Peter O'Connor 2 - HSMAI Europe

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Presentation.

Wirtschaft & Finanzen

26/02/15

©
Peter
O’Connor,
Essec,
2015
1

The Challenge of Conversion
Dr.
Peter
O’Connor

Essec
Business
School

Ques?on
1

How
will
people
ﬁnd
your
site(s)?

26/02/15

©
Peter
O’Connor,
Essec,
2015
2

Ques?on
2

Why should customers book
on your site
(rather than elsewhere)?
Conversion

No
point
in
geLng
them
to
your
site
unless
you

can
sell
to
them

26/02/15

©
Peter
O’Connor,
Essec,
2015
3

The
Customer
Acquisi?on
Equa?on

Cost
Per
Click

Luxury
Hotel
Paris

€
0.50

26/02/15

©
Peter
O’Connor,
Essec,
2015
4

26/02/15

©
Peter
O’Connor,
Essec,
2015
5

European
Average

Conversion
Rate
From
Paid
Search

3%

So….

CPC
=
€
0.50

Conversion
rate
=
3%

0.50
*
100
/
3

Customer
Acquisi?on
Cost
=
€16.78

26/02/15

©
Peter
O’Connor,
Essec,
2015
6

So….

CPC
=
€
0.50

Conversion
rate
=
3%

0.50
*
100
/
3

Customer
Acquisi?on
Cost
=
€
16.78

Shopping
cart
value?

€100

Distribu?on
cost
=
17%

26/02/15

©
Peter
O’Connor,
Essec,
2015
7

Cost
Per
Click

Luxury
Roman?c

Weekend
Break

Paris

€
27.50

So….

CPC
=
€
27.50

Conversion
rate
=
9%

27.50
*
100
/
9

Customer
Acquisi?on
Cost
=
€
300.00

Shopping
cart
value?

€3000

Distribu?on
cost
=
10%

26/02/15

©
Peter
O’Connor,
Essec,
2015
8

What
can
you
play
with?

CPC
=
€
27.50

Conversion
rate
=
9%

27.50
*
100
/
9

Customer
Acquisi?on
Cost
=
€
300.00

Shopping
cart
value?

€3000

Distribu?on
cost
=
10%

26/02/15

©
Peter
O’Connor,
Essec,
2015
9

So
how
do
you
get
it
up?

26/02/15

©
Peter
O’Connor,
Essec,
2015
10

Get
them
to
stay!

26/02/15

©
Peter
O’Connor,
Essec,
2015
11

Sala
Silvermine,
Sweden

26/02/15

©
Peter
O’Connor,
Essec,
2015
12

26/02/15

©
Peter
O’Connor,
Essec,
2015
13

Video
can
be
very
powerful

Reassurance!

26/02/15

©
Peter
O’Connor,
Essec,
2015
14

26/02/15

©
Peter
O’Connor,
Essec,
2015
15

Get
them
to
pay!

Create
a
sense
of
urgency

26/02/15

©
Peter
O’Connor,
Essec,
2015
16

26/02/15

©
Peter
O’Connor,
Essec,
2015
17

26/02/15

©
Peter
O’Connor,
Essec,
2015
18

26/02/15

©
Peter
O’Connor,
Essec,
2015
19

Get
them
to
pay
MORE!

Cross-‐Selling
/
Up-‐Selling

26/02/15

©
Peter
O’Connor,
Essec,
2015
20

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Peter O'Connor 2 - HSMAI Europe

1. 26/02/15 © Peter O’Connor, Essec, 2015 1 The Challenge of Conversion Dr. Peter O’Connor Essec Business School Ques?on 1 How will people ﬁnd your site(s)?

2. 26/02/15 © Peter O’Connor, Essec, 2015 2 Ques?on 2 Why should customers book on your site (rather than elsewhere)? Conversion No point in geLng them to your site unless you can sell to them

5. 26/02/15 © Peter O’Connor, Essec, 2015 5 European Average Conversion Rate From Paid Search 3% So…. CPC = € 0.50 Conversion rate = 3% 0.50 * 100 / 3 Customer Acquisi?on Cost = €16.78

6. 26/02/15 © Peter O’Connor, Essec, 2015 6 So…. CPC = € 0.50 Conversion rate = 3% 0.50 * 100 / 3 Customer Acquisi?on Cost = € 16.78 Shopping cart value? €100 Distribu?on cost = 17%

7. 26/02/15 © Peter O’Connor, Essec, 2015 7 Cost Per Click Luxury Roman?c Weekend Break Paris € 27.50 So…. CPC = € 27.50 Conversion rate = 9% 27.50 * 100 / 9 Customer Acquisi?on Cost = € 300.00 Shopping cart value? €3000 Distribu?on cost = 10%

8. 26/02/15 © Peter O’Connor, Essec, 2015 8 What can you play with? CPC = € 27.50 Conversion rate = 9% 27.50 * 100 / 9 Customer Acquisi?on Cost = € 300.00 Shopping cart value? €3000 Distribu?on cost = 10%