maximizing sales from ecommerce sites (forte consultancy group)

eCommerce Services

Managing Customer Lifecycle in Online Stores

Limited EditionNovember, 2008

Note: This is a limited edition of a comprehensive deck which includes 59 best practices. To

receive the complete deck free of charge, please contact

[email protected]

© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 2Forte Consultancy Group

eCommerce market presents vast opportunities for companies with the right capabilities and in order to capitalize on such opportunity, we help companies build and grow relations with their customers

UNAWARE AWARE

INTERESTED

PURCHASED

LOYALMoving online store visitors up the relationship ladder provides significant opportunities for growth:

Loyal customers have almost double visit to carts Loyal customers have almost triple conversion rate Loyal customers have 10% higher cart value

We identify amount of customers and prospects in each

stage and define targets as basis for strategic priorities.

Source: MarketLive Performance Index


Companies should analyze such relations for eCommerce sites across customer lifecycle…

Added ItemAbandoned Site

Abandoned Cart

Bounced PaymentReturned GoodsInitiated Check-out

Visited Viewed ItemSubscribed

Initiated PaymentPaid


…and develop actions and programs for opportunities identified across this cycle

Added ItemAbandoned Site

Abandoned Cart

Bounced PaymentReturned GoodsInitiated Check-out

Visited Viewed ItemSubscribed

Initiated PaymentPaid

Around 40% of customers have 1 and out behavior.

Source: MarketLive Performance Index

Only 9% of visits end up in carts.

Overall cart abandonment rate

is around 60%.

Over 50% of check-outs are

abandoned.80% of online customers do

not have repeat orders.

Only about 35%of visits are

generated from search engines.


Information should be at the hearth of all decisions and actionsthroughout this cycle

Maturity

Dec

isio

n Q

ualit

y

Free Fall Stage

Guesswork Stage

Impromptu Stage

Well-Informed Stage

• Decisions are not consciously made• Actions do not have consistency• Daily happenings direct business• Key factor for success is luck

• Decisions are based on opinions• Actions have limited consistency• Personal motivations direct business• Key factor for success is experience

• Some decisions are based on facts• Some actions have consistency• Facts direct some parts of business• Key factor for success is focus

• Decisions are based on absolute facts• All actions have consistency• Facts direct business• Key factor for success is accuracy

We help companies make most out of their information base and

take actions based on them…

Mature Decisions


Purchase Behavior Needs Demographics Category Behavior

Brand Aspirationals

Price Value Shoppers

Trendy Quality Seekers

Price Sensitive Affluents

One Stop Shoppers

Conscientious Objectors

Social Shoppers

Office Administrator

Business Reseller

Institutional Buyer

Foodservice Entrepreneur

Traditional Club Shopper

Demanding / Experiential Shopper

Mom / Family CEO

Active Boomer

Sophie (Older shopper / empty nester)

Caroline (Young, single working woman)

Vanessa (Married with children)

Value-Seeking

Variety-Seeking

Brand-Seeking

Simplicity-Seeking

Discovery-Seeking

Quality-Seeking

Sample

Most leading retail and eCommerce companies leverage customer insights in their operations, using various tools, such as customer segmentation


Additional Services for Information

Differentiation of Corporate vs. Individual Registration

Customer Clubs for Information Collection and Interest Identification

Golden Questions in Registration

Sample

Such analytics practices require collection of right customer data, through various means…


Personal Shopper provides highly customized recommendations and value added services in return for

detailed demographics, life-style and preference information.

…which can range from basic customer identification data to in-depth customer and social network profiling

Sample


In addition to customer data, it is also critical to analyze pure web traffic data to incorporate Internet user insights into actions

Sample

Seasonal search engine optimization for ‘shopping’ keyword would result in higher ROI.

Search keyword analysis, as well as traffic source/destination analyses can have substantial impact on visibility of online stores.


Objectives Sample KPIsFocus Area

Guidelines

First step in eCommerce customer lifecycle is visit to the online store, which requires effective acquisition activities

Create VisitsAttract different types of visitors to site

using alternative channels and approaches, providing differentiating

value add

Number of Visits per MonthUnique Visitor Count per MonthAdvertising Cost per Visitor% of Visitors Bookmarked Site Page Rank of Homepage

Visited

Use search engine

optimization using traffic

insightsUtilize

variety of acquisition channels

Customize acquisition

approach by prospect segment

Provide additional reasons for visiting site

Sample Case


ebay’s launch of desktop and mobile version of its shopping environment increases convenience for customers accustomed

to use of certain tools and channels.

Enriching means and media of access is inline

with the global telecommunications trend

towards convergence…

Utilize variety of acquisition channels

Providing alternative means for visit attracts prospects with certain channel habits

Note: This is a sample out of 59 best practices available in

complete deck. To receive the complete deck free of charge,

please contact [email protected]



Guidelines

Once visitor traffic is created, the next step is subscription of visitors, in order to enable tracking and acting on customer information

Subscribe VisitorsMotivate subscription at first sight,

providing additional value add and good first impression

Subscriber / Visitor Ratio Total Unique Subscriber CountNumber of Subscriptions per Month% of Subscribers with Full DataDuration From Visit to Subscription

Visited Subscribed

Call to action for

subscription on landing

pageMake

subscription fast and

convenient

Provide immediate

value add for subscription

Promote competitive

value propositions

Sample Case


Circuit City provides in-store pickup for faster and cheaper delivery of online purchases.

In-store pickup is a lower cost option for retailers, where speed and lower

pricing can also be attractive for customers…

Promote competitive value propositions

Over 70% of customers are interested in in-store pickup service, which can differentiate multi-channel retailers against pure eCommerce players






Guidelines

In order to have subscribers make purchases, the first requirement is creating interest in items and making merchandise easily accessible

Create Interest in ItemsMake items of interest easily accessible and pro-actively communicate relevant

information on merchandise

Number of Items Viewed per VisitNumber of Items Viewed per Subscriber% of Subscribers Viewing ItemsNumber of Categories Viewed per Subs.% of Items Not Viewed for Long Time

Subscribed Viewed Item

Use effective and

alternative categories for items

Pro-actively recommend

items

Provide ability to

search with alternate

meansProvide

creative and instructive item views

Sample Case


Schwan’s provides alternative categorization, making its products more accessible for customers looking for certain

types of offerings.

Providing alternative categorizations for

products let customers reach out to searched

items faster and easier…

Use effective and alternative

categories for items

Using alternative categorization schemas for items increase usability and are proven to increase conversion rates by 34%






Guidelines

Conversion of interest into purchase intent is a key step, where high performing retailers can increase their bottom-line significantly

Create Purchase IntentTranslate interest into action by learning from customers’ interests and following

up effectively

% of Views Resulting in Item AddNumber of Items per CartValue per Added Item% of Items Viewed but not Added Freq.% of Subscribers Viewing Items Only

Viewed Item Added Item

Follow-up and promote

viewed items’

purchase Identify and act on

subscribers using site for viewing only

Follow-up interest in

out-of-stock items

Translate interest into wish lists for

future purchase

Sample Case


Roots sends e-mails to inform customers about restocked items, which they could not purchase earlier due to stock-out.

Personalized e-mails after restock do not only create good sales opportunities, but also provide a good

experience for customers…

Follow-up interest in out-of-stock items

Customers who were interested in out-of-stock items are the most likely targets for these items after replenishment






Guidelines

Keeping customers on-site and cross-selling before check-out require pro-active actions, which can create substantial ROI

Create Check-out IntentAvoid abandonment of added items

providing convenient transition to check-out and following up

% of Item Adds Abandoned% of Item Adds Removed% of Cart Value Proceeded to CheckoutAverage Item Time in CartAverage Time to Checkout

Init. Check-outAdded Item

Provide one click check-

out

Make single item

purchase faster

Cross-sell before

check-outMake added

items accessible

even if abandoned

site

Sample Case


Single item purchase should be even easier, using already provided information about customer

Make single item purchase faster

Amazon provides ability to purchase single item right away without need for visit to check-out screen.

Especially for non-grocery retailers, one item

purchases are frequent transactions, which should be given extra attention…






Guidelines

Cart abandonment is a major issue for eCommerce sites, where convenient check-out process as well as rigorous follow up are keys to success

Avoid AbandonmentEnsure completion of check-out with

convenient processes and cart follow-up

% of Check-outs Abandoned% of Potential Value Abandoned% of Abandoned Carts Purchased Later% of Abandonment to Competitor Site% of Subscribers with Abandoned Carts

Init. Check-out Initiated Payment

Provide convenience and speed in

checkout

Remind and follow up

abandoned cart

Motivate abandoned

cart purchase

with benefitsMake cart

available in next visit if abandoned

Sample Case


Zales uses multi-step approach in its offers, first reminding customers about their abandoned cart without any

promotions, than offering a discount in second reminder e-mail.

A multi-step reminder and benefits system for

abandoned carts can create the highest

response rate while keeping cost as low as

possible…

Motivate abandoned cart purchase with

benefits

Providing extra benefits for checking out abandoned cart can motivate this transaction






Guidelines

Problems experienced in payment process not only mean lost cart sales, but also could become a reason for customers lost forever

Ensure PaymentProcess payment securely and using

alternative means

% of Payments Bounced% of Potential Value Bounced% of Bounced Payments Abandoned Payment Attempts per PurchaseNumber of Fraudulent Cases Identified

PaidInitiated Payment

Provide alternative means for payment

Ensure and promote payment security

Keep customers informed

about payment process Follow-up

and recover failed

payments

Sample Case


Amazon provides gift cards for both retail and corporate customers, to be used as gifts and incentives for employees or

own customers as alternative means for payment.

Gift vouchers are effective for acquiring new

customers and facilitating payment by alternative

means…

Provide alternative means for payment

Providing gift cards as payment alternatives can even attract those who do not usually shop online






Guidelines

With a first purchase completed, the next stage is to close the cycle, getting customers revisit and repurchase

Create Repeat VisitsIdentify and motivate non-returning

customers providing additional information and value add

% of Subscribers with 2 Purchases% of Subscribers with >2 Purchases% of Subscribers with >1 Visit% of High Value Loyalists% of Subscribers with Returned Goods

Paid Visited

Regularly provide new content and

offerings

Pro-actively take actions for dormant

visitors

Provide value add for

repeat business

Recommend for cross and

up-sales

Sample Case


Avon pro-actively communicates with its dormant customers and uses free shipping to motivate re-activation.

Showing that the company cares about

doing business with the customer and offering additional benefits can

motivate customers return to site…

Pro-actively take actions for dormant

visitors

Pro-active communication offering additional benefits is also necessary to reactivate dormant customers





Added ItemAdded ItemAbandoned SiteAbandoned Site

Abandoned CartAbandoned Cart

Bounced PaymentBounced PaymentReturned GoodsReturned GoodsInitiated Check-outInitiated Check-out

VisitedVisited Viewed ItemViewed ItemSubscribedSubscribedSubscribed

Initiated PaymentInitiated PaymentPaidPaid

Forte Consultancy Group provides services in increasing eCommerce performance, through effective strategies and tactics across customer lifecycle

Forte Consultancy Group can assist you …Contact us for details at [email protected]

We can assist you in

Definition of eCommerce KPI and targets Analysis of current eCommerce performance

Design and set-up of performance reporting

Do you know your own performance across customer lifecycle?


Definition of ideal data elements to be collected

Segmentation of visitors and customers

Prediction of site abandonment & churn risk

Analysis of cross and up-sales likelihood

Prediction of customer response to offers

Automation of advanced recommendations Discovery of main and niche targets for campaigns

Can you use customer intelligence effectively to target customers and take the right actions?


Assessment of eCommerce current state

Re-engineering of customer experience Design and execution of marketing communications

Design and execution of one-time and repeating campaigns

Refinement of product portfolio and value propositions

Refinement of web site design features

with customized approach for each of following objectives

Creating visits

Subscribing visitors

Creating interest in items

Creating purchase intent

Creating check-out intent

Avoiding abandonment

Ensuring payment Creating repeat visits

Are you aware of the untapped potential of your site and have strategies and tactics to realize them?

Forte Consultancy Group | Istanbul Office

Dereboyu Sok. Sun Plaza Kat:13 Maslak, Istanbul - Turkey

@ [email protected]

+90 212 366 02 66

The information contained in this document, much of which is confidential to Forte Consultancy Group, is for the sole use of the intended recipients. No part of this document may be reproduced in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of Forte Consultancy Group.

maximizing sales from ecommerce sites (forte consultancy group)

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