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EMPOWERING RETAIL ENTERPRISES WITH DIGITAL CAPABILITIES
Singapore Productivity Centre Business Improvement Series
• DigitalDisruptionsintheGlobalLandscape 1
• Singapore’sUniqueRetailChallenges 2
• EmpoweringRetailEnterpriseswith DigitalCapabilities 4
• ProjectObjectives 6
• BenefitsandImpact 8
• LearningInternationalBestPractices 10 ThroughOverseasStudyMissions
• FromWishListtoSale 11
• WinningNewFans 12
Content
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
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%
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
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.
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
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
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
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
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.
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
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
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%
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
11EunosRoad8,#08-01
LifelongLearningInstitute,
Singapore408601
Tel:67455833
www.sgpc.sg