ecommerce expo melbourne - engaging your customers

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Engaging with your customers online

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Page 1: eCommerce Expo Melbourne - Engaging your Customers

Engaging with your customers online

Page 2: eCommerce Expo Melbourne - Engaging your Customers

Agenda!

•  Insights that build engagement!

•  When it all goes wrong!

•  How the right data can improve the customer experience!

•  Questions!

Page 3: eCommerce Expo Melbourne - Engaging your Customers

First, a bit about me….!

Page 4: eCommerce Expo Melbourne - Engaging your Customers

I also display many of the traits of a typical shopper in 2014…!

Page 5: eCommerce Expo Melbourne - Engaging your Customers

My shopping experiences have become social, even when I’m shopping alone..!

Great for retailers!!

Sometimes.. Not so good.!

Page 6: eCommerce Expo Melbourne - Engaging your Customers

I take 500 terrible photos a day…!

But the ones that make it to Instagram are amazing!!

Page 7: eCommerce Expo Melbourne - Engaging your Customers

If you haven’t guessed by now, I have an addiction to my phone… it’s so common now, it even has a name!!

.. Its called nomophobia!

Page 8: eCommerce Expo Melbourne - Engaging your Customers

So what does all this have to do with creating customer engagement…!

CUSTOMER INSIGHT!

Attention spans are getting shorter. There are so many interesting things competing for my attention… Don’t waste my time.!

ENGAGEMENT IMPERATIVES!

Customers expect greatness."If I can whip out my phone and produce a professional looking photograph in 5 minutes, then you’d better get the right stock on the shelf.!

Listen to your customers and act to stay relevant and be personal."Retailers must continuously listen to customers to ensure they are always relevant.!

Shopping has become informed and social."It takes me 5 minutes to find out all there is to know about a product or service online or from friends. !

Deliver on your promises, and if you can’t, be open and proactive.Retailers must create trust by ensuring that every interaction with customers is delivering to their value proposition.!

Make sure your experience is unique and emotionally engaging."Retailers must find a way to stand out from the crowd, you must stand out for what you do.!

Page 9: eCommerce Expo Melbourne - Engaging your Customers

It's going to be very hard to wake up to nothing and then go to our friends house for lunch and try and explain to a 4 and 6 year old who already are emotionally challenged why Santa came to their friends but not to them.!

“ “

When it all goes wrong…!

Typical Aussie mum, Dec 2011

Page 10: eCommerce Expo Melbourne - Engaging your Customers

Start with the customer "

and work backwards!

“ “

Page 11: eCommerce Expo Melbourne - Engaging your Customers

1. Gather the right customer data!

What  drives  their  behaviour  

Did  you  deliver,  and  will  they  be  

back!  

Who  is  the  customer  

How often do they shop online?!!Demographic / Geographic / Lifestage information!!Loyalty segment – First time customer, repeat, high frequency etc!

What was the main reason for their visit/purchase?!!Did they complete your mission? (Why not / Why)!!How hard was it?!!What device/s did they use?!!How important are different aspects of the experience?!

Would they recommend us to a friend (NPS)?!!What can we do to be better?!

Were they satisfied? (Why not / Why)!!Did they need to contact us (and How/Why)?!!Information on delivery experience!

Page 12: eCommerce Expo Melbourne - Engaging your Customers

2. Segment customer groups to gain insight !

Online shopping is mainstream, but often still infrequent – only 39% of shoppers are

buying online more than once a month… !

Different segments have very different

reasons for buying… Cashflow vs Convenience!

Research is king… 29% came to research before buying in store, 17% to

compare price, and 21% to check store inventory levels!

User experience wins – Easy to find products, Easy to use site, wide

range, low delivery cost and returns policy are most important factors!

Sample size 3100, c2013. Female skew, 25-49yo Australian shoppers!

Your ability to deliver impacts overall brand perception…

Customers dis-satisfied with their delivery gave lower scores in all categories.!

NPS of customers who were not satisfied with delivery = -16 vs +74!!!

Page 13: eCommerce Expo Melbourne - Engaging your Customers

3. Be focused on why customers will choose you.!

We care most about mum. Help her create an amazing Christmas for her kids.!

Make mum confident in choosing the right gifts for her kids."

Make it fun & easy to shop."

Give her control over her finances."

Deliver the promise."

Page 14: eCommerce Expo Melbourne - Engaging your Customers

ASOS understand this… !

We want to be as synonymous to fashion for twenty-somethings as Google is to search and Facebook is to social networking.!

“ “

Source: http://www.asosplc.com/our-ambition-and-strategy.aspx!

Page 15: eCommerce Expo Melbourne - Engaging your Customers

4. Make sure everyone in your business ‘gets it’!

Creating a customer-centric culture is hard work. My tips…!!•  Lead from the front & stay positive!

•  Continuously communicate results in the context of your customer!

•  Build a customer checkpoint into all decision making processes!

•  Give one person accountability for the customer, but hold all responsible for using customer insights in their decision-making.!

•  Don’t create silo’s. Always be open to new customer insights and the views of others.!

Page 16: eCommerce Expo Melbourne - Engaging your Customers

5. Be proactive with customers when things go wrong!

Order  Placed   Fraud  Screening  

IT  Transmission   Picked   Packed   Sort  &  

Despatch  Delivery  to  Customer  

Typical order flow – Can you easily tell when you won’t meet your promise? "

EXPERIENCE IMPACTS! BEING PROACTIVE!

Send a text message clearly telling the customer their options"

Attempted delivery was unsuccessful"

There was a delay in shipping the goods" Notify customers of new estimated delivery time, apologise with a coupon"

eComm Data! Warehouse / Vendor! Transport!

Customer enquiry moved outside SLA" Attempt to call the customer with the outcome, rather than just email"

Complex fulfilment process " Have a clear comms strategy"

Page 17: eCommerce Expo Melbourne - Engaging your Customers

Amazon understands this..!

Source: Amazon EDMs!

Automatically crediting me funds from antitrust settlement on Kindle "

Amazon letting me know my review has just gone live! Wow, I’m now a critic!"

Page 18: eCommerce Expo Melbourne - Engaging your Customers

Focusing on the customer and delivering on your promise will grow your business.!

Fixing delivery satisfaction, increases engagement!

Starting with the customer will grow marketshare!

 1.00    

 1.20    

 1.40    

 1.60    

 1.80    

 2.00    

 2.20    

 2.40    

Index  Marketshare  (vs  May  Share)  

Marketshare  (Revenue)  for  BIGW  vs  Aggregated  DS  (Kmart,  Target,  BIGW,  Myer,  David  Jones)  Source:  QuanVum  

 20    

 30    

 40    

 50    

 60    

 70    

40.0%  

50.0%  

60.0%  

70.0%  

80.0%  

90.0%  

100.0%  

1   2   3   4   5   6   7   8   9   10   11   12   13   14   15  

Were  you  saVsfied  with  the  delivery  of  your  order?  

%age  repreat  shoppers  

Customer  NPS  

Page 19: eCommerce Expo Melbourne - Engaging your Customers

In summary!

To drive customer engagement you should:!

•  Always listen to your customers, be relevant and personal.!

•  Deliver on your promises, and if you can’t, be open and proactive.!

•  Make sure your experience is unique and emotionally engaging.!

!Capturing the right data in your business, and creating a customer-centric culture that uses it will see you succeed.!

Page 20: eCommerce Expo Melbourne - Engaging your Customers

The ability to learn about your customer faster than the competition, and the ability

to turn it into action faster than the competition

“ “

Jack Welch, former CEO GE

... And if you don’t believe me. Listen to Jack.!

Page 21: eCommerce Expo Melbourne - Engaging your Customers

Questions?!