ì  Operations  in  an  ecommerce  company  How  opera)ons  affect  your  service  quality?  

Huynh  Ngoc  Hung  Current:  Managing  Director  of  Nava.vn  (a  child  company  of  NCT  Corp)  Past:  Managing  Director  of  Vinabook.com,  2011  E-­‐commerce  Director  of  PNC  Corp,  2010  C.I.O  of  Muaban.net,  2008  CEO  of  EPI  Vietnam,  2005  (sold)  

linkedin.com/in/hunghn  

July  2012  –  Ho  Chi  Minh  City,  Vietnam  

What  can  you  find  in  this  slide?  

Essen)als  of  ecommerce  company  

Maintain  your  service  

level    

KPIs  that  you  must  have  

Measure  your  happy  customers  

So  you  think  opening  an  ecommerce  (B2C)  company  is  all  about  crea)ng  a  website  that  sells  stuffs  ?  

Think  again!  

Define  of  ecommerce  

Electronic   Commerce  

Order  fulfillment  

Logis)cs  

Inventory  

Merchandise  

Online  channel  

Marke)ng  

Website  

Don’t  forget  e-­‐commerce  consist  of  electronic  and  commerce!    80%  of  daily  opera)on  of  an  ecommerce  company  is  about  support  customers,  inventory  control,  delivery,  order  fulfillment…    

Essentials  of  an  ecommerce  company  

B2C  E-­‐commerce  company  

Website  

Merchandise  

Catalog  

Customer  support  

Order  fulfillmen

t  

Inventory  

Logis)cs  

Marke)ng  

These  are  what  you  are  going  to  face  on  daily  basis.  

System  that  works  

Website  (POS,  CRM)  

Warehouse  

Logis)cs  

Your  system  should  be  able  to  answer  on  simple  customer’s  ques)on:    “Where  is  my  order  now  ?”    Your  system  should  be  included:    1.  Storefront  (Point  of  sales)  2.  Customer  rela)onship  

management  3.  Warehouse  management  4.  Logis)cs  management  5.  Others:  Accoun)ng,  marke)ng  

tools,  HRM…  

Your  order  fulfillment  process  

Receive  order  

• Confirm  order  • Collect  payment  • Post-­‐process  order  

Prepare  package  

• Item  in  stock  • Collect  item  from  suppliers  

• Packaging  

Delivery  • Delivery  team  • 3rd  logis)c  supplier  

• Cash  on  delivery  

Ager-­‐sales  support  

• Refund  order  • Return  item  • Warranty  

Time  consum

p)on

 

“How  long  does  it  take  from  placing  order  to  receiving  the  package  ?”  

Service  level  in  ecommerce  

Opening  an  ecommerce  is  easy.  Increase  and  maintain  your  service  level  is  extremely  hard  and  always  maintain  in  the  long-­‐run.  

Service  level  

Merchandise  

Delivery  

Customer  support  

“Maintaining  service  level  should  be  your  strategy  in  the  long-­‐run  and  that’s  the  way  you  keep  the  company  opera)ons  staying  in  high  efficiency”  

Maintain  your  service  level  

•  Does  your  merchandise  have  sufficient  descrip)on  ?  •  Is  your  merchandise  ready  in  stock  ready  when  customer  need  it?  

•  Does  your  merchandise  meet  market  demand?  Merchandise  

•  Is  your  package  delivered  on  )me  ?  •  Does  your  package  remain  intact  when  arrive?  •  How  suppor)ve  is  your  delivery  team  ?  

Delivery  

•  Does  your  self-­‐help  support  system  useful  ?  •  How  fast,  accurate  and  friendly  is  your  CS  agent?  •  How  is  your  return  and  refund  policy?  

Customer  service  

KPIs  in  ecommerce  

Control  your  business  via  KPIs  

Custom  KPIs  

Service  KPIs  

Sales  KPIs  

Some  KPIs  that  an  ecommerce  company  must  have:    Sales  KPIs  1.  Visitors  per  day  2.  Sales  conversion  rate  3.  Average  order  value    Service  KPIs  1.  Average  response  )me  per  )cket  2.  Average  delivery  )me  per  order  3.  Rate  of  return/refund  order    Custom  KPIs  KPIs  depending  on  your  business    

“If  you  know  the  percentage  of  sa)sfied  customers,  your  opera)on  management  is  good.  

No  majer  what  it  is  low  or  high.  ”    

“If  KPIs  are  about  how  your  operate  the  company,  CHI  is  about  how  happy  customers  are”  

Customer  Happy  Index  (CHI)  

Introducing  Customer  Happy  Index  (CHI)  –  represents  for  percentages  of  customers  who  are  happy  about  your  service  Maintain  Service  level  is  keep  the  CHI  as  close  to  100%  as  possible    Ask  simple  &  easy  to  answer  ques)on.  For  example:    How  do  you  feel  about  our  service  ?  

CHI  measurement  

Call  random  customers  

Send  email  ager  order  comple)on  

Survey  ager  placing  order  

Survey  on  first  page  

Ask  in  every  email  footer  

Ask  in  every  self-­‐help  page  

Happy   Acceptable   Unhappy  

Thank  you  for  your  ajen)on!        

Are  you  happy  with  the  presenta)on?  

Very  Happy   Happy   S)ll  Happy