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Procurement essentials 1 martin newman uk
 

Procurement essentials 1 martin newman uk

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workshop presentation by Martin Newman at on-line conference September 2010

workshop presentation by Martin Newman at on-line conference September 2010

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    Procurement essentials 1 martin newman uk Procurement essentials 1 martin newman uk Presentation Transcript

    • Procurement  Essen.als:A  blueprint  to  e-­‐commerce  success 26th  September  2011 1
    • Agenda• Strategic developments in e-commerce and multi channel retail considerations for your business model• Planning• Challenges/issues• Requirements gathering• The RFP• Supplier selection• ROI
    • My deliverables today• Insight• Inspire• Provoke• Make more effective decisions• Improve your ROI• Reduce costs• Have a better chance of getting live on time• Mildly entertaining
    • My other involvement this week• Tuesday: ‘Mind the gap’: Recruitment, retention and skills issues• Wednesday: Technology panel, fashion panel, live site reviews• Thursday: Website optimisation masterclass
    • A poor man’s Billy Connolly
    • And like Ronnie, I’ll go off on a tangent from time to time
    • About us• Practicology is about providing actionable insight delivered by people who have done the job• We’ve all been at the coal face: I have previously been head of e-commerce for Ted Baker, Burberry, Harrods and Pentland brands• We’re a full service global e-commerce and multi channel retail consultancy• We have clients in Australia, UK, US, Malaysia, Scandinavia, Germany, Croatia, Switzerland and Belgium• International judge of Australia’s Online Retail Awards and Judge of Draper’s etail awards 2011• Run E-Commerce UK (LinkedIn.com)• Listed in Retail Week’s top 50 ‘etail power list’
    • We don’t rely on our looks to earn a living...It’s a good thing too!
    • What’s it like to work with us?
    • Client engagement stages
    • Denial: I don’t need any help
    • A client who recognises they need some help
    • A relieved early engagement client
    • Success: A post engagement client
    • Nirvana: A long term client
    • We don’t take ourselves too seriouslybut we take your success, very seriously
    • We’re setting up shop
    • You made a very good choice coming along today
    • Asides from having kids, or getting married, thiscould be the most important thing you ever do!
    • Still too much smoke and mirrors
    • • We took a global FMCG brand through supplier selection• The same brief saw us get responses from $200k to over $3m!
    • Everything I tell you today, I’ve been through myself more than 25 times as a client and a consultant
    • E-­‐Commerce:  Current  situa1on
    • Take figures with a pinch of salt
    • By 2019 online will deliver more growth than offline retail (UK)
    • Some Australian stats
    • •During 2010, shoppers have spent $10 to $12bn online, about 5% of total retail sales of $250bn. [Source: SMH.com, January 2011]•It’s predicted that spending online will grow to $18bn by 2014 [Source: Frost & Sullivan, via SMH.com, Jan 2011]•I’ve also read that current sales online are more than $20bn!
    • 94% of the Australian population access the internet, 79% do so every day.[Source: AIMIA / Sensis Social Media Report, May 2011]
    • Broadband web usage at home is driving adoption
    • Home is the no’s 1 place to access theweb, but mobile will be the driver soon
    • Key online activities...with one obvious omission!
    • Fashion, followed by Electrical goods are the mostresearched products or services on social networking sites [Source: AIMIA / Sensis Social Media Report, May 2011]
    • 36% of Australians made a purchase after researching products via social media. [Source: AIMIA / Sensis Social Media Report, May 2011]
    • 57% of Australians search the internet forsomething to buy at least once a week and more than half buy something online every month [Source: Digital Futures 2010, CCi, May 2010]
    • 44% of online purchases are made to overseas retailers
    • And...
    • The combination of no GST, and the high dollar are challenging and leading to a retail war on 2 fronts With ever-increasing competition from International retailers on and offline...
    • Lulu Lemon’s first online localised proposition outside of North America will be inAustralia...and they’re opening more stores here
    • These guys want to eat your lunch!
    • So does Wiggle
    • And now they’ve opened an Australian site,they also want the roof from over your head!
    • They’re taking £1m a week in online sales from Australia!
    • I’ve seen big changes in the last year in Australian online retailing
    • You’ve got a lot to be proud of...some great innovation
    • Augmented Reality:Virtual mirror
    • Customisation(Shoes of Prey were there first)
    • See the camera in action
    • Demo of the camera’s
    • But some of your retailer’s are still well behind the curve
    • Keep your eye on the ball...the pace of change is frightening!
    • The big changes (This month!) • Retailers no longer hold the power • Consumers choose the channel of engagement • And they expect a seamless experience through all channels • So retailers must make the move from ‘multiple channel’ to ‘cross channel’ • Consumers are influenced by their peers, not by the retailer • FMCG and CPG players looking to have a direct to consumer play to drive insight and sales • Mobile is THE game changer • Social Media is a service and engagement driver • Internationalisation is all the rage...but localisation is required • The gap between buying offline and online continues to narrow
    • The web has evolved....largely driven bybroadband, wireless and more usable devices
    • Drivers of growth• The drivers for continued growth of sales online will be:• Increasing broadband penetration• Emerging International markets maturing• Ever – increasing media consumption online• Social networking and social commerce• Smartphone penetration fuelling mobile Internet adoption• The alignment of online and offline shopping experiences• The convergence of technology....TV/Web• Convenience of the shopping experience...driven by cross channel• Online propositions localised for the needs of the local market
    • Define  Requirements:Strategic  Developments   You  Need  To  Plan  For
    • Because if you don’t, you’re going to lose market share
    • In any case, you need to plan for tomorrow, not just today
    • Mobile  Development
    • • 75%  of  Australians  using  GPS  devices  are  open  to   viewing  targeted  deals  when  visi.ng  bricks  and   mortar  outlets• 41%  of  Australians  using  GPS  devices  are  open  to   viewing  targeted  deals  at  .mes  they  select• 83%  of  18-­‐34  year  old  Australians  find  geo-­‐ targeted  content  via  mobile  when  shopping  an   appealing  prospect  • [Source:  Galaxy  Research,  via  DMI,  June  2011] 61
    • The majority of Australians have not bought using mobile...but that will change very soon Payment for goods and services purchased via mobile handset (Source: Australian Mobile Phone Lifestyle Index, AIMIA, October 2010)
    • The HIPPO says ‘let’s have an iphone or an ipad app
    • All too often mobile is still a very tactical scenario
    • But it isdriving ‘buyability’
    • Mobile  =  THE  game  changer! M-­‐commerce In-­‐store  naviga.on Development  of  mobile  websites   Mobile  ac*ng  as  in-­‐store   and  apps  which  make  shopping   ‘sat  nav’  for  shoppers  with  advice  online  more  seamless  for  shoppers on  where  to  find  par*cular   products  or  offers  in-­‐store Barcode  scanning/Image   Proximity  marke.ng recogni.on Retailers  can  leverage  loca*on-­‐Tools  which  allow  shoppers  to  add   based  marke*ng  offers  through   items  to  their  online  basket  by   mobile scanning  items  in  the  home  e.g.   Tesco’s  grocery  app
    • • 15% of Ocado’s sales during H1 2011 came from its smartphone app• Debenhams took £1m through their iPhone app in the first 6 months• River Island will take over £2m this year through their app
    • Supermarkets in Asia leading the way with pop ups
    • Developments in Asia lead the way-­‐  Over  500  of  its  most  popular  products,  complete  with  QR  codes  which  can  be  scanned  using  the  Homeplus  app-­‐  Products  range  from  daily  essen.als  such  as  milk  and  fresh  produce,  to  pet  food  and  sta.onery  -­‐  Orders  placed  before  13:00  will  be  delivered  to  customers  homes  on  the  same  day
    • The starting point for me...
    • How many retailers have a mobile compatible website?
    • Not many
    • Mobile can be the glue to bring customer engagement and the multi channel experience together
    • By 2015:50%+ of web access through mobile By 2020: 80% of web access will be through mobile
    • So you need to build mobileinto your requirements and your roadmap now
    • Mul1  Channel  Development
    • 99% of retailers are ‘multiple channel’
    • Multi channel just means more than one channel‘Cross-channel’ is bringing together the strengths of each channel to create a better overall customer experience
    • Multi channel is not about managing customer expectations It’s about meeting customer expectations
    • The customer chooses the channel of engagement
    • Today’s consumer is a multi channel shopperToday‘s consumer is a multi-channel shopper “Almost everyone is a multi- channel shopper, 86% regularly use more than one channel” – Leo Burnett, 2010 Multichannel customer research
    • A multi channel proposition
    • Multi channel proposition on the PDP
    • The way we communicate has fundamentally changed
    • The purchase path is no longer linear Presales Information Product Availability Assistance Trans-actionChannelsPrintTV/RadioStoreInternetLetterE-MailTelephoneFaxSMS/MMS Usage of channel Channel combination example of multichannel customers
    • • 63% research online before buying instore• 89% who buy online also shop instore• 20% of all online customers pick up their goods instore• 29% researched offline before buying online• Multi channel customers spent 3.5 times as much as single channel customers• ‘Shop engagement is key’: Branch online orders grew by 130% in 2010• The store is credited with the sale• Click and collect growing at 2 x the rate of online sales• Mobile drives 5m visits to the website• A £3k bed was bought through mobile!• Multi Channel Shoppers visit stores three times more frequently• Multi Channel Customers are twice as loyal
    • Remember that the web is a sales driver for all of theretailer’s channels, and not just a source of incremental revenue...
    • •Ted’s cameras know that their website onlyrepresents around 5% of the companys totalsales but it influences 50-60% of all sales madethrough all channels.•And it is because of this, that they realizeintegration across all channels is essential toprovide a complete user experience•Dick Smith: 23% of online order revenue nowpicked up in store
    • 13% now being picked up in store
    • The web is a huge driver for offline sales
    • There’s too much talk about multi channel andnot enough focus on aligning the business with the customer’s journey
    • Let me tell you a story...• Casino customer journey:• Having breakfast I realise I’m out of milk and cornflakes so I order them on my iPad• Then at lunch I remember I’ve forgotten to order juice for dinner so I use my PC to do so• On the way to the store I then remember I need wine and I use my iPhone app to order• In store I’m pinged a coupon offering me 50% off a different cereal as I’m standing in the aisle looking at cereal• I also get a reminder on my phone that I haven’t bought
    • • Opticians/Optometrist customer journey• Let’s imagine you were buying a new pair of glasses. What would be the optimum customer journey?• I went online using my iMac at home to make an appointment to have my eyes tested• I was also able to select a few brands of frames I might be interested in• When I went into the store, the staff and the optician new who I was and had the frames I was interested in ready• After my test and after I had selected a new frame, I was waiting for my glasses to be made up with the lenses when using an interactive in store mirror I tried on different sunglasses with different tints• I bought them and I went home• 2 weeks later I sat on my glasses and broke them• I opened up the glasses case as I remembered there were contact details in there along with my customer reference• I called the store, or maybe I went online, either way they had my prescription to hand and they made me up a new pair of glasses in 24 hours
    • • So keep this in mind when you start to define your requirements for your e-commerce platform• If you’re a multi channel business, what might the optimal customer journey be?
    • The number one driver forcustomer’s is ‘convenience’ and the other driver is ‘immediacy’
    • The optimal customerconvenience proposition• Buy from the channel of choice: Online, in store, by phone• Return to the channel of choice…free• Have your order delivered to the place of choice: Work, home, your store for pick up• Have the order fulfilled at a time of their choosing• Have your order gift wrapped with a gift card
    • This is happening right now
    • Think ‘omni channel’
    • Interna1onalisa1on
    • • You  can’t  afford  to  only  look  inwardly• You  need  to  extend  your  reach  and  take  market   share  from  new  markets 103
    • What’s the size of the prize?
    • This will bring a tear to your eye
    • •B2C e-commerce worth €591bn in 2010•Up 25% from 2009•Between 2009 and 2013, global e-commerce sales will more than double!•Source: IMR World
    • What’s happening now?
    • Top 10 Countries source: IMR World
    • The mature e-commerce markets in the US & UK will grow annually by 15% to 20% over the coming years (Source: IMR World)
    • It’s a small world isn’t it?“Yes, but a successful Internationalisation strategy is more than just language translation and currency conversion”
    • 4 strategies in play1. Do nothing: Don’t allow anyone to buy from overseas2. Standardisation: Switch on the buy button only3. Adaptation: Localise some aspects4. Localisation: Fully localise the customer proposition
    • Some of us find it hard enough selling domestically
    • Yes lot’s of us aren’t doing it at all
    • In the UK, 42% of us haven’t even switched on the buy button! Source: Snow Valley delivery report
    • And most of us have only switched on the buy button and not localised the proposition = standardisation
    • Yet Debenhams are piloting multi lingual placards in store!
    • No sign of any International proposition
    • Hang on, here we go...deeply hidden within delivery info
    • Adaptation = localise some aspects
    • But adaptation is pretty half-hearted
    • Currency is the only thing to have visibly changed
    • Then there’s the full monty
    • Local language, payment, currency, customer service
    • A pretty compelling customer proposition
    • The results?• Since launch, traffic to clarks.de is 4 times higher than previous, this includes traffic generated by PPC• Conversion rate has grown from launch to become very similar to the UK site• Returns rate is much higher than the UK..again due to German catalogue heritage• Basket size and bounce rates are very similar on DE to UK
    • NET-A-PORTER/LIVE...Internationalisation before your eyes
    • The American’s are coming!
    • You can now buy in the UK from many leading US retailers
    • But they haven’t got the model quite right! Would you pay an extra 50% to cover additional charges?
    • Hey, the World speak’s English!
    • No they don’t:‘Wie viel kostet dies?’
    • Why is it so important to give foreign nationals a local language site?
    • Cross border sales are growing...but localised propositions work best
    • Is it worth doing?
    • You better believe it!
    • Just ask ASOS...Free delivery worldwide! And International sales are up 161% 43% of their sales = £140m
    • Cloggs take 15% of total sales through Cloggs.eu = £2.55m With France and Germany being the biggest markets
    • 11Cs of Internationalisation • Country • Customers • Communication • Culture • Customer Service • Competitors • Currency • Conversion • Categories • Content • Costs
    • • Country
    • The United States of Europe...or is it?
    • If you want to know the difference just look at Eurovision!
    • • Different currencies• Different payment methods• Different values• Different cultures• Different tastes• Different fears• Different motivations
    • If you haven’t localised yet....Analyse existing web traffic patterns in orderto make some informed assumptions around the opportunity from international markets
    • • Traffic x conversion rate x AOV = Sales potential
    • Tip: Start with English language sites
    • Customers
    • You need to meet the needs of different user groupswho go about their journey in a slightly different way
    • Self service customers
    • Guess what the big drivers are?
    • Any tool that helps self servicecustomer’s get in and get out quickly
    • Mega menu’s can take one or twoclicks away from the path to purchase
    • Effective type ahead search
    • Guess what the number one driver for German customer’s is?
    • 34% of Germans want speed and efficiency:(Source: atg e-commerce trends in Europe)
    • 36% of Germans get annoyed by the checkout...they’re not alone
    • The things that annoy customers at the bag and the checkout...
    • Do you deliver abroad?
    • Ted ships to Germany and they give two options and tell me how much the total order will cost
    • If you are going to add on duty and other charges, make sure you show these on the bag, not in the checkout
    • At the bag I should know what the total cost ofthe order is, whether or not you do gift wrap and gift message and what the delivery options are
    • Don’t force me to register
    • This is how to handle it
    • 38% of French people want comparison shopping
    • But...size also matters
    • New or inexperienced web users
    • Reassure me, let me speak to a human if I need to! And....do you actually exist?
    • Difficulties reaching the organisation when they havequestions is the biggest frustration in France and Spain (38%)
    • 20% of Brits like to read peerreviews and comments before buying
    • Ratings and reviews provide confidence and trust
    • Consumer trust in various sources of information and media: most trusted sources [Source: Nielsen Social Media Report, February 2010]
    • Key drivers for new customers and/or inexperienced web users = - Trust markers - Contact number - Your credentials - What other people bought
    • What’s the customer proposition?• Product/range the same?• Category hierarchy and naming the same?• Products, colours and styles the same name?• Americanise the English on the US site• Cross channel experience – Enable return to store in relevant markets?
    • What’s the customer proposition?• What currencies?• What languages? You can probably get away with an English language site for some EU markets such as the Netherlands and even Scandinavia• What payment methods? Local market debit and credit cards as well as other options such as pay on invoice or bill me later?• Enable customers to place orders over the phone?• Price positioning…same pricing?
    • Culture
    • • Cultural variances of local markets can impact upon a number of considerations
    • Not the optimum image for the middle east
    • Simplicity suits the Swedes
    • ooh la la...the French prefer a bit of theatre
    • In Japan, shopping represents a social activity, an opportunity to meet friends and socialise.Due to this social function and reluctance to use creditcards, online shopping has struggled to really take off in Japan whereas M-Commerce has
    • • And of course, each country will observe its own public holidays and festivals:• Basic operational issues and requirements such as the fulfilment of customer orders and handling customer service at these important times of year
    • Currency/Payment
    • Germans want to know: ‘Can I pay using ELV?’
    • Europeans want to know: ‘Can I pay in €?’
    • Scandinavians want to know:‘Can I pay cash on delivery?’
    • A growing number of customers also want to pay using PayPal
    • The $ is still the global currency
    • • Can your PSP handle all of these requirements?
    • Most preferred payment methods
    • Top tip:Think global - act local
    • Social  Media:  What’s  it  all  about?
    • The  term  social  media  refers  to  the  use  of  web-­‐based  and  mobile  technologies  to  turn  communica*on  into   interac*ve  dialogue  and  social  interac*on  that  allow  the  crea*on  and  exchange  of  user-­‐generated  content 11
    • The rise of customer democracy
    • Facebook is particularly good for democracy!
    • • An  integrated  online  experience  is  now  a  key   requirement  rather  than  a  nice-­‐to-­‐have• Customers  expect  to  swap  effortlessly  between   online  shopping  (e-­‐commerce  pla^orms),  social   pla^orms  (such  as  Facebook)  and  related  online   touch  points 197
    • ‘Social shopping’: ‘F-Commerce’
    • The jury is still out on that one in terms of F-Commerce
    • However as a marketing tool it can drive sales
    • 2011 Forrester research conducted over a 24 month period states:
    • It’s now all about ‘word of web’ asopposed to offline word of mouth
    • You already do it offline• Meeting prospects• Building relationships• Asking questions• Answering questions• Building trust• Building your reputation
    • Business investment in social media is extremely low suggesting the approach is very tactical [Source: AIMIA / Sensis Social Media Report, May 2011]
    • Percentage of marketing budget allocated to social mediaaverage for medium and large businesses is less than 5%! [Source: AIMIA / Sensis Social Media Report, May 2011]
    • 25% of Australian medium sized businesses have a social media presence, only 44% have a Twitter account =That’s a lot of businesses with NO social media presence and a lot with no Twitter presence [Source: AIMIA / Sensis Social Media Report, May 2011]
    • Who is responsible for a business’ social media presence?= A real lack of customer service engagement through social [Source: AIMIA / Sensis Social Media Report, May 2011]
    • The  customer  chooses  the  channel   of  engagement 13
    • Tradi.onal  outbound  marke.ng 14
    • Marke.ng  today:  In  bound 15
    • •It is our contention that it should penetrate the wholeorganization•Social Media shouldn’t :•Be a ‘campaign’ or a ‘tactical’ sales tool  •Nor should it only be customer facing•Social media should :•Embrace the internal business•Harness the knowledge and insight available within those whodon’t always have a voice or a vehicle to impart their knowledgethrough
    • Who has leveraged their employeesknowledge and engaged them with social media in their business?
    • •Their Best Buy Connect social media platform hasthe aim of showcasing their people, their culture andwith unedited perspectives, presents a transparentpicture of the business and its employees.•It puts a truly human face on the brand, whilstincreasing accessibility and driving transparency.•This in turn can have a tremendously positive effecton current and future customer perceptions as well ason current and future employees.
    • Social media is a service driver and key customer retention tool
    • Think ‘local social’:Growing role of social interactions within customer shopping missions Ability to drive footfall, advocacy and insight
    • Define  Requirements  ForMarrying  Brand  &  Transac1ons
    • It’s  a  thin  line  between  ‘futurology’   and  hallucina.on 218
    • Usability on its head
    • Case study: KiddicareHome page carousel
    • Significant incremental sales uplift:More than doubled (100%+) conversion on pages enabled with 10CMS
    • Fits.me: Bridging the gap between the on and offline fitting room
    • Augmented reality is driving online furniture sales
    • What are you waiting for?Please don’t go for the ‘dip your toes approach’ You can leapfrog the competition now
    • Before  you  begin
    • Do  you  have  a  roadmap  and  a  strategy  for   e-­‐commerce? 228
    • If  you  don’t  have  a  plan,  then  you  are  planning  to  fail 229
    • A Commercial Plan & Roadmap• You need a plan for how you’re going to get from where you are, to where you want to be• High level will do for the key building blocks• Show how strategy, resource/people, marketing and technology will change over time
    • What  Are  The  Big  Internal  Challenges?
    • • There    are    many    challenges    and    issues    to    address     in    order    to    implement    successful    e-­‐commerce       projects        • Projects  fail  typically    due  to    issues    on    both    the     client  and    the    supplier-­‐side.    Rarely    are    they    only     caused    by    one    of    the    par.es    • From    a    client-­‐side    perspec.ve,    the  organisa.ons   culture  and    people    significantly    impact    upon    the     success    or      failure    of    an    e-­‐commerce     implementa.on         234
    • • On    top    of    that,    many    issues    arise    from    the    lack     of    there  being  a    seasoned    e-­‐commerce    prac..oner     on    the      board    • We    have    seen    many    examples    (too    many)    where     projects    fall    short    of    expecta.ons,    fail    altogether,       or    cost    much    more    than    an.cipated       235
    • Why  do  e-­‐commerce  projects  fail?• When  there  isn’t  an  experienced  e-­‐commerce     prac**oner    on    the    board,    this    oEen    leads    to    key       decisions    being    taken    without    the    depth    of    insight     required    to    support    them.    Issues    can      include:     – SeJng    unrealis*c    expecta*ons.    Forecasts    are    too    high    and     unsubstan*ated.    Timescale      es*mates    are  too  oEen     incredibly    op*mis*c     – An    insufficient    level    of    investment    in    the    development    of     the    channel     – The    structure    being    ineffec*ve     – The    e-­‐commerce    channel    is    developed    as    a    silo    and    not     integrated    with    key    business      func*ons.    The    web    drives     visits    to    stores,    and    vice    versa.    This    should    be    factored    in   236
    • Why  do  e-­‐commerce  projects  fail?• A    lack    of    cross-­‐func.onal    teamwork    (because    it     takes    more    than    a    head    of    e-­‐commerce    to       deliver    a    successful    web    channel)• For    the    best    results    collabora.on    must    take     place    between      the    following    opera.onal    units:     • Buying    and    Merchandising • Marke.ng • Supply    chain • Fulfilment • Customer    service • In-­‐store    personnel • IT  and  development    team 237
    • Why  do  e-­‐commerce  projects  fail?• Involving    team    members    who    need    to    interact     with    and    be    involved    with    the    e-­‐commerce       applica.on    too    late                                                                                                             (early    stakeholder    engagement    is    a    necessity)    • Inadequate    team    skills    (the    speed    and    level    of     growth    of    e-­‐commerce  growth  has  meant  there’s   a  shortage    of    skills    across    various    remits)    • Overall    resistance    to    change...for  most  people,   change  comes  at  a  cost 238
    • What  can  you  do  about  it?• Proac*ve    and    forward-­‐thinking    businesses    can    prevent    many    of    these    piOalls     and    in    doing    so,    save    *me    and    money    while    crea*ng    a    smoother    transi*on     and    implementa*on    of    e-­‐commerce.        • Follow    these    steps    for    the    best    results:     – Enrol    key    stakeholders    in    the    planning    phase,    including    execu*ves    who    will    input    into       the    vision    and    opera*onal    stakeholders    who    will    be    involved    day-­‐to-­‐day    with     suppor*ng    the      e-­‐commerce    opera*on.    As    a    minimum    try    to    involve    in-­‐store,    e-­‐ commerce,    supply    chain,    IT      and    marke*ng    execu*ves    from    the    outset.    An    experienced     project    manager    /    business    analyst      can    play    a    crucial    role    in    making    things    happen.     – Communicate    the    benefits    of    the    channel    to    all    affected    opera*ng    units    ensuring       everyone    sees    the    benefit    to    them    and    to    the    business.    Given    the    growth    poten*al,     this    should      be    a    simple    task.    Make    everybody    aware    of    the    success    stories    in    your     industry,    and    what    a      joined-­‐up    approach    can    do    for    your    business.     – Run    stakeholder    workshops    and    interviews    assessing    the    impact    e-­‐commerce    will    have       on    remits    and    job    tasks,    func*ons    and    processes,    and    employee    roles    in    the    execu*on     phase.     – Develop    an    opera*onal    structure    that    maximises    the    opportunity    and    op*mised       processes    that    minimise    the    likely    impact    caused    by    the    change    e-­‐commerce  brings  to   people’s  roles   239
    • • To    be    successful,    e-­‐commerce    projects    also     require    execu.ve-­‐level    sponsorship    or    senior     leader  consensus    around    the    business    need    for     the    project    • Again    the    growth    of    e-­‐commerce    should      make     it    a    rela.vely    easy    task    for    project    sponsors    to     again    execu.ve    level    buy-­‐in       240
    • • You    also    need    to    ensure    that    the    overall     business    strategy    takes    account    of    the    impact     that    e-­‐commerce    has    on    all    other    channels    of     the    organisa.on    • By    demonstra.ng    the    poten.al    for      organisa.on-­‐ wide    benefits    it    will    be    easier    to    build    a  business     case,    for    budget    and    support• Aher    all,    as  demonstrated  earlier,  e-­‐commerce    is    a     driver    of    sales    for    all    channels    of    the    business     241
    • • So  don’t  think  of  e-­‐commerce    as    a    silo,    or    an     individual    channel    • And    if    you    can      communicate    this    successfully     then    the    board    will    see    that    the    value    of    e-­‐ commerce    and    of    the      web    channel    in    general     terms    is    business-­‐wide    • But    consider    that    in-­‐store    personnel    should    be     rewarded  for  genera.ng  sales  online  otherwise   they’ll  stay  in  a  silo  mentality  and  will  fail  to   support    the    business    as    a    whole       242
    • • If  you  don’t  focus  on  geing  stakeholder   commitment  and  a  clear  understanding  of  the   challenges  and  capabili.es    required    from    the     outset    of    your    e-­‐commerce    project,    you    run     the    risk    of      spending    too    much    .me    and     money    at    the    back    end    of    the    project,    trying     to    resolve    internal      problems    • So    ensure    you    engage    all    stakeholders    in    the     planning    phase    for    e-­‐commerce   243
    • • You    can    select    the    best    technology,    have    a    clear    vision    and    roadmap     with    regards    to    where    you      want    to    take    the    e-­‐commerce  channel,  but   if  you  don’t  have  an  experienced  and  highly  effec*ve  project    manager,     your    project    will    fall    down    in    one    or    more    of    the    following    ways:•     •It    will    be    late.    This    is    preVy    much    guaranteed.    We    have    seen    a     number    of    examples    of    poor  project  management  that  have  seen  sites   go  live  a  year  aEer  the  intended  go  live  date •  It    will    be    lacking    in    scope  and  therefore  won’t  be  ‘fit  for  purpose’.   Long-­‐term  thinking  is  required    here.     •Invariably    it    will    be    over    budget,    as    it    will    run    late,    and    may    also     require    various    aspects    of      code    to    be    re-­‐wriVen.     •Your    internal    stakeholders    will    be    dissa*sfied    and    may    lose    faith     altogether    in    the    e-­‐commerce    opportunity.     •It  won’t  achieve  it’s  full  poten*al  in  terms  of  revenue  genera*on –(unfortunately,    the      significant    organic    growth    experienced    by    most     online    retailers    oEen    masks    the      inefficiencies    of    their    websites).   244
    • Define  The  Opera1onal  Structure
    • The  different  models 246
    • • The  different  models:• 1.Mid  sized  mul.  channel  retailers  (Ted  Baker,  Mulberry  etc): – Head  of  e-­‐commerce  tends  to  own  much  of  the  end  to  end  process   – OEen  co-­‐owns  fulfilment  and  logis*cs – E-­‐commerce  developed  as  a  ‘bolt  on’  with  dedicated  opera*ons  and   services  such  as  merchandising,  marke*ng  and  customer  service   – So  this  a  classic  ‘mul*ple  channel’  retail  environment,  but  not  an   integrated  one 247
    • • The  different  models:  Con.nued• 2.Large  FTSE  retailers  (M&S,  John  Lewis  etc): – The  head  of  e-­‐commerce  is  ohen  responsible  for  everything  on  the  website – But  board  or  opera.onal  Director’s  own  different  parts  of  the  opera.on  such  as   supply  chain,  merchandising,  customer  service – It  tends  to  be  a  more  integrated  scenario,  but  with  some  businesses  such  as  M&S   or  John  Lewis,  home  shopping  or  their  ‘direct  business’  un.l  recently  was  a   completely  separate  business  unit – The  model  below  reflects  where  I  believe  most  mul.  channel  retailers  should  be   heading  structure  wise; 248
    • • The  different  models:  Con.nued• 3.Groups/Mul.  brand  owners  (Pentland  brands,  Arcadia): – The  brands  have  their  own  management  team  ohen  including  a  head  of  e-­‐commerce – The  centre  of  the  business  provides  a  service  to  all  of  the  brands  across  marke.ng,   technology,  supply  chain  etc.  It’s  a  facilitator,  whereas  the  brands  own  management   teams  actually  trade  the  online  business• 4.  Pureplays: – They  do  everything  in  the  business.  i.e.  The  full  end  to  end  process  including  the   coding  and  web  development  side• 5.  The  outsourced  model: – This  is  where  there  is  a  small  e-­‐commerce  team  ohen  only  responsible  for  content  and   some  trading  aspects.  Customer  service,  marke.ng,  supply  chain,  fulfilment,  the   pla^orm  are  all  outsourced  to  a  supplier  such  as  GSI  commerce,  PFS  web  etc 249
    • The Four Pillars
    • Based on the 4 pillars model:The optimal trading structure for B2C
    • Project  kick  off
    • • Schedule  a  kick  off  mee.ng  with  key  stakeholders• (project    sponsor,    project      manager,    project    team     etc)    to    develop    the    high    level    roadmap    and     strategy    for    e-­‐commerce   253
    • Create  a  steering  group• A    recommended    project    team    structure    might    look    like     this:     – A    project    sponsor.    Ideally    someone    at    board    level.     – A    project    manager.    Someone    in    the    e-­‐commerce    team.     – A    project    team:    the    head    of    e-­‐commerce,    the    internal    project     manager    (if    you    have    one),      the    IT    manager,    someone    from     finance,    the    project    manager    from    the    agency,    etc.     – A    steering    commigee    comprising    of    key    members    from    cross     func.onal    areas    of    the      business    that    will    impact    upon    e-­‐ commerce    (finance,    merchandising,    opera.ons,    fulfilment,      etc).    • Ensure    that    each    of    the    project    team    members    has    the     necessary    level    of    skills    and      experience    and    can     commit    the    required    level    of    .me    to    the    project.   254
    • Documenta1on  required  pre  and   post  supplier  selec1on
    • • A  supplier  contract  with  appropriate  SLAs• You’ll  need  a  high    level    roadmap    and    strategy    for    e-­‐ commerce    • You    will    need    a    detailed    financial    plan    • Func.onal  specifica.on.    This  will  cover  your    e-­‐commerce     system    capabili.es,    func.onality,  integra.on    and     interac.on  with    users.  The  details  for  both  this  and  the       requirements    document  will  have  been  captured  during     stakeholder  workshops    and    one-­‐to-­‐one  interviews.    • Change    request.    This    is    usually    a    brief    document     outlining    the    objec.ve    and      requirements    of    the    change,     which    is    then    circulated    to    the    project    team    to    respond     with      the    proposed    solu.on,    cost,    .mings    and    impacts.   256
    • • Risk    log    and    impact    assessment.    This    is    normally    done    in    response     to    a    change      request.    An    impact    assessment    is    where    key    opera*onal     func*ons    and    departments    review      the    proposed    change    to    evaluate     whether    there    will    be    an    impact    on    systems,    people    or      processes.     Risks    and    issues    are    highlighted    up    front    and    managed    appropriately.    • Resource    plan.    Create    a    GANTT    chart    and    use    it    to    ensure     appropriate    resource    is      available    for    e-­‐commerce    implementa*on.    • Cri*cal    path    and    *ming    plan.    This    covers    the    proposed    *mescale    for     the    project    and      helps    to    iden*fy    dependencies    of    all    ac*vi*es.    This     will    let    you    put    together    the    resource  and  *ming  plan.  You  need  to   es*mate  how  long  each  element  of  the  project  will  take.      It’s  always    best     to    build    in    some    con*ngency    to    the    *meline    for    each    key    milestone,     and    use    the      cri*cal    path    as    to    con*nually    measure    your    progress     against    the    *meline.    • Tes*ng    schedule.    This    will    cover    user    acceptance    tes*ng    (UAT)    as     well    as    load    and    stress      tes*ng    the    system    and    should        cover    tes*ng     required    as    a    result    of    change    requests.   257
    • • Tes*ng    schedule.    This    will    cover    user    acceptance    tes*ng    (UAT)    as    well    as     load    and    stress      tes*ng    the    system    and    should        cover    tes*ng    required    as    a   result    of    change    requests.    • Release    schedule.    A    schedule    of    when    changes    are    planned    to    be    released     to    the    website,      ensures    priori*es    are    met    and    that    the    appropriate    test     environments    are    available    at    the      right    *me.    • Project    go/no    traffic    light.    This    highlights    any    outstanding    requirements     prior    to    go-­‐live  and  provides  a  view  of  the  status  of  these  elements  and  they’re   poten*al  impact  which  is  communicated    by    giving    each    item    a    red,    green    or     amber    status.    • Build    a    communica*ons    plan.    Review    it    regularly,    and    communicate     frequently    with    all      the    key    stakeholders.    This    is    a    key    aspect    of    successful     project    management,    and    it    will    also      help    to        ensure    that    all    stakeholders     remain    engaged    throughout    the    lifecycle    of    the    project.    • Conduct    risk    assessment.    It    is    wise    to    carry    out    a    full    risk    analysis    and     document    all    risks      in    a    risk    register.        You    need    to    regularly    review    each     risk    to    ensure    you    are    managing    them.    If      you    have    an    internal    audit     department,    then    they    are    the    ideal    people    to    manage    this    aspect    of      the     project.   258
    • Requirements  Gathering:Front  End,  Back  End,  Integra1on
    • Timeline:  1  to  2  weeksProcess:  Workshops  &  stakeholder  interviews 260
    • Clientsite.com
    • Which stakeholders requirements should be captured?• IT and system development resources• Website design resources• Buying & Merchandising resources• Commercial planning and stock management resources• Pricing and promotions management resources• Content creation and content management resources, including photography and copy
    • Which stakeholders requirements should be captured?• Product photography and artworking resources• Online/digital marketing resources• Order management resources• Loss-prevention fraud-screening• Customer contact management resources• Warehousing facilities: Pick, pack and despatch resources, returns processing resources• Parcel carrier service• Reporting and control resources
    • What questions do you need to ask?
    • Brand/design• What are the brand values and ethos, existing visual collateral, guidelines we need to consier?• What aspirations, sites liked/disliked, etc?• What brand experience do we need to create?
    • Front end• Site wide functionality • Discuss functionality that runs across whole site • Newsletter sign-up, email-a-friend, social links, recently viewed, mini basket, login, etc.• Main Pages • Discuss requirements for main site navigation, Home Page, Category & Brand landing pages, search and product listing pages• Search • How ‘sophisticated’ does search need to be? • Does content other that products need to be returned in search results
    • • Guided (faceted) Navigation • By which search facets should users be able to select/filter products? • Single or multi-select facets?• Products • Discuss product range, and any special requirements relating to display of products/Brands on the site• Personalisation • What level of personalisation, if any, should the site support?• Merchandising Tools • How are the products to be merchandised?: manually, rules based, algorithm based, mixture…
    • • Promotions • What promotions types, triggers, & targets does the platform need to support• Checkout Pages • Discuss the checkout process – single or multi-page, guest checkout, do or don’t’ promote other products in checkout, etc.• General Site Pages • ‘Static’ content pages: About us, contact us, Help/FAQ’s, etc.• Customer • What features & functionality will be in the ‘My Account’ session of the site• What integration requirements are there around customer for other systems (OMS, CRM, other?)
    • • Wish List • Will you have one? What level of functionality?• Triggered Emails • At which points should the site send emails to users (order, registration, shipping, abandoned basket, other?, etc.
    • Back End• Content Management (CMS) • Requirements for, who will use, authorisation workflow, etc.• Product Information Management (PIM) • Requirements for, who will use, authorisation workflow, etc.• Order Management (OMS) • Is one required? IF so, requirements.• Stock • Handling of out of stocks, back-orders?, stock level feeds?• Shipping • What will the customer proposition be here? • Split delivery? Gift card & wrap? • Where to?
    • • Which payments will be accepted? Paypal?, loyalty?• Fraud?• PCI Security• Call Centre • Outsourced or internal? • Requirements for?• Email Marketing• Level of Integration with• Integration• To back-end systems (products, stock, orders, customer)• 3rd party systems?
    • • 3rd Party Product Feeds • Are these required, if so, details.• Analytics • Requirements for• Reporting • Requirements for• Hosting • Requirements for• Account Management • Requirements for
    • Products and content• Photography: Where and how will we do this?• Rich Content: A fundamental requirement to drive sales...however it needs to be created to drive sales• Exclusive Products: Could you offer some exclusive products online?• Head or long tail products?
    • Logistics• Outsource logistics?• Packaging: Fit for purpose for B2C?• Stockholding: Requirement to forecast• Returns handling: Processes required to handle this• Customer proposition to be determined: Matrix of existing delivery service levels to be produced• Australia only to begin with?
    • Customer Care: Call centre • Managing B2C customer services • Service provision only? • Or, also as an additional sales driver: Card sales, live chat etc? • Operating hours • Managing International calls • Language and time requirements
    • IT and Integration• ERP/legacy systems• Stock management• PIM• CRM• Other Data Services
    • • Ensure that the platform you choose can be easily integrated with other parts of your business, such as your CRM and product information channels• Many companies are realising that sales and marketing functionality is increasingly important• Your e­commerce solution should be the engine room of your online sales and marketing efforts, helping with customer acquisition, customer retention, cross selling and upselling etc
    • Roll Out• Australia to begin?• Then English language countries?• EU when?• White label?
    • The  Supplier  Selec1on Process
    • Produce  The  RFP
    • Timeline:  5  days  with  itera*onsProcess:  Produced  by  head  of  e-­‐commerce   and  IT  director  or  by  a  consultant 282
    • Are  you  thinking  about  what  the   customer  wants?• Your  e-­‐commerce  strategy  needs  to  focus  on  the  customer   experience  to  ensure  success  and  in  order  to  make  sure  that   you  are  doing  jus.ce  to  your  brand  and  differen.a.ng   yourself  in  an  increasingly  compe..ve  marketplace• Does  your  company  really  understand  what  your  customers   want?• Are  all  the  necessary  stakeholders  within  your  company   feeding  in  to  your  e-­‐commerce  strategy  to  ensure  that  you   have  an  integrated  approach• Is  the  supplier  on  the  ball  in  terms  of  usability  and   accessibility? 283
    • 1. Introduction• State your objectives and provide clear guidance on expectations• The X Shop has ambitious plans for their growth online, and is considering a new platform to help them achieve this. They have a desire to be live by pre-Christmas 2011. This will require a new site design, and this requirements document is to be used as an RFP for both design and platform• However, any particular vendor may respond to either one or the other aspect, or both• Please make clear in your submission which aspect(s) you are tendering for, and how the cost is allocated between them
    • 2. This Requirements Document• This document sets out X Shop’s requirements for their new transactional websites. It uses the MoSCoW ratings approach for the level of requirement as follows: • M – ‘Must Have’ • Clear requirement for first phase launch of site • S – ‘Should Have’ • Ideally part of the 1st phase launch, but as long as the Functionality was confirmed deliverable shortly after launch, could form part of a 2nd phase launch • C – ‘Could Have’ • Indicates Functionality X Shop might like to have, as long as the cost & complexity were reasonable. It would be helpful to know how your platform could deliver this Functionality, but could be phase 2 or even 3 releases. • W – ‘Won’t Have’ • Indicates Functionality X Shop don’t need now, or in the medium term.
    • 2. This Requirements Document• Of course, it would be great if everything contained in this document were ready & available for immediate launch at modest cost• However, since this might not be the case, the winning tender is likely to be the company that is able to deliver the largest portion of Functionality, at the earliest time, for the lowest cost• Where the proposal is to phase the delivery of functionality, please quote separately for the Must Haves, the Should Haves, and the Could Haves
    • 3. The Tender Process• We aim for this to be a very clear & transparent tender process, with each vendor ranked against the following key criteria: • Your proposal • Functional Fit ‘out of the box’ • Ability to deliver any outstanding Functionality • Time frame for delivery of all agreed Functionality, over 1 or 2 phases • Project Management approach • Ability to service & support the site on an on-going basis • Contract terms • Client references • Costs • For the design element, the ability to translate X Shop’s brand values into a high-conversion transactional site with great usability and accessibility.
    • • Please ensure your proposal responds explicitly to the requirements in this document – ideally in the same order (and with the same outline numbers) presented here, as well as directly addressing the key criteria listed above• Submissions that are just standard marketing about your platform, and don’t respond to the specifics will be judged poorly• Please demonstrate clearly how your proposal delivers these requirements, and back this up with screen-shots of back-end systems & live websites that demonstrate the Functionality purported.
    • • In general, the tender process will have 3 phases:• 1 – Review received proposals and evaluate against criteria listed above, in order to reduce list of ‘possibles’ down to 2, or at most, 3 options.• 2 – Full-day on-site visits with short-listed options, where full demonstrations of the systems (not just PowerPoint!) will be expected, as well as commercial discussions and ‘cultural fit’ can be gauged.• 3 – Due diligence and customer references for the best-fit options, in order to evaluate the winning tender.• All submissions should be in electronic form, and emailed to
    • 3.1 Timeline• A somewhat more legible, landscape version of the above is on the last page of the document. However, the high-level plan is for:• 1) Discovery/Design to begin XXX 2011• 2) Build to begin XXX 2011• 3) UAT XXX 2011• 4) Go-live XXX 2011
    • 3.2 Cost basis• Please note The X Company is looking for a fixed price quote for this project, not a T&M estimate• This quote will of course be dependant on a detailed discovery phase, but we would hope that the price after discover varies no more than 10-15% from your quote during the tender process• If your quote is on any other basis, please make this explicitly clear, as the assumption will be fixed price, and this will be the basis of all discussions going forward, unless agreed otherwise.
    • 3.3 Confidentiality• The contents of this document should be considered commercial in confidence, and are not to be distributed outside of those in your organisation required to prepare a response• You’d want them to sign a NDA
    • 4. The Brand• The X Company wants to grow their online their business to account for 15-25% of their overall business within 3 years• The X Company wish to differentiate themselves online by listening to their customers and provide high quality customer service. They want to be seen as offering good value for money, bringing to market exclusives, first to offer products, whilst maintaining excitement and an element of surprise amongst their customer base.• They have identified 3 main reasons why customers come to their current site: • For replenishment • To browse • To Indulge• X is seen as a very personal purchase; the X Company want to try and create some of this experience online via for e.g. personal customer stories so it is more than just about product and price.
    • 5. Website Functionality
    • 5.1 General
    • 5.2 Site wide functionality
    • Newsletter/email sign up: How not to do it!
    • Social bookmarks/links
    • Recently viewed
    • Consider  adding  a  basket  lightbox  when  item   added  to  basketAn  intui.ve  CTA  to:1.add  to  cart  or  •con.nue  shoppingAlso  a  great  opportunity  for  cross  selling 307
    • How not to do a mini basket
    • This is how to do it
    • Dynamic FAQs
    • Live Chat
    • Intuitive error messaging and form
    • 5.3 Main Pages
    • This is above the fold
    • Meets the needs of all user groups and all above the fold
    • Meets the needs of all user groups
    • Strong calls to action
    • - Where are the calls to action? - Bestsellers...new in...- Only one product in clear view above the fold
    • A 3x2 grid increased conversion by 15% over a 4x3 grid...again less is often more in this space!
    • Where are bestsellers, new in, customer favourites?Look at the size of the images compared to Schuh
    • no filters....give me a hand please! Style, occasion, price, size etc
    • FC AS Theory Tommy CT GANTPersuasive  product  descrip1onGood  quality  product  image  with  zoomMul1ple  views  of  product  image  inc  modelProduct  priceSize  op1onsStock  and  availabilityDelivery  price  and  op1onsExpected  delivery  dateClear  ‘Add  to  Basket’Wishlist  /  forward  to  a  friend  /  socialCustomer  ra1ngs  and  reviewsReturns  PolicySizing  ChartEmail  me  when  back  in  stockCross-­‐sells  /  up-­‐sells  /  complete  the  lookSEO  H1  /  H2  Tags
    • 332
    • How not to do it
    • 5.4 Search
    • Site conversion from search: Retail average is 7.6%(General retail average conversion is 4.23%)
    • A search for ‘delivery’
    • Sort by...
    • Effective type ahead search
    • 5.5 Faceted Navigation
    • Search for ‘jeans’ with all relevant filters and facets
    • A search for gifts
    • My search for jeans
    • Look what happens when I search under‘denim’....and how the heck do I narrow my choice down to make a purchase decision?
    • There should never be a ‘null search’ return
    • 5.6 Products
    • Visual merchandising:Has a massive impact on conversion
    • Myla  Model  choice She  is  way  too  skinny….   Almost  anorexic.   It’ll  be  a  put  off  for  a  lot  of   customers.
    • Model  ChoiceHealthy,  curvy,  volump.ous  and  olive/dark  skinned  models  sell  lingerie.  AP,  Boux  and  M  &  S
    • Good visual merchandising
    • Image Size• Each product displays only slight discernable differences to each other, fit, stripe, check, cuff, collar etc…• Informing the customer of these style differences quickly is very important in the customer journey• Online, the visual merchandising has to convey the product detail and brand values of quality to the customer. Image size is critical to this
    • Image SizeOn product listing …difficult to discern product detail… check or strip?
    • Image Sizes• TP image size on product listing and product detail page is the smallest of those reviewed. -40% to the average (of those reviewed) on both product listing and product detail page.• Image size is too small to get across the quality and design details of the product and does not sit with brand core values.• Net a Porter images on product listing nearly 3 x that of Thomas Pink.• On the whole, retailers trading on quality/ designer have 3 images across on their product listing.
    • Easier to discern now
    • Image Size – Product detailOnly at zoom stage can you see that product is checked.
    • Image Size.Only at zoom stage can you make out that the product is stripedand understand the quality of the garment… it also has pipingdetail.
    • Now there’s no ambiguity
    • Image Size•On tailoring with high selling prices … the small images do notvalidate the product quality. It is difficult to get any sense ofquality•The banner gives some quality assurance and reference
    • Nice consistent imagery!
    • Shots need to be retouchedToo many shots don’t sell the product effectively enough
    • 5.7 Merchandising Tools
    • Cross selling increases conversion and the ATV
    • 5.8 Promotions
    • 5.8.1 Promotion type
    • 5.8.2 Promotion Triggers: How you get it
    • 5.8.3 Promotion target: Who’s entitled to it
    • 5.8.4 Promotions in the basket
    • Only £25 away from free next daydelivery...question is, how much is delivery?
    • • 3 testing options for Remarketing with a classic abandoned shopping cart follow-up email, but with 3 alternative follow- ups which were tested with these results:1. Generic branded follow-up email : +10% conversion rate2. Personalised remarketing email with a promotional code for a 5% discount time limited to 72 hours: +100% conversion rate3. Personalised remarketing email with a promotional code  for a 5% discount time limited to 48 hours: +200% conversion rate Source: Smart Insights
    • 5.9 Customisation/Personalisation
    • 5.11 Checkout
    • The Shopping bag and checkout arewhere you lose most of your sales
    • Shopping  Bag  Page
    • 46.4%  of  customer’s  don’t  even  make  it  from   the  bag  to  the  1st  stage  of  the  checkout... why?
    • Why do they abandon here?•No delivery options•No delivery info to total order value•No idea whether or not I can add agift message?•Gift wrap message is hidden/toosmall•They may not have a promotionalcode but think they should have•Data capture is just a distraction•Difficult to see update basket orcontinue shopping buttons•Not everyone is ready to buy
    • 5.12 General Site Pages
    • 5.13 Customer Pages
    • 5.15 Social
    • 6. Back end functionality
    • 6.1 CMS
    • 6.2 Product Information Management
    • 6.3 Order Management
    • 6.4 Stock
    • 6.5 Shipping
    • 6.6 Payments
    • 6.7 Call Centre
    • 6.8 Email
    • 6.9 Triggered emails
    • The  system  should  enable  the  set-­‐up  of  affiliate  &  campaign  codes,  which  can  be  assigned  to  each  affiliate  or   PPC  campaign,  and  tracked  by  the   system,  via  the  analy*cs  tags,   through  to   the  campaign  management  repor*ng  in  the  analy*cs  applica*on.  The  system  should  support  best-­‐prac*ce  affiliate  and  campaign  tracking   (the  repor*ng   and  analy*cs  of  this  will  be  done  through   the  3rd  party  analy*cs  package,  but  the  site  database  &  HTML  should  be  coded  sufficiently,  and  with  enough   granularity,   to   feed   the   analy*cs   package   appropriately,   and   the   affiliate/campaign   codes   wriVen   to   the  customer  &  order  tables  so  they  can  be  reported  on  locally. 6.11 Affiliate and Campaign codes
    • 7. Integration with back end systems
    • 8. A/B and multi variate testing
    • 9. Mobile• The X Company is interested in incorporating a mobile approach into their overall Digital Strategy. Initially the main site should be built to be accessible via a mobile device. They would like to explore creating a device specific mobile app to provide for e.g. • Stores near me using GPS • Use of SMS to notify customer of order status • Experimentation with QR codes • Looking to implement PDAs/tablets for staff in-store as used in Apple Store. • Need to be able to reskin main website• It should be device and browser compatible & integrated with mobile payment gateways• Overall requirements TBA
    • 10. Analytics
    • 11. Reports
    • 12. Account Management• While this document has focused on platform functionality, we can’t stress enough the importance of on going account management as a selection criterion for this project. As part of your proposal, please describe and confirm the following key points: • Who would be our named account management team, and what are their responsibilities? • Is this person/are these people technical, commercial, or both? • What do you offer, on an on-going basis, as far as best practice and innovation, for example? • What is your development road-map for your platform and services? • What direct access will we have to technical support staff, and during which days/hours? • Please describe your process for handling bugs/issues, and change requests, and how the two are defined and delineated • Do you have standard SLA’s around account management? If so, please describe these
    • 13. Hosting• When explaining your hosting proposal, please, as a minimum, confirm the following:• Your recommended hosting architecture for a ‘minimum’ & ‘optimal’ solution• Bear in mind that even minimum hosting must reach the performance requirements mentioned below• The operating system, and any 3rd party software required to deliver your solution• What monitoring & alerting processes are available• What support options are available• Your experience with load balancing web servers (hardware and/or software – please confirm) and clustering databases• Please give specific examples and references for your claims here• Performance is expected to delivery page load times no greater than x seconds on a 512k broadband connection• Downtime is expected to be no greater than 0.5%• What business continuity and disaster recovery procedures do you have in place to support downtime SLA of 0.5%?• 24/7monitoring with helpdesk and alerts support• Cloud or dedicated hosting with scalability for peak traffic• SQL database(s)• Multiple redundant DNS and SMTP servers
    • • Manage multiple B2C & B2B ecommerce storefronts, corporate sites, micro- sites, extranets, forums, and blogs from one central platform• Individual web stores can have different or same designs (or mixture of), same or different functionality, different or shared content• Host different domain and manage and share content across these; either shared or exclusive• New version rollouts on bi-annual basis• Supports sharing of customers across multiple web stores with a single registration, facilitating shared baskets across sit• Please describe the various SLA’s agreement offered, and the associated costs• Security
    • Select  Vendors:Plaorm  providers,  System  Integrators,   Design  Agencies
    • Supplier  Selec1on
    • • Timeline:  4  weeks  in  total• Process:   – Give  them  the  RFP  and  2  weeks  to  respond – Take  3  days  to  review  responses – Take  2  to  4  days  to  conduct  due  diligence  with  full  day   demos – Score  the  vendors  and  make  a  decision 425
    • Some  ques.ons  to  ask  at  the   outset...• How  ‘future-­‐proof’  are  the  vendor’s  technologies?• Is  your  technology  easy  to  use  and  manage  (so  that  you  will   not  be  incurring  extra  costs  and  stretching  your  internal   resources  on  a  regular  basis)?• Has  the  pla^orm  been  built  with  Search  Engine  Marke.ng   in  mind?• Web  analy.cs  are  important  to  ensure  that  you  can   measure  what  is  happening  so  you  can  adapt  and  grow   accordingly.  What  kind  of  capabili.es  does  the  pla^orm   have  in  this  respect?• –  Will  the  analy.cs  give  you  the  level  of  granularity  you   need?   426
    • • Find  out  what  kind  of  repor.ng  comes  as   standard  and  what  will  cost  you  extra• Are  there  features  in  the  pla^orm  that  you  don’t   need  on  Day  1?  Understanding  how  much  these   will  cost  to  implement  once  the  site’s  live  will   help  you  plan  your  budget  and  your  approach  to   market• Will  you  be  geing  the  level  of  strategic   consultancy  you  are  hoping  to  make  sure  that  the   technology  is  working  for  you  at  an  op.mal   level? 427
    • • If  you  are  using  an  agency,  are  you  convinced  that   they  have  the  project  management  capabili*es  to   deliver  your  requirements  on  *me  and  within   budget?• Are  you  prepared  to  pay  more  to  get  an  agency   with  a  proven  track  record  in  your  market  sector?• Are  the  capabili*es  real  or  planned?  Make  your   assessment  evidence  based,  relying  on  what  they   agency  has  delivered,  rather  than  on  what  they   say  they  can  deliver. 428
    • Main  Process  Steps• Agree  the  scope  of  what  this  procurement   process  covers• Define  your  requirements• Priori.se  your  requirements• Invite  proposals  specifically  against  these   requirements• Objec.vely  manage  the  tender  process,  &  score   op.ons  against  your  requirements• Ensure  non-­‐func.onal  requirements  are   evaluated  along  with  func.onal  ones
    • Agree  the  scope  of  what  this   procurement  process  covers• There  are  a  lot  of  different  elements   (and  possibly  3rd  party  tools)  that  can   form  part  of  an  eCom  pla^orm  (the   graphic  on  the  right  is  only  a  part  –  doesn’t  include   Order  or  Warehouse  Management,  for  example)• So  be  clear  what  the  remit  for  this   project  is.  Does  it  cover  all  of  these   items,  or  just  a  subset?• Can  some  of  them  be  evaluated  in  a  2nd   phase  aher  launch,  or  are  they  intrinsic   to  the  projects  success?• Which  ones  are  ‘core’  to  the  pla^orm,  &   which  ones  possibly  ancillary  add-­‐ons
    • Define  your  requirements• Once  the  scope  is  defined,  you  can  dig  down  into   the  detail  of  the  requirements  for  what  is  in   scope• Remember,  if  you  ask  for  the  world,  expect  to   pay  for  it!  So  think  carefully  about  what  really  is   going  to  make  a  difference  to  how  you  run  your   business• Watch  out  for  func.onality  that  sounds  great,   but  that  you’ll  never  get  ‘round  to  using
    • A  ‘typical’  Prac.cology   RFP  Contents  List
    • Priori.se  your  requirements• Unless  your  check-­‐book  is  open-­‐ended,   priori.se!• You  won’t  be  able  to  do  it  all,  so  make  sure  what   you  do  get  is  what  you  need,  and  will  deliver  an   acceptable  ROI• Remember,  the  best  way  to  increase  the  risk  of  a   project  failing  is  to  try  to  do  too  much  in  one  go –I’m  not  sugges.ng  to  lower  your  ambi.ons,  but  if  you   can  phase  the  delivery,  you’ll  have  much  beger  chance   of  success
    • Invite  proposals  specifically  against   these  requirements• Vendor’s  love  to  sell  you  what  they  think  their   good  points  are• That’s  fine,  but  might  not  match  up  with  what   you  need• Make  sure  they  respond  specifically  to  your   requirements,  and  if  they  make  it  to  the  demo   stage,  that  they  do  demonstrate  how  they  will   deliver  these  requirements
    • Objec*vely  manage  the  tender  process,  &   score  op*ons  against  your  requirements• Each  qualifying  proposal  is  likely  to  have  its’  own   strengths  (and  weaknesses),  so  how  do  you   weigh  these  up  and  compare  them? –First  come  up  with  a  reasonably  granular  list  of   criteria,  and  then  priori.se  these  criteria –Score  each  op.on  against  each  criteria,  &   independently  of  whatever  score  they  get  on  other   criteria,  &  then  do  the  math!• Ensure  the  whole  process  is  as  open  &   transparent  as  possible,  with  each  vendor  being   given  the  same  informa.on  as  everyone  else
    • Ensure  non-­‐func*onal  requirements  are   evaluated  along  with  func*onal  ones• Cultural  fit• Do  you  like  them?• Contract  terms• Payment  terms• Total  cost  of  ownership• Domain  experience• Thought  leadership  • These  are  all  valid  evalua.on  criteria,  and  should   be  included  along  with  the  func.onal  
    • Ensure    you  are  comparing  like  for  like
    • Objec.ve  Scoring  Matrix
    • Discovery  Phase
    • • Timeline:  2  to  4  weeks• Run  workshops  to  detail  and  capture  what  is   actually  going  to  be  built – Informa.on  architecture – Customer  journey – Customer  experience – Integra.on  etc 440
    • Be  careful!• NEVER  sign  a  contract  before  you  have  gone   through  a  detailed  discovery  phase• Only  then  can  you  know  the  true  cost  of  what’s   going  to  be  delivered• And  only  then  can  you  feel  fully  comfortable   with  their  ability  to  deliver 441
    • Plaorm  choices
    • Some UK vendors
    • Your biggest challenge here is finding good SI’s
    • Build  Approaches • Waterfall –Spec  fully  up  front –Only  start  build  when  signed  off –Can  be  ‘fixed  price’  –  but  be  clear  on  this  with  vendor!Pros Cons•(should  be…)  very  clear  what  you  will   •Huge,  .me  consuming,  lengthy,  &  costly  effort  to  be  geing document  in  enough  detail•Vendor  should  be  able  to  give  accurate   •You  may  not  know  all  the  answers  you  need  to  quote  based  on  detailed  spec complete  spec  at  the  .me•Test  scripts  and  user  acceptance   •Rigid  spec  that  needs  change  management  criteria  can  be  based  on  same  document control  to  amend
    • Build  Approaches • Agile –Build  the  essen.al  frame  work  first –Fill  in  details  as  you  go –By  defini.on  is  Time  &  Materials  pricedPros Cons•Much  quicker  path  to  prototyping  site,   •Client  doesn’t  have  clear,  documented  list  of  what  where  you  can  see  what  you  will  get   they  will  get  for  what  price  ahead  of  .mesooner •Risk  moves  to  client  (but  hence  lower  cost)•Changes  much  more  easily  accommodated•Should  be  overall  lower  cost  &  quicker  development
    • What  Pla^orm  Op.ons  are  there?• ‘True’  Sohware  As  A  Service  (SaaS) –I  say  ‘true’,  as  several  claim  this,  but  almost  no-­‐one  is –‘Ideal’  is  single  version  of  pla^orm,  that  every  client  is   on –That  way  simpler  to  maintain –Everyone  gets  access  to  updates –But • Much  harder  to  customise • You  have  the  same  as  everyone  else.  Limited  compe..ve   differen.a.on
    • What  Pla^orm  Op.ons  are  there?• Fully  Managed –Eg:  Venda,  BT  Fresca –Vendor  provides  hos.ng  as  well  as  pla^orm. –Typically  (almost)  all  clients  are  on  same  version  of   sohware  (or  at  least  that  is  the  inten.on) –There  is  usually  fixed  monthly  flat  fee,  plus  some   turnover/transac.on  charging/% –Is  simpler  for  budge.ng,  and  can  some.mes  get   launched  quicker –But  generally  limita.ons  in  flexibility,  as  vendor  tries   to  align  func.onality  across  all  clients
    • What  Pla^orm  Op.ons  are  there?• Dedicated –Can  be  any  pla^orm  that  runs  independently  in  it’s   own  instance  (eg:  hybris,  Magento).  Essen.ally   anything  other  than  SaaS  or  Fully  Managed  pla^orms –Client  might  host  through  arrangement  with  pla^orm   vendor,  but  can  also  make  independent  hos.ng   arrangements –Client  fully  in  charge  of  own  des.ny,  as  far  as   bandwidth,  cpu,  integra.on  points  in  &  out  of   environment –But  also,  dependent  on  pla^orm  efficiency,  can  get   expensive  on  hos.ng  as  client  takes  all  responsibility   to  ensure  enough  horsepower  to  run  site  
    • What  Pla^orm  Op.ons  are  there?• Shared –A  hybrid/lower  cost  version  of  fully  managed  &   dedicated –Vendor  manages  hos.ng,  and  splits  cost  of  hos.ng   across  a  number  of  clients –Obvious  cost  advantages,  and  for  low  volume  can  be   suitable –But  spikes  from  other  clients  can  affect  your  site’s   performance,  and  you  may  have  limita.ons  based  on   your  traffic  so  you  don’t  adversely  affect  others
    • ROI• E-­‐commerce  pla^orms  can  help  organisa.ons  ...• Drive  revenue  online  and  instore• Boost  visitor  numbers/improve  customer   acquisi.on •–  Improve  search  engine  op.misa.on •–  Increase  conversion  rates •–  User  friendly  technology •–  Improved  informa.on  architecture •–  Less  drop-­‐outs/abandonments •–  Improved  site  search  capability 454
    • ROI• Increase  basket  value •–  Upsell  and  cross-­‐sell  func.onality •–  Relevant  promo.ons• Improve  customer  reten.on •–  Customisa.on  and  personalisa.on •–  Dynamic  pricing  and  merchandising• More  accurate  and  granular  repor.ng  to  boost   understanding  of  most  profitable  product  lines/ products• Improve  processes  and  produc.vity...speeding   455
    • ROI• Reduce  costs – Increased  automa*on/streamlining  of  business  processes – Reduce  or  remove  need  for  internal  IT  resources   – Scalable  technology  without  need  for  major  investment  later  on – Pay  for  what  you  use  (on-­‐demand  solu*on) – Reduced  call  centre  costs  though  beVer  service  online  • Improve  branding – BeVer  customer  experience – Faster  website   – Seamless  experience  across  channels  (e.g.  call  centre  synchronisa*on) – Tried  and  tested  technologies• Improved  website  design – Less  cluVer – Economy  of  processes 456
    • Costs?• 25k  to  over  $2m• The  business  model  drives  the  cost• Integra.on  is  ohen  the  key 457
    • • Build  the  site...• Timeline  4  to  6  months 458
    •  It’s  not  easy!  Get  some  qualified   help  if  you  can 459
    • • Download  the  workshop  here  from  7pm  this   evening:• hgp://www.prac.cology.com/index.php/ member/register• Password  is:  prac.cology1 460
    • Thank You! www.Practicology.commartin@Practicology.comTwitter: @martinnewman