APPLIED DELIVERY
as a MARKETING tool
Increase your customer loyalty and conversion
by applying delivery
Luc De Munck – bpo...
Consumers are well
informed and demanding
Social media influences
online purchases
FEEDBACK
Promote &
recommend
‘I share my +
experience’
CONVERT
Trigger
‘I realize I need
something’
Search & evaluate
‘I d...
Trigger
‘I realize I need
something’
Search &
evaluate
‘I decide what I
want’
Buy
‘I buy what I
want’
Delivery service
‘
I...
yy/mm/dd - title presentation - author - qualifier 6
Delivery and returns are
main decision buying criteria's
0%
5%
20%
49%
26%
Not important at all
Not important
Neutral
Important
Very important
Shipping costs
Product information
P...
Delivery and returns are also main
criteria's when it comes to repeat
buying
68%
80%
80%
85%
85%
89%
89%
90%
93%
Delivery ...
11
Free delivery = marketing
Etailers offering free shipping
becomes the more and more the norm
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Always free shipp...
The journey starts by getting buyers
to your website and CONVERTING
them
Illustration
Homepage
Product
overview
page, revi...
And you make them LOYAL by
DELIVERING your promise to them
Delivery
service
‘I receive
what I
bought’
Consume
‘I open and ...
Tracking item to country of destination
EU28 customs clearance
No tracking
Tracking to country of destination
Tracking on ...
APPLIED DELIVERY
As a marketing tool – the business case
Trigger
‘I realize I need
something’
Search &
evaluate
‘I decide ...
APPLIED DELIVERY
As a marketing tool – the model
conversion
repeat sales
repeat sales
eyeballs
Trigger
‘I realize I need
s...
APPLIED DELIVERY
As a marketing tool
At bpost International we want to
invest in measuring the outcome of
delivery, i.e. t...
Applied delivery as marketing builds
organic traffic, lowers CPA and
increases CLV
Time
Euro
€ Customer
Lifetime
Value
Cos...
European Commission
Roadmap for cross border delivery
18 months to realise objectives
21
More information and transparency
Improved delivery solutions
Improved complaints handling
eCommerce Interconnect
Program
Tracking
Delivery options
Return options
Network Performance
Technology
24 member postal
operators
 Delivery and returns are main buying decision
criteria (75%) and main reasons for shopping
cart abandonment (50%)
 We i...
Come talk to us:
Infostand 9
bpost International
Our talented people enjoy
delivering boundless
international mail and B2C parcel
shipping solutions to our
customers world...
Luc de Munck - bpost international - eRetail14
Luc de Munck - bpost international - eRetail14
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Luc de Munck - bpost international - eRetail14

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Luc de Munck - bpost international - eRetail14

  1. 1. APPLIED DELIVERY as a MARKETING tool Increase your customer loyalty and conversion by applying delivery Luc De Munck – bpost International
  2. 2. Consumers are well informed and demanding
  3. 3. Social media influences online purchases
  4. 4. FEEDBACK Promote & recommend ‘I share my + experience’ CONVERT Trigger ‘I realize I need something’ Search & evaluate ‘I decide why I want’ Buy ‘I buy what I want DELIVER Delivery service ‘I receive what I bought’ Consume ‘I open and use my purchase’ Return ‘Decide I don’t want it’ Consumer e-commerce journey Touch points during decision moments
  5. 5. Trigger ‘I realize I need something’ Search & evaluate ‘I decide what I want’ Buy ‘I buy what I want’ Delivery service ‘ I receive what I bought’ Consume ‘I open and use my purchase’ Return ‘Decide I don’t want it’ Consumer decision moments Peers/WOM Social Media Mass Media Online Media Need Targeted Media Spontaneous Processtouchpoints Google Social Media Etailer sites Brick & Mortar shops Comparison / review sites Peers/WOM Purchase intention Purchase made Package reception Satisfaction with purchase Overall satistaction Homepage Landing page Promopage Product page Basket Checkout Delivery options Order confirmation Dispatch confirmation Track & trace Home/pudo/… delivery Unpacking Review packing slip Consume / use Evaluate Search on return process Compare return options Re-package & label Return: post office? Acceptance confirmation Money return Consumer e-commerce journey Touch points during decision moments
  6. 6. yy/mm/dd - title presentation - author - qualifier 6 Delivery and returns are main decision buying criteria's
  7. 7. 0% 5% 20% 49% 26% Not important at all Not important Neutral Important Very important Shipping costs Product information Price Source: Intomarkt gft research november 2012 Delivery and returns are main decision buying criteria's
  8. 8. Delivery and returns are also main criteria's when it comes to repeat buying 68% 80% 80% 85% 85% 89% 89% 90% 93% Delivery next day Track&Trace information Confirmation shipment by e-mail… Delivery on specific agreed day Delivery within 2-4 days Flexible and easy delivery Free shipping Flexible return solutions Low shipping costs Source: E-commerce and delivery. A study of play of EU parcel markets with particular emphasis in e-commerce. Considered important
  9. 9. 11 Free delivery = marketing
  10. 10. Etailers offering free shipping becomes the more and more the norm 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Always free shipping Free shipping above specified basket value No information on shipping costs NL DE UK FR BE Source: Simtrec studie : Logistiek voor webwinkels 2013 and it can increase shopping basket value with 30% at check-out
  11. 11. The journey starts by getting buyers to your website and CONVERTING them Illustration Homepage Product overview page, review page, service providers page, etc Detailed product page Shopping basket Check-out 100% 30% 20% 10% 5% 2,5% 70% 70% 50% 50% 50% Information and communication on deliver price and options as well as the return process are key decision buying criteria (75%) Peer recommandations and WOM are main traffic drivers (82%) Shoppers use 10,4 sources of information before making a decision Trigger ‘I realize I need something’ Search & evaluate ‘I decide why I want’ Buy ‘I buy what I want
  12. 12. And you make them LOYAL by DELIVERING your promise to them Delivery service ‘I receive what I bought’ Consume ‘I open and use my purchase’ Return ‘Decide I don’t want it’ After purchasing a product the consumer builds expectations based on experience to inform their next decision journey A customer that received the order as promised (intact, on time) will be a repeat buyer and promote your website to his peers (~influencer) Over time ‘organic traffic’ will be self sustainable and paid traffic will be limited
  13. 13. Tracking item to country of destination EU28 customs clearance No tracking Tracking to country of destination Tracking on item & scan at door ≤2kg Tracking on item to scan at door & signature Tracking an item to scan at door & signature Int’l customs clearance = landed cost solution ≤30kg S E R V I C E B A S K E T V A L U E Tracking on item & scan at door ≤5kg
  14. 14. APPLIED DELIVERY As a marketing tool – the business case Trigger ‘I realize I need something’ Search & evaluate ‘I decide what I want’ Buy ‘I buy what I want’ Delivery service ‘I receive what I bought’ Consume ‘I open and use my purchase’ Return ‘Decide I don’t want it’ Promote & recommend ‘I share my + experience’ What is the + effect of the right shipping and return options on conversion How is a good ‘physical experience’ translated into satisfaction and loyalty How does this translate into a positive recommendation/ like What is the effect on repeat sales and customer acquisition Will I have to invest less in customer care and in online marketing
  15. 15. APPLIED DELIVERY As a marketing tool – the model conversion repeat sales repeat sales eyeballs Trigger ‘I realize I need something’ Search & evaluate ‘I decide what I want’ Buy ‘I buy what I want’ Delivery service ‘I receive what I bought’ Consume ‘I open and use my purchase’ Return ‘Decide I don’t want it’ Promote & recommend ‘I share my + experience’ satisfaction satisfaction recommendation like shipping choice shipping performance return performance
  16. 16. APPLIED DELIVERY As a marketing tool At bpost International we want to invest in measuring the outcome of delivery, i.e. the positive effect on each customer journey, rather than just measuring delivery performance Together with our customers
  17. 17. Applied delivery as marketing builds organic traffic, lowers CPA and increases CLV Time Euro € Customer Lifetime Value Cost Per Acquisition
  18. 18. European Commission Roadmap for cross border delivery 18 months to realise objectives
  19. 19. 21 More information and transparency Improved delivery solutions Improved complaints handling
  20. 20. eCommerce Interconnect Program
  21. 21. Tracking Delivery options Return options Network Performance Technology 24 member postal operators
  22. 22.  Delivery and returns are main buying decision criteria (75%) and main reasons for shopping cart abandonment (50%)  We intend to use applied delivery to actually measure effect on conversion, repeat sales and acquisition  Your delivery and return strategy is as important as your product – use it as a marketing tool! Conclusions
  23. 23. Come talk to us: Infostand 9 bpost International
  24. 24. Our talented people enjoy delivering boundless international mail and B2C parcel shipping solutions to our customers worldwide www.wemoveyourideas.comluc.demunck@bpost.be @LucDeMunck www.bpostinternational.com

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