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Modern challanges of the e-commerce


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Grow customer retention and personalize approach

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Modern challanges of the e-commerce

  1. 1. Modern challenges of the e-commerce Grow customer retention and personalize approach Milan Radakovic E-commerce director of the eComlogic +2 real case studies
  2. 2. Key challenges: Making customer data actionable Customer retention Different sales channels management Cross-channel communication
  3. 3. 1. Making customer data actionable a. Purchase history b. Type of marketing to which customer responds c. History of the customer behavior on the web page a b c
  4. 4. 2. Customer retention 1. Trigger actions based on the customer behavior 2. Customer segmentation 3. LTV
  5. 5. 2.1. Trigger actions based on the customer behavior 1: Customer didn’t buy anything 3: We received the customer size 2: Customer didn’t come to the web page > 2 MONTH S MS + E MAIL N OTIFICATION N OTI F IC ATIO N
  6. 6. 2.2. Customer segmentation — We shouldn’t treat all the customers in the same way — Classical segmentation: first-time users, highly valued users and inactive users — Modern segmentation: each customer = individual segment
  7. 7. 2.3. LTV NEW CLIENT AFTER 1 YEAR 50€ 60€ 250€ } - + +
  8. 8. 3. Different sales channels management
  9. 9. 4. Cross-channel communication It is not enough to have only multi-channel communication it is important to have cross-channel automatization based on the customer behavior and changes with the customer order (e-mail, sms, messengers, push notifications etc). PROTEIN PROTEIN SHORTS SELECTION PROTEIN REMINDER Example 1: Example 2:
  10. 10. 2 CASES STUDIES
  11. 11. CASE STUDY 1 Fiziosfera Online shop for physiotherapy (medical supplies and devices)
  12. 12. How did they work with customers before eComlogic?
  13. 13. Problems: Incoming and missed calls Different sales channels management Upsell and cross-sell No SMS notification Lack of customer retention
  14. 14. OTHER PROBLEMS: EXAMPLES: Lack of delivery service integration 1. E-mail marketing was without any segmentation 2. To send a newsletter we had to export all database 3. It was difficult to find customers who buy specific product 4. Every time was necessary to export e-mails and phone numbers Lots of data that doesn’t give any information
  15. 15. After implementation of the eComlogic 1. We customized order statuses so that the employees could work as a conveyor. They shouldn’t have any order in the status they are responsible for. WHAT DID WE DO: Transferred to packaging 3 Packaging in progress 7 Transferred to packaging Packaging in progress
  16. 16. 2. All sources are integrated with eComlogic
  17. 17. 3. Integration with delivery service DPD
  18. 18. 4. Customers were divided into the static and dynamic customer segments Based on the type of medicine we divide customer by the type of the problem they have. Twice per month we send them e-mail with advices / news based on the problems they have. STATIC SEGMENTATION: C USTOM E R WITH A BAC K ACHE GOO DS FROM BAC KAC H E
  19. 19. Based on the customer behavior we create rules for different scenarios. DYNAMIC SEGMENTATION: 1: VIP customer didn’t buy anything 2: After surgery recovery CUSTOMER AFTER SURGERY GOODS FROM THIS CATEGORY > 2 MO NTH NOTIFICATION
  20. 20. 3: Pregnant woman 4: Customer testimonial PREGNANT CUSTOMER FOR 9 MONTHS AUTOMATIC TASK OF REPLY COLLECTION
  21. 21. 5: Medical treatment with 1 month break REMINDER TO BUY A MEDICINE MEDICI NE TREATMENT
  22. 22. Results of the implementation Clear structure of the business process It is easy to control wick points of the business Full control of the packaging Automatization of the customers retention rate Complete order history RESULTS 1 YEAR AFTER THE IMPLEMENTATION: — 40% less time for order processing — 70% increase of the retention sales — 250% increase of the profit within 1 year
  23. 23. CASE STUDY 2 101 rose Flowers online shop
  24. 24. How did they work with customers before eComlogic? All orders were in Excell spreadsheet
  25. 25. PROBLEMS WITH ORDER MANAGEMENT IN EXCELL Everything is good until we have 1 sales manager and up to 10 orders per day Problems begin as soon as the company grow and we add another sales manager: — It is difficult to find information about the customer — Lot’s of manual work — It is difficult for two sales managers to work at the same time
  26. 26. How did the implementation of eComlogic look like? QUICK IMPLE ME NTATION WITHIN 4 W E E K S : Configuration of the business process Implementation of the Stock management system Integration with CMS Integration with VOIP
  28. 28. Order processing from status new to completed take in average one hour
  29. 29. Order list List of order with the map
  30. 30. Retention sales 1. Progressive discount rate for all the customers of the e-shop
  31. 31. Customer recognition helps to personalize customer service and reduce time needed to find customer in the database 2. Integration with VOIP Zadarma
  32. 32. Integration with stock management system Second step of the integration Synchronization between eComlogic and ERP Customer ordered a bouquet of red and white roses. During the complectation the absence of fresh flowers appears. Product status is changed to "Poor quality". The operator gets the task to offer other flower combinations to the customer.
  33. 33. Customer segmentation “special days” in the year (mother day, women day, St. Valentin day etc). STATIC CUSTOMER SEGMENTS: Example 1: All the customers receive: ・E-mail 7 days before women day with top offers for women ・E-mail 5 days before women day – special offer ・E-mail 3 days before woman day – reminder ・SMS message 1 day before woman day – it seems that you forgot to buy flowers SMS +EMAILANY HOLIDAY
  34. 34. based on the customer behavior and habits we create rules for different scenarios. DYNAMIC CUSTOMER SEGMENTS: Example 1: Based on the purpose of the order we divide customer into the different customer segment. If your wife has birth day on the 1.12. there is almost 100% probability that she will have birthday next year on the 1.12
  35. 35. Example 2: Based on the AOV and age of the customer we offer to the customer to buy also teddy bear or chocolate. If the ... 1 6 - 30 YE A S OL D AOV > 50€ AOV > 100€ AOV > 200€ <10€ 10-20€ 20-40€ >30 YEA S OL D AOV > 50€ AOV > 100€ AOV > 200€ <10€ 10-20€ 20-40€
  36. 36. ?? ? YE A S OL D AOV > 50€ AOV > 100€ AOV > 200€ <10€ 10-20€ 20-40€ OR OR OR Number of sold teddy bears was increased Number of sold chocolates was increased x3 x4
  37. 37. Example 3: Personal discount for the favorite color. -5% -15%-7% -10%
  38. 38. Impacts of the implementation — Number of orders has been increased by 40% — The same number of sales managers can process all orders
  39. 39. Questions?
  40. 40. Thank you for your attention! +44 2070437182 Come to visit us on our stand №25