customer base

Dynamic Ad Units Said to Deliver Strong ROI

source: http://www.marketingcharts.com/wp/topics/viral-marketing/fbx-dynamic-ad-units-said-to-deliver-strong-roi-36124/?utm_campaign=rssfeed&utm_source=mc&utm_medium=textlink

Kenshoo-FBX-Units-Performance-Aug2013Facebook exchange (FBX) units can deliver an ROI comparable to other search and direct response channels, but that’s more likely to be the case for dynamic than static units, according to new data released by Kenshoo Social. Based on more than 1 billion ads delivered through Kenshoo Social during the first half of the year, the research indicates that the average ROI for dynamic ads was $8.10, a figure on par with the $8+ average for Kenshoo’s overall customer base, which includes search, social and direct response clients.

Tags: , , , , ,

Friday, August 23rd, 2013 digital No Comments

Small Businesses Favor Tactics that Balance Customer Attraction, Retention – eMarketer

source: http://www.emarketer.com/Article/Small-Businesses-Favor-Tactics-that-Balance-Customer-Attraction-Retention/1009794

Small business websites widely seen as most effective marketing technology

Small businesses, frequently strapped for both time and cash, often need their marketing dollars to work double time—using the same resources to attract new business and retain loyal customers.

Online marketing service provider Constant Contact conducted a survey in October 2012 of 1,305 small businesses and nonprofits from its customer base to see how different tactics and channels balanced customer acquisition with customer retention.

Respondents were most likely to say that their website struck an effective balance: 77% said the site was well-suited both to engaging existing customers and attracting new ones. A majority of respondents felt similarly about their blog (69% said it was effective at both tasks) and their social media marketing efforts (60%).

Tags: , , , , , , , , , , , , , , , , ,

Thursday, August 22nd, 2013 news No Comments

drag2share: Facebook Remains The Largest Social Media Crowd Draw On iOS, But It May Be Slipping

source: http://feedproxy.google.com/~r/businessinsider/~3/xrORsJ2JT6w/facebook-sees-a-decline-in-ios-users-2013-7

Facebook remains by far the most popular social media platform on Apple’s mobile operating system. But recent data indicates Facebook’s app may be losing some of its grip on iOS users.

In June 2013, 73% of U.S. iOS users opened the Facebook app at least once on their tablets or smartphones. That’s an impressive number, since it means that three-fourths of the iOS population can be counted as Facebook monthly active users.

But that figure was actually a six percentage point decline from July 2012, when 79% of iOS users opened the Facebook app.

The findings were in U.S. data provided by Onavo Insights. Onavo’s data is aggregated from users of its data management apps such as Onavo Count and Onavo Extend, and does not include Android usage.

Also since the data is from users of a single company’s apps, it’s necessary to take it with a grain of salt. (Onavo’s data-conscious iOS customer base may have different habits than the general mobile population.)

However, Onavo does offer a rare glimpse across a large swath of the U.S. iOS user base. The company’s apps have “hundreds of thousands of U.S. users” on iOS, including iPad users, Onavo said.

Meanwhile, some of the smaller social media platforms have been growing or maintaining their penetration into the iOS user base.

  • Twitter has kept its numbers steady, with 25% to 27% of iOS users over the previous 12-month period.
  • Pinterest’s mobile app was opened at least once by 11.4% of U.S. iOS users during June 2013, compared to 7.7% who did so in July 2012.
  • LinkedIn’s mobile app was opened at least once by 9.7% of! U.S. iO S users during June 2013, compared to 5.1% who did so in July 2012. The company launched a redesigned iOS app in April of this year, which could be helping to draw in more iOS users.

As a large, multi-featured social media service, Facebook may be experiencing the first signs of user loss to more focused competitors, such as social photo messaging app, SnapChat.

Download the chart and data in Excel.

BII_Social_iOSPenetration


drag2share – drag and drop RSS news items on your email contacts to share (click SEE DEMO)

Tags: , , , , , , , , , , , , , , , ,

Wednesday, July 24th, 2013 news No Comments

Amazon Has An Estimated 10 Million Members For Its Surprisingly Profitable Prime Club (AMZN)

Source: http://www.businessinsider.com/amazon-prime-10-million-members-morningstar-2013-3

jeff bezos kindle fire

Amazon hasn’t disclosed how many people have signed up for its Prime program, which offers free two-day shipping, a Netflix-like video service, and other perks for a $79 annual fee.

Now Morningstar analyst R.J. Hottovy has come out with a report that pegs membership at more than 10 million, and suggests that the program contributes about a third of Amazon’s operating income.

After a slow start, Prime got a huge boost in when Amazon started including a 30-day trial membership with its Kindle Fire tablet in the fall of 2011. Trial programs for moms and students have also helped.

Prime members are great customers for Amazon. In 2012, they were about 4 percent of Amazon’s 182 million active customer base. But they accounted for nearly 10 percent of purchases, because they spend more than twice as much as non-prime customers—$1,224 a year versus $505.

After estimating the cost of providing shipping and licensing videos and e-books versus the marginal profit , Hottovy found that Amazon made about $78 per Prime member in 2012.

While Amazon breaks even on the free shipping and other extras it provides Prime members, the subscription fee is almost pure profit, in other words.

By Hottovy’s calculations, that could grow to 25 million by 2017. Depending on how much they spend, those members could contribute anywhere from $3.2 billion to $9.6 billion in incremental operating profits.

Of course, Amazon CEO ! Jeff Bez os has been known to plow its profits back into new products and lower prices, so shareholders may not see that cash hit the bottom line.

But Hottovy’s research suggests that Amazon’s grand strategy of linking its hardware business—Kindle Fire tablets—with its services—Prime, Instant Video, and its Kindle libraries—are paying off for its core e-commerce business.

Please follow SAI on Twitter and Facebook.

Join the conversation about this story

Tags: , , , , , , , , , , , , , , , , ,

Monday, March 11th, 2013 news No Comments

Here’s The Math Formula For Structuring A Groupon Deal That Doesn’t Lose Money (GRPN)

Source: http://www.businessinsider.com/heres-the-math-formula-for-structuring-a-groupon-deal-that-doesnt-lose-money-2011-12


groupon cupcake girl

We’ve all heard the nightmare stories about Groupon merchants who lost tons of money because they were suddenly overwhelmed with thousands of customers whom they were forced to serve at a loss: The British bakery that made 102,000 cupcakes. The Irish hairdressers whose customer base now consists entirely of people who only want their hair cut a discount. The Portland cafe that lost $8,000 because the owner failed to cap the number of deals she offered.

It’s not just Groupon, of course. There are loads of other daily deal sites — Living Social, Thrillist, Google Offers, etc — but they all present merchants with the same problem: The conflict between offering below-cost deals to customers in hopes of attracting long-term “regulars” and structuring a deal so that you can still make a profit. The math can be tricky because merchants have to account for two different sets of discounts: The discount to the customer and share of the payment taken by the daily deal site for publicizing the offer.

Now TheDealMix, a site that aggregates daily deals into an impressively complicated map of your neighborhood, has produced an infographic that can help businesses calculate daily deal offers so th! at they won’t accidentally go bankrupt.

And, yes, The DealMix has presented its formulas in the form of cupcakes — particularly useful given the number of bakery-related Groupon disasters that have made the headlines.

The formulas include:

Offer Price – Cost of Goods > $0

Average Customer Spend – Value of Offer + Price > Cost of Goods

See the rest of the story at Business Insider

Please follow Advertising on Twitter and Facebook.

See Also:




drag2share – drag and drop RSS news items on your email contacts to share (click SEE DEMO)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Monday, December 12th, 2011 news No Comments

Spending Tons Of Money To Attract New Customers Is A Stupid Idea

Source: http://www.businessinsider.com/spending-tons-of-money-to-attract-new-customers-is-a-stupid-idea-2011-11


If you’ve ever tried to explain the concept of “make new friends but keep your old ones” to a five-year-old, you have a pretty good perspective on how many high-growth businesses approach customer acquisition and retention.  Growing businesses tend to spend so much of their time and money acquiring new customers that they often overlook their best source of growth: retaining and growing their existing customer base.

One of our clients has more than 90 percent of its resources–people, marketing budget, etc.–focused on creating millions of new customers a year. Their business model is based on monthly recurring feeds, much like the cable or wireless industries. Customers come in and they stay…until they don’t. An analysis of the client’s historical data shows that the average customer stays for an average of 2.5 years. Because their customer acquisition cost is lower than their expected customer lifetime revenue, they reach a break-even point in less than two years. So it’s a great business, as long as they keep generating new customers, right?

Wrong. The problem is that as the management team’s growth expectations increase, it gets increasingly harder to acquire more customers. As a result, customer acquisition costs go up and the quality of customers, in terms of how long they stick around, goes down.

To solve this growth dilemma, the client needs to ask three key questions:

  • What revenue growth will we achieve if we keep our existing customers for just one additional month, on average?
  • What will it cost us to do this by, say, improving customer service or adding customer benefits?
  • How does this growth compare, both in magnitude and cost, to acquiring new customers?

The answer for our client will be the same as it is in almost all businesses. It’s cheaper, easier, and more effective to retain current customers than it is to acquire new ones. In fact, if this business can retain all of its customers by just one additional month on average, they can achieve an additional 3 percent of annual growth. If they can retain their customer base for four additional months, they can create double-digit growth–without adding a single customer.

It’s simple math–something that even a five-year-old might understand.

This post originally appeared on Inc.

Please follow War Room on Twitter and Facebook.

Join the conversation about this story »

See Also:




drag2share – drag and drop RSS news items on your email contacts to share (click SEE DEMO)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Tuesday, November 29th, 2011 news No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

Augustine Fou portrait
http://twitter.com/acfou
Send Tips: tips@go-digital.net
Digital Strategy Consulting
Dr. Augustine Fou LinkedIn Bio
Digital Marketing Slideshares
The Grand Unified Theory of Marketing