Optimizing eCommerce Operations For Profit International Stories

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Information about Optimizing eCommerce Operations For Profit International Stories
Marketing

Published on March 11, 2014

Author: commercebrain

Source: slideshare.net

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  responses 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 yulia@commercebrain.com

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