overstockArt.com CEO to Speak at the 2015 IRCE Digital Design Conference

David to Speak at the 2015 IRCE Digital Design ConferenceoverstockArt.com’s CEO and President David Sasson will speak at the 2015 IRCE Focus: Digital Design Conference in Los Angeles, California held March 16th-18th. Sasson joins an impressive list of the top minds in retail speaking at the event, he will be sharing their success story along with leaders from companies including NewEgg, B&H Photos, Alex & Ani, Sur La Table, Burt’s Bees and more.

David will participate in the ‘Usability, Testing and Performance’ track presenting on the topic of designing eCommerce websites across multiple browsers under the session titled: ” IE, Firefox, Safari, Chrome: What’s a Designer to Do?” on Wednesday, March 18th at 10:30 a.m. PT. He will be sharing the success and strategy behind their recent re-platforming initiative, and how overstockArt.com focused their design on multiple browser environments based on analytical data they have gathered.

“IRCE is a highly respected industry event that is known for bringing first-rate thought leaders, innovators and game changers in the e-commerce and retail space,” said David. “I am honored to have this opportunity to add our voice to this dialogue and hope to help brands and retailers find new, unique ways to incorporate emerging technologies in their business plans.”

To learn more about David’s speaking engagement at IRCE, visit http://focus.irce.com/design/agenda.

Applying the Thoery of Constraints to an eCommerce Operation

Theory of Constraint is a “Lean Manufacturing” methodology that has been around since the early 80’s, however it is wrongfully considered to be relevant to manufacturing organizations only. David Sasson, CEO of overstockArt.com who discovered TOC about five years ago has adopted the methodologies that are discussed in TOC to an eCommerce operation.

The result has been tremendous, an increase in throughput and a profitable organization.

Theory of Constraints, for ecommerce companiesDavid, started writing about how he has adopted the Theory of Constraint to an eCommerce organization on Practical eCommerce, a widely popular online journal for eCommerce professionals.

The initial response has been tremendous, it seems that eCommerce managers and entrepreneurs are thirsty for methodologies to help them capitalize on the opportunities laid in front of them. David illustrates in a very simple and clear manner how organizations can revolutionize their internal processes and become profitable by doing more with what they already have, without any additional investments or cost cutting.

If you feel like your eCommerce operation can deliver more with what you have (you are probably right) then you should consider applying TOC methodologies, if you have questions, then don’t hesitate to ask. This subject has become a passion for us!

Figuring out your Customer Life Time Value

Customer Life Time ValueAs a marketer and executive there are various Key Performance Indicators (KPIs) that I tend to follow. One of these KPIs is our customer’s Life Time Value (LTV). The life time value in short is the amount of money an average customer from your chosen segment will spend in the coming years minus the dollars you spent getting that customer to your store. This KPI can help you gauge certain marketing channels, and enable you to distribute resources according to pre-determined customer segments.

But how do you figure out your customer LTV? I thought you’d never ask…

Customer LTV is a function of your Segment Size, Gross Margin, Average Order Value (AOV), Acquisition Cost and the number of orders per customer over a set amount of time.

Here is the function to consider:

LTV = [(AOV * Avg Number of Orders * Gross Margin) / (Segment Size)] – Acquisition Cost

In the example above, we have a segment size of 50,000 customers coming from a certain channel with an acquisition cost of $78.00. If we look at a 1 year span, the average customer orders 1.39 times a year with an average order size of $208.82. With a Gross Margin of 60% the LTV of this segment is $174.16. As you look at a larger time span, the number of orders per customer gets larger; therefore, the life time value grows as well. On a 5 Year span the Life Time Value of the Customer grows to $251.02.

The LTV is a very important KPI, and the time span you choose to determine LTV, depends on your business goals, your industry and the product or services you are selling. There are many ways to “skin this cat”, this is the method I find to be most quick and easy, and I use it consistently to help me determine marketing efforts and helps us segment our Top 20 VIP Customers. How do you use LTV? What time span is right for you and your industry?

overstockArt.com CEO to Speak at the 2014 eTail West Conference

overstockArt.com, one of the web’s leading producers of hand painted overstockArt.com CEO to Speak at the 2014 eTail West Conferencereproduction oil paintings, today announced its CEO and President David Sasson and Vice President of Development and Marketing Amitai Sasson will speak at the 2014 eTail West Conference in San Antonio, Texas held March 3rd-6th. They join an impressive list of the top minds in retail speaking at the event, they will be sharing their success stories along with leaders from companies including Talbots, American Eagle, Crate and Barrel, Build-A-Bear, Wayfair, OfficeMax, Build.com, Travelocity, Williams-Sonoma, The Gap and more.

David and Amitai will participate in the group panel “Increasing Lifetime Value through a Focus on Customer Engagement” on Wednesday, March 5th at 2:25 p.m. CT. They will be sharing the success and strategy behind their recent successful “Top 20” Marketing campaign, which drove residual income to the company this past holiday.

“eTail West is a highly respected industry event that is known for brining first-rate thought leaders, innovators and game changers in the e-commerce and retail space,” said David. “Amitai and I are honored to have this opportunity to add our voices to this dialogue and hope to help brands and retailers find new, unique ways to incorporate emerging technologies in their business plans.”

To learn more about David and Amitai’s speaking engagement at eTail West, visit http://www.wbresearch.com/etailusawest/daytwo.aspx.

overstockArt.com Ranked #47 in Internet Retailer’s 2014 Social Media 500 Guide

overstockArt.com Ranked #47 in Internet Retailer’s 2014 Social Media 500 GuideoverstockArt.com has been named among the top e-retailers in Internet Retailer’s prestigious Social Media 500 Guide. The online art gallery ranked #47 in the 2014 edition of the top retailers utilizing social media to drive traffic to their site.

overstockArt.com, is a perfect of example of smaller retailers who have pushed the envelop in creating a more robust social presence and are reaping the rewards of social traffic and more social sales in 2013.

The Top 500 Social Media Retailers are determined according to the percentage of social media traffic arriving at their online store – a key indicator to their effectiveness in this channel.

The company increased its social revenue this year by more than 30%. “Our ability to grow in the social space is attributed to our relentless focus to be a part of the conversation on Twitter, and make sure that we are sharing quality content on the various social media platforms we participate in,” said David Sasson, CEO of overstockArt.com.

Heading the social media efforts for overstockArt.com is none other then David Sasson’s wife, Stacy Sasson, who started the business from the couple’s basement in 2002.

“Stacy’s voice and tone on the various social media channels have become our company’s voice, and customers appreciate that. Her ability to engage our shoppers in social conversation have driven interactions and a viral affect that has helped us increase social traffic and brand awareness,” said Sasson.

This year, along with Facebook and Twitter. The company has added several platforms where they have considerable presence: Google+, which is the rising start as far as traffic generation, Pinterest, which does not drive as much traffic, but has the most qualified traffic converting best out of all social media outlets, Instagram, which is linked with Facebook, and the “new kid on the block”, Houzz.com, which is an up-and-coming social media platform for Home Decorators.

In addition to its main website, overstockArt.com, the company has also invested heavily in its sister website, ArtistBe.com (Artist Become), an innovative platform for contemporary artists to share and sell their art. “The growth of ArtistBe.com has been solely via social media interactions and artist’s word of mouth. We plan to continue this strategy in 2014, has it has proven to be very successful,” Said Sasson.