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
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!
•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
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
• 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
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
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
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
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
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
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
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?
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
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
• 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
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
•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
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
• 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
• 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
• 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
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
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?
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.
- 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
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.
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
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
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
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
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
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
• 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