3. 3
In
eCommerce,
the
“last
3
feet”
involves
the
online
order
process,
fulfillment,
delivery
and
the
post-‐purchase
experience
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
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
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
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
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
13. 13
By
insourcing,
Clarins
improved
the
“Open
the
Box”
experience
and
increased
shipment
accuracy
to
99.99%
and
drove
down
cost/order.
Recommenda1on
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
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
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
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
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
Illustra1ng
the
voice
of
the
customer:
Brooks
Brothers
High returns and lower rating overshadowed by “the average”
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
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
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
The
real
measure
of
gedng
logis1cs
and
customer
service
right….
“Are
customers
coming
back?”
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
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
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
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
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
Ques1ons?
For
a
copy
of
the
survey
report,
please
send
an
email
to
info@ecommera.com.
