Tag: e-commerce strategy

Winners of iPad Mini- Kenscio Motto 2014

A big thanks to all who made Kenscio Motto2014 a splendid success. The compelling reason to drive this campaign was to get an idea on what digital marketing folks have in their mind for this calendar year.

As you all know, that because of a soaring number of entries we have received, we have added another layer to the contest before announcing the final crown (iPAD Mini). In the first round of selection we had 37 winners who have been given a writing instruments as a token of appreciation for taking out their time.

Here are the two winners:

Mr. Boniface Noronha from HDFC Life &

Mr. Inaam Hussain from Interactive Avenues

Kenscio Congratulates to both of you for being part of the contest. We wish you all the luck for your assignments and appreciate your significant contribution and far-reaching vision.

Since a lot of advertisers have burnt their hands in new acquisition (Investing a hefty amount with no sign of CLV and Engagement), now is the time they sincerely feel that retention is the way ahead. We have had some great findings on the basis of the feedback given by all the participants.

On Retention here is the stats how marketers (Who have participated in the contest) have had their road-maps in place for this calendar year.

“Converting Non-Buyers into Buyers” is the focus area for 27% of marketing folks.

–        Out of these 15% want the delivery of relevant and real time content.

–        43% has a vision of doing direct marketing in a highly personalized 1:1 communication.

–        & 42% believe that they should understand the consumer’s behavior, demographics and psychographics in a better way to achieve their marketing objective.

24% marketers feel that “Converting one-time buyers into repeat purchasers” is the first and foremost KRA for them.

–        Out of which 17% has the priority of delivering the relevant and real time content.

–        However, 62% wanted to do the highly personalized and contextual communication.

–         & 21% believe that understanding of Consumer segmentation would be the high intensity objective.

35% Marketing people shown their firm belief in “Increasing the brand loyalty

–        Where 1:1 communication was the priority for 36% of universe.

–        Understanding the consumer segmentation as a whole was the transcendence for 38% of participated contestants.

–        26% of people believe in delivering relevant real time content.

9% of people think that they are more focused towards having the “Repeat buyers with increasing CLV”.

5% want to “Reduce the customer churn rates”.

Let us notify you that the aforementioned retention plan’s stats have been fetched from 12 different and significant industries(Ecommerce, Healthcare, telecom, Banking & Insurance, Travel & Tours, Jobs & Recruitments, IT- hardware, Digital advertising agencies, Retailers, B2B marketplace, Real estate, Education).

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How to survive the eCommerce bubble burst?

Already there have been quite a number of articles and open letters written about Taggle shutting their shop and what direction the existing online retailers are moving.

I was not surprised learning about the burn rates for Myntra, Snapdeal(Pluggd.in) etc. Not too sure about the margins that they make on the each sale. Considering the price of acquisitions for each customer coming in the range of Rs. 1200 to Rs. 2500, I am sure about the revenue generated by that customer must be some thing out of this world – yeah right!

ecommerce bubble burst

The Ad Networks and the Publishers are having their best sales year. Have few friends (Media Sales) who had completed their annual sales target by the end of the second quarter of this year. Dot com players have been pushing hard to earn and grow their marketing lists.

Essentially, it has been a competition among the players to get more and more buyers to register on their website. Considering the current situation every player has been able collect huge numbers. However if we look a bit deeper the calculation of revenue per user has gone for a complete toss. Loyalty towards a retailer means nothing to the consumer as everyone’s initial proposition was and is that I am cheaper than the other guy. In the greed to sell more every retailer took up more orders than they could actually deliver resulting in order cancellations, irritated customers, bad customer reviews.

Net Result – One-night stands or, sour relationships.

The price of acquisition per customer increases many fold the moment you have new customers who are irate. Because, they are not likely to shop again. They are Lost Customers.
How many orders can i fulfill ensuring customer delight in at least 90% cases? This is the math, which needs to be done each morning & not how many orders can I ship today and which ones?

If this is the scenario than maybe we are venturing a decade back when dot coms tried to “Get BIG fast” and crashed by the dozen. According to dot-com theory, an Internet company’s survival depended on expanding its customer base as rapidly as possible, even if it produced large annual losses. For instance, Google and Amazon did not see any profit in their first years. But their timing was impeccable and they made it. Both the companies also ensured Customer satisfaction, which brought loyal customers to them.

A backward calculation of the ROI expected per sale SKU can help determine the maximum cost per acquisition which can be invested. Going beyond this figure would mean eating away not only the marketing bucks but also the operational cost to ensure smoother operations.

It is also a fact that the cost per acquisition is not going to be the same at all times. Infact it is going to be lower- The primary reason being either few players would crash or dry up their marketing bucks :). As it is going to be the last man standing who shall reap the benefits of calculated spends and ensuring customer satisfaction.

Timely interventions bundled with relevant communication to the right audience are always a killer combo. Yes it does require some efforts but it pays having the right mix of Profitability and Growth.

Soon we will be posting more strategic initiatives that a marketer could take up to achieve the mix.

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