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)
Bit.ly/cb2014bk
Bit.ly/cb2014bk
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
Bit.ly/cb2014bk
Meet Yebhi.com $35M
Bit.ly/cb2014bk
Yebhi.com Challenges
① Supply if eCommerce stores outweighs demand
② Aggressive discounting ③ Small audience that buys
Bit.ly/cb2014bk
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
Bit.ly/cb2014bk
① Delivering Customer Service
B. First Time Response
?
Bit.ly/cb2014bk
① Delivering Customer Service
B. First Time Response
? • Target 98% • Before 73%, after 96%
within 30 days
Bit.ly/cb2014bk
How Can I Introduce More Productivity In How I Service?
Bit.ly/cb2014bk
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)
Bit.ly/cb2014bk
② Randomize Discounts (Variable Conditioning)
time
# of re
spon
ses
Fixed Ratio
Variable Ratio Fixed Interval
Variable Interval
Bit.ly/cb2014bk
How We React To Variability
Bit.ly/cb2014bk
How We Behave In Variability
Bit.ly/cb2014bk
How We Experience Variable Rewards
Bit.ly/cb2014bk
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 %
Bit.ly/cb2014bk
How Can I Apply Variable Rewards?
Bit.ly/cb2014bk
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
Bit.ly/cb2014bk
③ Minimize “Sunk” Costs of Cash On Delivery
Bit.ly/cb2014bk
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
Bit.ly/cb2014bk
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
Bit.ly/cb2014bk
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
Bit.ly/cb2014bk
Zip Dial Use for Customer Acquisition
Bit.ly/cb2014bk
Zip Dial Use for Re-‐‑Orders
Bit.ly/cb2014bk
Zip Dial Use for Awareness
Bit.ly/cb2014bk
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?
Bit.ly/cb2014bk
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
Bit.ly/cb2014bk
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
Bit.ly/cb2014bk
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 [email protected]