singapore productivity centre business improvement series ......to drive facebook audiences to its...

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EMPOWERING RETAIL ENTERPRISES WITH DIGITAL CAPABILITIES Singapore Productivity Centre Business Improvement Series

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Page 1: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

EMPOWERING RETAIL ENTERPRISES WITH DIGITAL CAPABILITIES

Singapore Productivity Centre Business Improvement Series

Page 2: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

• DigitalDisruptionsintheGlobalLandscape 1

• Singapore’sUniqueRetailChallenges 2

• EmpoweringRetailEnterpriseswith DigitalCapabilities 4

• ProjectObjectives 6

• BenefitsandImpact 8

• LearningInternationalBestPractices 10 ThroughOverseasStudyMissions

• FromWishListtoSale 11

• WinningNewFans 12

Content

Page 3: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

1

Technology has given consumers greater access to information and brands, giving them the ability to find the best value propositions. As the digital realm becomes a staple in our daily lives, the convenience and ability to mass-search means retail stores have to compete with digital platforms. The rapid growth of online retail and social media is increasingly influencing customer purchasing behavior, so it is essential that retailers engage their customers on social media platforms.

Digital disruptions in the global landscape

A2015Nielsensurveyfoundthat41%ofSingaporeansareomni-channelshoppers,whichmeanstheybrowseinformationonlinebeforebuyingthroughonlineorofflineretailchannels.

TheCAGRofSingapore’se-commercemarketbetween2014and2017wasabout13%(Frost&Sullivan,June2016).

13% $7 BillionTemasekandGooglereportedthatSingapore’se-commercemarketisexpectedtobeworth$7billionandmakeup6.7%ofallretailsalesby2025.

41%1

Page 4: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

2

Singapore’s Unique Retail Challenges

EMPOWERING RETAIL ENTERPRISES WITH DIGITAL CAPABILITIES

AlthoughSingaporehasasizeablenumberofomni-channelconsumers,thecurrentonlinesalesfiguresfromlocalretailersismeagre.In2014,localonlineretailsalescontributedjust3.4%oftotalretailsales,implyingthatSingapore’sonlineretailsectorisfacingintensecompetitionfrominternationalonlineretailers.TheotherimplicationisthatSingaporeretailerslackedtheabilitytocapitaliseonthegrowinge-commercemarket.

BasedontheSingaporeProductivityCentre’sBenchmarkingStudy2015,only32%ofretailersinSingaporeplaceonlineadvertisementsandonly31%usesocialmediaplatformsforinternetmarketing.Thestudyshowsagapinlocalretailers’onlinepresenceandbranding,whicharetwointegralcomponentstocapturingthee-commercemarket.

Aslocalretailerscontinuetofaceincreasingoperatingcosts,thefastestandmosteffectivewaytostrengthentheirstandine-commerceistoboostin-housecapabilitiesbyequippingtheirworkforcewithdigitalmarketingskillsets.

ofretailersinSingaporeplaceonlineadvertisements

usesocialmediaplatformsforinternetmarketing

31%

32%

Page 5: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

3

STRONG GROWTH IN INTERNET RETAILING

ofSingaporeansshoponlineatleastonceaweek

2015 2016 2017 2018 2019 2020

3,51

0

3,99

4

4,46

6

4,97

8

5,50

1

6,02

9

Estimated revenueIN MILLIONS (USD)

Estimated e-commerce penetration rate

2015 2020

74.20%57.31%

Frequency

purchaseonlineatleastonceamonth

26% 58%

3

Page 6: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

4

Empowering Retail Enterprises with Digital Capabilities

EMPOWERING RETAIL ENTERPRISES WITH DIGITAL CAPABILITIES

Engagingcustomerstodayrequiresmorethangoodafter-salesservice.Brandsmustdevelopmeaningfulcustomerengagementbybuildingsocialnetworksandcommunities.Inthisway,theycreateasymbioticrelationshipwhereincustomersfeelasenseofintimacywiththepeoplebehindthebrand,whilebrandscanbetterunderstandtheircustomers’ever-changingwants.Digitalplatformsmustbedynamicinordertobeusedasaneffectivemarketingtooltoextendacompany’scustomerreach.

TheEmpoweringRetailEnterpriseswithDigitalCapabilitiesprojectassistsretailersinredesigning

andaligningtheirobjectivesanddigitalmarketinggoals.Ithelpsthemcreatecustomisedcontentmarketingstrategiesand,mostimportantly,buildin-housecapabilitiestoleverageondigitalmarketingtoincreaseonlinepresence,revenueandprofitability.

Thiscollaborativeproject’saimechoesthegoalsofthenation’sRetailIndustryTransformationMap(ITM).Itwillhelpretailersdrivegrowththroughinnovationbyembarkingonsuitableonlinechannels,attherighttime,andbuildafuture-readyandproductiveretailworkforcebyupskillingworkersintoemergingandbetterjobroles.

Creation of a content marketing strategy customised to your business needs.

Building in-house capabilities in planning, producing, implementing and measuring social media marketing campaigns.

Sustainable in-house capability in using content and social media marketing to increase revenue and improve profitability.

Gain customer insights, secure brand preference and loyalty, which leads to incremental revenue.

Page 7: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

5

Building in-house digital marketing capabilities consultancy project

Todevelopstrongdigitalmarketingfundamentals

Avitalpartofthecustomerjourneyandthechanneltobuilddirect-to-consumerengagement

Gaincustomerinsights,securebrandpreferenceandloyalty

Leadingtoincrementalrevenue

PART 1

Overseas study mission. Exposure to the top e-commerce market players

PART 2

Learnaboute-commercebestpracticesoverseas(e.g.ShanghaiOverseasStudyMission)

Build in-house capabilities and competent skills, and seize opportunities in capturing the e-commerce

market for sustainability

5

Page 8: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

6

Project Objectives

EMPOWERING RETAIL ENTERPRISES WITH DIGITAL CAPABILITIES

Theprojectcomprises8phasesandtakesabout4monthstocomplete.Eachphasecomprisesof5participatingcompanies,withupto3representativesfromeachcompany.Theprojectadoptsauniquecustomisedknowledge-skillsapplicationmethodologytoachievesustainablein-housecapabilitiesthrough:

Knowledgeandskillstransferiscrucial,astheresultingin-housedigitalmarketingcapabilityisessentialtocontinuouslyengagecustomers,whichinturndrivesgrowth.

Theprojectaimstoachievecostsavingsbysharingcommoncostamongthe5participatingcompanies.

The identification of skills gaps

Customised training

Individual company

guidance and consultation

Group and peer learning

Hands-on application that

ensures knowledge and skills transfer

Page 9: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

7

PROJECT ARCHETYPE

Consultancy with individual company

PHASE 1ScopingthecontentandSocialMediaMarketingStrategy

PHASE 2“DiagnosisandSolutions”1-to-1consultation

PHASE 3StrategicSocialMediaChannelSelection

PHASE 4Implementationwith“Ido,yousee”approach

PHASE 5Evaluationandaudit

PHASE 6Assessmentofknowledgeandskillsapplicationthrough“Youdo,Isee”approach

PHASE 7Exchangewithpeers

PHASE 8Reviewphase

Group consultation and knowledge transfer

Customisedgroupconsultationtoaddressthe skills gap identified

Customisedgroupconsultationcoveringstrategic social media selection

Customisedgroupconsultationcoveringbest practices on evaluation and audit of campaigns

Exchangesessionwithpeerstoreview and reflect

7

Page 10: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

8

Benefits and Impact

EMPOWERING RETAIL ENTERPRISES WITH DIGITAL CAPABILITIES

Companiesreceivetheequivalentofayear’sworthofhelpinplanningandmeasuringtheirsocialmediamarketingcampaigns.

Digital marketing impact(resultsdependingoneachretailers’businesscontext):Increasedclicks,engagementrate,conversionsandsocialmediafans/followers

Activation and implementation

2 customised social media marketing campaignsforeachparticipatingcompany(1byconsultant,1byin-houseteam)

12-month editorial calendarforcontentandsocialmediamarketing

Page 11: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

9

DEVELOP THE SKILLS AND STRATEGY

Developingnewcompetenciesinplanningandmanagingcontentandsocialmediachannelsisasustainablestrategythatreducestheneedforoutsourcing.Thelong-termin-housecapabilityinleveragingcontentandsocialmediamarketingwillgotowardsexpandingyourbusinessandimprovingprofitability.

BUILD THE TEAM

Teammemberslearnimportantskillsindigitalmarketingwhichtheycanimparttotheircolleaguesattheoffice.Theseskillsgotowardscreatingeffectivedigitalmarketingstrategies,whileensuringtheabilitytoexecuteandmeasuretheirresults.

Build in-house digital capabilities

PART 1Buildingin-housedigitalmarketingcapabilitiesconsultancyproject

PART 2Overseasstudymissionprovidingexposuretotope-commercemarketplayers

3peoplepercompany

2peoplepercompany(fromtheprojectteam)

Alignmentofbusinessobjectivesandsocialmediamarketinggoals.

Creationofacustomisedmarketingstrategy.

Buildingin-housecapabilityinplanning,producing,implementingandmeasuringsocialmediamarketingcampaigns.

Reducetheneedtooutsourcebydevelopingnewcompetenciesinplanning,projectmanagementandgenerationofsocialmediacontent.

Enablinglong-termin-housecapabilityinleveragingcontentandsocialmediamarketingtoexpandthebusiness,increaserevenueandimproveprofitability.

Page 12: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

10

Learning International Best Practices Through Overseas Study Missions

EMPOWERING RETAIL ENTERPRISES WITH DIGITAL CAPABILITIES

Thereisnothinglikelearningfromsomeofthebestintheindustriesfromaroundtheworld.Aspartoftheproject,companiescanopttoparticipateinOverseasStudyMissiontripstogaininsightsfromtope-commercemarketplayers.

Facilitate networking and exposuretocompanieskeentoenteroverseasmarkets

Learn the latest trends, best practices and successful business modelsbyunderstandingthechainofactivitiesandresourcesneededforasuccessfule-commercestrategy

Gain exposure to backend processes, technologies and systems,andunderstandtheintegralbusinesscapabilitiesneededtosupportOmni-channelmodels(O2O)andsustainaseamlessconsumere-journey

Study different collaborative models in e-commerce: partnershipsbetweenretailers,e-marketplayersandlogisticserviceproviders,andlearnhowtheycanbeadaptedtoSingapore’scontext

Learn how retailers leverage on other social media platforms(e.g.WeChat)tobuildbrands,increaseconsumerinteraction,andprovideenhancedconsumerexperiences

Page 13: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

11

DFASS

TheDFASSGROUPisaworld-classleaderinretailoptionsfortravellersandtravel-relatedaudiences.Itspecialisesinhelpingconsumersandbusinessesaccesstheenticingworldofduty-freeretail,withadynamicspectrumofservicessuchas:

• OnBoardDuty-freeShopping• BuyOnBoard(BOB)Services• OnBoardPouring• LiquorandDistribution• AirportShops• ShopontheGo:OnlineRetailSales: Pre-OrderService,MailOrder,ShopByAirline

We learned that by engaging with online customers who have unpaid items in their shopping carts, and offering them one-time promotional discounts, gave them an incentive to complete their purchases.”

ACHIEVEMENTS

From Wish List to Sale

CAMPAIGN 1

STRATEGY

To target customers who did not complete their purchase through automated email marketing.

OBJECTIVES

•Toincreaseonlinesalesconversionratethroughemailmarketing

•ToincreasenewuserstopurchasewithDFASS

ACHIEVEMENTS

CAMPAIGN 2

STRATEGY

To increase purchase transaction value through post-conversion marketing (PCM).

OBJECTIVES

•Encouragerepeatpurchase

•Increasethetransactionvalue

35.4% new user purchases

7% email marketing conversion rate

Increased the average transaction value by

54.6% in the same period

Page 14: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

12

UNIVERSAL TRAVELLER

UniversalTravellerisaleadingwinterwearbrandinSoutheastAsia.Whileitenjoysastrongonlinefollowing,itneededtomaintainapooloffansandcreateanewfanbasetogeneratemoreonlinespending.

By our social media engagement with customers through interesting content and promotions, we have built a community of loyal customers. Together with a more targeted and strategic social media campaign, we have been able to reduce the cost of our social media advertising.”

ACHIEVEMENTS

Winning New Fans

CAMPAIGN 1

STRATEGY

To reach out to new target audiences and increase new customer base.

OBJECTIVES

•Togenerateconstantengagementwithcustomersandfollowers

•Toincreasecurrentfanbaseby50%

ACHIEVEMENTS

CAMPAIGN 2

STRATEGY

To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns.

OBJECTIVES

•Drivetraffictoitse-commercesiteandincreaseclick-throughratebyatleast20%

•Reducethecost-per-clickby20%

Expanded the fan base by

1.5x over the campaign periodClick-through rate to e-commerce site increased by

173.3% Reduced cost-per-click by

34%

Page 15: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

TheSingaporeProductivityCentre(SGPC)isaone-stopcompetencycentrethatisendorsedbytheNationalProductivityCouncil.

ThemissionofSGPCistodriveenterpriseproductivityforsustainedgrowthandcompetitiveness.Itfocusesontheretail,foodservicesandhotelsectors.

SGPCprovidesacomprehensiverangeofservicesandsolutionstohelpenterpriseseffectively,includingin-depthproductivityconsultancy,conferencesandworkshopsonproductivity-relatedtopics,benchmarkingandappliedresearch.

WiththeformationofSGPC,companiesintheretail,foodservicesandhotelsectorscannowapproachasinglecentreforexpertproductivityassistance.

Overthelastthreeyears,SGPChasassistedover1,000companiesthroughproductivityimprovementprojects,productivitytrainingprogrammes,conferencesandworkshops.

Throughitsactivities,SGPChopestodemystifytheconceptofproductivitytherebypromotingbetterunderstandingofitsmeasuresandhowtoimproveproductivityintheorganisation.

Formoreinformationvisitwww.sgpc.sg

Productivity Improvement Programme Partners

EnterpriseSingaporeisthegovernmentagencychampioningenterprisedevelopment.ItsvisionforSingaporeisavibranteconomywithgloballycompetitiveSingaporecompanies.

InternationalEnterpriseSingaporeandSPRINGcametogetheron1April2018asasingleagencytoformEnterpriseSingapore.ItsmissionistogrowstrongerSingaporecompaniesbybuildingcapabilitiesandaccessingglobalopportunities,therebycreatinggoodjobsforSingaporeans.

Theagencyworkswithcommittedcompaniestobuildcapabilities,innovateandinternationalise.ItalsosupportsthegrowthofSingaporeasahubforglobaltradingandstartups.Asthenationalstandardsandaccreditationbody,EnterpriseSingaporebuildstrustinSingapore’sproductsandservicesthroughqualityandstandards.

Formoreinformationvisitwww.enterprisesg.gov.sg

Page 16: Singapore Productivity Centre Business Improvement Series ......To drive Facebook audiences to its e-commerce site with the most cost-effective social media campaigns. OBJECTIVES •

11EunosRoad8,#08-01

LifelongLearningInstitute,

Singapore408601

Tel:67455833

www.sgpc.sg