Webinar2.Content.V4 Final

CREATING A TOTAL E-COMMERCE ADVANTAGE#2 – Going Live: Total E-Commerce Execution

March 23, 2010

Today’s Presentation

INTRODUCTIONS About the Magento Company

About One Pica

ONE PICA PRESENTATION The second in our 3-part series, “Creating a Total

E-Commerce Advantage”

Today’s topic: Going Live: Total E-Commerce Execution

QUESTIONS + ANSWERS

Magento, Inc.

FOUNDED

• 2001

• Recently changed company name

to “Magento”

KEY FACTS AND FIGURES:

• 1,500,000+ Downloads

• 60,000+ Merchants

• $25 Billion in Transactions

• 150k+ Community Members

• Over 2,000 extensions through

MagentoConnect

“MAGENTO IS THE WORLD’S FASTEST

GROWING ECOMMERCE PLATFORM.”

MAGENTO ENTERPRISE

EDITION

• Unique features that drive

online revenue for merchants

• Predictable roadmap

• SLA Based Support

• Warranty & Indemnification

Marketing + Technology Agency

Strategic Insights + Positioning Brand Architecture + Identity Creative Vision + Design Experiential, Digital + Traditional Marketing Technology Assessment + Integration E-Commerce + Custom Web Applications Analytics + Performance Tracking

Our Total Company Philosophy

Market-based but operationally driven

We focus on how technology connects your total company

to your customers – and vice versa

1. A Strategic Approach To E-Commerce

2. Going Live: Total E-Commerce Execution

3. E-Commerce Advantage: Staying One Step Ahead

Part 2 of Our Three-part Series

1. A master plan for organizing, integrating and designing the key elements of a successful e-commerce site

2. A methodology to help you think like your users/customers

It’s Like Building a House…

PLAN IT


BUILD IT


INVITE YOUR FRIENDS!


Today’s Focus

PLAN IT


BUILD IT


INVITE YOUR FRIENDS!


Plan It - Recap

At the end of this phase you have a strategic master plan:

Create linkages between marketing, sales and operations through your online channel

Define requirements and understand the complexity of the project at every level before implementation begins

Evaluate the current technology environment and successfully integrate it with a new e-commerce platform

Establish goals, objectives, metrics and a realistic project plan and how to recognize opportunities at every step

PLAN IT


GOING LIVEMaking the Right Decisions

According to Forrester:

TRANSACTION“Typical e-commerce

initiatives concentrate on maximizing conversion rates and minimizing

service costs.”

BRAND“Typical on-line brand-building efforts require stand-out creativity to

differentiate a product or service from its competitors.”

The Forrester Wave: Interactive Marketing Agencies – Web Design Capabilities, Q2 2009

True Success

You can do both

BRAND + TRANSACTION =

SUCCESS

1. Operations Review

2. Channel Strategy

3. Merchandising

+ Brand

4. Design + Usability

5. Deployment

The One Pica Approach

ALIGN THE ORGANIZATION

LINK EXISTING PLATFORMS + PROCESSES

MAP + GATHER SITE

ASSETS

TRAIN EVERYONE

START SELLING!


2. Channel Strategy

3. Merchandising

& Brand

4. Design & Usability

5. Deployment

Parallel: Client Priorities

OPERATIONS REVIEWPhase 1

Total Branded Experience Multiple Touch Points Expect The Unexpected Internal AND External Work Flows


2. Channel Strategy

3. Merchandising

+ Brand


5.Deployment

E-Commerce = Total Branded Experience

Business Process

(execution)

Marketing & Promotions(awareness)

YOU

R C

USTO

MER

S YOU

R C

OM

PAN

Y

End-to-End Fulfillment Process

Business Process

(execution)


What happens after the sale can often take the most time to build

Online Purchase

YOU

R C

USTO

MER

S YOU

R C

OM

PAN

Y

Consider All Customer Touch Points

Business Process

(execution)


YOU

R C

USTO

MER

S YOU

R C

OM

PAN

Y

AdvertisingEmail CampaignsNewslettersSocial MediaAffiliate

NetworksBrick + MortarE-Commerce SiteCouponsPoint-of-sale

BillingProductionWarehousingCustomer Service

Delivery/Pack SlipsFinance + Accounting

Example: Avalara Tax Extension

Need: Our client realized that they

weren’t equipped to calculate the

appropriate sales tax for every

state and town

A new national e-commerce

channel meant additional work for

Finance & Accounting

We developed a custom Magento

Extension to replace existing

Magento-based, zipcode tax

calculation with the more complex

and centralized rules AvaTax

provides.

Example: Complex Inventory Report

Need: build efficiencies

to help the bakery know

exact number of

ingredients for the next

days orders.

We developed a custom

reports and workflows to

calculate the ingredients

required based on

multiple variables - # of

orders, ship date and

product attributes.

Standard Operating Procedures

At the end of the operations review you have:

Identified all the external customer touch-points that

drive people to your site

Outlined current processes and mapped the internal

flow of activities after the sale

Inventoried existing software and integration points

Established a set of “standard

operating procedures” to

manage transactions that

will ultimately define how

you build the user

experience.

CHANNEL STRATEGYPhase 2

Consumers Are In Charge E-Commerce: The Marketing Multi-Tasker Evaluate Your Cross-Channel Opportunities Create a Unified Shopping Experience


2. Channel Strategy

3. Merchandising

& Brand


5. Deployment

Prevailing Wisdom: Consumers are Multi-Channel

“If retailers want to thrive they will have to take and win the

multi-channel challenge.”

“eBusiness professionals must…facilitate a multi-

channel strategy that addresses consumers’

expectations, focusing on their need to move

between offline and online channels and their

increasing mobile and social behaviors.”

Forrester U.S. Online Retail Forecast 2009 - 2014

At the Intersection of Marketing + Sales

E-COMMERCE

BRANDING• Value proposition• Product features• Image• Price

MEDIA• Awareness• Targeting• Context• Conversation

WEB• Information gathering• Transactions• Community• SEM RETAIL

• Merchandising• Promotions• Display• Customer service

WHOLESALE• Distributor hub• Preferred pricing• Global standards

• Mobile• Social

• Mobile• Social

Strategic Thought Starters

Do all my customers use all my channels equally?

Do my preferred customers want more personal attention and face time, or do they want more convenience to shop anywhere, anytime?

Should I offer “web-only” promotions and pricing? What does that do to my inventory management plan and financial goals?

How do I create a consistent brand experience when customers move between retail and online environments?

What’s the best way to follow up with leads that come through my online channel?

Consider All “4 P’s” to Manage the Mix

Think about how your channels overlap & co-exist

Product assortment

Pricing

Brand imagery

Customer segments

Optimal Customer Experience

Your deliverable at the end of the channel strategy phase is an

understanding of how each channel fulfills unique

strategic business goals and a plan for how e-commerce

delivers the ultimate unified shopping experience

MERCHANDISING + BRAND

Phase 3

What Products Should I Sell? How Do I Want to Sell Them? How Do My Customers Shop? Content that Complements the Sales Experience

1 Operations Review

2. Channel Strategy

3. Merchandising

& Brand

4. Design

5. Deployment

Building Blocks of the Shopping Experience

PRODUCT INVENTORY

MERCHANDISING PLAN

CONTENT/INFORMATI

ON ARCHITECT

URE

“Cross merchandising is the practice of marketing, or displaying products from different categories (or store departments) together, in order to generate additional revenue, known sometimes as add-on sales, or incremental purchase. This can often be done in conjunction with customer-centric strategies, aimed at improving the overall customer experience.” - www.allbusiness.com

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Revenue

http://en.wikipedia.org/wiki/Customer_experience

Inventory Impacts Merchandising

PRODUCT INVENTORY

MERCHANDISING PLAN

CONTENT/INFORMATION

ARCHITECTURE

•What product categories will be featured?• Is it likely that product lines will extend?•Will I adopt a “sales rack” strategy?

Inventory Impacts Information Architecture

PRODUCT INVENTORY

MERCHANDISING PLAN

CONTENT/INFORMATION

ARCHITECTURE

•What products will I have at launch?•Will I be adding more in the future?•How many products can I show at once?

Merchandising Impacts IA + Page Layouts

PRODUCT INVENTORY

MERCHANDISING PLAN

CONTENT/INFORMATION

ARCHITECTURE

•How do my customers shop?•What are their decision criteria?•What product information do they need before purchase?

What Am I Selling?

List all your products and all of their

attributes

The more attributes you list, the better off

you are creating a targeted purchase flow now and in the

long term

Use pivot tables to draw conclusions as to how many

products fulfill more than one criteria

It’s not just about the product line it’s about

what you have in stock – and when you have

it in stock.

PRODUCT INVENTORY

MERCHANDISING PLAN

CONTENT/INFORMATION

ARCHITECTURE

How Should I Present Items?

Not just selling products, building the brand

Be as precise as possible about how you

display and describe your products

Complement the selling experience with non-product

information to reinforce the brand message

Consistent brand experience all the way through the entire

commerce process

Create shared experiences

PRODUCT INVENTORY

MERCHANDISING PLAN

CONTENT/INFORMATION

ARCHITECTURE

How Do I Bring It To Life?

Site Map

Starts with the products I have to sell

and the way people want to shop for them

Shopping categories - have to be in line with your

industry and your customer’s mindset

Supporting “other” content

Home page (the store window)

Navigation & filtering

Product detail pages

PRODUCT INVENTORY

MERCHANDISING PLAN

CONTENT/INFORMATION

ARCHITECTURE

Case Study – Home Page 1st level clicks

Case Study – Category Page

Case Study - Navigation

Case Study - Product Detail Page

Case Study - Community

Complete Sales + Marketing Content Outline

Your deliverable at the end of the merchandising phase is a

complete page-by-page description of all the content

required to describe your products and inspire trial…

…and all the features and calls-to-action that lead to

products ending up in shopping carts

DESIGN & USABILITYPhase 4

Build to the Platform Brand Opportunities Usability Testing


2. Channel Strategy

3. Merchandising

& Brand


5. Deployment

Build to the Platform

Out of the box vs. custom

Know how to leverage the

best features of the

software

Functionality that is

supported by the feature

set – (i.e. swatches)

GIFT CARDS

STORE CREDITSMERCHANDISING

REWARD POINTS

PRIVATE SALES

Brand Opportunities

Look for the little details to help build the brand experience.

Usability Testing

You must measure performance,

accuracy, recall and emotional

response.

DEPLOYMENTPhase 5

Bring It Full Circle Delivering The Experience Analytics in 360


2. Channel Strategy

3. Merchandising

& Brand


5. Deployment

Bring It Full Circle

Is it time to rethink our media strategy?

Where are the handoffs between traditional, online and social media?

Are my reps trained to handle online

orders? Can we process

returns & exchanges correctly?

Can we track online sales and model online forecasts?

Are we applying the proper tax rates?

Are we prepared to handle a rush of new orders? What about

fulfillment & shipping?

Can we capture new leads and move

them through the sales funnel?

Delivering the Experience

Analytics in 360

Reaching new customers

How do people not only find your site but

compelled to purchase?

Increasing customer loyalty

Is your offering (products and

procurement) and experience the best

Increasing revenue

Cross-sells/up-sells? Did they find what

they are looking for?

Improve service

Do you deal with cancellations and

changes easily and effectively?

Improve customer communication

Is your communication personal,

targeted, relevant and timely?

One Pica Approach to Marketing + Technology

Multi-disciplined team made of strategists, marketers,

designers + technologists

Go deeper to understand your total business

Start with the strategic and creative components of a

brand

Employ a tight procedural model that lets our clients

merchandise, sell, track and promote their products and

services with complete control

See technology as enabling every part of your business

Advantages of Magento Enterprise

• ROI Driven

Added value:

• Scalability, flexibility and security

• Backed by full service and support of Varien

• Rich Merchandizing Suite [RMS]

• CMS+ [Personalization, Content-Staging]

• Multi-site Capability

• Gift Cards/Certificates

• Private Sales

• Reward Points – New to 1.7

Nearly infinite customization

Community

Join us for the next webinar:“E-Commerce Advantage: Stay One Step Ahead” External marketing tactics + promotional strategies

Build profitable communities by linking traditional, online

and social media through your ecommerce channel

Leverage Magento’s Rich Merchandising Suite and other

third-party applications to increase up-sells + cross-sells

and drive sales.

Deeper dive into analytics

We’re happy to take your questions

Thank You

SCOTT DAHLGRENDirector, Channel [email protected]

GENERAL INFORMATIONwww.magentocommerce.com

GREGORY [email protected]

WEBSITEwww.onepica.com