks, what it does, we created the means to buy online, the only thing left for us was to form the path, through which we would lead it to our e-shop. And here’s where Digital Marketing gets in the picture. We divided Digital Marketing in 2 pillars. Branding Marketing and Performance Marketing. In Branding our goals were: On top of mind awareness. Our clients know us, even those who are not clients know us… what we really wanted was to be the first name coming into everyone’s mind, when they think of sports gear. The second was new audiences reach. There were some segments with high lifetime value… which we did not have by that time as a client and we wanted to reach. And of course, the referrals. On the other hand, regarding performance marketing, we wanted CPA’s improvement of course, we wanted even more loyal audience… and further consolidation in the segment… with the greatest loyalty to Delikaris Sport, since it covers a big part of the market, therefore we could get a bigger piece of the market pie. Apparently, these people’s characteristics make them ideal for us, or our brand ideal for them. And finally, personalized campaigns per segment. We did not want to use any campaign or communication which was not personalized. Apparently, we used many branding marketing tools, one after another in a predesigned path for the user, likewise for performance marketing. Among these tools, there were some conceptual activations, and I will mention only one of them as an example which I believe that reflects what I was describing before, that we reach and care for the person itself. “Whatever the reason” is started with some short funny videos, based on the 3 personas… and triggered specific feelings, then we created a micro-site contest. Everyone wears sports clothes & shoes, however the reason each one does it, and the occasion they choose to buy them for, is different. What we wanted was to highlight this differentiation. It’s OK, we are not all athletes, so tell us the reason you wear athletic products. So, this led us to user generated content which was reproduced to a great level and led to a post-production video with the activation’s results, which I would like to show you so that you can see the numbers for yourself. One campaign example, which was carried out in the context of our activations. All these had very specific results which exceeded the goals we had set initially for a 12-month period, reaching them in 10 months already. Regarding branding, we increased our audience… and we made it more engaged, both current and new customers. Regarding Performance Marketing, conversion rate was increased by 150%, a really impressive percentage. It is 1,3 now and it is getting higher every day. We also reduced site traffic by 45%. And why is this positive? This means we did not spend money via performance marketing, bringing traffic of people who were not ready to buy. Traffic was reduced by 45% and revenue was increased by 30%. This means we were bringing quality, well targeted and very specific audience. If I have to summarize the results in one index and one result, this is CPA’s reduction by 50%, which means that… we have doubled the value of our capital, without changing its volume. Thank you. Please stay for 3 questions… How were people selected for the focus groups? Our selection was based on the questionnaire we had already sent, and also, we had already created the personas. In this questionnaire we had asked for the participants’ consensus… to use their data in future focus groups, in case we need them, so, we called the people who had given their consensus, we had already categorized them in personas, and additionally we made a last screen through e-mails and phone to finally choose the group members. Can we have more facts about these case study’s personas? It isn’t by luck that we have numbered the personas 1,2,3,4, since I can’t actually share many facts of this research. However, I will give you some hints. There were personas with high lifetime value, who purchased items for many people, really often, who really loved online shopping, and there were personas with low value, cause they were buying very rarely or only for themselves, but still they could buy more than us. You see that there are many criteria and I would not like to get more detailed. Which is the most appropriate advertising tool, using the information we have about the personas? Nothing here is one size fits all. There is not one tool that can be described as the most valuable. And I will explain why. We, as a team, taking a research’s results, move on with brainstorming sessions, with Marketing Department, Marketing Consultants, Business Strategists, where everyone may have a different opinion. Even though I might prefer a segment with high lifetime value and a specific way to reach it, the performance marketing department might inform us that the CPA is really high too, so this channel or persona is not the best choice after all. So, this is a strategy built taking into consideration several things… and different departments’ point of view. Market research gives the personas, but feedback is also necessary from the Marketing and the Consultancy Departments. The decision is overall. How many online orders did you have for 2017? Even if I could share this information, I don’t quite remember. However, the transactions were increased, regarding order volume as well, apart from the basket. And a final question in English… How did you match the personas with GA flow? Did you make 3 checkout processes?

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