Tuesday, April 14, 2015

Customer Retention Rate Optimization (CRRO) - The Next Big Challenge For Digital Marketers

The mushroom growth of e-commerce websites and the emergence of niche sites for almost every vertical have made the online marketers think about the next biggest challenge in the world of digital marketing and that is customer retention rate optimization. I prefer to call this CRRO in short. 

CRRO consists of strategies which helps any company to retain it's customers and increase the repeat flow of orders. Due to strong competition and wide variety of options, customers tend to change their mood often. CRRO helps to analyze the behavior of customers and helps them to segment and customize their products in a manner that initiates a positive flow of orders.

What is Customer Retention Rate?

Customer retention rate is the total number of customers you are able to keep during a period with respect to the number you had at the start of your period. 

How to Calculate CRR?

The formula for calculating CRR or the customer retention rate is:

CRR = ((E-N)/S)*100


Customers at the start of the reporting cycle - S

Customers at the end of the reporting cycle - E

New customers acquired during the reporting cycle - N


Let's proceed with an example to have a more clear idea. Suppose, my e-commerce company selling wallets online had 1,500 customers at the start of the reporting cycle. During the cycle that was 6 months long, I acquired 500 new customers. At the end of the cycle there were 1,900 customers.

Going with the above formula, we have the following values:

S = 1,500

E = 1,900

N = 500

Now, the CRR for my site will be:

CRR = ((E-N)/S)*100 or ((1900-500)/1500)*100 = 93%

Hence, the customer retention rate for my site is 93% or in other words, I was able to retain 93% of my customers. 

Now for the next reporting cycle, my values will get changed and the new value of S will be 1,900. Similarly we will keep on calculating the new CRR. 

CRR = ((E-N)/S)*100

Revenue Retention Rate (RRR)

Same as customer retention rate, we also have revenue retention rate that tells us the rate of renetion of money. 

How to Calculate RRR?

It is calculated in the same way as the CRR. 

RRR = ((E-N)/S)*100


revenue at the start of the reporting cycle - S

revenue at the end of the reporting cycle - E

revenue from new customers acquired during the reporting cycle - N

Sometimes, it might happen that you can have high CRR but a low RRR which means the company was actually able to retain customers but their AOV (Average Order Value) was reduced. This means the company was able to derive low profits even after having a high retention rate.

A combination of CRR and RRR provides us some great insights as to where should we actually focus our strategy in order to generate the maximum revenue. 

Flipkart, Amazon, Jabong, Yepme - Who is Getting the CRRO Right?

India's leading ecommerce brands Flipkart, Amazon, Jabong, Yepme are all busy bringing in new customers but are they implementing strategies to retain their existing customers and increase their average order cart value. Remember, if they are able to retain 1 million customers having an average order cart value of INR 200, overall value will be INR 20 million. On the other hand, if the average order cart value is INR 50 and the customers are 1.2 million then overall value will be 6 million. So, even after increasing the customers to around 20 lakh, the total revenue earned by retaining the customers and maintaining the average order value is far ahead. Henceforth, the next biggest challenge for ecommerce companies will be to retain its customers and ensuring they keep on ordering from the site. 

Now, the question arises as to how we can do it. So, let's the see the various methods and strategies for customer retention optimization strategies. 

1- Perform Cohort Analysis

Cohort Analysis is a great way to identify the customer retention rate of your customers during the past week, month or year. This analysis can be found under Google Analytics. For more help, please visit: Cohort Analysis Report in GA

2- Offer Customized Coupons and Incentives to Every Customer

A great way to increase repeat orders is to offer customized coupons and cashbacks to customers based on their order history. Suppose, if a new customer orders products worth $100 then you can issue a cashback of $20 on their next order (after determining your profit percentages). This way you will ensure that your customers keep on coming to your site and collect their cashbacks for future orders. 

Soon, customers would be overlapped with so many cashback offers that you will need to plan something new for it. The best strategy is to think uniquely. How about offering customers free product of their choice within a specified price range after he has purchased a certain number of products and also keeping him engaged by telling him that if he purchases some more products then he is eligible to receive gifts from x range of products. 

3- Cross Sell and Up Sell

Cross selling means selling 2 or more products instead of 1 product. Marketers can effectively use cross selling to ask the customers to buy XYZ product with the ABC product they are already purchasing. 

Upselling means providing the customers with an option to purchase a high priced alternative of the same product choice of the customer in order to generate more profits.

4- Unleash the Power of Referrals

Referrals is a great way to increase conversions. Offer your customers incentives and discount coupons if they refer someone to sign up for your store. Also, provide referral points to every customers for every group joining. The more creative you can become with this strategy, the better conversions you will receive.

5- Provide Extra Incentives to Loyal Customers

How about providing some extra gifts and discounts to your loyal customers? Yes, for every company, the best customer is the loyal customer because besides increasing the retention rate, they also help to do the word of mouth promotion which in today's world is rare to find. 

So, what are your strategies for customer retention rate optimization? Please share with us in the comments below.

Also See:

Wednesday, April 8, 2015

Myntra.com Shutting Down It's Website and Focusing on Just App To Increase Sales!

This might sound weird! One of the largest E-commerce companies in India, Myntra.com is planning to shut down it's website and moving ahead with their promotion with just it's shopping app. This means, no website for desktop users, no special site for mobile audience, only an app to serve the customers. This might sound scary for the investors but Flipkart.com which acquired Myntra.com recently isn't scared of losing revenue with it's bold move because in the long run, it might prove an excellent sales generator. 

Myntra is set to close on May 1. How profitable is it to move ahead with an App only strategy. This is what the future awaits! Myntra has just showed us the way. For E-commerce sites to succeed in future, they need more than just a website to succeed, they need an app and that too with a strong database of users who are ready to order repeatedly with the app installed in their mobile devices.

Myntra claims that around 85 percent of all users come to the site via the app anyway, and the app helps in generating 63 percent of the overall sales. Moving ahead with an app only strategy will help the company to focus their marketing strategy only on the app and increase both the percentage count to as much as possible.

In a recent interview to NDTV, Prasad Kompalli, Myntra head told "Mobile apps are the best platform for Myntra today," says Kompalli, "as they allow you to integrate with contacts, calendar, and camera, which can be used to improve the user's experience in a number of ways."

Myntra has around 4 million monthly active users and on some days, around 90% of the traffic is generated with the help of app. These are whopping percentages and forces us to believe that people are more than satisfied to complete purchases using an app instead of a website. App shopping is convenient and easy.

(The Trio Power - Mukesh and Binny Bansal of Flipkart with Myntra head Prasad Komli) 

If you are an e-commerce provider and you don't have an app, it's time for you to think again as the users are more reluctant to shop with the help of an App.

Flipkart Might Shut Down It's Website

If the testing with it's sister site goes well in terms of revenue, Flipkart will soon go app only because in the longer run it is easy for the Indian Ecommerce giant to retain customers and increase revenue with the help of just app. It is worthy to note down that Flipkart has already shut down it's mobile website. So, is it the time to shut down the main site as well? Not now but yes they might in future. 

SEO for APP Only World

Take it or leave it - App Store Optimizers Will be in great demand in future! 

How Do Users Find Any App?

As per the Neilsen survey, App store leads the search followed by friends/family and 3rd party websites.

Hence, optimizing your apps's presence in app store matters a lot and the big difference happens in branding as the second most followed channel of app findability is through friends. It becomes necessary for app marketers to plan a suitable branding strategy for app promotion that helps to not only promote their app online but offline as well. 

Channels Used for Promoting An App

The following channels are noteworthy in app promotion:

1- App stores (Apple App Store and Google Play) app visibility organically. Best if it gets listed in the featured section.

2- Word of Mouth promotion through family and friends.

3- Advertisements in other channels of marketing like T.V., Newspapers, Radio, Billboards etc.

4- Reaching potential customers via social media.

5- Featured app review on leading 3rd party websites.

What To Take Care Of?

While Doing App Store Optimization, you need to make sure, the following factors are taken good care of:

1- App Title (Should have keywords in it (brand name+keywords is the best strategy to follow).

2- App Description (Should have keywords in it)

3- App Category (Proper category should be selected)

4- App deep linking in search results.(For more help, please see this guide

5- App keywords (Should have best keywords) 

6- Proper screenshots and if possible a demo video. (Images attract the users and having a demo video is really helpful)

7- App reviews and Ratings (The greater positive reviews, the better the chances of app download). 

8- App Icon (An awesome app icon helps to improve branding). 

What are your thoughts on the future of App Store Optimization and the need for it? Please share your comments below. 

Also See:

How to Implement Screen Tracking
Mobile App Indexing
App Store Optimization
Mobile Seo Best Practices
List of Mobile web browsers
Seo Tips
Planning a Winning SEO Strategy
How Google Identifies Entities Using Attributes
Trust Button and Persona Pages

Thursday, April 2, 2015

Strategy to Increase Your Brand's Social Value Using Influencer Marketing

So you are ready to give your brand a social boost? Awesome, influencer marketing is a great way to do that. Here is my strategy to increase social shares and importance of any brand. 

Head over to Buzzsumo and find out the top influencers of your industry. Study what type of tweets do they send or more importantly, what type of tweets do they retweet. 

Start Following Your Influencers and Make Them Follow Your Brand 

Once you have the idea, follow the influencer and start tweeting things they like the most. Now, mention your influencer in your tweets and sooner or later they will catch up with your brand and start following it. If they start retweeting your posts or start tweeting about your brand in their tweets, the massive influencer reputation benefit your brand will receive can make it a social superstar. 

Influencers are stars, instead of following every people, follow the superstar and all those who are following the superstar will start following you. Also, make sure to pass on some privileges to your influencer so that they are persuaded to remain connected to your brand. 

In case you fail with the above strategy then also there is no need to panic. You can make use of other strategies like interviewing your influncer, inviting the influencer for a webinar, for any offline events that you are sponsoring etc. Considering the involvement of your influencer in the events you are promoting can help to increase influencer engagement. 

Top Tools for Influencer Marketing 

In order to help you in your influencer marketing and outreach efforts, here are some great resources and tools:

Traackr - Helps you to discover the right influencers & build your influencer network.

Getlittlebird - Helps in market research, content curation, influencer outreach and social selling.

Sysomos - Rightfully called the search engine for social media.

Topsy - Helps to track social analytics, social search and social trend.

Klout - Suggests content, allows you to share the content and also measures the impact and reach of 
your content. The Klout score is one of the important metrics for judging the social popularity of any individual or social account.

Buzzsumo - One of the best tools I have used so far. Allows you to filter by content or influencers.

Onalytica - Identify content opportunities and influencers using keyword/hashtag. Easily track your ROI.

Great! I guess you have the idea. Please let me know if you have any other ideas to connect with your influencers.

Also See:

How to Do Content Marketing in 2015
Segmented Digital Marketing
Mobile Marketing
App Store Optimization Guide
How to Identify Top Converting Channels Using GA

Sunday, March 29, 2015

How to Set Up Site Search and Configure Reports in Google Analytics

If you have a search button on your site, you probably want to know what people are searching for when they come to your site. This data is incredibly useful for e-commerce websites. This tutorial will help you to know how to set up site search, identify search query parameters and see site search data in Google Analytics.

How to Set Up Site Search?

Sign in to your Google Analytics account, click on Admin - >View Settings.

Under Site Search Settings, set Site Search Tracking to ON.

In the Query Parameter field, enter the word "s" or "q".Click Save Changes.

Where to See Site Search Query Data in Google Analytics?

 Navigate to Behavior - > Site Search - > Overview to find the site search query data.


Here is a step by step video that will guide you to configure the site search query parameter in an easier way.

Also See:

Using Cohort Analysis Report in GA
Macro and Micro Conversions for Online Portals
Learn Analytics FREE
How to Find the Best Day of Conversions Through Analytics
Data Sampling in GA