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Alejandro Cordero - Secure Electronic Commerce New Business and Repeat Business: Building the Infrastructure for Digital tasks 12 months in advance using predictive marketing solutions

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CONFERENCE PLAN

I. The benefits of using predictive E-marketing tools

II. Building your predictive infrastructure

III. Why Planning is a Must

IV. Securing your new business & repeat business

V. Predictive model use case

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PREDICTIVE

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THE MAIN QUESTIONS ARE …

✓ Have you ever dreamed about learning what products your customers would be the most likely to buy in advance?

✓ How great would it be if you could maximize your profits by determining the highest price a customer will pay for a product?

✓ What if you could optimize customer relationship to cross-sell and up-sell proactively ?

✓ Do you think this sort of advanced insight would allow you to make even more money from your e-commerce efforts?

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PREDICTIVE ANALYTICS MAKE A REALITY THE IMPROVE OF

YOUR CORE BUSINESS.

✓ Improve Customer Engagement & Increase Revenue

✓ Launch Promotions That Are Better Targeted For Your Customers

✓ How shoppers will behave in the future

✓ Save companies money by honing marketing efforts

✓ Customer lifecycle analytics

✓ Helps smaller e-commerce merchants stay competitive.

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PREDICTIVE ANALYTICS MAKES A REALITY THE IMPROVE YOUR

CORE BUSINESS.

✓ Putting all the sources together allows marketers to gather valuable insights.

✓Minimizes wasted marketing dollars.

✓ Predictive analytics give marketers a more detailed view of where their customers are and how to focus marketing spend.

✓ The biggest business problem that predictive analytics tools could help solve this…

➢ Eliminating the unknown.

➢ Why are customers leaving?

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PREDICTIVE ANALYTICS TAKES :

✓ A different approach by building a model to support real-time pricing that uses input from various sources like:➢ Historical Product Pricing

➢ Customer Activity

➢ Preferences & Order History

➢ Competitor pricing

➢ Desired Margins On The Product

➢ Available Inventory

✓ Pricing Management is an ongoing process and needs to be monitored closely to avoid automated price changes causing issues in the retailer’s environment

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TODAY WE ARE IN A POSITION TO …

✓ Identify and reach out to our customers

✓ Understand the 'shopping mission'.

✓ Defining what the customer :➢ is likely to buy

➢ how this can be fast

✓ Setting the right shopping context

✓ Use of machine learning & predictive analytics

✓ Understanding consumer behavioral patterns

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INFRASTRUCTURE TO WIN NEW CUSTOMERS, KEEP

YOUR IMAGE AND MAINTAIN YOUR CUSTOMERS

Must Important Dates of the year

Define an optimization plus the historical data to support the program schedule

Define the rules and products that will dynamically be previewed in each page listing

Adapt your shelves supported with behavioral product recommendations

Respect the season, new products, and top rated products

Plan your stock

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IT IS IMPORTANT THAT YOU REALIZE

PREDICTIVE ANALYTICS TOOLS ARE NOT JUST A

PLUG & PLAY SOLUTION

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THE STRATEGY …

✓ To take the right data in the right way to get the best return on investment.

✓ How to take the right data in the right way and apply it.

✓ It’s the 80/20 Rule.

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THEN WHY IS IMPORTANT E-MERCHANDISE PLANNING

✓ Predictive capabilities let business :➢ take service to the next level ➢ deliver a superior customer experience, pure and simple

✓ It is a "systematic approach" in many ways ➢ the systems to ensure that you have the right people, ➢ the right processes,➢ the right computerized support,

The software available is merely an enabler,

We put effort into Merchandise Planning "to increase profitability".

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CROSS-CHANNEL MERCHANDISE PLANNING PROCESS

If we assume a turnover of 117,4 € million

A typical retail clothing business will lose about 15% of its turnover in markdown and perhaps 10% due to lost sales.

Then we are looking at a loss of 29,3 € million here.

Can reducing each of these figures

1 %

Adds to the bottom line

2,35 € Million

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UNDERSTANDING YOUR CUSTOMERS IS THE KEY TO …

✓Stablish an infrastructure linked to your merchandising planning will save

✓Keep converting your existing customers should be part of your infrastructure and planning

✓To nurture a marketing campaigns

✓ Workflow and triggers will allow you to spend less time

✓Money on lead Generation and promotional material to your sales

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Awareness

Engagement

Sales

SALES FUNNEL

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Typical content includes

newsletters, customer

reviews, press releases,

social ads

Lots of content or

personalized products, both in

quality and variety.

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SALES

Keep in touch with more customers for a longer amount of time increasing the chances of a conversion

Maintaining your customer’s lifecycle for an extended period is what makes personalization important.

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MANY COMPANIES SAY THAT THEY WANT TO OPTIMIZE

INVENTORY

Common Obstacles to Inventory Management

ReducingForecastError

Over-Stocking and Under-Stocking

Common Obstacles to Inventory Management

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SECURING YOUR NEW BUSINESS & REPEAT BUSINESS

✓ On the flip-side, under-stocking is just as bad.

On that end, while you free up capital, you run the risk of losingsales due to not having anything to sell. This can also hurt yourreputation

✓ To organize your e-merchandising “shelf units” and linked all youre-business action step by step to maximize your business, reducestock cost, target your e-marketing spends on products whichrepresent 80% of your Turnover.

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Category Pages

Customized product

recommendationsSearch engine

HAS COME UP WITH A STRATEGY TO OPTIMIZE ITS

MERCHANDISING

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Focuses on

Conversion rate

+ 26 %Teams save up to

8 h/week

60 % of purchases go

through page categories

PLANNING TOOLS ALSO ENABLE TO MEET THEIR NEEDS

✓ Planning to promote products➢ B to C

➢ B to B

➢ Shelf units

✓ Planning of highlights of the year

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THANK YOU FOR YOUR

ATTENTION

GRAZIE MILLE

2-3 March 2017