going from bricks to clicks. 5 success practices for …...going from bricks to clicks 5 +1 success...

Going from Bricks to Clicks Going from Bricks to Clicks 5 +1 Success Practices for your5 +1 Success Practices for your backpackbackpack

Hands-on retail practices for a commercially Hands-on retail practices for a commercially successful Eshopsuccessful Eshop

Nikos Kolintzas Msc Nikos Kolintzas Msc [email protected]@aelios.eu

October 2014

Work@Shop

AELIOS MARKET POSITION

AELIOS is a leading provider of:

IT Consulting Technology Solutions IT Security Managed Services Ecommerce Consulting

With over 20 years of experience in the ICT Market, we are driven by a passion to deliver exceptional services and solutions to our customers.

Going from Bricks to Clicks ?Going from Bricks to Clicks ?

Plan Ahead Do your Maths

Minimize customer’s transaction cost

Change

And replace E with U as in U-Commerce

Make a Difference

Not a BluNot a Bluee Oc Oceeananso Make a Differenceso Make a Difference

According to eMarketer e-Commerce B2C Global Sales are expected to reach $1.471 trillion in 2014 and $.2356 trillions by 2018.

Big Pie. Big Competition. Red Ocean. Make sure you have a differentiated offering

Stalk your self and your competitors

Identify your business positioning

Define online value proposition (OVP)

Where do you stand in the marketplace?

Is your offering different from competition?

In which layer ?

Do your SWOTing


Stalk your customers Analyse and segment your excisting customers

Use any other source you can think of

Describe your online customers

Plan a content marketing strategy tailored to key demographics

Stalk your Nexus

Digital is fast paced. Trace changes.

Dont let your offering become obsolete


PlanPlan AheadAheadSaves you Time, Money & Mojo Saves you Time, Money & Mojo

PlanPlan AheadAhead Draw your site - literally Define your online product assortment and calculate its dimensions Define hierarchy. Departments, categories, subcategories Not yours –your customer’s Define the level you will place facets (attributes) This is called taxonomy

Good time to write down the keywords by the way. Not yours –your customer’s

PlanPlan AheadAhead

Plan AheadPlan Ahead Draw your site - literally Draw your sales floor lay-out. Use A4, napkins, whatever. Sketch one of each page type. Button by button. That’s your primitive and most valuable wireframing. Check. Now check again. Saves you time and money. Trust me.

Find a good guy. Trustworthy, hard worker, educated, lots of patience and understanding, web development skills. Don’t marry him. Ask him to do your site. Let me know the name.

PlanPlan AheadAhead Keep Records. Set targets. Define you KPI’s Set 1, 3, 6 and 12 month, targets. Reevaluate them. Keep records. Per Traffic Channel.

Sales value Gross Margin % ( and GMROI if inventory exists) No of visits per month Conversion rate Number of transactions Average order value Average page views Returning vs new visitors Number of new posts/pages/content pieces produced per month Social media metrics

PlanPlan AheadAhead Keep Records Set targets. On a Dashboard.

Hand Made or Hi Tech. As long as it catches mice…

PlanPlan AheadAhead Keep Records. Set targets.

Target your major keywords. Benchmark your organic rankings to measure your progress against competitors. Reevaluate often.

PlanPlan AheadAhead Build a detailed monthly sales construction plan per

category

Define how you will achieve your sales and margin budget

Regular sales, promo sales, ad campaigns etc

Which categories, which products?

PlanPlan AheadAhead Build a detailed monthly sales construction plan per

category Define how you will achieve your sales and margin

budget Regular sales, promo sales, google ads etc Which categories, which products?

Do your mathsDo your maths

Gross Margin Profit $ = Retail sales (woVAT)–Cost of Goods Sold

Gross Margin % = Retail sales ( woVAT) $ – Cost of Goods Sold Retail sales value( woVAT)

Average Order value = Retail sales $( woVAT) No of orders

Conversion Rate %: = Number of Visits Number of orders

Do your mathsDo your mathsBecause there is solid commercial logic in there. Retail sales $= Visits* Conversion Rate *Average Order value

Gross Profit $= Visits*Conversion Rate*Average Order value * Gross Margin %

CLV : Customer LifeTime Value ( or LTV)

CLV = Average order Value* Number of Repeat Sales *Average Retention Time

Do your mathsDo your maths

Do you know the cost of a new customer ?

CoVa: Cost of (new) Visitor acquisition =Marketing money spend Number of new visitors

CoCa:Cost of (new) Customer acquisition=CoVa * Conversion rate

CoCa:Cost of (new) Customer acquisition =Marketing money spend

Number of new customers

Do your mathsDo your maths Don’t waste your money

GMROME : Gross Margin Return on Marketing Expenses.

GMROME= Gross Margin $ from new customers Marketing money spend

GMROME =Average Order Value * Gross margin % CoCa

If ratio is less than 1 ask your money back

But remember to check the new customer’s Lifetime Value

Do your mathsDo your mathsMake sure your can extract a commercialy oriented Master

File of your product line. Per period. Per channel.

Do your mathsDo your maths Now do some Pareto. And then some more.

Check for 80:20 And then for 64:4

No Categories Sales $ % Categories % Sales

9 17410 $ 36% 80%

16 4370 $ 64% 20%

25 21780 $ 100% 100%

Be surprised by the results.Then decide.In case of doubt trust your gut.

Minimize transaction cost Minimize transaction cost for your customer for your customer

Low transaction costs = Much more than just low pricesLow transaction costs = Much more than just low prices

Minimize transaction cost Minimize transaction cost for your customerfor your customer

Maximize Easiness

Easy to find and access

Easy and fun to navigate. Mobile too

Easy and fast to find help

Easy to understand billing

Easy – kindergarten level- check out

Minimize transaction cost Minimize transaction cost for your customerfor your customer

Minimize perceived risks of transaction Information minimizes perception of risk Substitute lack of physical contact

Never ever make them feel trapped

Guarantee quality and after sales support

Guarantee return and refund options

Guarantee transaction safety

Give them control over their purchases

Minimize transaction cost for your Minimize transaction cost for your customercustomer

Self service product info

FAQs

Multichannel customer support (live chat, email, click to call)

Mobile -responsives website

Make sure your staff knows more than your customer

Listen to your customer. Adjust and improve.

Minimize transaction cost for your Minimize transaction cost for your customer customer

Enhance sales floor serviceEnhance sales floor service

ChangeChange

ChangeChange Just look around you

Information asymmetry is reversing in the digital nexus Power has moved to the side of the customer -or maybe not New gatekeepers arise Manufacturers going direct Mobile and Social Commerce Big data Extreme personalization Faster or even same day shipping Drones and IoT are here

ChangeChange The fittest survive

Your market position changes 24 hours a day seven days a week time zone to time zone and market segment to market segment.

But don’t go tactical. Be strategically flexible. The key is to continually differentiate by reviewing and

renewing all 4 P’s of you offering to reach, address and satisfy your target segments.

ChangeChange Renew your offering. Customers expect and reward renewals of

the retail offering.

But Realize this: Your Content is your Offering because your Offering is Virtual Update, Refresh, Differentiate, Expand it.

Do it because it’s the nature of E-commerce. Not because some zoo inspired algorithms are bullying you.

Actually it’s UActually it’s U--CommerceCommerce

He is at the store? Or the store is at him? Or is it in his pocket?

UbiquitusUniqueUniversal


Focus is shifting from channel to customer

Forget about silos. Physical and digital experience are blending creating an augmented reality

The customer is now moving with fluidity between physical, mobile and PC based interfaces

Amazon is going bricks?


Physical store is changing not dying

No longer seen as transactional place alone, it will become a multi-sensory experience destination that engages customers on a physical and emotional level

While tracking and monitoring the online behavior of consumers is a well-established practice, technologies (as RFID) are now being developed for retail operators to track in-store behavior

Internet of Things is here


So what does it mean for me?

In a multichannel world, with a channel-agnostic consumer, all your touchpoints should be aligned

Develop an Omnichannel strategy that treats your channels as one business

Same feeling and aesthetics across channels

Make sure you know more than your customer

Promotions and merchandising alligned

Actually it’s UActually it’s U--CommerceCommerce So what does it mean for me?

Craft offers to invite them in store

Offer on line browsing in store

Inventory visible and readily available from every channel

Offer multiple points of access to complete transaction

Same return and refund politics on and of line

Combine on and of line metrics

THANK YOU

AND GOOD SALES

going from bricks to clicks. 5 success practices for …...going from bricks to clicks 5 +1 success...

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