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Best Practice E-Commerce, Straight from the horses mouth

Martin Newman, CEO@martinnewman

Thanks for letting me present today

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If you like what you hear today, my name is Martin Newman

And if you don’t…

It’s Paris Koronaios

Unfortunately you need to look at me for the next 60-70 mins!

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My deliverables today

• Insight• Inspire• Provoke• Where we are, where we’re going• And how we’re getting there• Mildly entertaining

Questions at the end please

So what gives me the right to stand before you today?

Why me?• 16 years selling online• I run a consulting business, but I’m a retailer• I’ve had P&L responsibility for catalogues, e-commerce, kiosks

and call centre channels for a number of brands including Ted Baker, Harrods, Burberry, Speedo & Intersport

• Sit on advisory board of Wiggle.com

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Why me?

• Judge the PayPal etail awards in the UK, and the online retail awards of Australia for the past 3 years

• Provide thought leadership to various industry titles including Retail Week, Power Retail, and the Times

• Chair the Retail Week eCommerce conference• Chair the Retail Systems Multi Channel Conference• Listed on Retail Week’s top 50 etail Power List of the most

influential people in online retailing for the last 3 years

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Do I have all the answers? No.If I did, I’d be sitting on the boat below!

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A shameless plug…

Practicology is the fastest growing global eCommerce and

multi channel consulting business

And that’s because of…

Deep experience of the team:We’ve all been at the coal face!

We’re all retailers:We’ve owned the eCommerce P&L for the following brands:

We’re 100% focused on client’s profitability

We’re a good bunch

3 buckets of services

Trading

Consulting

Agency

Our Clients

You really can’t afford to take your eye off the ball…as things are changing so quickly

Back to the here and now…

Don’t we just love jargon in this industry…

You need to ignore the BS!

• Some call it eCommerce• Some call it eBusiness• Some call it eTail• Some call it eTailing• I’ve even heard it called eTailment• Some call it mCommerce• Some call it Multi Channel• Some call it‘Multiple Channels’• Some call it Multi Channel Integration• Some even call it Omni Channel

• Customers don’t see channels!• They only see experiences• Therefore the only thing that really matters is: “Letting customers choose how they shop with you” This is key success factor number 1

The old Retail driver:Used to be location, location, location

The new Retail drivers:

• Now its:Convenience, Convenience, Convenience

• 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 your choosing• Have your order gift wrapped with a gift card

Why is this important?

…These customers might buy online from you

These may not. But they would over the phone

These customers want to know…“Will my bum look big in this?”

…And that’s where live chat comes in

This customer absolutely wants to click and collect

You need to let different customer types shop however and whenever

they want to

Key Success Factor = Retailers are finding new ways

that their stores can enable me to shop how I want to

Take the till to the customer…helps to close the sale

• I abandoned my basket at Bershka recently due to the size of the queue

• Retailers are increasingly putting in iPads • 25% cheaper than fixed tills

Debenhams say they are able to offer between 30% and 500% more SKUs than the store

In store kiosks have generated incremental revenue of more than

£100m in the last 18 months

• The store does not stock merchandise

• It has iPads, computers and interactive screens

• Customers can order products which are then delivered the following day to either the customer’s home or to the store for collection

Selfridges click and collectdrive through

The Multi Channel Halo Effect

• 63% research online before buying instore• 89% who buy online also shop instore• 35% of all online customers pick up their goods instore (M&S is at

40%)• Click and collect growing at 2 x the rate of online sales• 29% researched offline before buying online• Multi channel customers spent 3.5 times as much as single channel

customers• Mobile drives 6m visits to the website• A £3k bed was bought through mobile!• Multi Channel Customers are twice as loyal

Click and Collect:Why does it drive so many sales?

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Why is it so important?

• You know your goods are there• You don’t have to worry about what happens if

you’re not in when they’re delivered• Or if you have to return them• You don’t have to pay for delivery• If it’s fashion you can change your size or your

mind there and then• You may well be working near that store• Convenience, Convenience, Convenience

Key Success Factor = Customer Service and advice

• Because it’s online, it doesn’t mean you don’t need customer service and a call centre number!

• Let me call you if I want to• Customer service is a sales driver not just a

channel for problem resolution

So I can’t call you?

Good help section on Debenhams, but no obvious call centre no’s

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If you were a customer service business that happened to sell travel products, how would you communicate and engage

differently?

Key Success Factor = Good usability…

the experience online should be very similar to the offline experience

If you took the online shopping bag and checkout and put it into a store environment,

this is what it might be like…

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How ASOS persuades 50% more new customers to checkout

After Split testing they changed from using the term create account.

To the softer approach – “new to ASOS”

They still ask for a password during checkout but found drop out is associated withthe perception of registration.

Did you know that the conversion from customers who use site search is between 2 and 5 times that of normal browsers?

And yet too many search functions deliver the following experience…

Search for Bra’s…

Key Success Factor = Availability

Can I place a back order?

Key Success Factor = De risking buying online

Those doing well online know how to de-risk the

experience of buying online for customers

Zappos set the bar for de-risking and for convenience

Key Success Factor = The customer value proposition

Have it right up front…

Key Success Factor = Engagement

A truly social brand...These styles sell through 2.4 times better

Engagement

Key Success Factor = Personalisation &

Dynamic merchandising

But what is personalisation and dynamic merchandising?