Creating an Experiential E-Business

Session at

24 April 2015

We will talk about…

• What is ecommerce

• E-tailer / e-marketplace

• Key ingredients

• Accessibility

• Tools

Nuggets of interesting facts and stats along the way

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So what is ecommerce anyway…

Buying and selling of products over the internet

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I would say…

Any transaction that is completed solely or for the most part through electronic means

can be considered e-commerce

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E-tailer vs e-marketplace

In simple terms:

E-tailer is your regular shop…

Can only work as a B2B or B2C platform

E-marketplace is like a shopping mall, multiple parties sell their goods

Works for B2B, B2C and C2C transactions

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Examples

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Ecommerce todaySome interesting facts and figures

Global B2C revenues

1,058

1,233

1,471

1,700

1,922

2,143

2,356

2012 2013 2014 2015* 2016* 2017* 2018*

Sales in billions of US Dollars

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Mobile % of Global Ecommerce Transactions

23%

30%

35%

40%

H1 2014 H2 2014 H1 2015* H2 2015*

Supported by growing number of mobile responsive websites and native apps

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Ecommerce in Pakistan

• Suggested revenue of $35 million last year

• Investors suggest this can grow to more than $100 million in a few years

• More than 200 small to large ecommerce sites in Pakistan

• On an average day I would safely assume about 1,500 to 2,000 orders fulfilled per day across the country

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What does this say?

• Large population, most of it unserved

• Many business areas to be explored

• Different needs of people

• Ecommerce is more than just goods

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Key ingredientsThe things that make it all happen

Vision

The business objective

What do you want to do

Where do you want to be

No matter what you do… don’t change this

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Strategy

How will you achieve the objective

This is your working plan, a step by step guide for your business

Serves as a guideline to all involved

It is flexible and adaptable

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Product / offer

What

Why

How

When

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Price

What is the right price?

It is the price the customer is willing to pay…

A price is a combination of

Value of the goods + value added

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Payment

•While the world conveniently uses cards and the likes of PayPal

• The Middle East and South Asian region prefers Cash on Delivery

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For the most part…

• Values

• Economic conditions

• Education

• Rules and regulations

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Though the fact is…

• There are more innovative options being explored

• The un-banked being converted to banking customers

• Branchless banking

• Increasing Smartphone penetration

• Low cost 3G / 4G

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Creating more opportunities

(and this is all without the Chinese investments)

Multiple companies involved in creating new payment platforms.

Find out and work with them.

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Logistics

• Begins with your product and your business model

• E-tailers have to bulk purchase and storage

• E-marketplaces don’t store anything, source when needed

• Digital goods / services can be downloaded or accessed

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Most important --- Experience!

User interface

Speed of the website

Product range

Correct pricing and offers

Simple communication

Help during purchase

Post sales assistance feedback

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Experience

• Promise

• Value

• Quality

• Reward

• Service

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AccessibilityWhere and how to make your presence most effective

Data usage

• More than 25 million internet users

• More than 12 million 3G / 4G subscribers (GPRS / EDGE – 3-4 million)

• Data usage is now 25% of telco revenues

• 52% use mobile data on a regular basis

• 600% growth in data use compared with last year

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Mobile phone imports

More than $465 million till February, in 2014-15

Approx. 6.7 million handsets at an average of PKR 7,000 per handset

13%

23%

31%

0%

5%

10%

15%

20%

25%

30%

35%

Jan-13 Jan-14 Jan-1526

SMARTPHONE PENETRATION

Mobile segmentation

84% free apps vs 16% purchased apps

Free apps include:

• Absolutely free apps (no ads)

• Freemium apps

• Ad infested apps (spammy apps or no one wants to pay to use)

Android68%

iOS24%

Windows8%

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Weapon of choice

Responsive and compatible website

Mobile app for all 3 platforms (at least)

Integrated with 3rd party tools and services

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Engagement

•Understand audience and preferences

•Speak in their tongue, make them feel at home

•Avoid spamming

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30

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Media

No YouTube? no problem!

• Vimeo (Dailymotion is too ad infested)

• Periscope and Meerkat – live broadcast on iPhone

• Snapchat

• Blogs

• Cloud solutions – when your business grows

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Communication

• Simplify the tone and language, alter default styles

• Use simplified form structures … check out TypeForm.com

• Simply worded emails

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Tools What to use and how

Search

• Speed up search results

• Suggestions and corrections

• Example: JadoPado.com

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Content

• Keep it simple, most important info first

• Include user reviews and feedback

• Add or create review or promo videos

• Use easy loading for faster display

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Location

• Serve ads and product information based on user’s location

• Tailor preferences

• Determine delivery times

• Determine best customer agent to support

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Data

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Collect

Analyze

InsightStrategy

Execute

Building an experience

• Customer feedback

• Response times

• Make things simple and efficient

• Reward and thank

• Celebrate

• Personal attention

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Thank youAny comments or thoughts?

Data source will be shared and updated to this presentation

Follow me…

• LinkedIn: www.linkedin.com/in/nawaz

• Twitter: @nwzm

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Sources

• Phoneworld

• Grappetite

• Propakistani

• Moremag

• Statistica

• Criteo eCommerce Industry Outlook 2015 report

• Daily Times

• Tribune

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