Oggi parliamo di… eCommerce data driven

I N T R O D U Z I O N E

1 minuto su di meAll’anagrafe: Guido Lucarelli, 39 anniFormazione: Ingegnere meccanico, La SapienzaFamiglia: Sposato, 1 figlio, Maxime, di 2 anni

Formazione lavorativa: 5 anni in Accenture Management Consulting, nel settore delle

riorganizzazioni di grandi gruppi, su Clienti internazionali (FAO, World Food Programme, Poste Italiane, ecc.)

Nel 2010 ho lanciato la start-up B2X, specializzata nello sviluppo di soluzioni eCommerce, di cui sono attualmente CEO. Oggi B2X conta un team di 50 persone, 4,5 milioni di fatturato, 2 premi come miglior eCommerce italiano tra il 2016 e il 2017

Dal 2017, sono inoltre Direttore Innovazione di CSF Sistemi (azienda specializzata nello sviluppo di soluzioni in Farmacia) con l’obiettivo di realizzare la più importante piattaforma omnicanaleintegrata tra Produzione e retail Farmacie (2.000 farmacie coinvolte)

Hobby: Tennis, Barca a vela, auto

E-commercevision

“By 2022, brick and mortar retail spaces will be little more than showrooms”

Eddie Machaalani & Mitchell Harper, Co- CEOs of Bogcommerce

Market and strategyS t e p 1

ScenarioS t e p 1

E-COMMERCE B2C WORLDWIDE

More then

BILLIONS

750 BILLIONS €

560 BILLIONS €

Main markets

% of e-commerce penetration on retail market

100 BILLIONS €

75 BILLIONS €

65 BILLIONS €

Osservatorio PoliMI – Netcomm (sept 2017)

Ecommerce Sales, Europe 2009 – 2017 Source: Ecommerce Foundation, 20172017.

Enterprises with websites and enterprises selling online, EU 28, 2010-2016 (% of all companies). Source: Eurostat, 2016

Ecommerce Sales growth rate per region, 2016. Source: Ecommerce Foundation

EU Online shoppers per product/service category, EU-28, 2016. Source: Eurostat

ONLINE PURCHASES OF ITALIANS ON NATIONAL AND INTERNATIONAL WEB SITES

SERVICES PRODUCTSBILLIONS €

IN 2017, FOR THE FIRST TIME, THE PRODUCTS EXCEED THE SERVICES

INSURANCES1.300 millions €

TOURISM9.202 millions €

CONSUMER ELECT.3.962 millions €

CLOTHES2.502 millions €

FORNITURES AND ACC

905 millions €

FOOD/GROCERY849 millions €

PUBLISHING943 millions €

OTHER3.181 millions €OTHER 884 millions €

Osservatorio PoliMI – Netcomm (sept 2017)

WEB SHOPPER

billions

SPORADIC WEB SHOPPERS

5,8 Billions – 7% share

REGULAR WEB SHOPPERS

16,2 Billions – 93% share

5,8BN

1,9BN

DEVICES PAYMENTS

Credit Cards

On delivery

Bank transfer Other

BEAUTY TOYS CAR SPARING

DEVICE PENETRATION SHARE

Osservatorio PoliMI – Netcomm (sept 2017)

E - c o m m e r c e

The most interesting trends

2016 was the year of the latest affirmation of online e-commerce

events. Black Friday, Cyber Monday, and Singles Day in China,

have become relevant purchase moments.

Single day 2016: $ 17.8 bn*Cyber Monday 2016: $ 3,45 bn**Black Friday 2016: $ 3,34 bn**

*Alibaba

** Adobe Digital Insights

Personalized commerce

The personalized purchasing experience is already a real element now, but, it’s going

to be huge in the coming year. Banner advertising, remarketing, crm, behave

prediction e mail advertising, and many others are a part of the customised

purchasing revel in. Amazon did his best by using recommending merchandise similar to they sold before. In coming

years we are going to see extra of this. E-commerce business will cater more to the client based on their individual hobby. One platform will act in a different way for one

of a kind customers.

Convergences between retailers

dot com towards the physical world and retailer to the digital

world. Large players in the industry move by acquiring more traditional retailers (Amazon on

Wholefood and Walmart on jet.com). At the same time,

retailers land online by offering integrated multi-channel

shopping experiences and becoming more and more

overlapping

Shopping days

The most interesting tech trendsE - c o m m e r c e

Chatbot

A.I.

Artificial intelligence is going to be the next big thing in to the big data world. Trying to establish and predict user behavior to offer the best possible products in the best purchase moment, A.I. is going to create highly curated experiences.

In order to make the costumer service as faster and inexpensive as possible Chat Bot comes out last year as a possible solution. Chatbottechnology is still young but the adoption in e-commerce is growing fast

Voice commerce

The more and more precise accuracy of voice recognition combined with the rise of smart-homes devices with voice-controlled personal assistants (Apple’s HomePod powered by Siri, Amazon’s Echo powered by Alexa, Google Home, etc..) will encourage costumers toward fast and natural voice commerce.Mobile Commerce

Mobile e-commerce is here to stay and to increase dramatically. However in these very days mobile devices are more used to visits the sites and desktop are still in charge for buying this attitude is changing very fast and the app/mobile commerce will soon win the match on several markets.

ALIBABA – 1999, CHINAThe largest B2B worldwideplatform, do not have anywarehouse

AIRBNB – 2007, USAThe largest worlwide apartmentrental, do not have any building

FACEBOOK – 2004 USAThe largest media content platform do not produce any… media

New competitorsE - c o m m e r c e

UBER – 2009, USAThe largest world wide Cabcompany, do not have any car

WHATSAPP – 2009, USAThe largest messaging company, do nothave any infrastructure

Approching the e-commerce marketS t e p 1

E-commerce approachesE - c o m m e r c e

The world of e-commerce is varied and articulated andproposes different approaches to online sales.

- Single brand platform- Marketplaces such as Amazon and eBay

Mono Brand PlatfromThis is the “classic” e-commerce scenario

Single BrandE - c o m m e r c e

Marketing

Platform

Total operational controlTailored UX and UIPossibility to create different new promosChoice of payment methods

Own strategyFull control and ownership of user dataBrand enhancementTailored marketing plan managementNo fees on salesControl of Seo content srategy

Marketing

To drive traffic to the site is expensiveNeed to build a new costumer baseNeed to build trustLonger time to marketNeed to organize and integrate logisticDedicated team to manage the channel

Platform

Substantial set-up investmentMaintenance and evolution costs

strengths Vs. weakness

MarketplaceAmazon

Marketplace Amazon / eBayE - c o m m e r c e

Marketing

Platform

Ready to useMaintenance, evolution and security included

Huge amount of registerd userBig potential trafficLot of marketing tools to useIntegrated logisticTrust of clientsGreat SEO performanceCross border e-commerce made easy

Marketing

Fees on salesUser data not fully availableCompetitors on the same platform (no service difference)Price comparison push the price war to the limitNew and specific SEO logicNo visibility behind the platformPlatform

Features ready made and not personalizedImpossible to change layoutFixed payment methods

strengths Vs. weakness

MarketplacePrivate outlet

Private OutletE - c o m m e r c e

Marketing

Platform

Ready to useEasy data connection

Huge amount of registered user (Etc: SaldiPrivati 28Milions)Big potential traffic

Marketing

Fees on salesUser data not fully availableHuge discount neededCompetitors on the same platform (no service difference)

Platform

Not differentiating layout personalization

Pros Vs. Cons

Mixed modelE - c o m m e r c e

In order to gain pros from both worlds many retailers choose to adopth both channels. There are different ways to face this choice and integration involve different areas:

Platform

Software to integrate data, stocks, fulfillment, crm, etc.

Marketing

Different possibilities to manage the different channels. Price, service, even catalog can be different

Brand

Brand perception over marketplaces is very low but visibility very high

Competitors

Competitors are often already present on marketplaces and the challenge must be take in serious consideration.

Mono brand - Strategy overviewS t e p 1

Mono Brand - GoalsE - c o m m e r c e

II.Sales Goals

Activate a new value-added sales channel

Keep the channel away from the competitors and the retail channel

Maximize visibility on the web also through co-marketing

Increase the availability of references not available on the shelf

Support the Sales Network

Increase your average payout and total customer spend

Retain the medium term consumers

Activate a fast feedback channel with Consumers

Monitor real-time results and user feelings

Developing the online channel as a "trade" channel

Outsource the major eCommerce processes

Maintain coordination of all activities

III.CRM Goals

I. Barnd Goals

IV.Organization Goals

Strategic positioning evaluationE - c o m m e r c e

Price

Mass 1to1 / Retail

1.Large assortment

2.Lower prices lowering other channels (85-95) *

3.Brand recognizable for the customer

4.E-Shop brand strongly connoted

1.Pricing lower than other channels (85-95) *

2.Large assortment

3.Brand recognizable for the customer

4.Multi-channel options (eg delivery)

1.Assortment for specialized target

2.Assistance / Consulting

3.Valuable value services

4.Brand recognizable for the customer

5.Competitive pricing (90 -105) *

1.Specialized and distinctive assortment

2.Brand recognizable for the customer

3.Consulting / Scientific Content

4.Value services, integrated with the chain

5.Competitive Pricing (90 - 100) *

Service/Value

Strategic funnelE - c o m m e r c e

Leads

Prospect

Bronze clients

Silver clients

Gold clients

newsletter subscribers / fanpage / visitors (cookie retargeting)

Register to the site, non-Customers

Occasional Customers (1 purchase)

Recursive customers (turnover threshold x)

Customers Customers (billed

threshold y)

Acquisition Actions

KPIS t e p 1

“Data! Data! Data! I’ can’t make bricks without clay”

Sherlock Holmes

KPIE - c o m m e r c e

It’s imperative to base our daily activities on key performance indicators (KPI) as success metrics that will best move the needle for business and focus your efforts

on optimizing them.

Most relevant and common KPIE - c o m m e r c e

Customer Lifetime Value (CLTV)

Shopping Cart Abandonment Rate

Cost per Acquisition

The number of people that started to put products into the cart and didn’t finalize the purchase

The value of an average customer during their entire relationship with your company.

The cost to spend to acquire a new lead/user/costumer

Churn rate

he percentage of customers who stop buying the products or that choose to unsubscribe newsleter/site

Conversion Rate

Average Order Value (AOV)

Repeat Customer Rate (RCR)

The average amount a customer spends when they place an order on your site.

The percentage of your site’s visitors who make a purchase

The percentage of customers who return to make a second purchase on your site.

Website Traffic

All visitors of your website

Conversion Rate 1/2E - c o m m e r c e

The conversion rate (CR) is a very important KPI and defines how many people visiting the site end up in a purchase.CR=Total Visitors/Number of purchases

The average CR in Italy is around 1% but this a very generic data. Each single shop has his own CR based on the industry, market share, mediamix, strategy, etc.

Conversion Rate 2/2E - c o m m e r c e

Usually the CR is directly related with:

• Quality of traffic led to the store• Brand trustworthiness• Shop awareness• Price competitiveness• Usability• Range of products

Average Order Value 1/2E - c o m m e r c e

Average Order Value (AOV) is one of the s-commerce pillar used to evaluate the viability and sustainability of the shop.

AOV = total revenue/number of orders

AOV and CR should be used together to calculate the number of visitors needed to achieve the given target.

Average Order Value 2/2 E - c o m m e r c e

Usually the AOV is directly related with:

• Products average price• Free shipping limit• Up&Cross selling strategies (bundles, recommended

products, etc.)

Customer Lifetime Value 1/2E - c o m m e r c e

The Customer Lifetime Value (CLTV)is the average value of a client during his entire life as costumer of the shop.This KPI needs some years (3 to 5) to be properly evaluated.CLTV have to be used with CR and AOV in order to plan a sustainable costumers acquisition cost.

Customer Lifetime Value 2/2E - c o m m e r c e

Usually the CLTV is directly related with:

• Service quality• Costumer service• Loyalty program• Contact strategy

Shopping Cart Abandonment Rate 1/2E - c o m m e r c e

How many costumers activate the checkout process and didn’t end up in a purchase.

There is a rate of SCAR that have to be considered as physiologic in the costumer behave and is around 70% after Baymard Institute data (https://baymard.com/lists/cart-abandonment-rate)

Shopping Cart Abandonment Rate 2/2E - c o m m e r c e

Usually the SCAR is directly related with:

• Shipping cost• Usability of the checkout process• Account creation usability• Prices of competitors• Available Payment methods• Post abandonment strategies

Cost per acquisition 1/2E - c o m m e r c e

Here we are with a pillar of the e-commerce flow.

Lead acquisition is the base of the e-commerce business and to acquire new leads is a cost. How to calculate the correct CPA?Depending on the business model it comes from the interaction between:

CR – AOV – CLTV

Cost per acquisition 2/2E - c o m m e r c e

Usually the CPA is directly related with:

• Media strategies• Media accurancy• Conversion strategies (convertibles, pop-up, marketing

automation, etc..)

How to drive trafficS t e p 1

No traffic, no leads.

No leads, no sales.

No sales, no business.

TrafficE - c o m m e r c e

To generate traffic is crucial for every e-commerce web site.

We can generate traffic via:

OWNED MEDIA or PAID MEDIA trying to get EARNED MEDIA

Owned MediaE - c o m m e r c e

Owned media is any web property that you can control and is unique to your brand.

Paid MediaE - c o m m e r c e

Paid media is a good way to promote content in order to drive earned media, as well as direct traffic to owned

media properties

CPM Vs. CPC Vs. CPA

Earned MediaE - c o m m e r c e

Earned media is essentially online word of mouth, usually seen in the form of 'viral' tendencies, mentions, shares,

reposts, reviews, recommendations, or content picked up by 3rd party sites.

Setup a digital media planE - c o m m e r c e

Define your business Objectives(Ex. brand awareness, increasesales, etc..)

Translate in to Digital Goal(Ex. increase the conversion rate, reduce churn rate, etc..)

Define main KPI and set as Goal in Analytics(Ex. abandonment rate, conversion rate, etc..)

Identify your target audience personas(Ex. Age, attitude, income, etc..)

Define your digitalstrategy for each channel(Ex. Age, attitude, income, etc..)

Media PlanE - c o m m e r c e

Interactive session analyze a real case.

Case StudyCHICCO – e-commerceS t e p 2

“Amazing thing will happen when you listen to the consumer”

Jonathan Middenhall – CMO @ Airbnb

Data discoveryE - c o m m e r c e

Live Session – How to use real data

Contact planS t e p 2

Contact PlanE - c o m m e r c e

The contact plan, along with the media plan, is crucial to defining how to contact, stimulate, and retain our

consumers.

Always TESTE - c o m m e r c e

Your plan is never going to be ideal from the outset. Now not every assumption you are making goes to be

accurate.Test and evaluate results

Customer FidelizationS t e p 2

“We see our customers as invited guests to a party, and we are the hosts. It's our job every day to make every

important aspect of the customer experience a little bit better.”

Jeff Bezos– CEO @ Amazon

FidelizationE - c o m m e r c e

Social Media

Personalization

Offers

Clients want to feel valued and that they need to feel unique, so deliver them what they want with personalisation.

Social media is a effective shape of wom(word of mouth) advertising and marketing and as such, you must defend your reputation at all fees.

Unique offers and reductions are priceless for worthwhile clients and ensuring that they stay dependable

E-mail marketing

CRM

Costumer Care

To manage CRM actions is the best way to understand your costumer base in the deep

Email Marketing remains one of the best marketing gear that the ecommerce website has

Clients want to feel consideratedand safe during the shopping experience.

Grazie!Guido