Leveraging eCommerce to its Fullest Potential: Becoming a MultiChannel Champion - PowerPoint PPT Presentation

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Leveraging eCommerce to its Fullest Potential: Becoming a MultiChannel Champion

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Ask questions throughout the presentation by using your Question/Answer Box ... of several SOA early adopters including AT&T/Cingular, PetSmart and Luxottica. ... – PowerPoint PPT presentation

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Title: Leveraging eCommerce to its Fullest Potential: Becoming a MultiChannel Champion


1
Leveraging e-Commerce to its Fullest
PotentialBecoming a Multi-Channel Champion
2
Housekeeping
  • Lori Gianattasio, 11-year E-commerce veteran and
    Business Development Director Leads Meeting
    Kickoff Moderator
  • 1 hour Presentation with 5-10 minutes for
    questions at the end.
  • Ask questions throughout the presentation by
    using your Question/Answer Box
  • The Pre-meeting Poll and other questions will be
    covered during the presentation. When a question
    is asked, simply respond in the Question/Answer
    Box. It can be as interactive as you wish.

3
The Speaker Rick Miller
  • Perficient Commerce Practice Director
  • E-Commerce and Multi-Channel Veteran
  • 20 Years Experience with balance in Consulting
    and Hands-on Businesses Roles
  • Consulting Experiences
  • Borders, Hallmark, SmithHawken, etc.
  • Business Roles
  • Director of E-Commerce Things Remembered
  • Director of E-Marketing Stylin Concepts
  • Director of Strategic Business Systems
  • Director of Merchandise Accounting
  • Former CPA Enjoys finding opportunities to get
    ROI out of technology and process improvements

4
Agenda
  • Best Practices to obtain real ROI for your
    projects
  • How ROI Impacts the Project
  • How to get Objective sources
  • Compare B2C and B2B Models for Commerce
  • Looking back at Recent RFPs for Trends
  • Multi-Site Best Practices
  • Case Study Review Sample Deliverables
  • Q A

5
1. Real ROI
6
Section 1 Why is ROI Important
  • The Issue
  • Too many times ROI seems to be missing from the
    equation at the project level.
  • RFPs sent out without true partnership on ROI.
  • This meansmatching of ROIs with the strategies
    and functional enhancements is missing.
  • The Recommendation
  • Determine project ROI down to the strategy or
    functional group level.
  • ROI should play a roll in Priorities and Scope of
    Project Phases.
  • The Benefits
  • When a project evaluates its resources, time, or
    scope, then ROI can play into that decision.
  • Best ROI will stay and lower ROI will wait for
    future phase.

7
Section 1 Lack of ROI tied to Project Failures!
  • When is the project considered a failure?
  • When it misses its Go-live Date?
  • When it misses its Budget?
  • Both?
  • Commerce Projects - The Realities in Play
  • Too many commerce projects not hitting dates or
    budgets.
  • Not obtaining any R for the I
  • Teams and Budgets being stretched too far.
  • Ignoring the OOB (out of box) capabilities and
    returning to heavy customization.
  • WHY???????
  • Project Strategies not tied to Real ROI or real
    customer / user demands or much that is real and
    tangible.
  • We get over-complex projects that take too long
    to implement and cost too much money.

8
Section 1 REAL ROI Defined
Tangible
Substantially Real
  • Revenue Growth
  • Cost Savings
  • Customer Demands Customer Satisfaction
  • Teammate / User Demands Teammate Satisfaction
  • Opportunity Revenue or Costs lost for staying on
    same course

9
Your Ability to Respond to the Online Retail
Marketplace
Attract customers through search engine
optimization, search engine marketing,
pay-for-performance affiliate marketing, and
offline marketing integration
Brand Enhance your customers overall
experience with user-centered design techniques
like contextual inquiry and card sorting studies,
and iterative design and prototype testing.
ATTRACT Drive Site Traffic
Analyze your site and campaigns through campaign
and promotion reporting, web traffic analysis and
usability testing, making adjustments to ensure
your future efforts are even more effective at
generating sales
ANALYZE measure adjust
ROI
ENHANCE EXPERIENCE CONVERT
Convert to any success event (i.e shoppers to
buyers, e-mail lists, catalog requests, location
lookup, call a rep, etc.) with usable functions
and other tactics like unique functionality,
advanced e-mail marketing, surveys, contests,
give-a-ways, and cross/up-sells
RETAIN/GROW Increase Frequency / Deepen
Relationship
Retain your customers and grow the business you
generate with a variety of targeted e-mail
campaigns, newsletters and customizable content
as well as community areas where customers can
share insight with each other.
10
Understanding Metrics and/or Success Events
The key is to understand which online channel
initiatives drive which metrics and what levers
can be utilized to influence the following
equation
Traffic x Conversion Orders x Average Order
Size Gross Sales Returns Net Sales
11
Perficient is Different We Follow the Consumer
to Meet Our Clients Needs
Consumer Packaged Goods/Retail Ten Macro Trends
Thru 2010
The Consumer Demands Change Perficient Helps
Meet those Changes Online
12
Objective Input
Dont Cloud the issues with facts!!
Therefore, identify all real user groups of your
applications and go to them for information on
where to improve in your relationship with them.
13
Objective Input Collect Facts, Stats Support
  • Buried in web analytics and sales reports
  • Sales and KPIs by Channel and/or Brand
  • Costs by Order Type
  • Costs of lower sales drivers (look for
    imbalance in time)
  • Watch customers/users and interact with them
  • In stores, listen to phone calls, follow their
    site paths
  • Customer focus groups
  • Review customer service e-mails, call logs
  • Interview Call Center Reps
  • Surveys
  • At end of processes mini surveys
  • On Home Page Got a Minute, Tell us what you
    Think
  • In E-mails (after transactions, exit surveys,
    etc.)
  • Via Telephone Calls
  • Test, Test, Test in every ad, e-spot of e-mails

14
2. B2C B2B Models Trends in RFPs
15
Section 2 Top Traffic Strategies
16
Section 2 Top Conversion/AOV Strategies
17
Section 2 Top Global Strategies
18
Key Cost Driving Strategies Never in RFPs
  • Edge Serving Technology, Dynamic Imaging
    Content Hosting Caching Strategy
  • Edge Serving
  • Pushes the processing power for some content to
    servers around the web so that your servers can
    work with transactions
  • Saves software investment dollars
  • Dynamic Image Content Hosting
  • Store 1 version of high resolution images
  • Saves time in image production
  • Provide rich experience for users
  • Caching Strategy
  • Cache (store) the pages or parts of pages in
    final form to avoid network and database activity
  • Keeps network free for key processing tasks

19
3. Multiple Sites Strategy
20
Multiple Sites Strategy
Backend Systems
Third Parties
Commerce Engine
Action Item focus on a combination of site
design and management best practices and
multi-site management technology, which is
emerging from e-commerce providers.
To take advantage of existing investments and to
ensure consistency, retailers should deploy a
single, consolidated platform.
21
4. Case Study to ROI
22
Case Study Perspective on ROI
Reverse the Question to How many sales do I
need to generate to pay for this?
Payback Analysis
Client Situation Small E-tailer
  • Revenue Volume Online 6 mill
  • Average Order Size for Online Channel 100
  • Average GM Rate Online 40
  • Total Costs over 2 years 1 mill
  • Average Profit per order 40
  • Number of Orders Over 2 yrs 25,000
  • Number of Orders Each Year 12,500 (21
    increase)
  • Number of Orders Per Week 240
  • Number of Orders Per Day 35

Investment Situation
  • Hardware 300k
  • Services 500k
  • Total Investment 800k
  • Increase in Annual Costs 100k

23
Real-life Sample Presentation to Execs (1 of 3)
Meeting the Future Needs Traffic Drivers
24
Real-life Sample Presentation to Execs (2 of 3)
Meeting the Future Needs Conversion Drivers
25
Real-life Sample Presentation to Execs (3 of 3)
Break Even Analysis Aggressive 1-year Payback
26
Key Thoughts
  • WALK before you can RUN Mentality
  • It is Not an Event, It is a Journey
  • Lay a Strong Foundation for Growth

27
5. Questions and Answers
Rick Miller, Commerce Practice Director rick.mille
r_at_perficient.com
28
Thank You for Joining Us Today
Achieving SOA Business Value Creating a Strategy
for Success www.perficient.com/perspectives Date
Thursday, April 24, 2008 Time 1200 - 100PM CST
SOA Blueprint (core services) SOA Roadmap
(timeline and dependences) Business value and
ROI Organizational structures Governance
frameworks SOA project lifecycle and
deliverables The discussion will also include
case studies of several SOA early adopters
including ATT/Cingular, PetSmart and Luxottica.
Eric Roch, SOA National Practice Director for
Perficient, with 25 years experience
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