state of ecommerce marketing, 2014

THE STATE OF ECOMMERCE MARKETING REPORT, 2014

Analyzing industry trends and data

Sam Mallikarjunan

Sam@MallikarjunanHead of Ecommerce Marketing

@HubSpot

1 Inbound Marketing

Instead of interruptingexperiences people

love…

Inbound Marketing is…

Inbound marketing focuses on creating

them.

How Inbound Marketing Works… and what tools you can use.

Inbound Marketing Adoption Is On The RiseDoes your company do inbound marketing?”

Yes No0%

10%

20%

30%

40%

50%

60%

55%

22%

B2B Leads In Inbound Marketing AdoptionDoes your company do inbound marketing?”

B2B B2C0%

10%

20%

30%

40%

50%

60%

70%

60%

54%

24%21%

IM - YesIM - No

Blogging Adoption Is RisingDoes your company have a blog or similar content channel?

67%

33%

YesNo

Frequent Blogging Is Critical72% of people who saw ROI from Inbound Marketing blog at least once a week, and people who blog are 155% more likely to see ROI from Inbound Marketing.

72%

28%

Blogging - YesBlogging - No

Blogging Drives More Customers From Organic & Direct Traffic69% of companies whose major source of customers was from organic & direct traffic blog at least once a week

Blogging - Yes Blogging - No0%

10%

20%

30%

40%

50%

60%

70%

80%

69%

31%

Companies that blog have an easier time proving ROI than SEO/PPC-only companies

Prov

ing

the

ROI of o

ur m

arke

ting

activ

ities

Secu

ring

enou

gh b

udge

t

Under

stan

ding

my

cont

acts

dat

abas

e0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

13% 14% 14%

26%24%

22%

Blog FocusedSEO & PPC Focused

Educational Content Leads To Higher ROI

IM ROI - Yes0%

10%

20%

30%

40%

50%

60%

70%

80%

12%

76%

CouponsEducational Content

2 Lifecycle Marketing

So easy, pretty, and simple to understand, ain’t it?

The Conventional LinearBuying Process

It’s not an end-stateIt’s an infinite loop

More marketers are adopting pre-transactional conversions

12%

58%

9%

17%

CouponsEducational Content (Guides, Feature Sheets)Aspirational contentNo non-transactional offers

Research PhaseMarketers are not just building a contact list, they’re generating predictable future sales revenue that they can analyze.

C = # of new customers, D = # of downloads, V = Average LTV

Marketers Aren’t Measuring60% of ecommerce marketers don’t know their abandoned cart rate

26%

18%

19%

11%

9%

7%

6%6%

0 – 10%11 – 20%21 – 30%31 – 40%41 – 50%51 – 60%61 – 70%Greater than 70%

Abandoned Cart Nurturing EffectivenessMajority of ecommerce marketers that do measure cart abandonment don’t effectively recover them

43%

23%

12%

7%

7%2%2%4%

0 – 10%11 – 20%21 – 30%31 – 40%41 – 50%51 – 60%61 – 70%Greater than 70%

B2C Marketers More Likely To Nurture CartsB2C companies are 128% more likely to nurture abandoned carts than B2B marketers

B2B B2C0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

16%

37%

84%

63%

YesNo

Email Still Most Popular Cart Nurturing ChannelSocial Media and Direct Phone Call are surprisingly high

59%

11%

5%

14%

8%4%

EmailSocial MediaBlogDirect Phone CallDirect MailOther

Cart Abandonment May Not Be Such A Bad Thing

46%

31%

14%

9%

Spending After Cart Nurturing

More than original amount spentLess than original amount spentDon't spend at allOther

Educational Content Leads To More Spending

Educational Content Coupon Codes0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

38%

29%

15%16%

But Coupons Are Still Most Popular Content

7%

7%

18%

31%

13%

14%

10%

EbooksWebinarsCustomer ReviewsCoupon CodesNewsletterDirect MailOther

Timing Matters In Abandoned Cart Value Recovery

1 – 24 hours 25 – 48 hours 49 – 72 hours 3 - 7 days After 1 week0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

70%10%

3% 3%

0%

56%11%

4% 4%

4%

More than original amount spent Less than original amount spent

Product-related Content Helps Consumers Decide To Buy

Descr

iptio

n of

the

prod

uct (

Text

and

/or T

ext &

Pict

ures

)

Additi

onal

pro

duct

reco

mm

enda

tions

Prod

uct h

ow-to

vid

eos

Prod

uct G

uide

s / E

book

s0%

10%

20%

30%

40%

50%

60%52%

13%6% 8%

37%

17%

5% 5%

More than original Less than original

Communication Personalization Is On The Rise65% of businesses are investing in some form of customer-specific personalization in their marketing

Important Somewhat Important Somewhat Unimportant Not Important0%

5%

10%

15%

20%

25%

30%

35%

40%

37%

27%

8%

10%

36%

30%

11%

7%

EmailWebsite

3 Customer Centricity

Now focus shifts to increasing The Customer Life Time Value

“But I get my business through word-of-mouth…”…there’s a math for that!

On a scale of 1 to 10 (one being very unlikely and 10 being very likely), how likely are you to recommend the Fakasonic VT30 to a friend looking to purchase a new TV?

Customer Centricity Is On The RiseHow would you describe your company?

20%

40%

25%

8%

Sales focusedCustomer focusedProduct focusedMarketing focused

Customer Centricity = Customer Happiness Obsession

Very important Somewhat important0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

69%

26%

95%

4%

Sales focusedCustomer focused

Smaller Businesses Are More Customer-CentricHow would you describe your company?

Customer focused Product focused Sales focused Marketing focused0%

5%

10%

15%

20%

25%

30%

35%

40%

45%42%

23%

19%

8%

35%

23%

27%

11%

29%

40%

25%

5%

Small (1 - 50)Medium (51 - 200)Large (More than 200)

Customer Centric Companies See Higher ROICompanies that saw ROI by company focus

Sales focused Customer focused Product focused Marketing focused0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

21%

44%

21%

9%

Customer LTV Is A Profitable FocusCompanies that saw ROI by LTV focus rating

69%

26%

4%

Very importantSomewhat importantSomewhat unimportant

THANK YOU

QUESTIONS?