beyond "buy now"
Post on 17-Oct-2014
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Beyond “Buy Now” How the last 3 feet of eCommerce can transform a transaction into a relationship
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Introduc1ons
John Squire President eCommera
Han Wen VP Digital & Ecommerce Americas Clarins Groupe
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In eCommerce, the “last 3 feet” involves the online order process, fulfillment, delivery and the post-‐purchase experience
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All the data you need to measure the “last 3 feet” and gauge customer sa1sfac1on is found across departments
ANALYTICS Marketing
Sources Pages Views Traffic
Add to basket Reviews Social
Engagement Testing
OPERATIONS/FULFILLMENT
Order ID Product ID Quantities Shipping Revenue
Delivery Timing
FINANCE COGS
Shipping Cost Fulfilment cost International
MERCHANDISING Backorders Held status
Returns Cancellations
Product Catalog On-hand Inventory
Retail sell-thru Web sell-thru
MARKETING Marketing Cost
PPC Campaigns PPC Keywords
Email Promotions
Affiliates SEO SEM
Direct-loads Retargeting
Display
CUSTOMER CRM
Contact center New/Existing
Loyalty Retention
Customer A471955691
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Customer service…customer sa1sfac1on…why?
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A recent survey of 165 retailers found. . . Customer sa1sfac1on was ranked as the second most important measure of overall success for their ecommerce business
Source: The Effect of Disconnect Special Survey Report sponsored by eCommera and conducted by Internet Retailer, April 2014
Measure Rank
Revenue 1
Customer SaFsfacFon 2
Profit 3
Margin 4
Average Order Value 5
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Inves1ng in customer service The cumulative effect of a bad experience
At 90% service score: 40% of customers will have had at least
one bad experience by their 5th purchase
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Inves1ng in customer service
• LogisFcs and customer service can differen1ate our brand
• InvesFng to build the competency had strategic cost considera1ons
• The chance to posi1vely surprise and build brand delight adds to our luxury experience
• TradiFonal compeFtors and the “Amazons” are transforming customer expecta1ons
Balancing core competencies and cost
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Looks are important, but it’s what’s inside that counts. . .
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Think inside and outside the box
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Marke1ng became heavily involved with shipping and logis1cs
• Shared warehouse
• Less than 99.9% accuracy
• Lower packaging quality
• FaciliFes geared for speed, but not “Clarinized”
• Quality of inventory accuracy
When we outsourced, we found the consequences outweighed the benefits
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Before:
AZer:
Outsourced packaging did not represent the Clarins brand
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By insourcing, Clarins improved the “Open the Box” experience and increased shipment accuracy to 99.99% and drove down cost/order.
Recommenda1on
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Going beyond the expected
15 © 2013 Demandware, Inc. All Rights Reserved by their Respective Owners
Consider your customer’s perspec1ve
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Expansive sampling is unique to digital
Clarins.com:
• 40 different samples online
• Breadth is unique point of differenFaFon
• Opportunity to conFnually expose consumers to other offerings
While outsourced:
• Picking and packing errors
• Inventory issues
• Increased customer service calls
We found sampling provided added opportunities to engage with customers
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Value of sampling
• Which products are purchased or sampled multiple times by the same customers? • Highlights the value of keeping certain products high in sampling exposure
• Highlights opportunities to cross market new product extensions, sizes and derivatives
• Marketing & Merchandising: • Use in Remarketing Programs that feel personalized
• Opportunity to promote the “highly addictive”
Sampling provides the opportunity to highlight products that drive repeat purchases
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Sampling is not just a throw in, but a start for the next transac1on. By having Clarins internally manage samples, we can control the en1re process, even down to “Surprise & Delight.”
Recommenda1on
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Gedng it right and making it right
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A recent survey of 165 retailers found. . . 50% say that shipping and returns are one of the top challenges of operaFng online versus in-‐store
Source: The Effect of Disconnect Special Survey Report sponsored by eCommera and conducted by Internet Retailer, April 2014
13%
45%
50%
53%
76%
0% 20% 40% 60% 80%
The complexiFes are the same between online and store.
It’s harder to personalize / fine-‐tune online offers to a single customer than it is in a store.
Shipping and returns are significantly more complex online versus a store.
There are more online products to consider and the mix of presentaFon is more complex.
There is increased compeFFon online.
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In the 7 month period aZer moving logis1cs in house, we saw benefits across mul1ple areas
30% increase in orders
50% decrease in the rate of returns due largely in part to more accurate shipments
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Illustra1ng the voice of the customer: Brooks Brothers High returns and lower rating overshadowed by “the average”
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Returns are impacted by all departments. By gedng marke1ng involved in logis1cs and shipping, we were able to help improve performance in other areas of the business.
Recommenda1on
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Is there really a “last” 3 feet in a luxury business?
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By insourcing, customer service agents received proper oversight and training
While outsourced:
• Shared pool of agents
• Shallow brand training
• High agent turnover rates
• Low brand/product knowledge
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Empower your customer service agents to solve problems on their own and serve as brand ambassadors. At Clarins, we invested to make every agent a Clarins employee and to provide extensive training and refresher updates.
Recommenda1on
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The real measure of gedng logis1cs and customer service right…. “Are customers coming back?”
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1 st – 2nd
2nd – 3rd
3rd – 4th
4th – 5th
5th – 6th
Etc.
Crea1ng repeat customers
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2013 vs. 2012 customer spending
3x buyers increased YoY spend by
42%
5x buyers increased YoY spend by
35%
High-‐value customers increased YoY spend by
65%
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Beyond just customer service, Clarins is data smart to increase repurchase rates
• Know who and when to specialize offers to encourage next purchase • UFlize post-‐order communicaFon to measure service they received
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A true measure of how our efforts were working was in knowing how oZen customers were making repeat purchases. Having the right tools to understand customer growth and repurchase rates is a must.
Recommenda1on
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Perfec1ng any “3 feet” of eCommerce is not a short journey
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Retail meets big data
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A recent survey of 165 retailers found. . . 52% say having an integrated view across markeFng, merchandising and operaFons is one of the biggest challenges
23%
24%
32%
33%
36%
43%
52%
0% 10% 20% 30% 40% 50% 60%
IdenFfying how the performance of one area of the business can impact another.
ConFnued erosion of product profitability.
Enough data analyst resources to interpret the data and manage financial report.
Ability to prioriFze acFons based on financial impact.
Finding, training and retaining first-‐class ecommerce employees.
Quickly interpret and act upon issues that are impacFng performance.
Having an integrated view across markeFng, merchandising and operaFons.
Source: The Effect of Disconnect Special Survey Report sponsored by eCommera and conducted by Internet Retailer, April 2014
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ANALYTICS Marketing
Sources Pages Views Traffic
Add to basket Reviews Social
Engagement Testing
OPERATIONS/FULFILLMENT
Order ID Product ID Quantities Shipping Revenue
Delivery Timing
FINANCE COGS
Shipping Cost Fulfilment cost
MERCHANDISING Backorders Held status
Returns Cancellations
Product Catalog On-hand Inventory
Retail sell-thru Web sell-thru
MARKETING Marketing Cost
PPC Campaigns PPC Keywords
Email Sent Promotions
Retail meets big data: DynamicAc1on Customer A471955691
CUSTOMER CRM
Contact center New/Existing
Loyalty Retention
