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SB-Roadshow-Andrew-Ecommerce

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5 Ways to improve Ecommerce

5 Ways to improve Ecommerce

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  • Few defining moments in my life. Graduation, Getting Married, Getting Married a Second Time – and the day I worked at a winery
    May 23rd was that day
    I learned a lesson – that if you apply it – will change the way you sell wine online for the next 2 years.


  • Let me tell you how the day turned out. $2500 in sales 86 orders.. And we captured 86 email addresses.
    Before I tell you the lessons learned and how it transforms the way to think about ecommerce – lets get into the meat and bread of the 5 best ways to increase your ecommerce sales. .
  • And before we talk about wine ecommerce, lets look at whats happening in ecommerce today.
  • Technology and ecommerce world is moving crazy fast.
    Dizzying. Let’s look at a few things happening
  • Amazon patented “anticapatory shipping” –
    this is where they ship items to you that you haven’t ordered yet in anticipation that you are going to order them.
  • Here’s another one – Oscar Meyer announced “Wake up and Smell the Bacon” – and your starting to hear more about “Smell O Vision”.

    Picture the ability to allow customers to smell your wine before they buy from their iPhone.
  • And another one from Amazon – Amazon delivery by Drone.
  • Okay – those ideas are pretty far out there.
    But does Wine actually sell online?
    And how about here in oh so nice “Paso” – can Paso wineries sell wine on the internet?
  • As fellow Canadian Kevin Oleary would say Money Talks
  • In Vin65 – we processed $302 million dollars in wine ecommerce orders in Vin65. That’s approx $340,000 for each website.
  • 80/20 Rule. 80% of the sales are coming from 20% of the wineries.
    If you look at how wineries are doing in Vin65 – you’ll see that there are wineries that are selling millions of dollars – and there are wineries with almost no sales at all. In fact the top 20% of wineries do 93% of ecommerce
  • So how do you sell more wine online. I’ve boiled it down to 5 points. Last year I had 10 – but this year I’m going to focus hard on the only 5 that matter – and in fact – if you take the top 3 – they are all that matters.
  • So here they are – the top 5 Best Ways to Increase your Ecommerce sales.
  • What percent of your visitors are out of town and only visit once a year.
    I come to your tasting room, I’m from out of town, its pretty easy to get me to buy some wine. I walk in, I’m half drunk from the wineries I visited before you, I have a great experience, I buy some wine – but then what? - make sure you grab my email address.
  • When your doing sales, you want to take people from visitor, to first time buyer, to repeat buyer, to club member. The way to move an out of town visitor from 1st Time Purchaser to Repeat Purchase is via Email
  • Here’s what wineries are good at – taking a visitor and turning them into a buyer. Here’s what wineries are not good at – turning a buyer into a repeat buyer.
  • Here is what I know - mail is the single biggest driver of sales for wineries. Show some graphs/numbers.
  • And when we analyze email – action email is the best perform in Vin65.
    28.9%
    40.5%
    59.2%


  • A visitor comes to your tasting room, you grab their email address, and 10 days later you ask them to come back and buy some wine online.
    HEADING
  • Here’s what you say.


    Evening Landing

    Evening Landing Vineyards - Best
    Tinhorn – Sec
    Potalupi – Third
    Fourth Pine Wines

  • Here’s what you say.
  • Here’s what you say.
  • If a programmer wrote your action email – here is what it would say
  • Bored people are on their phones.
  • Over 25% of your traffic is mobile. This does not include iPad traffic. It’s growing at a staggering rate.
  • So I took a look at some of your websites on my mobile phone – and here is what I saw:

    Left: Fontes and philips wines
    Middle: Conway Family wines
    Right:Qupe


    1 good 2 bad
  • So I took a look at some of your websites on my mobile phone – and here is what I saw:

    Left: Kaena Wines
    Middle: Stolpman Vineyards
    Right: Vinest Journey


    1 good 2 bad
  • This slide is inappropriate
    If 25% of visitors to your tasting room showed up in a wheelchair – you would make your tasting room the most wheelchair friendly place in the world.

    We know that 25% of your website visitors show up on mobile – yet your websites on mobile suck! 30% of your traffic can’t see your site.


    Wheelchair guy
  • Furthermore, XX percent of email is open on mobile. So when we talk about ‘Action Email’ – we are seeing XX percent opened on a mobile device.
  • While wine sales on mobile websites are behind sales on regular websites – if you don’t have a mobile website people aren’t buying on their phone at all.. On the Vin65 platform - Mobile site outperform regular sites views on mobile by 28X when it comes to sales.

    Winery: Calera
  • Or better yet get a responsive design. A responsive design is one website that works on web, tablet, and mobile – and it responds to or creates the right experience on each device.


    Passo Port Wine
  • These screens – there not that big – especially for those of you still on an iPhone
    Often times web pages have a lot of elements and design going on. Especially as you try to tell your story. When it comes to mobile – simplify everything. Remove the distractions – and only show the content that is absolutely necessary.
  • Entering content on mobile device sucks. You end up switching back and forth between text and numbers, and you lose where you are on forms. Keep your forms short.
  • Ensure your checkout is secure – and give people a sense of security.
  • Remember speed is critical on mobile – Up here in Kelowna you still have 3G, 1X, etc. Lighten the pages, images, etc.
  • And of course – the best way to succeed at this – shop your own website.
  • In general ecommerce (not talking about wine – just talking general ecommerce) – Shipping is the single biggest driver of sales. Wine is heavy, it’s hard to ship, you live in Kelonwa – half the people live out east.

  • Zappos – pair of Shoes
    Vs How Much Do you charge for a bottle of wine.
  • Amazon 2 books Vs How Much Do you charge for a bottle of wine.

    2 hard cver = 3 pinds
  • Amazon and Zappos are tough examples – Amazon has 40 warehouses in the US – they forward stage inventory closer to the customer (position their inventory). So what’s going on with shipping wine.
  • Amazon and Zappos are tough examples – Amazon has 40 warehouses in the US – they forward stage inventory closer to the customer (position their inventory). So what’s going on with shipping wine.
  • Amazon and Zappos are tough examples – Amazon has 40 warehouses in the US – they forward stage inventory closer to the customer (position their inventory). So what’s going on with shipping wine.
    Loves you almost as much as your mom.
    Your ‘C’ customers don’t love you enough to pay $21 in shipping.
  • So how do you execute a great shipping strategy on the web?
  • Most porfitable sale
  • Use realistic shipping rates. This is a great example. Twisted Oak pays
  • Be upfront abut shipping costs. Shipping is expensive – you know that. Come up with reasonable rates and be upfront about it.
  • Use shipping as an incentive.
  • Constellation USA introduced a program called ‘Star Shipping’ – similar to Amazon Prime – where you pay $99 a year and shipping is free on all orders.
  • For smaller wineries, at Vin65 we announced a program in the US – which we would love to bring to Canada. You pay $79/year and you get free shipping from any of our member wineries. If you want to see this in Canada give me your business card after the show – and write on the back of if 46Brix.
  • Shipping use to be just about shipping – but Amazon, Zappos, and others have changed all of that.
  • My boss, who was a president at DHL has a quote he says all the time “the information about the order is often more important than the order itself”.

    Being the COO at a company that has a large fulfillment operation – I get to talk with UPS and FedEx from time to time. They tell me that consumers are tracking their packages 6-8 times before it arrives.

    I still shop on wineries websites where they don’t send me a tracking email.

    Do this – shop on Zappos the weekend, buy a pair of shoes, and then see how fast the tracking number comes.
  • Amazon, Zappos, and others are driving delivery time down. Same Day Shipping, Next Day Delivery, etc. As delivery times are driven down by ecommerce giants, consumers start to expect the same thing from you.
  • Final thing – the box matters.
  • We’ve know this for quite some time – and you hear about it all the time – but the User Experience Matters.

    Amazon, Zappos, Apple are the new bar. Next gen customers are digital savvy. Dont look at your neighbor winery website.
    Here’s whats not going on in your customers head. They aren’t thinking to themselves – this is a small Paso winery – it’s okay their site sucks – I’ll be patient and put up with a bunch of shit. People expect your site to behave the same way the other stuff they are visiting online behaves. And your customers are at Zappos, Amazon, Apple, etc.
  • Let’s look at a Zappos product page. They have exceptional photography. Customer ratings, Clear product costs, shipping, cost. Clear action message.
  • Further down the page we see suggested products, customer reviews.
  • We add to the cart – checkout.
    First thing you’ll notice is clear shipping times and very reasonable shipping costs.
    This is followed by a really simple checkout.
  • We checkout and within a minute we get an order confirmation. It’s got a fun message, a phone number, some additional marketing, and my full order information.
  • Hours later we get shipping notice – this contains our tracking number, more marketing, and our order information.
  • So how do you execute on the customer experience
  • What you want to do is walk thru your own order process.  Compare this to Apple, Zappos, etc.
    Where are they winning?
    What can you do to keep your customer better engaged and informed.
  • Most of you will design a nice site – and get your branding right, etc. So what really matters? Here’s the mistakes I see being made all the time.
  • The photography
    Don’t take this picture yourself – use a professional
    Make sure it’s close cropped, doesn’t have a background, etc.
    Make sure it’s a bottle – and not a label.
  • How many people have bought a book or electronics on Amazon? Did you not read the review?
  • The cart page is one of the most complicate pages in ecommerce – it’s really hard to get it right – but it’s a critical piece.

    Use buttons to guide the user to the checkout process.
  • Get your checkout to one page. Least amount of form elements possible. Don’t show any fields you don’t need to. Get rid of the ‘create account’.
  • The after sales experience matters:
    You must have an email order confirmation that goes out instantly
    You have to have a tracking email – I want to see that in under 24hrs
    Care about the packaging, and delivery experience.
  • And of course – the best way to succeed at this – shop your own website.
  • While Personalization isn’t a big driver today of ecommerce – I need a point #5, and this is where I see all ecommerce going.
  • While Personalization isn’t a big driver today of ecommerce – I need a point #5, and this is where I see all ecommerce going.
  • Amazon does a great job of this – welcome your customer back – and say hello. It makes them feel like the site is tailored to them.
  • When a repeat purchase comes to your homepage – show them the wine they want to see.

    If they’ve only boughten pinot from you – show them the pinot rather than the Chardonnay.
  • On the product page and shopping cart, making recommendations is fairly easy to do.
  • So how do you sell more wine online. I’ve boiled it down to 5 points. Last year I had 10 – but this year I’m going to focus hard on the only 5 that matter – and in fact – if you take the top 3 – they are all that matters.
  • So here they are – the top 5 Best Ways to Increase your Ecommerce sales.
  • Transcript

    • 1. The 5 Best Ways To Increase Your Ecommerce Sales
    • 2. Hello My Name is Andrew Kamphuis
    • 3. The 5 Best Ways To Increase Your Ecommerce Sales
    • 4. Ecommerce World Is Moving Crazy Fast
    • 5. Amazon “Anticaptory Shipping” Picture can be headlines, etc of a article. Amazon Anticipatory Shipping
    • 6. Wake up and Smell the Bacon
    • 7. Amazon Delivery by Drone Amazon Delivery By Drone
    • 8. Order Pizza
    • 9. Does Wine Sell Online?
    • 10. Kevin OLeary Money Talks…
    • 11. 0 5000000 10000000 15000000 20000000 25000000 30000000 35000000 40000000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $302m across 886 websites 2013 Ecommerce on Vin65
    • 12. 0 50000000 100000000 150000000 200000000 250000000 300000000 Bottom 80% Top 20% 2013 Ecommerce on Vin65 Top 20% Sold Did 93% Of Ecomm
    • 13. The 5 Best Ways To Increase Your Ecommerce Sales
    • 14. 2. Go Mobile 1. Use Offline to Get Them Online 3. It’s the Shipping 4. User Experience 5. Personalization 5 Ways Important Ones
    • 15. Use Offline to Get Them Online1
    • 16. Breakdown of Winery Direct-to-Consumer Sales Source % Of Sales Tasting Room 62% Club 20% eCommerce 6% Events 12% Wine Business Tasting Room Survey (May 2013 issue) Your goal is to make this 40%. Not 6%
    • 17. 0 2000000 4000000 6000000 Organic Search Direct 0 20000 40000 60000 80000 Organic Search Direct Direct Traffic vs Search 6 Million Visitors – Jan 1, 2014+ Number of Orders From Those Visitors Proof that Email Works
    • 18. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% All Email (Action, System, Mass) All Buyers - Action Email 1st Time Buyers - Action Email 2013 Email Open Rates on Vin65 Proof that Emailing Tasting Room Visitors Works
    • 19. How To Execute
    • 20. Action Email
    • 21. A Good Action Email from Vin65 #3 Andrew to Find Email Karson – Wrong Email. Use the one with Subject “Thank You For Visiting”
    • 22. The Perfect Action Email 2. Recognizes They Are a 1st Time Buyer 1. Thank Them For Their Visit 3. Solicit Feedback 4. Incentivizes Them to Buy More
    • 23. A Good Action Email from Vin65 #3 Andrew to Find Email
    • 24. Get Mobile2
    • 25. 0% 5% 10% 15% 20% 25% 30% Nov 2010 Nov 2011 Nov 2012 Nov 2013 Over 25% Mobile Vin65 Mobile Traffic May 2014 Desktop 59.0% Mobile 27.8% Tablet 13.2%
    • 26. Mobile Websites
    • 27. Mobile Websites
    • 28. Is Your Website Accessible?
    • 29. Percentage of Email Opened on a Phone http://marketingland.com/report-65-of-marketing-emails-were-opened-on-mobile-devices-in-q4-2013-71387 Mobile 48.23% Desktop & Tablet 51.77%
    • 30. 28 X
    • 31. How To Execute
    • 32. Seamless and Responsive Design
    • 33. Remove All Distractions / Simplify The Page
    • 34. Make Your Forms Shorter
    • 35. Make Sure it’s Secure
    • 36. Get Faster
    • 37. Shop Your Own Site on Mobile
    • 38. It’s The Shipping3
    • 39. Your Winery Ground Free Priority Mail $7.00 2 Business Days $15.00 1 Business Day $25.00 Ground ?? Priority Mail ?? 2 Business Days ?? 1 Business Day ??
    • 40. Ground: Free Standard: $ 4.98 2 Day: $14.97 1 Day: $24.97 Your Winery Super Saver Free Standard $3.99 2 Days $12.98 1 Day $19.98 Ground ?? Priority Mail ?? 2 Business Days ?? 1 Business Day ??
    • 41. But What About Wine
    • 42. Excuses For High Shipping Rates 2. Packaging Costs 1. Wine is Heavy and Fragile 3. Adult Signature Required 4. Inability to Negotiate with Carriers 5. Distance to Consumer
    • 43. My Users Don’t Care About Shipping C B A
    • 44. How To Execute
    • 45. Do NOT Pass On The Shipping Rates
    • 46. Use Realistic Shipping Rates
    • 47. Be Upfront About Shipping Costs
    • 48. Use Shipping Incentives
    • 49. Start a Shipping Program
    • 50. Join A Shipping Program
    • 51. 46Brix Customers 0 500 1000 1500 2000 2500 Yearly Avg Before 46Brix 12 Months Before 46Brix After Joining 46Brix
    • 52. Beyond Shipping
    • 53. Tracking Numbers
    • 54. Delivery Time
    • 55. The Packaging
    • 56. The User Experience Matters4
    • 57. The Zappos Shopping Experience
    • 58. Andrew – Photo
    • 59. How To Execute
    • 60. Your Winery vs
    • 61. What Really Matters
    • 62. Photography
    • 63. Consumer Ratings & Reviews
    • 64. Get the Buttons Right
    • 65. Streamline The Checkout
    • 66. After Sales Experience
    • 67. Shop Your Own Site
    • 68. Personalization5
    • 69. Personalization as a Driver of Sales 59% of online shoppers believe that it is easier to find interesting products on personalized ecommerce websites 56% of online shoppers are more likely to returnto a site that shows product recommendations 53% of online shoppers believe that personalize ecommerce websites provide a better service 45% of online shoppers are more likely to shop on a site that offers personalized recommendations
    • 70. Amazon Example
    • 71. How To Execute
    • 72. Say Hello
    • 73. Show Them The Wine They Want vvv
    • 74. Make the Right Recommendations v
    • 75. Personalize / Relevant Email
    • 76. The 5 Best Ways To Increase Your Ecommerce Sales
    • 77. 2. Go Mobile 1. Use Offline to Get Them Online 3. It’s the Shipping 4. User Experience 5. Personalization 5 Ways Important Ones
    • 78. sales@vin65.com

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