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1
Beyond	
  “Buy	
  Now”	
  
How the last 3 feet of eCommerce can transform a
transaction into a relationship
2
Introduc1ons	
  
John	
  Squire	
  
President	
  
eCommera	
  
	
  
Han	
  Wen	
  
VP	
  Digital	
  &	
  Ecommerce	
  Am...
3
In	
  eCommerce,	
  the	
  “last	
  3	
  feet”	
  involves	
  the	
  
online	
  order	
  process,	
  fulfillment,	
  deli...
4
All	
  the	
  data	
  you	
  need	
  to	
  measure	
  the	
  
“last	
  3	
  feet”	
  and	
  gauge	
  customer	
  
sa1sfa...
5
Customer	
  service…customer	
  
sa1sfac1on…why?	
  
6
A	
  recent	
  survey	
  of	
  165	
  retailers	
  found.	
  .	
  .	
  
Customer	
  sa1sfac1on	
  was	
  ranked	
  as	
 ...
7
Inves1ng	
  in	
  customer	
  service	
  
The cumulative effect of a bad experience
	
  
At	
  90%	
  service	
  score:	...
8
Inves1ng	
  in	
  customer	
  service	
  
•  LogisFcs	
  and	
  customer	
  service	
  can	
  differen1ate	
  our	
  bran...
9
Looks	
  are	
  important,	
  but	
  it’s	
  what’s	
  
inside	
  that	
  counts.	
  .	
  .	
  
10
Think	
  inside	
  and	
  outside	
  the	
  box	
  
11
Marke1ng	
  became	
  heavily	
  involved	
  with	
  
shipping	
  and	
  logis1cs	
  
•  Shared	
  warehouse	
  
•  Les...
12
Before:	
  
AZer:	
  
Outsourced	
  packaging	
  did	
  not	
  represent	
  
the	
  Clarins	
  brand	
  
13
By	
  insourcing,	
  Clarins	
  improved	
  the	
  “Open	
  the	
  
Box”	
  experience	
  and	
  increased	
  shipment	...
14
Going	
  beyond	
  the	
  expected	
  
15© 2013 Demandware, Inc. All Rights Reserved by their Respective Owners
Consider	
  your	
  customer’s	
  perspec1ve	
  
16
Expansive	
  sampling	
  is	
  unique	
  to	
  digital	
  	
  
Clarins.com:	
  
•  40	
  different	
  samples	
  online	...
17
Value	
  of	
  sampling	
  
•  Which products are purchased or sampled multiple times by the same
customers?
•  Highlig...
18
Sampling	
  is	
  not	
  just	
  a	
  throw	
  in,	
  but	
  a	
  start	
  for	
  
the	
  next	
  transac1on.	
  By	
  ...
19
Gedng	
  it	
  right	
  and	
  making	
  	
  
it	
  right	
  
20
A	
  recent	
  survey	
  of	
  165	
  retailers	
  found.	
  .	
  .	
  
50%	
  say	
  that	
  shipping	
  and	
  return...
21
In	
  the	
  7	
  month	
  period	
  aZer	
  moving	
  
logis1cs	
  in	
  house,	
  we	
  saw	
  benefits	
  
across	
  ...
22
Illustra1ng	
  the	
  voice	
  of	
  the	
  customer:	
  
Brooks	
  Brothers	
  
High returns and lower rating overshad...
23
Returns	
  are	
  impacted	
  by	
  all	
  departments.	
  By	
  
gedng	
  marke1ng	
  involved	
  in	
  logis1cs	
  an...
24
Is	
  there	
  really	
  a	
  “last”	
  3	
  feet	
  in	
  a	
  
luxury	
  business?	
  
25
By	
  insourcing,	
  customer	
  service	
  agents	
  
received	
  proper	
  oversight	
  and	
  training	
  
While	
  ...
26
Empower	
  your	
  customer	
  service	
  agents	
  to	
  solve	
  
problems	
  on	
  their	
  own	
  and	
  serve	
  a...
27
The	
  real	
  measure	
  of	
  gedng	
  logis1cs	
  
and	
  customer	
  service	
  right….	
  
“Are	
  customers	
  co...
28
1 st – 2nd
2nd – 3rd
3rd – 4th
4th – 5th
5th – 6th
Etc.
Crea1ng	
  repeat	
  customers	
  
29
2013	
  vs.	
  2012	
  customer	
  spending	
  
3x	
  buyers	
  
increased	
  YoY	
  
spend	
  by	
  	
  
42%	
  	
  
5...
30
Beyond	
  just	
  customer	
  service,	
  Clarins	
  is	
  
data	
  smart	
  to	
  increase	
  repurchase	
  rates	
  	...
31
A	
  true	
  measure	
  of	
  how	
  our	
  efforts	
  were	
  working	
  
was	
  in	
  knowing	
  how	
  oZen	
  custom...
32
Perfec1ng	
  any	
  “3	
  feet”	
  of	
  eCommerce	
  is	
  
not	
  a	
  short	
  journey	
  
33
Retail	
  meets	
  big	
  data	
  
34
A	
  recent	
  survey	
  of	
  165	
  retailers	
  found.	
  .	
  .	
  
52%	
  say	
  having	
  an	
  integrated	
  vie...
35
ANALYTICS
Marketing
Sources
Pages
Views
Traffic
Add to basket
Reviews
Social
Engagement
Testing
OPERATIONS/
FULFILLMENT...
36
Ques1ons?	
  
For	
  a	
  copy	
  of	
  the	
  survey	
  
report,	
  please	
  send	
  an	
  
email	
  to	
  
info@ecom...
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Beyond "Buy Now"

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Beyond "Buy Now"

  1. 1. 1 Beyond  “Buy  Now”   How the last 3 feet of eCommerce can transform a transaction into a relationship
  2. 2. 2 Introduc1ons   John  Squire   President   eCommera     Han  Wen   VP  Digital  &  Ecommerce  Americas     Clarins  Groupe  
  3. 3. 3 In  eCommerce,  the  “last  3  feet”  involves  the   online  order  process,  fulfillment,  delivery  and   the  post-­‐purchase  experience  
  4. 4. 4 All  the  data  you  need  to  measure  the   “last  3  feet”  and  gauge  customer   sa1sfac1on  is  found  across  departments     ANALYTICS Marketing Sources Pages Views Traffic Add to basket Reviews Social Engagement Testing OPERATIONS/ FULFILLMENT Order ID Product ID Quantities Shipping Revenue Delivery Timing FINANCE COGS Shipping Cost Fulfilment cost International MERCHANDISING Backorders Held status Returns Cancellations Product Catalog On-hand Inventory Retail sell-thru Web sell-thru MARKETING Marketing Cost PPC Campaigns PPC Keywords Email Promotions Affiliates SEO SEM Direct-loads Retargeting Display CUSTOMER CRM Contact center New/Existing Loyalty Retention Customer A471955691
  5. 5. 5 Customer  service…customer   sa1sfac1on…why?  
  6. 6. 6 A  recent  survey  of  165  retailers  found.  .  .   Customer  sa1sfac1on  was  ranked  as  the  second  most   important  measure  of  overall  success  for  their  ecommerce  business   Source:  The  Effect  of  Disconnect  Special  Survey  Report  sponsored  by  eCommera  and   conducted  by    Internet  Retailer,  April  2014   Measure   Rank   Revenue   1   Customer  SaFsfacFon   2   Profit   3   Margin   4   Average  Order  Value   5  
  7. 7. 7 Inves1ng  in  customer  service   The cumulative effect of a bad experience   At  90%  service  score:  40%  of  customers  will  have  had  at  least     one  bad  experience  by  their  5th  purchase  
  8. 8. 8 Inves1ng  in  customer  service   •  LogisFcs  and  customer  service  can  differen1ate  our  brand       •  InvesFng  to  build  the  competency  had  strategic  cost  considera1ons     •  The  chance  to  posi1vely  surprise  and  build  brand  delight  adds  to  our  luxury   experience     •  TradiFonal  compeFtors  and     the  “Amazons”  are     transforming  customer     expecta1ons       Balancing core competencies and cost
  9. 9. 9 Looks  are  important,  but  it’s  what’s   inside  that  counts.  .  .  
  10. 10. 10 Think  inside  and  outside  the  box  
  11. 11. 11 Marke1ng  became  heavily  involved  with   shipping  and  logis1cs   •  Shared  warehouse   •  Less  than  99.9%  accuracy   •  Lower  packaging  quality   •  FaciliFes  geared  for  speed,   but  not  “Clarinized”     •  Quality  of  inventory   accuracy       When we outsourced, we found the consequences outweighed the benefits
  12. 12. 12 Before:   AZer:   Outsourced  packaging  did  not  represent   the  Clarins  brand  
  13. 13. 13 By  insourcing,  Clarins  improved  the  “Open  the   Box”  experience  and  increased  shipment   accuracy  to  99.99%  and  drove  down  cost/order.   Recommenda1on  
  14. 14. 14 Going  beyond  the  expected  
  15. 15. 15© 2013 Demandware, Inc. All Rights Reserved by their Respective Owners Consider  your  customer’s  perspec1ve  
  16. 16. 16 Expansive  sampling  is  unique  to  digital     Clarins.com:   •  40  different  samples  online   •  Breadth  is  unique  point  of   differenFaFon     •  Opportunity  to  conFnually  expose   consumers  to  other  offerings   While  outsourced:   •  Picking  and  packing  errors     •  Inventory  issues   •  Increased  customer  service  calls     We found sampling provided added opportunities to engage with customers
  17. 17. 17 Value  of  sampling   •  Which products are purchased or sampled multiple times by the same customers? •  Highlights the value of keeping certain products high in sampling exposure •  Highlights opportunities to cross market new product extensions, sizes and derivatives •  Marketing & Merchandising: •  Use in Remarketing Programs that feel personalized •  Opportunity to promote the “highly addictive” Sampling provides the opportunity to highlight products that drive repeat purchases
  18. 18. 18 Sampling  is  not  just  a  throw  in,  but  a  start  for   the  next  transac1on.  By  having  Clarins  internally   manage  samples,  we  can  control  the  en1re   process,  even  down  to  “Surprise  &  Delight.”   Recommenda1on  
  19. 19. 19 Gedng  it  right  and  making     it  right  
  20. 20. 20 A  recent  survey  of  165  retailers  found.  .  .   50%  say  that  shipping  and  returns  are  one  of  the  top  challenges  of   operaFng  online  versus  in-­‐store   Source:  The  Effect  of  Disconnect  Special  Survey  Report  sponsored  by  eCommera  and   conducted  by    Internet  Retailer,  April  2014   13%   45%   50%   53%   76%   0%   20%   40%   60%   80%   The  complexiFes  are  the  same  between  online   and  store.   It’s  harder  to  personalize  /  fine-­‐tune  online   offers  to  a  single  customer  than  it  is  in  a  store.   Shipping  and  returns  are  significantly  more   complex  online  versus  a  store.   There  are  more  online  products  to  consider  and   the  mix  of  presentaFon  is  more  complex.   There  is  increased  compeFFon  online.  
  21. 21. 21 In  the  7  month  period  aZer  moving   logis1cs  in  house,  we  saw  benefits   across  mul1ple  areas   30%     increase  in  orders     50%     decrease  in  the  rate   of  returns  due   largely  in  part  to   more  accurate   shipments    
  22. 22. 22 Illustra1ng  the  voice  of  the  customer:   Brooks  Brothers   High returns and lower rating overshadowed by “the average”
  23. 23. 23 Returns  are  impacted  by  all  departments.  By   gedng  marke1ng  involved  in  logis1cs  and   shipping,  we  were  able  to  help  improve   performance  in  other  areas  of  the  business.   Recommenda1on  
  24. 24. 24 Is  there  really  a  “last”  3  feet  in  a   luxury  business?  
  25. 25. 25 By  insourcing,  customer  service  agents   received  proper  oversight  and  training   While  outsourced:     •  Shared  pool  of  agents   •  Shallow  brand  training   •  High  agent  turnover   rates   •  Low  brand/product   knowledge      
  26. 26. 26 Empower  your  customer  service  agents  to  solve   problems  on  their  own  and  serve  as  brand   ambassadors.    At  Clarins,  we  invested  to  make   every  agent  a  Clarins  employee  and  to  provide   extensive  training  and  refresher  updates.   Recommenda1on  
  27. 27. 27 The  real  measure  of  gedng  logis1cs   and  customer  service  right….   “Are  customers  coming  back?”  
  28. 28. 28 1 st – 2nd 2nd – 3rd 3rd – 4th 4th – 5th 5th – 6th Etc. Crea1ng  repeat  customers  
  29. 29. 29 2013  vs.  2012  customer  spending   3x  buyers   increased  YoY   spend  by     42%     5x  buyers   increased  YoY   spend  by     35%     High-­‐value   customers   increased  YoY   spend  by     65%  
  30. 30. 30 Beyond  just  customer  service,  Clarins  is   data  smart  to  increase  repurchase  rates     •  Know  who  and  when  to  specialize  offers  to  encourage  next  purchase   •  UFlize  post-­‐order  communicaFon  to  measure  service  they  received  
  31. 31. 31 A  true  measure  of  how  our  efforts  were  working   was  in  knowing  how  oZen  customers  were   making  repeat  purchases.  Having  the  right  tools   to  understand  customer  growth  and  repurchase   rates  is  a  must.     Recommenda1on  
  32. 32. 32 Perfec1ng  any  “3  feet”  of  eCommerce  is   not  a  short  journey  
  33. 33. 33 Retail  meets  big  data  
  34. 34. 34 A  recent  survey  of  165  retailers  found.  .  .   52%  say  having  an  integrated  view  across  markeFng,  merchandising   and  operaFons  is  one  of  the  biggest  challenges   23%   24%   32%   33%   36%   43%   52%   0%   10%   20%   30%   40%   50%   60%   IdenFfying  how  the  performance  of  one  area   of  the  business  can  impact  another.   ConFnued  erosion  of  product  profitability.   Enough  data  analyst  resources  to  interpret   the  data  and  manage  financial  report.   Ability  to  prioriFze  acFons  based  on  financial   impact.   Finding,  training  and  retaining  first-­‐class   ecommerce  employees.   Quickly  interpret  and  act  upon  issues  that  are   impacFng  performance.   Having  an  integrated  view  across  markeFng,   merchandising  and  operaFons.   Source:  The  Effect  of  Disconnect  Special  Survey  Report  sponsored  by  eCommera  and   conducted  by    Internet  Retailer,  April  2014  
  35. 35. 35 ANALYTICS Marketing Sources Pages Views Traffic Add to basket Reviews Social Engagement Testing OPERATIONS/ FULFILLMENT Order ID Product ID Quantities Shipping Revenue Delivery Timing FINANCE COGS Shipping Cost Fulfilment cost MERCHANDISING Backorders Held status Returns Cancellations Product Catalog On-hand Inventory Retail sell-thru Web sell-thru MARKETING Marketing Cost PPC Campaigns PPC Keywords Email Sent Promotions Retail  meets  big  data:  DynamicAc1on   Customer A471955691 CUSTOMER CRM Contact center New/Existing Loyalty Retention
  36. 36. 36 Ques1ons?   For  a  copy  of  the  survey   report,  please  send  an   email  to   info@ecommera.com.    

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