Optimizing eCommerce Operations For Profit International Stories

What  US  retailers  can  learn   from  

International  peers Yulia  V  Smirnova

Founder  of  CommerceBrain.com  

eCommerce  consulting  for  online  shops (customer  acquisition,  conversion  and  estore  optimization)

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Rules  of  the  Game

①  Share the lessons (3) ②  Have you come up with 2-3 ways

for your estore & hear your ideas ③  Show you my suggestions ④  Bonus

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Meet  Yebhi.com  $35M  

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Yebhi.com  Challenges

①  Supply if eCommerce stores outweighs demand

②  Aggressive discounting ③  Small audience that buys

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①  Delivering  Customer  Service  

•  CTO rate 52% •  5K orders/day,

2.6K calls •  70% after order

placed, 30% before

•  7.5 min per call

A.  Call  To  Order  Ratio

Online  content  +  One  click  

answer  system  for  CSAs

•  CTO rate 23% •  7K orders/1.6K calls •  Return rate 15% to 3% •  4 developers, 3m •  2.3 min per call

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①  Delivering  Customer  Service  

B.  First  Time   Response  

?  

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①  Delivering  Customer  Service  

B.  First  Time   Response  

?   •  Target 98% • Before 73%, after 96%

within 30 days

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How  Can  I    Introduce  More  Productivity  In  How  I  Service?  

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①  What  US  eTailers  Can  Do

ü Enable first time resolution ($200 value) or use spot awards, contests and performance based pay

ü Bring personal and visual via tech to close on first call (video agent Whisbi) •  Do demo, close on the first time call •  B2B eCommerce (Ex. truck parts, professional

equipment)

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②  Randomize  Discounts  (Variable    Conditioning)

time  

#  of  re

spon

ses

Fixed Ratio

Variable Ratio Fixed  Interval

Variable  Interval

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How  We  React  To  Variability

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How  We  Behave  In  Variability

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How  We  Experience  Variable  Rewards

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②  Randomized  Discounts  (Variable    Conditioning)

•  Email 2x per week vs. daily prior with higher CTR & lift

•  Opened resources for conversion

testing and lift from 1.2 to 2.3 %

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How  Can  I  Apply  Variable  Rewards?    

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What  US  Peers  Can  Randomize

ü Revisit the purpose of email (next segmentation layer)

ü Use dynamic offers for foundation (CommerceScience)

ü Spice up your loyalty programs

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③  Minimize  “Sunk”  Costs  of  Cash  On  Delivery

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③  Minimize  “Sunk”  Costs  of  Cash  On  Delivery a.  Replace follow up calls with

b.  Do not dispatch non-committed

Missed   Call  

Free  incoming SMS

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③  Minimize  “Sunk”  Costs  of  Cash  On  Delivery

•  Before o 3000 service

calls o agents

cancel 300 orders

o 2500 dispatched

o 500 returns

•  After o 300 service

calls o Agents

cancel 50, Zipdial cancels 500

o  If 2500 dispatched

o 200-250 returns

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③  Minimize  “Sunk”  Costs  of  Cash  On  Delivery

1.  Less returns 2.  Zipdial cancels the same 3.  No loss of revenue 4.  Cost of delivery 50% savings

(2X every time back) 5.  Only need 10% of agents

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Zip  Dial  Use  for  Customer  Acquisition

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Zip  Dial  Use  for  Re-­‐‑Orders

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Zip  Dial  Use  for  Awareness

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ZipDial  Story

•  What if I could replace ……?

•  Would not be great if I could do less of ….

•  What similar technology or approach to ZipDial intro can I apply?

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What  US  eTailers  Can  Do ü Subscriptions to SMS campaigns (new

audience US or if go international)

ü Add virality to your other campaigns (claim free samples or contest)

ü Push notifications or custom audiences FB retargeting for abandoned carts recovery

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Strategy  #  7    (18  in  a  book)   Scale  and  optimize  eCommerce  operations  through  more  productive  processes,  tech  and  systems

Lesson    Introduce  productivity  and  operational  excellence  in  your  operations

Yebhi  improved 1.  How  to  deliver  customer  service   2.  How  to  differentiate  discount  

offers  with  variability  (psych) 3.  How  to  cut  sunk  costs  &  cooperate  

with  customers •  Servicing  40%  more  orders  at  50%  costs  

•  650%  down •  45%  down  2.5  years  

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Bonus   •  Full Yebhi.com story –1 strategy

o http://bit.ly/NoPSPf

•  “Grow and Scale Your Online Store To Profit” Kindle book o 15 stories, 228 tips, 67 lessons, 18

strategies framework, 92 site examples o yulia@commercebrain.com