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
1. A Strategic Approach To E-Commerce
BUILD IT
2. Going Live: Total E-Commerce Execution
INVITE YOUR FRIENDS!
3. E-Commerce Advantage: Staying One Step Ahead
Today’s Focus
PLAN IT
1. A Strategic Approach To E-Commerce
BUILD IT
2. Going Live: Total E-Commerce Execution
INVITE YOUR FRIENDS!
3. E-Commerce Advantage: Staying One Step Ahead
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
1. A Strategic Approach To E-Commerce
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!
1. Operations Review
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
1. Operations Review
2. Channel Strategy
3. Merchandising
+ Brand
4. Design & Usability
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)
Marketing & Promotions(awareness)
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)
Marketing & Promotions(awareness)
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
1. Operations Review
2. Channel Strategy
3. Merchandising
& Brand
4. Design & Usability
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
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
1. Operations Review
2. Channel Strategy
3. Merchandising
& Brand
4. Design & Usability
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
1. Operations Review
2. Channel Strategy
3. Merchandising
& Brand
4. Design & Usability
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