Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Ron Ryan & Associates                                   Fixing The Leaks                          Improving Business Profi...
The Truth About eCommerce.    “We are all on the    Internet. And on    the Internet, we    are all plumbers.    Some of u...
Agenda – Fixing The Leaks    • Who can benefit from fixing customer ‘leaks’?    • What are the benefits from fixing leaks?...
Who Can Benefit?             “Slump? I aint in no slump... I just aint hitting.”                                       - Y...
Quick Quiz     Do your customers use the Internet to find your location(s)      or phone number?     Do your customers p...
Quick Quiz (continued)     Do your customers use the Internet to find your location(s)      or phone number? Yes.     Do...
Are You    Acquiring,    Converting    And Keeping    Customers    As Effectively    As You Would    Like?7   Copyright @ ...
What Are The Benefits?                “Youve got to be very careful if you dont know                where you are going, b...
Typical Customer Flow    Internet                     You Need To Model This                              Online Sales    ...
Copyright @ 2010, Ronald D. Ryan     Key Concept #1     Know Who Is Leaving And Why: Knowing the number of     customers w...
Improving These Metrics = Easy      Money…                                            Conversion and repeat purchase rates...
Copyright @ 2012, Ronald D. Ryan         Key Concept #2         Complete The Circle: Improvements in conversion         an...
Repeat Purchase Cycle         Online                    Sales Center   Fulfillment    Repeat         Process              ...
Most Profitable Repeat Purchase Cycle       Online Sales                      Fulfillment               Repeat        Proc...
Copyright @ 2010, Ronald D. Ryan                                      Copyright @ 2012, Ronald D. Ryan     Key Concept #3 ...
Story Problem:        A. If each visitor to your site costs you $5.00 to attract, and for        each 20 visitors you sell...
Story Problem:        A. If each visitor to your site costs you $5.00 to attract, and for        each 20 visitors you sell...
Copyright @ 2010, Ronald D. Ryan     Key Concept #4     Easy Harvest: The ROI from changes that improve     conversion and...
Why Study The ‘Leaks’ -      Deeper Understanding of Customers      Higher Customer Satisfaction      Higher ROI      ...
Where Are The Leaks?                 “You Can Observe A Lot Just By Watching.”                                 - Yogi Berr...
Online Sales Process                                      Sales Center         Fulfillment         Online Sales           ...
In-Store Sales Process        In-Store                            Fulfillment                           Repeat      Sales ...
Telephone Order Process      Online Sales                                                                   Repeat        ...
Fulfillment Process                                    Sales Center      Online Sales                                     ...
Repeat Purchase Process            Online Sales                Sales Center         Fulfillment &               Repeat    ...
It’s All Connected        What You Do                     Affects What        Here                            Happens Here...
It’s All Connected         What You Do                     And Here                  Affect What         Here             ...
It’s All Connected     What You                                                                     Affect What     Do Her...
Where To Go For Data?                              Online Sales Process: Web Analytics and User                           ...
How Can You Fix The Leaks?          In theory, there is no difference between theory and                  practice. In pra...
But Isn’t This Just Common Sense?                   “Constant             “ But we can’t       The Reality:               ...
How To Get Started?                                         Leadership              Outside                               ...
Why Bother With A Task Force?      Multi-departmental point       of view      Objectivity      Independence and       ...
Make Sure You Are Looking With New     Eyes                                         If it ain’t is                        ...
6 Sigma Ninja’s Helpful But Not Required -     A Check List For Change Teams      Smart – big picture person         comf...
How To? Buy Books Not Dogma                            Customer Analytics                            • How to Measure and ...
Where Should You Start?                                                                        Repeat       Online Sales  ...
The Higher You Start In Your Funnel, The Greater     The Impact Of The Change…                                            ...
Where Should You Start?                                                                             Repeat                ...
Summary      High ROI      Falls straight to the bottom       line      Requires little investment      Improves custo...
Appendix41   Copyright @ 2012, Ronald D. Ryan
Payback Calculation       Purchased Leads                  Cost Per Lead         Acquisition Cost   New Customers         ...
Upcoming SlideShare
Loading in …5
×

Ron Ryan Associates Fixing The Waterfall Web V 3

551 views

Published on

A leading change consultant reviews the process for finding incremental profits in any company

  • Be the first to comment

  • Be the first to like this

Ron Ryan Associates Fixing The Waterfall Web V 3

  1. 1. Ron Ryan & Associates Fixing The Leaks Improving Business Profitability Ronald D. Ryan President e. ron@realemail.net1 Copyright @ 2012, Ronald D. Ryan t. 888-398-1624
  2. 2. The Truth About eCommerce. “We are all on the Internet. And on the Internet, we are all plumbers. Some of us deal with big leaks, others deal with small ones, and still others design and lay new pipes. But in the end, we’re plumbers whose pipes carry customers, information, and money.”2 Copyright @ 2012, Ronald D. Ryan
  3. 3. Agenda – Fixing The Leaks • Who can benefit from fixing customer ‘leaks’? • What are the benefits from fixing leaks? • Where can you find the leaks? • How can you get started?3 Copyright @ 2012, Ronald D. Ryan
  4. 4. Who Can Benefit? “Slump? I aint in no slump... I just aint hitting.” - Yogi Berra4 Copyright @ 2012, Ronald D. Ryan
  5. 5. Quick Quiz  Do your customers use the Internet to find your location(s) or phone number?  Do your customers place orders over the telephone?  Do your customers visit your web site or Facebook page before they decide to buy?  Do your customers contact you, or place orders with you (or your competitors) using the Internet? Who Can Benefit?5 Copyright @ 20102 Ronald D. Ryan
  6. 6. Quick Quiz (continued)  Do your customers use the Internet to find your location(s) or phone number? Yes.  Do your customers place orders over the telephone? Yes.  Do your customers visit your web site or Facebook page before they decide to buy? Yes.  Do your customers contact you, or place orders with you (or your competitors) using the Internet? Yes. No matter what size of company you manage, the answer is usually ‘Yes’ to most of these questions. Who Can Benefit?6 Copyright @ 2012, Ronald D. Ryan
  7. 7. Are You Acquiring, Converting And Keeping Customers As Effectively As You Would Like?7 Copyright @ 2010, Ronald D. Ryan
  8. 8. What Are The Benefits? “Youve got to be very careful if you dont know where you are going, because you might not get there.” - Yogi Berra8 Copyright @ 2010, Ronald D. Ryan
  9. 9. Typical Customer Flow Internet You Need To Model This Online Sales Process Fulfillment Repeat In-Store Purchase & Service Sales Center Off Line Advertising What9 Copyright @ 2012, Ronald D. Ryan Are the Benefits?
  10. 10. Copyright @ 2010, Ronald D. Ryan Key Concept #1 Know Who Is Leaving And Why: Knowing the number of customers who visit your store(s) or site(s), convert to sales, and make repeat purchases is important. Understanding how many What10 Are the Benefits? you lose at each step in the process and why, critical.
  11. 11. Improving These Metrics = Easy Money… Conversion and repeat purchase rates shown are for discussion purposes only. Rates in your business will vary by product, process, customer type, time period, Sales Center or and season. Retail Store 1 in 4 or 5 buy Fulfillment & Service 8 or 9 out of 10 Keep What You Sold Them Repeat Purchase (Or Renewal) Between 5 and 9 Out of 10 Copyright @ 2012, Ronald D. Ryan What11 Are the Benefits?
  12. 12. Copyright @ 2012, Ronald D. Ryan Key Concept #2 Complete The Circle: Improvements in conversion and repeat purchases have a huge impact on What Are the Benefits?12 profitability. Copyright @ 2010, Ronald D. Ryan
  13. 13. Repeat Purchase Cycle Online Sales Center Fulfillment Repeat Process Or Store & Service Purchase Most People Call, Drive or Log on to Make A Repeat Purchase. But Not Always From You. What13 Copyright @ 2012, Ronald D. Ryan Are the Benefits?
  14. 14. Most Profitable Repeat Purchase Cycle Online Sales Fulfillment Repeat Process & Service Purchase For most companies, online or automatic repeat sales are the most profitable sales of all. What14 Copyright @ 2012, Ronald D. Ryan Are the Benefits?
  15. 15. Copyright @ 2010, Ronald D. Ryan Copyright @ 2012, Ronald D. Ryan Key Concept #3 Angry no more: Moving repeat sales online lowers acquisition costs, increases customer What15 satisfaction, and improves profits. Are the Benefits?
  16. 16. Story Problem: A. If each visitor to your site costs you $5.00 to attract, and for each 20 visitors you sell one product, what is your acquisition cost per customer? B. For extra credit: You improve your web site. What is your acquisition cost per customer going to be if you sell 1 customer for 10 visitors? C. Double extra credit: What if you buy 25K leads per month and the cost of improving your web site above in B is $100K. How long will it take you to make your $100K back? What16 Copyright @ 2012, Ronald D. Ryan Are the Benefits?
  17. 17. Story Problem: A. If each visitor to your site costs you $5.00 to attract, and for each 20 visitors you sell one product, what is your acquisition cost per customer? Answer: $100.00 B. For extra credit: You improve your web site. What is your acquisition cost per customer going to be, if you sell 1 customer for 10 visitors? Answer: $50.00 C. Double extra credit: What if you buy 25K leads per month and the cost of improving your web site above in B is 100K. How long will it take you to make your $100K back? Answer: 1.6 months. What17 Copyright @ 2010, Ronald D. Ryan Are the Benefits?
  18. 18. Copyright @ 2010, Ronald D. Ryan Key Concept #4 Easy Harvest: The ROI from changes that improve conversion and repeat purchases is often very high. What18 The time to payback is very short. Are the Benefits?
  19. 19. Why Study The ‘Leaks’ -  Deeper Understanding of Customers  Higher Customer Satisfaction  Higher ROI  Lower Acquisition Costs  Higher Profits What19 Copyright @ 2012, Ronald D. Ryan Are the Benefits?
  20. 20. Where Are The Leaks? “You Can Observe A Lot Just By Watching.” - Yogi Berra20 Copyright @ 2012, Ronald D. Ryan
  21. 21. Online Sales Process Sales Center Fulfillment Online Sales Repeat or Retail Process & Service Purchase Store Common • Right Traffic But Wrong Products/Services (or Vice Versa) Problem • Difficult Customer Info Requirements For Purchase Areas: • Inconsistent Look & Feel At Order Processing Page • Confusing Interface With Poorly Articulated Funnel • Incomplete, Missing, Or Hard To Understand Call(s) To Action • Poor Follow-up To Non-buyers Copyright @ 2012, Ronald D. Ryan Where21 Are the Leaks?
  22. 22. In-Store Sales Process In-Store Fulfillment Repeat Sales Process & Service Purchase Common • Poor Outdoor Signage and Lack of Curb Appeal Problem • Right Traffic and Location But Wrong Products/Services (or Vice Versa) Areas: • Inappropriate In-store Merchandising and Product Placement • Inadequate Sales Staff Knowledge, Training and Monitoring • Confusing or Unappealing Store Layout & Organization • Long Checkout Lines • Non-existent Follow-up To Non-buyers Copyright @ 2012, Ronald D. Ryan Where22 Are the Leaks?
  23. 23. Telephone Order Process Online Sales Repeat Call Center Fulfillment Process Purchase Common • Confusing And Inconsistent Value Proposition from CSRs Problem • Inadequate Scripting, Training, & Monitoring Areas: • Poor Sales Systems And Support • CSR Compensation Not Aligned with Company Profit Model • Inadequate Customer Information About After -Sales Process • No Systematic Follow-up To Non-buyers Copyright @ 2012, Ronald D. Ryan Where23 Are the Leaks?
  24. 24. Fulfillment Process Sales Center Online Sales Repeat or Retail Fulfillment Process Purchase Store Common • Misleading or Inadequate Sales Descriptions Problem • Confusing Delivery Process Areas: • Confusing Packaging, Paperwork, and Business Reply Envelopes • Unresponsive Customer Service or Support • Difficult or Complicated Returns Process • Inadequate Satisfaction Monitoring Copyright @ 2010, Ronald D. Ryan Where24 Are the Leaks?
  25. 25. Repeat Purchase Process Online Sales Sales Center Fulfillment & Repeat Process or Retail Store Service Purchase Common • No Easy or Automatic Means of Repeat Purchase Problem • Incomplete or Inadequate Reseller Follow-up Areas: • Wrong Channel Follow-up • No Satisfaction Monitoring or Feedback System • No Customer Level Tracking of Purchases, Preferences or Needs • Inability to Adapt Offer To Changing Customer Needs Copyright @ 2012, Ronald D. Ryan Where25 Are the Leaks?
  26. 26. It’s All Connected What You Do Affects What Here Happens Here Online Sales Sales Center Fulfillment Repeat Process or Retail Store & Service Purchase • Clear Value Proposition On Web Site • Product Descriptions, Educational Content on Web Site • Call Me Buttons In Sales Sequence • Pick up Merchandise At Store …All Result In Lower Costs And More Sales In Sales Center or Retail Outlet Where26 Copyright @ 2012, Ronald D. Ryan Are the Leaks?
  27. 27. It’s All Connected What You Do And Here Affect What Here Happens Here Online Sales Sales Center or Fulfillment Repeat Process Retail Store & Service Purchase • Properly Set Customer Expectations Regarding Product/ Service • Info on Contractual Post-Sale Requirements (e.g., Signatures, Returned Forms) • Defaulted (Profitable) Product Choices • Defaulted (Profitable) Payment Methods and Billing …All Result In Higher Customer Survivorship Where27 Copyright @ 20102 Ronald D. Ryan Are the Leaks?
  28. 28. It’s All Connected What You Affect What Do Here And Here And Here Happens Here Online Sales Fulfillment Repeat Sales Center Process & Service Purchase • Great Experience • Value Proposition And Brand Promises Fulfilled • On-going Sense of Community • Easy Repurchase Process • Easy Referral Process …All Result In Higher Repurchase and Referral Purchase Rates Copyright @ 2012, Ronald D. Ryan Where28 Are the Leaks?
  29. 29. Where To Go For Data? Online Sales Process: Web Analytics and User Testing Sales Center & Retail: Recorded Calls, Telephony Data, In Store Traffic, Mystery Shoppers Fulfillment & Service: Complaint Log, Returns and Cancellations Data Repeat Purchase: Repeat Buyer Profiles & Surveys of Defecting Customers Copyright @ 2012, Ronald D. Ryan Where29 Are the Leaks?
  30. 30. How Can You Fix The Leaks? In theory, there is no difference between theory and practice. In practice, there is. - Yogi Berra30 Copyright @ 2012, Ronald D. Ryan
  31. 31. But Isn’t This Just Common Sense? “Constant “ But we can’t The Reality: Improvement afford to do this Discipline Is Should Be Part of now; we’re in Difficult To Build Our Culture” survival mode.” & Maintain Yes. How To Fix The Leaks?31 Copyright @ 2012, Ronald D. Ryan
  32. 32. How To Get Started? Leadership Outside Inside Task Commitment Consultant(s) Force <Either Way> Start Here And Work Your Way Out How32 Copyright @ 2012, Ronald D. Ryan To Fix The Leaks?
  33. 33. Why Bother With A Task Force?  Multi-departmental point of view  Objectivity  Independence and intellectual honesty  Customer focused rather than department focused How33 Copyright @ 2012 Ronald D. Ryan To Fix The Leaks?
  34. 34. Make Sure You Are Looking With New Eyes If it ain’t is broken don’t go fix it! How34 Copyright @ 2012, Ronald D. Ryan To Fix The Leaks?
  35. 35. 6 Sigma Ninja’s Helpful But Not Required - A Check List For Change Teams  Smart – big picture person comfortable with ambiguity  Understands company and how it works  Analytical - not afraid of numbers  Plays well with others - is well respected by peers  Has strong domain expertise in his/her field  Willing to work hard How35 Copyright @ 2012, Ronald D. Ryan To Fix The Leaks?
  36. 36. How To? Buy Books Not Dogma Customer Analytics • How to Measure and Improve In-Store Buyer Experience (Underhill) • How to Measure and Improve Internet Experience and Ecommerce (Kaushik) • How to Measure and Manage In-Bound Call Center Customer Experience (Cleveland) Customer Satisfaction Measurement And Management • How to Conduct Meaningful Satisfaction Surveys (Hayes) • Net Promoter Score (Reichold) • Experience And Interaction Economies (Pine, Gallup) • How (Nudges) Can Affect Buying Behaviors (Thaler, Sunstein) Process Improvement • Six Sigma (Pande et al.) • Lean (Womack, George, Seddon) • Reengineering (Hammer) No Single Approach Does It All How36 Copyright @ 2012, Ronald D. Ryan To Fix The Leaks?
  37. 37. Where Should You Start? Repeat Online Sales Purchase (Or Process Fulfillment Renewal) Call Center 8 or 9 out of10 1 in 20 Between 5 and 1 in 5 buy Keep What You 9 Out of 10 Buy Sold Them Buy again How37 Copyright @ 2012, Ronald D. Ryan To Fix The Leaks?
  38. 38. The Higher You Start In Your Funnel, The Greater The Impact Of The Change… Online Lead Generation & Sales Sales Center Fulfillment & Service …But also the more controversial, risky, and difficult to measure. How38 To Fix The Leaks? Copyright @ 2012, Ronald D. Ryan
  39. 39. Where Should You Start? Repeat Fulfillment & Purchase (Or Online Sales Service Renewal) Call Center Process 8 or 9 out of 10 Between 5 and 1 in 5 buy 9 Out of 10 1 in 20 buy Keep What You Sold Them Buy again Start with a system or process you control. Fix it first. The further back in the value chain you start, the safer you will be. How39 To Fix The Leaks? Copyright @ 2012, Ronald D. Ryan
  40. 40. Summary  High ROI  Falls straight to the bottom line  Requires little investment  Improves customer experience and brand  Makes the world a better place.40 Copyright @ 2012 Ronald D. Ryan
  41. 41. Appendix41 Copyright @ 2012, Ronald D. Ryan
  42. 42. Payback Calculation Purchased Leads Cost Per Lead Acquisition Cost New Customers 25,000 $5.00 $125,000.00 1,250 12,500 $5.00 $62,500.00 1,250 Old Conversion 5% New Conversion 10% Per Month Savings $62,500 Investment $100,000 Time To Pay Back 1.642 Copyright @ 2012, Ronald D. Ryan

×