Transcript
In collaboration with
PRESENTED BY: JONATHAN PANG
Why eCommerce?
Trends, Facts & Figures
$1 TrillionPredicted Global
eCommerce Sales By 2016
$1,000,000,000,000
>2 Billion People Online
$14 Billion Payment Volume (2012)
Amazon recently said it had its best holiday season ever in 2012, selling 26.5 million products around the world at a record-breaking pace of 306 items per second.
An Amazon fulfillment center
eCommerce is continuing to take share
Why is this happening?
5 disruptive forces in eCommerce
More Smart Devices than PCs
iPad Released
We are here
•People with the highest disposable income fall into these age groups.
•People spend the most time on SMS, Browsing the Web, Email & Social networks.
Some Interesting Observations...
Singapore Ranked #1 For Smartphone Penetration In The World
December 2011
Spend in 2010 (Millions)
680
420
Domestic Websites (38%)Overseas Websites (62%)
Singaporeans Spent S$1.1 Billion On Online Shopping In 2010
Will eCommerce take over traditional retail?
Not quite. But...
People use smartphones to make buying decisions in stores
How are people shopping online?
Merging offline with online
Payment types used by online shoppers
Benefits of eCommerce for Consumers
Global reach (2+ billion online) • 24/7 availability (offline stores are only available when they are open)• Reach new customers
Automate processes & workflow • Customers sell to themselves on their own time
Customers find what they want faster • Saving time and money for customers results in higher margins for you
Lower cost with significantly less overheads • Lower advertising costs• Targeted marketing with segmentation• Less manpower• No real estate
Real time data • Where are your customers from? Who are they?• What are the best selling items/ services?• Potential from each country
Scalable • Add/Remove products easily• Open up distribution in countries at your own pace
Benefits of eCommerce for Businesses
What is eCommerce?Definition: eCommerce, is a business where buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks.
Marketing
Offer
Conversion
Research
Discover
Payment options
Fulfillment Collection
Business Consumer
Sales Funnel Conversion Process
Relationship
Brick & Mortar vs
eCommerce
Brick & Mortar
eCommerce
Running Cost VS Profit
Approximate Costs •Domain name ($10/yr) •Hosting (From $2,000/yr)•Software setup (From 15k)•Staff x 2 (From 80k/yr)
eCommerce Business
Profit
Running Costs
Approximate Costs •Renovation/ Decor•Hardware & Software•Rental•Staff/ HR•Utilities
Brick & Mortar Business
Profit
Running Costs
THIS FASHION
What are your options?
Strategies for eCommerce•Smartphones and Tablets are changing consumers’ behavior. Cater your digital strategy
to reach customers on all devices.
• Integrate digital channels & leverage on digital marketing to complement your offline business. Bring your shop to your target audience.
•Automate processes, reduce friction and optimize your eCommerce platform at every opportunity to increase sales.
•Monitor data and gather rich insights that your eCommerce platform can provide you to make better decisions.
Platforms/ MarketplacePros
•Get started quickly
• Traffic
Cons
•Competition
•Profit margins are narrowed
[OPTION 1]
Your Own PlatformPros
•You own all the customers and data
• Features can be customized to your needs
•Branding
Cons
• Investment to add new assets & processes
[OPTION 2]
How eCommerce Platforms Work
Customer
eCommerce Shop Front
Shipping Products Payment
Control Panel Back EndCMS Reports
You
Web Mobile Tablet
CRM
Example: Shop FrontCustomer Perspective
Search
Landing Page
http://www.ikea.com/sg/en/catalog/categories/departments/workspaces/20502/
Example: Shop FrontBusiness Perspective
•Search Engine Optimization (SEO) •Search Engine Marketing (SEM) (Search ~80% Traffic)
•Branding & Communications •Design for multiple devices • Loading time
•Get users to what they are looking for in as few clicks as possible •Ease of use (Search, Site Map, Filters, Saved items)
•Clear & optimized images, Detailed descriptions, Reviews •Mechanisms for Marketing & Promotions (Bundling, Coupons, Related Products)
(Name)(Short Description)
(Price)
(SKU)(Long Description)
(Color Options)
(Related Products)
(Store Location)
(Product Images)
(Category)
(Downloads)
(Product Options)
(Social Integration)
(Alternate Product Images)
•All inventory content is uploaded to the eCommerce Platform via a spreadsheet •Product details, promotions and availability can be easily managed
•Shopping cart history provide rich insights to demand, pricing strategy •Reduce shopping cart abandonment rate with analytics & optimization
•Collected data about your customers provides rich data for marketing, upsell & cross sell opportunities
Collect only the required information that you need initially or you risk turning people away.
Encourage your users to fill in more information later.
•More insights with analytics data
How eCommerce Platforms Work
Customer
eCommerce Shop Front
Shipping Products Payment
Control Panel Back EndCMS Reports
You
Web Mobile Tablet
CRM
Example: Back End Walkthrough
Product Management
•Allows you to manage your inventory in real time.•Customizable product attributes for different categories of products• Tag products with related items to increase spend
(Name)(Short Description)
(Price)
(SKU)(Long Description)
(Color Options)
(Related Products)
(Store Location)
(Product Images)
(Category)
(Downloads)
(Product Options)
(Social Integration)
(Alternate Product Images)
•All inventory content is uploaded to the eCommerce Platform via a spreadsheet •Product details, promotions and availability can be easily managed
Dashboard
•Revenue overview•Most viewed products, Bestsellers•New and existing customers
Sales Order Management
•Search, view and manage orders at a glance
Invoices - Accounting
Invoices - Accounting (con’t)
Shipping
•Assign shipping carrier•Print labels•Send tracking information
Customer Management
•Allows you to segment your customer profiles by location, by spend •Understanding the profile of your customers provides you insights into the types of
products and services that you can provide them to increase your bottom line with upsells and cross sells.
Rewards & Loyalty - Marketing
•Attract new customers•Rewards for your loyal customers
Catalog/ Cart Price Rules - Marketing
•Provides marketing with the flexibility to drive up sales with bundled deals or promotions on festive occasions
Reporting - Meaningful Insights
Example Reports •Search terms•Most Viewed/ Purchased/ Low Stock Products•Products in carts/ Abandoned carts•Sales orders by period•New customers/ Customer segments
Customer Support•Provide FAQ on the shop front
encourage customers to “self-help” to get immediate answers•One contact email for all customers•Route to different department or staff•Accountability•Awesome support increases
retention
•Niche or interesting products
•Detailed information: Good images, tagging, clear copy, reviews
• Inventory/ Warehouse control
• Loading time: Hosting & page weight. Tests at Amazon revealed that every 100 ms increase in load time of Amazon.com decreased sales by 1%
•Easy Navigation & User Friendly: Search/ Filters/ Site Map
•Mechanisms for Marketing & Promotions: Bundling, coupons, discounts, related products
• Flexible & secure payment methods
•Guarantees: Reduce risk for customers with policies on returns, insurance etc
•Quick and reliable logistics services
•Responsive customer service: support tickets, live chat
•Measure with reports and optimize results
•Reduce friction in the entire process for customer to make a purchase
Success factors for eCommerce
Marketing
Offer
Conversion
Research
Discover
Payment options
Fulfillment Collection
Business Consumer
Sales Funnel Conversion Process
Relationship
Customer service sets you apart
“Zaz Lamarr meant to return some shoes to Zappos, but her mom passed away and, naturally, she just didn’t have time.
Zappos arranged to have UPS come pick up the shoes - and then sent her flowers.”
eCommerce ComponentsSEM, SEO, Email, SMS, Social, (Using Coupons, Discounts, Bundling)
Shop Front design for multiple devices, Multi-language support, Catalog Management, Site Content Management
Registration & Payment
Order Management, Shipping, Accounting
MARKETING
OFFER
CONVERSION
FULFILLMENT
RELATIONSHIP Customer Service, CRM, Loyalty Program, Reports, Analytics
How eCommerce Platforms Work
Customer
eCommerce Shop Front
Shipping Products Payment
Control Panel Back EndCMS Reports
You
Web Mobile Tablet
CRM
GOAL 1 - Boost sales 10% in the next quarter.
GOAL 2 - Increase conversion rate 2% in the next year.
GOAL 3 - Grow site traffic 20 percent in the next year.
GOAL 4 - Reduce customer service calls by half in the next 6 months.
Examples of eCommerce Goals
Sales: • Hourly, daily, weekly, monthly, quarterly, and annual sales• Average order size (sometimes called average market basket)• Average margin• Conversion rate• Shopping cart abandonment rate• New customer orders versus returning customer sales• Cost of goods sold• Total available market relative to a retailer's share of market• Product affinity (which products are purchased together)• Product relationship (which products are viewed consecutively)• Inventory levels• Competitive pricing
Marketing:• Site traffic• Unique visitors versus returning visitors• Time on site• Page views per visit• Traffic source• Newsletter subscribers• Chat sessions initiated• Facebook, Twitter, or Pinterest followers or fans• Pay-per-click traffic volume• Blog traffic• Number and quality of product reviews• Brand or display advertising click-through rates
Customer Service: • Customer service email count• Customer service phone call count• Customer service chat count• Average resolution time• Concern classification
Key Performance Indicators
How to get started?
Your Journey
•Discovery process & defining your strategy
•Requirements gathering
•Branding, Communications & Messaging
•Multi-Device Design & User interface
•Development (CMS, eCommerce)
• Integration of workflow & business processes
• Testing
•Digital strategy & plan
• Execution of campaigns to drive targeted traffic
•Monitor reports & data
•Analytics & Optimization
Thank You!Thank You!
top related