Presentation Transcript

1. How to be thebest e-commerceretailer?

   Darko Butina BUDS ConsultingLtd.
2. Whatshowswho is thebest? Gross margin – over 15% Growth – at least +20% above market growth NPS (Net PromoterScore) – above 70 Logistics – no delays(evenduringpeakperiods) Conversionrate – above 2% Profitability– above1%
3. E-commerceandbrick&mortarretailers E-commerceis retail It is not allaboutvisits, conversions, averageordervalueetc. (althoughallofthose are alsoimportantfor e-commerce) Keyfactors in retailand e-commerce: Offer Pricingpolicy Marketing approach
4. E-commerceandbrick&mortarretailers Advantagesof e-commercevs. brick&mortar: Technology Data Building business fromgroundup Brick&mortarretailers are maincompetitorsof e-commerceretailer– biggestopportunitiesforgrowth are in takingsharefrombrick&mortarretailers (not fromothere-commerceplayers)
5. Keyareasfore-commerceretailer Purchasing Sales Marketing Logistics Customersupport Websiteand UX
6. Purchasing First covercertainnichereallywell, thenexpandyouroffering Secure more than one sourceforgoods Alwaysnegotiate – armyourselfwithinformationfirstandthen talk business – ifyouprepareright, youcanbring +10% (and more) to yourgrossmargin Goodmanagement ofsupplychaindifferentiatesgood e-commerceretailersfrombad e-commerceretailers: Reliablepartners / suppliers –predictableandaccuratedeliveriesofpurchasedgoodsfromsuppliers Know yourpurchaseconditions in detail– base purchaseprice, quarterly / yearlybonuses, marketing contributions, otherincentives
7. Sales Product line-up, presentation and price with various incentives – key tools in hands of category managers Ensure thatsalespeopleworkcloselywithpurchasingand marketing people Understandwhatyousell, whoyousell to andwhich marketing channelsyouuse Know whatyousell at what time – adjustyourselling, purchasingand marketing activitiesaccordingly Analyseyoursalesperformanceconstantly – andadjustyouractivitiesaccordingly
8. Marketing Differentiate yourself from brick&mortar retailers so that you: Measure and analyse everything Act on the basis of data – improve efficiency Web advertising is usually reasonable choice for smaller e-commerce retailers (price vs. performance) – bigger e-commerce retailers should include also other mass advertising channels Creativity brings lower costs – you still need cash, but you can spend less for the same effect Plan your activities at least 6 months in advance Get marketing contributions from your suppliers and brands
9. Logistics Logistics is key to customersatisfaction – and one ofmaindifferencesbetween e-commerceandbrick&mortarretailers E-commerceretailerwhichdoes not own / manageitslogistics, willfaileventually Investin appropriateautomated ERP in time – so youwill be able to increaseyour business withoutproblemsand at the same time satisfyallthedemandsfromthirdparties (governmentagencies, inspectorsetc.) Track, measureandwrite-downeverythingin logistics – thenanalyseandimprove There is alwaysroomforimprovementwithlogisticsprocess – youcansavewellover 30% in a year
10. Customersupport E-commerceshop is virtual – and not real as brick&mortarshop Customersupport „makes“ e-commerceshop real andtangibleforcustomers E-commerceretailersmust be customerfocusedand not productfocused Do not givepromisesyoucan not keep to customers – promiseonlywhatyoucandeliver Definestandardsforcommunicationwithcustomers – time to answer, pre-defined standard Q&A etc. – andthenalwaysmeetthesestandards Use NPS (Net promoterScore) – oranyothermeasurmentofcustomersatisfaction– actbased on resultsreceived
11. Websiteand UX Websiteshouldloadfastand be reliable Data (especiallyaboutproductsanddeliverytimes) has to be reliable – reliable data meanscustomertrustandcustomertrustmeans more purchases Shoppingprocessshould be intuitive – UX friendly Use agiledevelopment – to enableyou to adjust UX andwebsitefairlyquickly Measureandanalyseeverything – andadaptwebsiteaccordingly Do A/B testing – implementwhatbringsresults Everyserious e-commercewebsiteneedsitsproduct manager / productowner
12. Recap Improve gross margin with proper purchasing and pricing Achieve growth with combined effort and work of sales and marketing NPS (Net Promoter Score) – always be transparent, do not make promises you cannot keep and be pro-customer – and NPS will grow Logistics – no delays (even during peak periods) – always measure, analyse and improve logistics – and you will Conversion rate – besides website and UX, it is the product line-up and pricing policy that affect conversion Profitability – above 1% – as long as margin is OK and costs are under control, profitability will be there
13. Questions? Contact: darko.butina@buds.si si.linkedin.com/in/darkobutina/ @TheDare www.buds.si