Procurement essentials 1 martin newman uk

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workshop presentation by Martin Newman at on-line conference September 2010

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Procurement essentials 1 martin newman uk

  1. 1. Procurement  Essen.als:A  blueprint  to  e-­‐commerce  success 26th  September  2011 1
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. A poor man’s Billy Connolly
  6. 6. And like Ronnie, I’ll go off on a tangent from time to time
  7. 7. 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’
  8. 8. We don’t rely on our looks to earn a living...It’s a good thing too!
  9. 9. What’s it like to work with us?
  10. 10. Client engagement stages
  11. 11. Denial: I don’t need any help
  12. 12. A client who recognises they need some help
  13. 13. A relieved early engagement client
  14. 14. Success: A post engagement client
  15. 15. Nirvana: A long term client
  16. 16. We don’t take ourselves too seriouslybut we take your success, very seriously
  17. 17. We’re setting up shop
  18. 18. You made a very good choice coming along today
  19. 19. Asides from having kids, or getting married, thiscould be the most important thing you ever do!
  20. 20. Still too much smoke and mirrors
  21. 21. • We took a global FMCG brand through supplier selection• The same brief saw us get responses from $200k to over $3m!
  22. 22. Everything I tell you today, I’ve been through myself more than 25 times as a client and a consultant
  23. 23. E-­‐Commerce:  Current  situa1on
  24. 24. Take figures with a pinch of salt
  25. 25. By 2019 online will deliver more growth than offline retail (UK)
  26. 26. Some Australian stats
  27. 27. •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!
  28. 28. 94% of the Australian population access the internet, 79% do so every day.[Source: AIMIA / Sensis Social Media Report, May 2011]
  29. 29. Broadband web usage at home is driving adoption
  30. 30. Home is the no’s 1 place to access theweb, but mobile will be the driver soon
  31. 31. Key online activities...with one obvious omission!
  32. 32. Fashion, followed by Electrical goods are the mostresearched products or services on social networking sites [Source: AIMIA / Sensis Social Media Report, May 2011]
  33. 33. 36% of Australians made a purchase after researching products via social media. [Source: AIMIA / Sensis Social Media Report, May 2011]
  34. 34. 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]
  35. 35. 44% of online purchases are made to overseas retailers
  36. 36. And...
  37. 37. The combination of no GST, and the high dollar are challenging and leading to a retail war on 2 fronts With ever-increasing competition from International retailers on and offline...
  38. 38. Lulu Lemon’s first online localised proposition outside of North America will be inAustralia...and they’re opening more stores here
  39. 39. These guys want to eat your lunch!
  40. 40. So does Wiggle
  41. 41. And now they’ve opened an Australian site,they also want the roof from over your head!
  42. 42. They’re taking £1m a week in online sales from Australia!
  43. 43. I’ve seen big changes in the last year in Australian online retailing
  44. 44. You’ve got a lot to be proud of...some great innovation
  45. 45. Augmented Reality:Virtual mirror
  46. 46. Customisation(Shoes of Prey were there first)
  47. 47. See the camera in action
  48. 48. Demo of the camera’s
  49. 49. But some of your retailer’s are still well behind the curve
  50. 50. Keep your eye on the ball...the pace of change is frightening!
  51. 51. 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
  52. 52. The web has evolved....largely driven bybroadband, wireless and more usable devices
  53. 53. 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
  54. 54. Define  Requirements:Strategic  Developments   You  Need  To  Plan  For
  55. 55. Because if you don’t, you’re going to lose market share
  56. 56. In any case, you need to plan for tomorrow, not just today
  57. 57. Mobile  Development
  58. 58. • 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
  59. 59. 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)
  60. 60. The HIPPO says ‘let’s have an iphone or an ipad app
  61. 61. All too often mobile is still a very tactical scenario
  62. 62. But it isdriving ‘buyability’
  63. 63. 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
  64. 64. • 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
  65. 65. Supermarkets in Asia leading the way with pop ups
  66. 66. 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
  67. 67. The starting point for me...
  68. 68. How many retailers have a mobile compatible website?
  69. 69. Not many
  70. 70. Mobile can be the glue to bring customer engagement and the multi channel experience together
  71. 71. By 2015:50%+ of web access through mobile By 2020: 80% of web access will be through mobile
  72. 72. So you need to build mobileinto your requirements and your roadmap now
  73. 73. Mul1  Channel  Development
  74. 74. 99% of retailers are ‘multiple channel’
  75. 75. 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
  76. 76. Multi channel is not about managing customer expectations It’s about meeting customer expectations
  77. 77. The customer chooses the channel of engagement
  78. 78. 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
  79. 79. A multi channel proposition
  80. 80. Multi channel proposition on the PDP
  81. 81. The way we communicate has fundamentally changed
  82. 82. 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
  83. 83. • 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
  84. 84. Remember that the web is a sales driver for all of theretailer’s channels, and not just a source of incremental revenue...
  85. 85. •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
  86. 86. 13% now being picked up in store
  87. 87. The web is a huge driver for offline sales
  88. 88. There’s too much talk about multi channel andnot enough focus on aligning the business with the customer’s journey
  89. 89. 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
  90. 90. • 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
  91. 91. • 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?
  92. 92. The number one driver forcustomer’s is ‘convenience’ and the other driver is ‘immediacy’
  93. 93. 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
  94. 94. This is happening right now
  95. 95. Think ‘omni channel’
  96. 96. Interna1onalisa1on
  97. 97. • You  can’t  afford  to  only  look  inwardly• You  need  to  extend  your  reach  and  take  market   share  from  new  markets 103
  98. 98. What’s the size of the prize?
  99. 99. This will bring a tear to your eye
  100. 100. •B2C e-commerce worth €591bn in 2010•Up 25% from 2009•Between 2009 and 2013, global e-commerce sales will more than double!•Source: IMR World
  101. 101. What’s happening now?
  102. 102. Top 10 Countries source: IMR World
  103. 103. The mature e-commerce markets in the US & UK will grow annually by 15% to 20% over the coming years (Source: IMR World)
  104. 104. It’s a small world isn’t it?“Yes, but a successful Internationalisation strategy is more than just language translation and currency conversion”
  105. 105. 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
  106. 106. Some of us find it hard enough selling domestically
  107. 107. Yes lot’s of us aren’t doing it at all
  108. 108. In the UK, 42% of us haven’t even switched on the buy button! Source: Snow Valley delivery report
  109. 109. And most of us have only switched on the buy button and not localised the proposition = standardisation
  110. 110. Yet Debenhams are piloting multi lingual placards in store!
  111. 111. No sign of any International proposition
  112. 112. Hang on, here we go...deeply hidden within delivery info
  113. 113. Adaptation = localise some aspects
  114. 114. But adaptation is pretty half-hearted
  115. 115. Currency is the only thing to have visibly changed
  116. 116. Then there’s the full monty
  117. 117. Local language, payment, currency, customer service
  118. 118. A pretty compelling customer proposition
  119. 119. 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
  120. 120. NET-A-PORTER/LIVE...Internationalisation before your eyes
  121. 121. The American’s are coming!
  122. 122. You can now buy in the UK from many leading US retailers
  123. 123. But they haven’t got the model quite right! Would you pay an extra 50% to cover additional charges?
  124. 124. Hey, the World speak’s English!
  125. 125. No they don’t:‘Wie viel kostet dies?’
  126. 126. Why is it so important to give foreign nationals a local language site?
  127. 127. Cross border sales are growing...but localised propositions work best
  128. 128. Is it worth doing?
  129. 129. You better believe it!
  130. 130. Just ask ASOS...Free delivery worldwide! And International sales are up 161% 43% of their sales = £140m
  131. 131. Cloggs take 15% of total sales through Cloggs.eu = £2.55m With France and Germany being the biggest markets
  132. 132. 11Cs of Internationalisation • Country • Customers • Communication • Culture • Customer Service • Competitors • Currency • Conversion • Categories • Content • Costs
  133. 133. • Country
  134. 134. The United States of Europe...or is it?
  135. 135. If you want to know the difference just look at Eurovision!
  136. 136. • Different currencies• Different payment methods• Different values• Different cultures• Different tastes• Different fears• Different motivations
  137. 137. If you haven’t localised yet....Analyse existing web traffic patterns in orderto make some informed assumptions around the opportunity from international markets
  138. 138. • Traffic x conversion rate x AOV = Sales potential
  139. 139. Tip: Start with English language sites
  140. 140. Customers
  141. 141. You need to meet the needs of different user groupswho go about their journey in a slightly different way
  142. 142. Self service customers
  143. 143. Guess what the big drivers are?
  144. 144. Any tool that helps self servicecustomer’s get in and get out quickly
  145. 145. Mega menu’s can take one or twoclicks away from the path to purchase
  146. 146. Effective type ahead search
  147. 147. Guess what the number one driver for German customer’s is?
  148. 148. 34% of Germans want speed and efficiency:(Source: atg e-commerce trends in Europe)
  149. 149. 36% of Germans get annoyed by the checkout...they’re not alone
  150. 150. The things that annoy customers at the bag and the checkout...
  151. 151. Do you deliver abroad?
  152. 152. Ted ships to Germany and they give two options and tell me how much the total order will cost
  153. 153. If you are going to add on duty and other charges, make sure you show these on the bag, not in the checkout
  154. 154. At the bag I should know what the total cost ofthe order is, whether or not you do gift wrap and gift message and what the delivery options are
  155. 155. Don’t force me to register
  156. 156. This is how to handle it
  157. 157. 38% of French people want comparison shopping
  158. 158. But...size also matters
  159. 159. New or inexperienced web users
  160. 160. Reassure me, let me speak to a human if I need to! And....do you actually exist?
  161. 161. Difficulties reaching the organisation when they havequestions is the biggest frustration in France and Spain (38%)
  162. 162. 20% of Brits like to read peerreviews and comments before buying
  163. 163. Ratings and reviews provide confidence and trust
  164. 164. Consumer trust in various sources of information and media: most trusted sources [Source: Nielsen Social Media Report, February 2010]
  165. 165. Key drivers for new customers and/or inexperienced web users = - Trust markers - Contact number - Your credentials - What other people bought
  166. 166. 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?
  167. 167. 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?
  168. 168. Culture
  169. 169. • Cultural variances of local markets can impact upon a number of considerations
  170. 170. Not the optimum image for the middle east
  171. 171. Simplicity suits the Swedes
  172. 172. ooh la la...the French prefer a bit of theatre
  173. 173. 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
  174. 174. • 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
  175. 175. Currency/Payment
  176. 176. Germans want to know: ‘Can I pay using ELV?’
  177. 177. Europeans want to know: ‘Can I pay in €?’
  178. 178. Scandinavians want to know:‘Can I pay cash on delivery?’
  179. 179. A growing number of customers also want to pay using PayPal
  180. 180. The $ is still the global currency
  181. 181. • Can your PSP handle all of these requirements?
  182. 182. Most preferred payment methods
  183. 183. Top tip:Think global - act local
  184. 184. Social  Media:  What’s  it  all  about?
  185. 185. 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
  186. 186. The rise of customer democracy
  187. 187. Facebook is particularly good for democracy!
  188. 188. • 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
  189. 189. ‘Social shopping’: ‘F-Commerce’
  190. 190. The jury is still out on that one in terms of F-Commerce
  191. 191. However as a marketing tool it can drive sales
  192. 192. 2011 Forrester research conducted over a 24 month period states:
  193. 193. It’s now all about ‘word of web’ asopposed to offline word of mouth
  194. 194. You already do it offline• Meeting prospects• Building relationships• Asking questions• Answering questions• Building trust• Building your reputation
  195. 195. Business investment in social media is extremely low suggesting the approach is very tactical [Source: AIMIA / Sensis Social Media Report, May 2011]
  196. 196. 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]
  197. 197. 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]
  198. 198. 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]
  199. 199. The  customer  chooses  the  channel   of  engagement 13
  200. 200. Tradi.onal  outbound  marke.ng 14
  201. 201. Marke.ng  today:  In  bound 15
  202. 202. •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
  203. 203. Who has leveraged their employeesknowledge and engaged them with social media in their business?
  204. 204. •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.
  205. 205. Social media is a service driver and key customer retention tool
  206. 206. Think ‘local social’:Growing role of social interactions within customer shopping missions Ability to drive footfall, advocacy and insight
  207. 207. Define  Requirements  ForMarrying  Brand  &  Transac1ons
  208. 208. It’s  a  thin  line  between  ‘futurology’   and  hallucina.on 218
  209. 209. Usability on its head
  210. 210. Case study: KiddicareHome page carousel
  211. 211. Significant incremental sales uplift:More than doubled (100%+) conversion on pages enabled with 10CMS
  212. 212. Fits.me: Bridging the gap between the on and offline fitting room
  213. 213. Augmented reality is driving online furniture sales
  214. 214. What are you waiting for?Please don’t go for the ‘dip your toes approach’ You can leapfrog the competition now
  215. 215. Before  you  begin
  216. 216. Do  you  have  a  roadmap  and  a  strategy  for   e-­‐commerce? 228
  217. 217. If  you  don’t  have  a  plan,  then  you  are  planning  to  fail 229
  218. 218. 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
  219. 219. What  Are  The  Big  Internal  Challenges?
  220. 220. • 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
  221. 221. • 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
  222. 222. 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
  223. 223. 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
  224. 224. 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
  225. 225. 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
  226. 226. • 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
  227. 227. • 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
  228. 228. • 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
  229. 229. • 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
  230. 230. • 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
  231. 231. Define  The  Opera1onal  Structure
  232. 232. The  different  models 246
  233. 233. • 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
  234. 234. • 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
  235. 235. • 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
  236. 236. The Four Pillars
  237. 237. Based on the 4 pillars model:The optimal trading structure for B2C
  238. 238. Project  kick  off
  239. 239. • 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
  240. 240. 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
  241. 241. Documenta1on  required  pre  and   post  supplier  selec1on
  242. 242. • 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
  243. 243. • 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
  244. 244. • 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
  245. 245. Requirements  Gathering:Front  End,  Back  End,  Integra1on
  246. 246. Timeline:  1  to  2  weeksProcess:  Workshops  &  stakeholder  interviews 260
  247. 247. Clientsite.com
  248. 248. 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
  249. 249. 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
  250. 250. What questions do you need to ask?
  251. 251. 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?
  252. 252. 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
  253. 253. • 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…
  254. 254. • 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?)
  255. 255. • 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.
  256. 256. 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?
  257. 257. • 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?
  258. 258. • 3rd Party Product Feeds • Are these required, if so, details.• Analytics • Requirements for• Reporting • Requirements for• Hosting • Requirements for• Account Management • Requirements for
  259. 259. 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?
  260. 260. 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?
  261. 261. 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
  262. 262. IT and Integration• ERP/legacy systems• Stock management• PIM• CRM• Other Data Services
  263. 263. • 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
  264. 264. Roll Out• Australia to begin?• Then English language countries?• EU when?• White label?
  265. 265. The  Supplier  Selec1on Process
  266. 266. Produce  The  RFP
  267. 267. Timeline:  5  days  with  itera*onsProcess:  Produced  by  head  of  e-­‐commerce   and  IT  director  or  by  a  consultant 282
  268. 268. 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
  269. 269. 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
  270. 270. 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.
  271. 271. 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
  272. 272. 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.
  273. 273. • 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.
  274. 274. • 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
  275. 275. 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
  276. 276. 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.
  277. 277. 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
  278. 278. 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.
  279. 279. 5. Website Functionality
  280. 280. 5.1 General
  281. 281. 5.2 Site wide functionality
  282. 282. Newsletter/email sign up: How not to do it!
  283. 283. Social bookmarks/links
  284. 284. Recently viewed
  285. 285. Consider  adding  a  basket  lightbox  when  item   added  to  basketAn  intui.ve  CTA  to:1.add  to  cart  or  •con.nue  shoppingAlso  a  great  opportunity  for  cross  selling 307
  286. 286. How not to do a mini basket
  287. 287. This is how to do it
  288. 288. Dynamic FAQs
  289. 289. Live Chat
  290. 290. Intuitive error messaging and form
  291. 291. 5.3 Main Pages
  292. 292. This is above the fold
  293. 293. Meets the needs of all user groups and all above the fold
  294. 294. Meets the needs of all user groups
  295. 295. Strong calls to action
  296. 296. - Where are the calls to action? - Bestsellers...new in...- Only one product in clear view above the fold
  297. 297. A 3x2 grid increased conversion by 15% over a 4x3 grid...again less is often more in this space!
  298. 298. Where are bestsellers, new in, customer favourites?Look at the size of the images compared to Schuh
  299. 299. no filters....give me a hand please! Style, occasion, price, size etc
  300. 300. 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
  301. 301. 332
  302. 302. How not to do it
  303. 303. 5.4 Search
  304. 304. Site conversion from search: Retail average is 7.6%(General retail average conversion is 4.23%)
  305. 305. A search for ‘delivery’
  306. 306. Sort by...
  307. 307. Effective type ahead search
  308. 308. 5.5 Faceted Navigation
  309. 309. Search for ‘jeans’ with all relevant filters and facets
  310. 310. A search for gifts
  311. 311. My search for jeans
  312. 312. Look what happens when I search under‘denim’....and how the heck do I narrow my choice down to make a purchase decision?
  313. 313. There should never be a ‘null search’ return
  314. 314. 5.6 Products
  315. 315. Visual merchandising:Has a massive impact on conversion
  316. 316. Myla  Model  choice She  is  way  too  skinny….   Almost  anorexic.   It’ll  be  a  put  off  for  a  lot  of   customers.
  317. 317. Model  ChoiceHealthy,  curvy,  volump.ous  and  olive/dark  skinned  models  sell  lingerie.  AP,  Boux  and  M  &  S
  318. 318. Good visual merchandising
  319. 319. 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
  320. 320. Image SizeOn product listing …difficult to discern product detail… check or strip?
  321. 321. 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.
  322. 322. Easier to discern now
  323. 323. Image Size – Product detailOnly at zoom stage can you see that product is checked.
  324. 324. Image Size.Only at zoom stage can you make out that the product is stripedand understand the quality of the garment… it also has pipingdetail.
  325. 325. Now there’s no ambiguity
  326. 326. 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
  327. 327. Nice consistent imagery!
  328. 328. Shots need to be retouchedToo many shots don’t sell the product effectively enough
  329. 329. 5.7 Merchandising Tools
  330. 330. Cross selling increases conversion and the ATV
  331. 331. 5.8 Promotions
  332. 332. 5.8.1 Promotion type
  333. 333. 5.8.2 Promotion Triggers: How you get it
  334. 334. 5.8.3 Promotion target: Who’s entitled to it
  335. 335. 5.8.4 Promotions in the basket
  336. 336. Only £25 away from free next daydelivery...question is, how much is delivery?
  337. 337. • 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
  338. 338. 5.9 Customisation/Personalisation
  339. 339. 5.11 Checkout
  340. 340. The Shopping bag and checkout arewhere you lose most of your sales
  341. 341. Shopping  Bag  Page
  342. 342. 46.4%  of  customer’s  don’t  even  make  it  from   the  bag  to  the  1st  stage  of  the  checkout... why?
  343. 343. 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
  344. 344. 5.12 General Site Pages
  345. 345. 5.13 Customer Pages
  346. 346. 5.15 Social
  347. 347. 6. Back end functionality
  348. 348. 6.1 CMS
  349. 349. 6.2 Product Information Management
  350. 350. 6.3 Order Management
  351. 351. 6.4 Stock
  352. 352. 6.5 Shipping
  353. 353. 6.6 Payments
  354. 354. 6.7 Call Centre
  355. 355. 6.8 Email
  356. 356. 6.9 Triggered emails
  357. 357. 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
  358. 358. 7. Integration with back end systems
  359. 359. 8. A/B and multi variate testing
  360. 360. 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
  361. 361. 10. Analytics
  362. 362. 11. Reports
  363. 363. 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
  364. 364. 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
  365. 365. • 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
  366. 366. Select  Vendors:Plaorm  providers,  System  Integrators,   Design  Agencies
  367. 367. Supplier  Selec1on
  368. 368. • 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

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