Breaking the Kubernetes Kill Chain: Host Path Mount
Original strategy for what phone
1. Page 1Strictly confidential
Click to edit Master title style
A New Australian Mobile
Postpaid Telco Affiliate
( The original strategy for
WhatPhone.com.au )
2. Page 2Strictly confidential
Summary : There is a >$750k a year gap in the AU market for a new
Postpaid Mobile Comparison Site ( Affiliate ) – with unique site
elements shown to raise conversion
What’s the
idea ?
• An AU comparison site targeted at the largest growing segment - mobile
•
• Site will not hold stock – only refer customers to the telcos
• It will only cover postpaid mobile – not broadband etc
• NOTE : THIS IS A STARTING POINT FOR DISCUSSON
How is it
different ?
• It will be focussed on mobile
• Content will be unique, more social , offering informed, personal points of view
• The site has better capability than other comparison sites – e.g. Chat
• Functionality has been prioritised according to impact on conversion
• It’s simple to use – e.g. has only the top 10 devices to choose from
• Customers will genuinely be able to choose within 5 minutes
• There are maybe 4 decent affiliates in Australia for mobiles right now
Why will
customers use
it ?
• They can find the best deal ( save money )
• They can save time – be in land out in ess than 5 minutes
• It’s easy to get the impartial information and they need to decide
• The site has the tools they need to be able to answer all their questions
What’s it
worth ?
( Realistically )
•
3. Page 3Strictly confidential
Business Case 1 : Basic
Worthwhile hobby income starts to develop after a year
-$60,000.00
-$40,000.00
-$20,000.00
$0.00
$20,000.00
$40,000.00
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Realistic Business Case : $45k links. $15k build site, $1k per month enhance : 1% conversion by
month 6, $64 affiliate fee, 2% Monthly UV Growth = 27k after 3 years, 2% conversionGrowth per
month = 1.81% k after 3 years
Monthly Profit Cost Per Month Cumulative Profit
$1,730.47
$77,597.38
$134,046.59
$865.24
$38,798.69
$67,023.30
$865.24
$38,798.69
$67,023.30
$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
Y1 Net Profit Y2 Net Profit Y3 Net Profit
Rikard
Kym
Neil
Link Cost $ 45,307.50
Site Build $ 15,000.00
Monthly Site Enhance $ 1,000.00
Total Site Spend 3 years $ 50,000.00
Affiliate Fee $ 64.00
Conversion 6 months 1.00%
Monthly Conversion Growth 2.00%
Conversion 3 years 1.81%
Uvs 6 months 14590
Monthly UV Increase 2.00%
Uvs 3 years 26428
4. Page 4Strictly confidential
Business Case 2: Optimistic
Raising Conversion to 3% per month growth and UV per month growth to 5%, resulting stats
after 3 years are realistic and income supports replacing current jobs
$6,660.67 $143,518.62
$384,919.90
$3,330.33
$71,759.31
$192,459.95
$3,330.33 $71,759.31
$192,459.95
$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
Y1 Net Profit Y2 Net Profit Y3 Net Profit
Rikard
Kym
Neil
Link Cost $ 45,307.50
Site Build $ 15,000.00
Monthly Site Enhance $ 1,000.00
Total Site Spend 3 years $ 50,000.00
Affiliate Fee $ 64.00
Conversion 6 months 1.00%
Monthly Conversion Growth 3.00%
Conversion 3 years 2.43%
Uvs 6 months 14590
Monthly UV Increase 5.00%
Uvs 3 years 63057
-$80,000.00
-$60,000.00
-$40,000.00
-$20,000.00
$0.00
$20,000.00
$40,000.00
$60,000.00
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Optimistic Business Case : $45k links. $15k build site, $1k per month enhance : 1% conversion by month
6, $64 affiliate fee,5% Monthly UV Growth = 63k UVs after 3 years, 3% Conversion Growth per month =
2.43% after 3 year : Sell $1k per month of content t
Profit Cost Cumulative Profit
5. Page 5Strictly confidential
Insights Overview : A lack of competition means even market leading
affiliates in Australia lack cutting edge site capabilities – an opportunity
for competitive advantage
Video
• Video is a key ecommerce trend AU has largely ignored
• Consistent insights show video can raise sales 30%
• Site will include personal video review videos of key
service aspects : Delivery, network quality, un-boxing
• Video will be used to inform the buying process and will
be available on mobile devices
Video makes
people 30%
more likely to
buy
Chat
• Instant messaging is the primary sales conversion tool for
high value purchases including telecommunications contracts
• It can be efficiently implemented with a PAYG model
• With forecast volumes, one person will be able to cover
the service within the affiliate
7x more likely
to buy
No
No
USP Insight
On Competitor
sites ?
Key Fact
Mobile First
•This site will be designed for mobile devices first
• Mobile is the fastest growing technical trend in history
• 15% of telco sales already come from mobile devices
• Affiliates stand to benefit disproportionately, from mobile –
there is no checkout process to work through – just referrals
15% of sales
are already
from mobile
No
Any Question
Answered
• Questions arising in the chat conversations will be put
in to a database which customers can then search creating a
growing database of useful content
AQA can raise
sales 30%
No
No competitive advantage can be sustained indefinitely –
as with all enterprises, we will have to evolve.
Email deal of
the month
• While in the research phase customers will be able to sign
up to the deal of the month. In the final week of the month,
this database will be sold to telcos under pressure to meet
their monthly sales target
Email marketing is
the fastest growing
acquisition channel
No
6. Page 6Strictly confidential
Insights : Why do people shop online in Australia ?
These drivers will infleunce the site build and on page marketing
‘Why Australians Buy Online’
EConsultancy ANZ Internet Statistics
Compendium Jan 2012
Across all research processes, the internet is
preferred : EConsultancy ANZ Internet
Statitics Compendium Jan 2012
I trust them
They’re easy to use
They help save time
They help me Save
Money
Reasons Consumers Use
Comparison Sites
( Juniper Reearch Jan 2011 )
What do
customers
want from an
affiliate ?
• For years, convenience and the best price have been the primary reasons
customers have bought online rather than in a retail store
• Consumers prefer online for research and almost all of them use online as a
component of their research for electronic products and purchases as expensive as a
mobile phone commitment : Reviews are the most influential research components
• They like comparison sites because they’re credible, easy to use and because
comparison sites will save them time / money
7. Page 7Strictly confidential
Insights : Online Trends in 2011 : Smartphones are is increasingly
important in the buying processes but Australian Retailers have been
left behind by the speed of adoption creating an opportunity
Right :Mobile is the biggest growth technology in
history
But : In Australia :
• 85% of the top 100 retailers are not smart phone friendly
• 6% are not tablet friendly
Below : The Mobile Internet and the Deciion Making Process
• Left : Mobile is an increasing component of the
consideration process.
• People take photos, compare prices watch online
video and read reviews on mobile devices while in
the store
8. Page 8Strictly confidential
Insights : Online Trends in 2011 : Customers are using smartphones to
buy things. Social Media has humanised the tone of online conversations
Channel
Diversification
(Mobile – with Connected TV
coming )
• More than 47% of Smartphone owners use their handsets to buy products & services
• 12% of Telco site page views are on mobile devices
• Almost all of those are on iPhone and Android
• 15% of Vodafone’s sales are already on mobile platforms
• Mobile is “ The single most important trend affecting digital marketers “
• An Optimised mobile site will convert at 3 to 4 times better than not building one
• Don’t be swayed by fancy graphics or pages that take a long time to download.
• Page load Speed is absolutely vital
• Even Whistleout doesn’t have a mobile site or a strategy to build one !
Insights from a variety of current Econsultancy reference documents
Customer Centricity
• Humanisation, driven by the web becoming more social causing the adoption of ‘social values’
including openness, the ability to conect to real people : Humanised technology includes chat, the use
of touch sensitive technologies, live onsite chat, deeper personalisation
• Conversion goes up 66% when there are bad reviews – because the site becomes more believable
• Competition is driving an increasing focus on User Experience but larger companies, including
telcos find it difficult to evolve their site quickly
• The digital environment has become more ‘human’ as companies appreciate the opportunities
available to bring the experiential power of offline to online
•Gamification is a key buzz phrase representing elements of this trend
• Key to success is knowing why people have dropped out of the funnel ( 74% of companies don’t)
9. Page 9Strictly confidential
Insights : Online Trends in 2011 : Good content is required to
win customer visits and stay Google friendly. Video is key.
Source : Econsultancy 1 Online Video A Best Practice Guide July 2011 2 : All other facts from Internet Marketing Strategy Briefing : Key Trends in online July 2011
Content
( & Video especially )
• With PVRs & fragmented, online offering comes a mvmt from bought media to earned media
• Earned media is cheaper to make and word of mouth is the most effective tool
• Online video is one of Gartner’s top 10 technology trends for 2011
• Video content assists with search rankings, links, visitor engagement, informing people to sell to
them and leveraging the long tail of visitors - video is driving sales in every regard
• For most large companies, on average, content is now 33% of marketing spend
• But big brands find it expensive to make and get signed off
• People are watching social videos on mobile devices1 : 10% of You Tube views are on mobiles
• The rise of the ‘second screen – watching TV while people interact with a computing device
including a mobile phone or a tablet .
• There is a greater convergence between mobile, online and video
• Video is rising in particular this year on the back of social media. It is already an expected
part of the user experience and is fast becoming the most powerful way to reach new
audiences.
• Barriers to entry are low – but, when you try, you’re competing with the world’s best
entertainment in a world where people will leave you quickly when they’re not interested
• Video is the biggest competitor to shopping in the store itself
• These days :
•You need to write video with the customer in mind
• You’ve got to know who you’re targeting,
• find out where online they’re likely to be
• Ensure content is the start of the conversation
• You need to think about the lifestyles of the people in your target audience
• Content must be relevant and useful
• More than 75% of Australians watch video on their computers.
• 66% have done it in the last month
• 26% watch video on their mobile phones
“The great thing about
video is the sheer
amount of information
you can get across in
a short space of time”
10. Page 10Strictly confidential
Insights : Online Trends in 2011 : Mining data is now accepted as a
way to drive sales. Convergence just means that all of these trends
impact customers at the same time
Data
• Data usage is probably the best known trend :
• Personalisation can raise conversion 30%
• Merchandising can raise it 20%
• Email marketing / remarketing can raise sales 10-35%
• The biggest barrier to the utilisation of data is access to the right people, skills + commercial
sense
Social Media
• Social Media is really too broad a term to mean anything on its own
• Recent developments in Google ( including Panda / Farmer updates ) hint at a desire within the
major search engines to reward pages with the most ‘unique’ content
Convergence : This is
all one thing
• People sit at home in front of the TV with their Smartphone or tablet in their hand
• Videos and purchases are shared socially and viewed on mobile devices
• Any aspect of online – including mobile, social and content needs to be measured o the data can
be used for optimisation
• ‘Humanisation’ is reflected in the videos that people want to watch
Insights from a variety of current Econsultancy reference documents
11. Page 11Strictly confidential
Insights : Affiliate Trends : UK – the market is mature and still growing
- there are many affiliates and payments to them are increasing
• Industry has been hit by recession but is still growing
• Currently drives 8% of all online retail sales
• There has been a shift to online and performance based marketing coupled
with increased consumer demand for bargains
• Industry is marked with relatively low barriers to entry meaning it can be easy for
new ( and sometimes untrustworthy ) affiliates to sprin gup
• However, with new levels of accountability brought on by social media,
unscrupulous affiliates will be successful only in the short term
• Affiliate marketing is an innovative sector – affiliates are always finding new ways
to engage with customers –
• Video is another important new category of content
From UK Affiliate Census 2011
How does the UK
affiliate market work ?
• 46% now work full time in the industry
• 48% make more than $10k per month
• Only 22% have only indirect contact with telcos through a network
•More than half of affiliates say their commissions have improves in the last year
• 20% growing 100% in the last year
• 50% are Very / quite optimistic about the year ahead
•Content i still the most important affiliate category
Benefit to Telcos(
Stats from Affiliates
Buyer’s guide )
• Sales increases
• Transparency of ROI – through ability to track origin of sales
• Ability to pay commissions to affiliates based on performance
12. Page 12Strictly confidential
Insights : Range : The Paradox of Choice versus the Long
Tail – why we should focus on the top 7(+/-2) devices to
maximise conversion
The Paradox of choice : Barry Schwarz TED talk
•The central tenant of all of Western world is to maximise choice to allowing
freedom leading to almost unlimited choice : All of this choice has 2 effects.
• It produces paralysis instead of liberation
• People find it very difficult to choose at all.”
• For every 10 financial funds, participation goes down 2%.
• Have 50 funds, sales go down 10%.
- When you choose wrong, ( or right ) , you IMAGINE that you could have chosen better
which distracts from your utility outcome ( makes you feel sad )
- With all that choice – FOMO means you waste time worrying about the others – and
who is responsible ? You are !
- Escalation of expectations from the choice goes up
- Happiness is a function of low expectations
- “There is some magic level of choice – and I don’t know what it is.”
• The Long Tail involves : Selling a large number of
unique items with small quantities sold of each
• Requires negligible stocking and distribution cost
– typical of online businesses especially warehouse
( Amazon ) / digital only businesses ( iTunes )
• In a typical distribution 80% of things sold are 20%
of the product range (green area to left of the page )
The Art of Choosing by Sheena Iyengar 2010
• Jam example underpins much of the research which has been done on
choice – it was conducted by Ms. Ivengatr.
• They had 2 tables of Jam samples.
• One table with 24 jars, one table with 6 and encouraged people
• 30% of people who had seen the small assortment bought.
• 3% of those who had seen the bigger assortment bought
• Proctor and Gamble reduced the 26 varieties of head and shoulders to 15 and
sales jumped 15%. A cat litter provider got rid of it’s 10 worst selling.
The significance of this comes up again in the Arto of choosing. George Miller professor of psycology at Princeton looked at the data in a 1956 research
paper “The Magical Number Seven, plus or minus two” : Some Limits on our capacity for processing information. Studies have shown ability to recall
sizes, orders, positions, curvature, telephone numbers, sounds, dots flashed on a screen – up to 7, people are fine. Beyond that, they’re not.
From ‘Wikipedia’ and Chris Anderson’s 2004
Wired article from which a book was derives
13. Page 13Strictly confidential
Why only the top 7 devices ? Almost everyone buys one of the
top 7 devices – site messaging will include explanation of that
from an ‘insider’s point of view’ and stay in line with Making it
easy messaging
There are a small number of devices which constitute almost the whole market :
1 ) iPhone, ( In all it’s flavours with commentary on the extra memory’s benefits )
2 ) Galaxy SII, 3)Nokia X3, 4)Nexus, 5)Incredible S and 6) HTC Rhyme
15%15%
10%
9%9%7%7%6%5%
3%3%2%2%2%2%1%1%
AppleiPhone4S16GBW
AppleiPhone4S16GBB
AppleiPhone4S32GBB
SamsgGalaxySII
SIMBYO
NokiaX302Xbox
SIMReplacement
SamsgGalaxyNexus
HTCIncredibleXBox
AppleiPhone4S64GBW
HTCIncredibleS
SamsgGalaxySIIWh
AppleiPhone4S32GBW
GarminA50Online
HTCRhymePromo
MotoRazr
AppleiPhone4S64GBB
Top Selling Australian Mobiles 21.12.11
Top 7 device types cover 91% of sales
Number Device
Cumulative Device
Totals
1 Apple iPhone4S 16GBW 15%
1 Apple iPhone4S 16GBB 30%
1 Apple iPhone4S 32GBB 41%
2 Samsg Galaxy S II 49%
SIM BYO 58%
3 Nokia X3 02 Xbox 65%
SIM Replacement 72%
4 Samsg Galaxy Nexus 78%
5 HTC Incredible XBox 83%
1 Apple iPhone4S 64GBW 86%
6 HTC Incredible S 89%
7 Samsg Galaxy S II Wh 91%
Apple iPhone4S 32GBW 94%
Garmin A50 Online 96%
HTC Rhyme Promo 98%
Moto Razr 99%
Apple iPhone4S 64GBB 100%
14. Page 14Strictly confidential
Plans are about the same
0
10
20
30
40
50
60
70
80
90
$59OptusCap(Nov2011
PremH/set)
$49OptusCap(Nov2011
PremH/set)
$29OptusCap(Oct2010)
$59OptusCap(May2011)
$19OptusBYOPlan(Dec
2011)
$34OptusBYOPlan(Dec
2011)
$19OptusCap(Oct2010)
$29OptusCapforiPhone
(Oct2010)
$79OptusCap(Nov2011
PremH/set)
$19OptusCapforiPhone
(Oct2010)
$49OptusCap(May2011)
$79OptusCap(Oct2010)
$99TimelessExtremePlan
(Nov2011PremH/set)
$59OptusCap(Oct2010)
$69TimelessBYOPlan
(Dec2011)
Top Selling Optus Plans 21.12.11
Top 7 plans are 88% of sales Number Plan
Cumulative
Plans Totla
1 $59 Optus Cap (Nov 2011 Prem H/set) 42%
2 $49 Optus Cap (Nov 2011 Prem H/set) 56%
3 $29 Optus Cap (Oct 2010) 69%
4 $59 Optus Cap (May 2011) 78%
5 $19 Optus BYO Plan (Dec 2011) 84%
6 $34 Optus BYO Plan (Dec 2011) 86%
7 $19 Optus Cap (Oct 2010) 88%
8 $29 Optus Cap for iPhone (Oct 2010) 91%
9 $79 Optus Cap (Nov 2011 Prem H/set) 93%
10 $19 Optus Cap for iPhone (Oct 2010) 95%
11 $49 Optus Cap (May 2011) 96%
12 $79 Optus Cap (Oct 2010) 98%
13
$99 Timeless Extreme Plan (Nov 2011
Prem H/set) 99%
14 $59 Optus Cap (Oct 2010) 99%
15 $69 Timeless BYO Plan (Dec 2011) 100%
There are a small number of plans which constitute almost all of those sold.
15. Page 15Strictly confidential
Insights : Competitor Review : High Credibility
Whistleout.com.au
• Whistleout is the market leader
•Operates under white label with SMH /
Compare Mpobile Plan, Captain Compare
•Their strategy suggests that they get around
• 370k users in AU each month,
• 90,000 referrals
• ( that’s a 24% conversion rate ! )
• Or a 1.5% TO BUY ratio !
•They plan to move in to holding stock over time and are trying to develop
exclusive offers with telcos
•Also adding an in store voucher code
•No discussion anywhere of a mobile version of their site
• Mobile page load times are pretty slow. Pages look good but operating
the solution chooser is not easy from a mobile device
Mobile No
Video No
Chat No
AQA No
Email Deal No
16. Page 16Strictly confidential
Insights : Competitor Review : High Credibility
PhonesandPlans.com.au ( beta )
• This is a well executed site – nice, simple and
clear
• It’s probably the nearest competitor to the
idea proposed here
• It does drawn in to focus the fact that I need
to reassure people about the full range of
phones by explaining the 90% thing
• Their ‘Smart tips’ content seems very easy for us
but offers a hint at some of the content we
could create to show people how to do things –
like check their account on line
Mobile No
Video No
Chat No
AQA No
Email Deal No
17. Page 17Strictly confidential
Insights : Competitor Review : High Credibility
Iselect.com.au
• This is a credible brand with a poorly executes
site
• Broad range with good ATL TV support
• No reviews
• Clunky solution finder in mobiles section
• Looks like mobile phones is a bit of a bolt on
to the primary comparison services they offer –
could mean they are not a competitor now but
will grow to be later
• Site has a mobile component for some
services but when you approach the mobile
section it says “We haven’t quite optimised
this for mobile yet’
Mobile Yes
Video No
Chat No
AQA No
Email Deal No
• Mobile phones is marked as a ‘new’ offering
• Solution finder takes 10 seconds to load
and is difficult to use
18. Page 18Strictly confidential
Insights : Competitor Review : High Credibility
•It does have the videos but they haven’t been
touched since I was at Vodafone !
• Not limited to just mobile phones.
• Nice execution of the compare with star
review shown as hero, intelligent review and
deals shown in bottom right
• I’d say our original design specifications
could come from a review of this – with JBA
• We could take content titles from the other
sites and develop our own articles
Mobile No
Video Kind of
Chat No
AQA No
Email Deal No
19. Page 19Strictly confidential
Key Competitors : Medium credibility
Mobile No
Video No
Chat No
AQA No
Email Deal No
• Well delivered site which nails the simplicity factor
• Would have been easy to put together but seems quite effective
• Some simplicity components we can learn from
20. Page 20Strictly confidential
Insights : Key Competitors
• Industry benchmark
• Will compete with them on ‘simplicity’
• Interesting conversion stats !
• Avoid slow mobile page load times
• ‘Leverage’ simplicity in designs
• Use as baseline for IA
• Leverage mobile implementation ideas for health
• Avoid mistakes of the comparison tool – clunky and slow to load
• ‘Leverage’ tip of the day content ideas and title
21. Page 21Strictly confidential
Minimum Viable Product – Commercials and other
important work components
Commercial :
Start a company
• DGM Commercial Terms
• Sign up with an affiliate aggregator
SEO
• Link building
• Build the content
Legals • I have a draft understanding of the structure I’d need
Technical Parsing
• Need to investigate
Actions required
• Flesh out the idea with me – tell me what you like and what you don’t
• All – define requirements for the site
• Rikard – lead the design of the site starting with mobile
• Kym, help with a content project plan
• Neil : Start a company and find someone to build the site – initiate links
22. Page 22Strictly confidential
Risks
Google
Changing the search algorithm
Mitigation : Google are likely to continue
to reward pages with unique content
Google Investing in the area : Google
announced in July 2010 that it wa buying
flight information software company ITA
Software for $700m in cash. ITA’s
software is used for comparing prices at
‘a billion combinations per query’
Mitigation : None
Company set up
Needs to be set up while we’re working for
Optus – this could be a bit sticky !
Mitigation : TBD
23. Page 23Strictly confidential
A possible exit strategy : Selling the site we build to the telcos :
Australian Insurance Holdings which owns BudgetDirect started
CaptainCompare.com.au