Slides from the Ecommerce UK LinkedIn Group's Customer-centric Ecommerce event, held on 5th March 2015 in central London. Speakers included Sofa.com CEO Gareth Williams, Peoplevox Founder & CEO Jonathan Bellwood, PCMS Group Sales & Marketing Director Richard Goodall and Sage Pay Head of Innovations Rik Blacow. The event was hosted by Practicology Deputy CEO Mark Lewis.
2. Thank You
The attendees, without you, we have no one
to share insight with
Our presenters for sharing insight
Tonight’s sponsors without whom this event
wouldn’t take place: PCMS Group, Peoplevox
and Sage Pay
Practicology team here tonight including Joanna,
Chesca and Laura who have organised the event,
and my fellow directors at Practicology Martin,
Nupur and Jeremy
3. Thank You
Cathy Crawley, my co-host of the Ecommerce
UK LinkedIn group
Jonathan Hall and Cranberry Panda for
filming with Nathan from Fried Egg
Productions www.friedeggproductions.co.uk
Antony Alexandrou for
photography www.3aphotography.com
4. Agenda
Introduction: Mark Lewis, Deputy CEO, Practicology
Presentations:
• Practicology’s Customer Communications Tracker
• Jonathan Bellwood, Founder & CEO, Peoplevox
• Richard Goodall, Group Sales & Marketing Director, PCMS (also
presenting Ann Summers’ slides as Phil Syson cannot be here)
• Gareth Williams, CEO, Sofa.com
• Katy Wilson, Channnel Manager & Rik Blacow, Head of
Innovations, Sage Pay
• Yossi Erdman, Head of Brand & Social Media, AO.com
Q&A
The bar
6. How do you speak to your customers?
• Email is still a crucial communications channel
• It was rated as ‘excellent’ or ‘good’ for ROI by 68%
of companies in Econsultancy’s 2014 research –
highest rated digital marketing channel
• So we wanted to see how different retailers treat
consumers when they hand over their email
address and opt-in to receiving marketing
communications…
7. The methodology
• We began by visiting the websites of 100
retailers in early February 2015
• We looked at whether you could sign-up to
receive newsletters/emails from them without
actually registering for an account
• 93 of the retailers seemed to offer this, so we
signed up with them all to a Hotmail address
we’d set up
• We’ve tracked what happens next…
8. How welcoming are you?
Once we’d tried to sign-up online with the 93
retailers who offered it:
• 57 retailers emailed us the same day with a
proper welcome email
• 6 retailers emailed us a welcome email in
subsequent days
• 6 retailers began sending marketing emails
without sending a welcome email first
• 23 didn’t acknowledge sign-up and have sent
us no emails since
9. Why ask if you don’t offer?
• Matalan’s sign up has failed multiple times
15. Customer Communications Tracker
These findings and more will be available
next week on our website and via the
Ecommerce UK LinkedIn group
www.practicology.com
@practicology
18. PUT STUFF IN THE
The customer-centric eCommerce warehouse
March 5th 2015
Jonathan Bellwood
CEO & Founder, Peoplevox
@PeopleVox
Slide 2
Problem:
Storing similar stock keeping
units (SKUs) next to each
other in a warehouse makes
it more likely that a picker will
pick the wrong item due to
human error. A medium shirt
can be easily mistaken for a
large shirt.
19. PUT STUFF IN THE
The customer-centric eCommerce warehouse
March 5th 2015
Jonathan Bellwood
CEO & Founder, Peoplevox
@PeopleVox
Slide 3
Solution:
By putting different SKUs in
location gaps, pickers are
less likely to pick
incorrectly. For example, a
medium shirt will not be
mis-picked for pink shoes.
20. PUT STUFF IN THE
The customer-centric eCommerce warehouse
March 5th 2015
Jonathan Bellwood
CEO & Founder, Peoplevox
@PeopleVox
Slide 4
Benefits
● Eliminated mis-picks means
100% order accuracy for
customers
● Putting items in gaps
means stock can be
scanned in and live on the
website much quicker
21. FILTER
The customer-centric eCommerce warehouse
March 5th 2015
Slide 5
Jonathan Bellwood
CEO & Founder, Peoplevox
@PeopleVox
Problem:
Customers buy from
Amazon because they
trust the logistics.
As such many
eCommerce retailers
take more care with
Amazon orders to
avoid bad reviews.
22. FILTER
The customer-centric eCommerce warehouse
March 5th 2015
Slide 6
Jonathan Bellwood
CEO & Founder, Peoplevox
@PeopleVox
Solution:
Focus on building trust
with your customers.
Documentation for an
easy returns process and
a promotional discount for
those that shop directly at
your website included in a
customer’s package are 2
methods.
23. FILTER
The customer-centric eCommerce warehouse
March 5th 2015
Slide 7
Jonathan Bellwood
CEO & Founder, Peoplevox
@PeopleVox
Benefits
● More direct
website sales
which have a
higher gross
margins than
marketplace sales
24. SINGLES...
The customer-centric eCommerce warehouse
March 5th 2015
Jonathan Bellwood
CEO & Founder, Peoplevox
@PeopleVox
Slide 8
Problem:
The majority of eCommerce orders are single item not
multi-item orders. Greater demand for prompt deliveries
leads to a need for quicker picking methods.
25. SINGLES...
The customer-centric eCommerce warehouse
March 5th 2015
Jonathan Bellwood
CEO & Founder, Peoplevox
@PeopleVox
Slide 9
Solution:
Use a pick method designed for single-item orders. Simple
changes such as fanning out warehouse operators to pick for
multiple orders so that no-one walks over the same ground
twice can increase orders picked per hour per person by 50%.
26. SINGLES...
The customer-centric eCommerce warehouse
March 5th 2015
Jonathan Bellwood
CEO & Founder, Peoplevox
@PeopleVox
Slide 10
Benefits:
● If you can pick quicker, you can push back the cut off
times for next day delivery.
● With an understanding of the number of orders to be
picked and staff availability, you could aim for dynamic
cut off times.
27. KEY TAKEAWAYS
The customer-centric eCommerce warehouse
March 5th 2015
Jonathan Bellwood
CEO & Founder, Peoplevox
@PeopleVox
Slide 11
● Eliminate mispicks by utilising gaps to gain 100% order
accuracy
● Build trust with customers by showing-off warehouse
processes to gain more direct sales on the website
● Get orders despatched quicker by using a single item
order pick method to push back the cut off for next day
delivery
33. THE EVOLUTION OF
ANN SUMMERS
We are Ann Summers.
You might think you know us…Well
you do…and you don’t. So let us take
time to clarify who we are.
For more than 45 years, we have been
a business doing pleasure.
A company run by women for
women, a virtuous circle of female
empowerment that allows women
and their partners, from all walks of life
to indulge and enrich their sex lives.
Working with us as Party Ambassadors,
thousands of women get to recognise
their business talents and shape their
working life around their families.
We were the first high street erotic
boutique. Today we are the biggest
with over 140 stores up and down the
UK, and we are solely responsible for
moving sex from the backstreets into
a safe, welcoming, female-friendly
high street environment.
34. We made parties sexy.
We have over 5,000 Party Ambassadors
out there bringing our customers tens of
thousands of the ultimate girl’s night in
and we are still going strong after 30 years.
Online we have an internet boutique that
welcomes the curious, the shy, the
naughty and the adventurous alike so that
they can shop with us from the privacy of
their own love nest.
The evolution of our brand has seen us
shed those outdated notions of being
seedy and tacky, challenge the
perceptions of our customers and the
general public alike, and grow to become
the biggest pleasure retailer in the UK.
Now, we want to take on
the rest of the World.
35. THE WORLD
ACCORDING TO
ANN SUMMERS
Sex is the reason we exist.
That is the beautiful, thrilling, liberating truth
that unites everyone at Ann Summers.
Everything we do – that diamante riding
crop, that erotic body, that rose gold
massager – is a means to an end. And that
end is always sex. Mind-blowing sex.
Our brand reflects this truth, captures our
true spirit as sexual pioneers, and gives us
a sense of purpose – as a business
doing pleasure.
This is what will allow us to claim our rightful
place as the sexiest brand in the world.
We have more than 45 years experience in
liberating and empowering our customers
in the bedroom which allows us to push
boundaries to become edgier, more
confident, witty and intelligent.
36. OUR MISSION
Our mission is simple and inspirational.
It recognises that we don’t think like
anyone else, and we definitely don’t
act like anyone else.
It crystallises the unique truth about
Ann Summers, inspiring us to become
the people and business we can be
most proud of.
We will inspire our customers to look
and feel sexy through innovative, fun
and daring experiences.
39. ANN SUMMERS - A FAMILY BUSINESS
• Owned by The Gold Group since 1971
• Party Plan launched in 1981
• First “Female Friendly” store opens in 1993
• Annsummers.com launched in 1999
• 1st TV ad ran in 2011
41. TRULY OMNI CHANNEL
“A BUSINESS DOING PLEASURE”
• Stores
• Parties
• ECommerce
− 142
− 5,000 Party Ambassadors
running 2,500 parties a
week
− 1.6 million visitors, 15
million page impressions
and nearly 1 million sales
42. PARTNERSHIPS / OTHER CHANNELS
• International Markets
– Ebay
– Amazon
• Lingerie
– Very
– Littlewoods
• Toys and Lotions
– Superdrug
44. OMNI CHANNEL CHANGED THE LANDSCAPE
FOR CONTACT CENTRE EXPECTATIONS
• Consumers and PAs wanted much
longer hours
• Ann Summers wanted consistent
“Customer 1st” messaging
– Brand values
– Product knowledge
– Customer knowledge
• Wanted to drive ongoing improvements
through a “1st time fix” culture,
monitoring selling and service levels
across all sales channels
45. DECIDED TO OUTSOURCE
THE CONTACT CENTRE
• Long selection process
– Onshore or Offshore
– Dedicated or Shared team
– Scripted or “Educated” team
• TUPE considerations
• Had to overcome Party
Ambassador concerns
• Drive for greater flexibility
and efficiency
46. WANTED CONTACT CENTRE TO BE PART
OF THE OMNI CHANNEL OFFERING
• 350,000 contacts a year
(public and PAs)
– Generating over £250k of incremental sales
– 1st point of “contact” with many consumers
• Delivery and Returns management / escalations
– Key part of the Party Ambassadors eco system
• Credit control
• Order chasing
• “Hand holding”
47. DECIDED TO OUTSOURCE
THE CONTACT CENTRE
• Decided on
– Onshore
– Dedicated
– “Educated”
• To offer TUPE and explain it to the
staff fully
• Invite key opinion leaders to Coventry
to see the Contact Centre working
• Set aggressive targets for improvement
54. Talk about our customer service?
Like asking a fish to describe water...
55. Experience
We talk about the customer experience
rather than customer service.
It guides everything we do.
It’s the ocean we swim in.
56. How we do
We have the highest NPS score we’ve
come across (+74).
40% of our business is repeat and
from word of mouth.
57. Origins
sofa.com was founded to make the sofa
purchase a pleasure rather than a chore, e.g.
• Entertaining people (online and off)
• No pressure sales, no fake discounting
• Great availability
• Deliveries at customers’ convenience
• Risk-free ordering
• And more (on top of great sofas natch)...
59. Sounds obvious but isn’t easy:
• Need to engineer it into every
touchpoint
• Need to have an operational
structure that supports it
• Need to have a culture that
prioritises it
60. Some tips
• Human contact highly valued (happy
humans)
• Integration across channels (consistency,
efficiency)
• Pre-commit (trust, reciprocity)
• Focus on final touchpoint, last impressions
(reviews). Often doesn’t happen because
you already have their money!
• Starts at the top
64. No-one said sofa shopping was light work but we are here to make the
experience as easy, relaxed and enjoyable as possible. Really nothing is
a problem for us.
66. Focus
Focus what you do and what
you offer, concentrate your
overhead, dispense with what
isn’t helping you do the best for
your customers.
67. “Do one thing well.”
“The things that define you are not just the things
that you do, but the things you say no to. Saying
no is focus. We only make jeans. We say no to
anything else. Be narrow.
Be good.”
David Hieatt of Hiut Jeans (founder of Howies)
hiutdenim.co.uk
68. Can you charge more?
Better service should mean better
margins.
But this only applies to a small
number of companies: those
consistently attracting people’s
attention, getting them talking.
Earning a big premium is difficult in
today’s super-competitive world.
69. Investment rather than cost
Customer service as investment:
Unless you get customer experience
right your marketing is not doing what it
could for you.
At worse, you’re inviting people to have
a bad experience (then hate you, tell
their friends). Shift budget from
marketing to customer services.
79. Customer service as marketing
Customer service as investment:
Customer experience nowadays is
marketing: it’s a social world, people
talk.
80. Brand is decreasingly something
broadcast to customers: this messaging
usually discounted.
Brand is what you do: and it’s
continually being revealed as well as
experienced.
81. Proof of pudding
Great customer experience will do
your marketing for you:
- 40% of sofa.com’s business is
repeat and from word of mouth
- Newspaper Club
(newspaperclub.com) grows sales
profitably at 40% pa with no
marketing budget
82. Summary
Creating a great customer
experience is not easy. It involves
everything you do
But it’s becoming a basic requirement
not a value added
Focus helps. Margins might improve.
Switch money from marketing.
Get it right and it pays for itself.
83. Conclusion
If you’re not the cheapest in your
market or selling something unique…
you’re in the service business.
Mark Price, Waitrose: “If you’re not a
discounter, you’re in the hospitality
business”
So customer experience is already the
ocean you’re swimming in...
88. How does it work
06 March 2015Sage presentation 88
Guardian Cloud:
89. Merchant and Consumer Experience
06 March 2015Sage presentation 89
• Low cost
• Queue busting
• Premium guided shopping experience
• Cross channel – Click & Collect, F2F
acquiring rates
• Many to one relationship
• Loyalty
90. Integration
06 March 2015Sage presentation 90
• Web service based
• Various technology options
• Integration with existing systems
• Transaction reporting portal
• Device agnostic
93. Ecommerce UK
Thank you for joining us tonight.
If you are not already a member of the
Ecommerce UK group on LinkedIn please
request to join to hear about our future events
@ecommerceli
Hinweis der Redaktion
I’m Mark Lewis from Practicology, and I’d like to welcome you all to our Ecommerce UK event tonight. Follow us on Twitter at @ecommerceli and use the hashtag #EcommerceUK if you tweet tonight. Please don’t feel the need to turn off your phones, but do put them on silent.
Mention that Will will be joining Practicology in November
We ask consumers to let us communicate with them. But there are some real differences in the way retailers and brands react when a consumer wants to hear from them. We’ve set up a customer communications tracker to help retailers understand how their peers use email, so more retailers use email in an intelligent and customer-centric manner
Matalan offers email sign-up on the homepage of its site – but we’ve never got it to work
Majestic Wine offers sign-up for its newsletter on its homepage. We signed up on the 5th Feb and haven’t received anything yet!
When you input your email to the newsletter sign-up on M&S homepage you are asked to fill in the following, plus tick which product areas you are interested in. So we did on the 9th Feb. And nearly a month later we’ve still not had a single email!
In comparison, Coast asked for a date of birth on sign-up, so we gave it one for a date a few weeks down the line. It then sent us an email a few days before our birthday with a 25% off code that could be used online or shown to a member of staff and redeemed in store
The first email we received from Sports Direct – no welcome, but we’ve received at least one email each day ever since
These figures from the Direct Marketing Association show that email is the preferred brand marketing channel for consumers in all age groups. So there is huge potential from your email marketing programme delighting and informing those that have opted-in
More results from our tracker will be available on our website and via the LinkedIn group next week. Hopefully these few thoughts have got you all thinking about what you can do to make your ecommerce operations more customer-centric. And now we move onto our speakers who should all provide some further inspiration…
putting in gaps leads to less incorrect mispicks - > correct item to the customer
stock accuracy on website
pink dress, friday night
putting in gaps leads to less incorrect mispicks - > correct item to the customer
stock accuracy on website
pink dress, friday night
putting in gaps leads to less incorrect mispicks - > correct item to the customer
stock accuracy on website
pink dress, friday night
“I buy from amazon because I trust them”
convert amazon customers to direct to website
inserts
building up trust and integrity
video at check out on their website
“I buy from amazon because I trust them”
convert amazon customers to direct to website
inserts
building up trust and integrity
video at check out on their website
“I buy from amazon because I trust them”
convert amazon customers to direct to website
inserts
building up trust and integrity
video at check out on their website
guaranteeing on time deliveries by being able to pick quicker
push back cut off times for next day delivery times
more time for the customer to buy online (office workers shop in evening)
aim for dynamic cut off times ideally
guaranteeing on time deliveries by being able to pick quicker
push back cut off times for next day delivery times
more time for the customer to buy online (office workers shop in evening)
aim for dynamic cut off times ideally
guaranteeing on time deliveries by being able to pick quicker
push back cut off times for next day delivery times
more time for the customer to buy online (office workers shop in evening)
aim for dynamic cut off times ideally
“We sold a sofa to a customer who couldn’t be there for delivery day (she was on holiday in France). She was insistent that the sofa needed to be delivered as soon as possible.
In order to meet her needs, Olly cycled to her estate agent in South Kensington to collect keys to the property, then headed over to the customer’s house to let our drivers in and get the sofa delivered in time.
He then cycled the keys back to the estate agents and returned to the office to complete his shift… Olly also repaired a customer’s scatter cushion stood at their front door (having cycled over from Chelsea wharf) and went to another customer’s house to plump a chaise cushion (again cycling over to the customer’s home).
This particular customer was elderly and couldn’t do it themselves - it was no problem for us to help.” Olly works as a sales adviser in our Chelsea showroom and has no formal responsibility for deliveries or aftersales.
“A customer had a sentimental attachment to an old hammock that used to hang on the property of an old family holiday home. It held huge sentimental value to our customer and she wanted a sofa upholstered in it.
We couldn’t provide the service for her but we researched and found a place that could and put her in touch with the right company. It wasn’t a problem that this service interaction didn’t end in a sale - the important thing was that we went above and beyond for them.
It wasn’t about getting the business or making the sale - rather, it was about always ensuring that the customer’s sofa.com experience was helpful, positive and memorable.
We would always do anything we could to provide an excellent experience for our customers.”
“A couple who were furnishing their home with our sofas (clearly had great taste) spent an entire morning in our showroom - their visit was nearly four hours long (which is quite common for our customers). They were very particular and didn’t want to be rushed but were comfortable and happy in our Chelsea showroom. While ensuring that they were supplied with tea, biscuits and product advice the day rolled on they got peckish, but didn’t want to step out for something to eat as they needed to make their decision that day.
We often have hot lunch for our team and offer a selection of pasta that people can have for lunch. One of our sales team offered to make them lunch so they could remain relaxed in the showroom and finish their sofa selection. They were so happy for the offer - even asking for a second helping!
No-one said sofa shopping was light work but we are here to make the experience as easy, relaxed and enjoyable as possible. Really nothing is a problem for us.”
Device agnostic - can run a webapp on any device, or create dedicated application
Merchant advantages:
Queue busting capability - staff on floor can take payment and reduce bottlenecks
Can take orders for out of stock items and recieve payment at F2F rates, not CNP
Create a premium, personalised shopping experience
Can capture consumer data not normally captured during an F2F transaction
Ecommerce ordering and instore payment (click and collect)
Card terminal and pos don't need to be geographically co-located