Maximizing Sales from eCommerce Sites (Forte Consultancy Group)

eCommerce Services
Managing Customer Lifecycle
in Online Stores
Limited Edition
November, 2008

Note: This is a limited edition of
a comprehensive deck which
includes 59 best practices. To
receive the complete deck free
of charge, please contact
info@forteconsultancy.com

eCommerce market presents vast opportunities for companies with the
right capabilities and in order to capitalize on such opportunity, we help
companies build and grow relations with their customers

Moving online store visitors up the relationship ladder
LOYAL
provides significant opportunities for growth:

 Loyal customers have almost double visit to carts
 Loyal customers have almost triple conversion rate
 Loyal customers have 10% higher cart value
Source: MarketLive Performance Index

PURCHASED

INTERESTED
We identify amount of
AWARE
UNAWARE customers and prospects in each
stage and define targets as
basis for strategic priorities.

2
Forte Consultancy Group
© 2008 Forte Consultancy Group. All Rights Protected and Reserved.

Companies should analyze such relations for eCommerce sites across
customer lifecycle…

Visited Subscribed Viewed Item

Added Item
Abandoned Site

Abandoned Cart

Returned Goods Bounced Payment
Initiated Check-out

Paid Initiated Payment

3

…and develop actions and programs for opportunities identified across
this cycle

Only about 35%
of visits are
generated from
Only 9% of visits
search engines. Visited Subscribed Viewed Item
end up in carts.

Around 40% of Overall cart
customers have 1 abandonment rate
and out behavior. is around 60%. Added Item
Abandoned Site

Abandoned Cart

Returned Goods Bounced Payment
Initiated Check-out

Over 50% of
80% of online check-outs are
customers do abandoned.
not have repeat
orders.

Source: MarketLive Performance Index

4

Information should be at the hearth of all decisions and actions
throughout this cycle

Mature Decisions
Well-Informed
Stage
Decision Quality

• Decisions are based on absolute facts
• All actions have consistency
We help companies make most • Facts direct business
• Key factor for success is accuracy
out of their information base and
take actions based on them…
• Some decisions are based on facts
• Some actions have consistency
• Facts direct some parts of business
• Key factor for success is focus

Impromptu
Stage
• Decisions are based on opinions
• Actions have limited consistency
• Personal motivations direct business
• Key factor for success is experience
• Decisions are not consciously made
• Actions do not have consistency
Guesswork
• Daily happenings direct business
Stage
• Key factor for success is luck

Free Fall
Stage

Maturity

5

Most leading retail and eCommerce companies leverage customer
insights in their operations, using various tools, such as customer
segmentation

Purchase Behavior Needs Demographics Category Behavior

Office Administrator
Brand Aspirationals
Business Reseller
Value-Seeking
Price Value Shoppers
Institutional Buyer Sophie (Older shopper /
Variety-Seeking
empty nester)
Trendy Quality Seekers
Foodservice Entrepreneur
Brand-Seeking
Caroline (Young, single
Price Sensitive Affluents
Traditional Club Shopper working woman)
Simplicity-Seeking
One Stop Shoppers
Demanding / Experiential Vanessa (Married with
Discovery-Seeking
Shopper children)
Conscientious Objectors
Quality-Seeking
Mom / Family CEO
Social Shoppers
Active Boomer
Sample

6

Such analytics practices require collection of right customer data,
through various means…

Additional Services for Differentiation of Corporate
Golden Questions in Registration
Information vs. Individual Registration

Customer Clubs for Information Collection and Interest
Identification

Sample

7

…which can range from basic customer identification data to in-depth
customer and social network profiling

Personal Shopper provides highly
customized recommendations and
value added services in return for
detailed demographics, life-style and
preference information.
Sample

8

In addition to customer data, it is also critical to analyze pure web traffic
data to incorporate Internet user insights into actions

Sample

Seasonal search engine optimization for ‘shopping’ keyword would result in higher ROI.

Search keyword analysis, as well as traffic source/destination analyses can have substantial impact
on visibility of online stores.

9

First step in eCommerce customer lifecycle is visit to the online store,
which requires effective acquisition activities

Focus Area Objectives Sample KPIs

Create Visits  Number of Visits per Month
 Unique Visitor Count per Month
Attract different types of visitors to site
 Advertising Cost per Visitor
using alternative channels and
 % of Visitors Bookmarked Site
approaches, providing differentiating
Visited
 Page Rank of Homepage
value add

Guidelines

Use search Customize
engine acquisition
optimization approach by
using traffic prospect
insights segment
Utilize Provide
variety of additional
acquisition reasons for
channels visiting site

10

Providing alternative means for visit attracts prospects with
certain channel habits

Sample Case
Utilize variety of
acquisition channels

Enriching means and
media of access is inline
with the global
telecommunications trend
towards convergence…

Note: This is a sample out of 59
best practices available in
ebay’s launch of desktop and mobile version of its shopping complete deck. To receive the
complete deck free of charge,
environment increases convenience for customers accustomed
please contact
to use of certain tools and channels.

11

Once visitor traffic is created, the next step is subscription of visitors, in
order to enable tracking and acting on customer information


 Subscriber / Visitor Ratio
Subscribe Visitors  Total Unique Subscriber Count
Motivate subscription at first sight,  Number of Subscriptions per Month
providing additional value add and good  % of Subscribers with Full Data
Visited Subscribed
first impression  Duration From Visit to Subscription

Guidelines

Call to action
Provide
for
immediate
subscription
value add for
on landing
subscription
page
Make Promote
subscription competitive
fast and value
convenient propositions

12

Over 70% of customers are interested in in-store pickup service,
which can differentiate multi-channel retailers against pure
eCommerce players

Sample Case
Promote competitive
value propositions

In-store pickup is a lower
cost option for retailers,
where speed and lower
pricing can also be
attractive for customers…

complete deck. To receive the
Circuit City provides in-store pickup for faster and cheaper complete deck free of charge,
delivery of online purchases. please contact

13

In order to have subscribers make purchases, the first requirement is
creating interest in items and making merchandise easily accessible


 Number of Items Viewed per Visit
Create Interest in Items  Number of Items Viewed per Subscriber
Make items of interest easily accessible  % of Subscribers Viewing Items
and pro-actively communicate relevant  Number of Categories Viewed per Subs.
Subscribed Viewed Item
information on merchandise  % of Items Not Viewed for Long Time

Guidelines

Use effective Provide
and ability to
alternative search with
categories alternate
for items means
Provide
Pro-actively
creative and
recommend
instructive
items
item views

14

Using alternative categorization schemas for items increase
usability and are proven to increase conversion rates by 34%

Sample Case
Use effective and
alternative
categories for items

Providing alternative
categorizations for
products let customers
reach out to searched
items faster and easier…

Schwan’s provides alternative categorization, making its complete deck. To receive the
products more accessible for customers looking for certain
please contact
types of offerings.

15

Conversion of interest into purchase intent is a key step, where high
performing retailers can increase their bottom-line significantly


 % of Views Resulting in Item Add
Create Purchase Intent  Number of Items per Cart
Translate interest into action by learning  Value per Added Item
from customers’ interests and following  % of Items Viewed but not Added Freq.
Viewed Item Added Item
up effectively  % of Subscribers Viewing Items Only

Guidelines

Follow-up
Follow-up
and promote
interest in
viewed
out-of-stock
items’
items
purchase Identify and Translate
act on interest into
subscribers wish lists for
using site for future
viewing only purchase

16

Customers who were interested in out-of-stock items are the
most likely targets for these items after replenishment

Sample Case
Follow-up interest in
out-of-stock items

Personalized e-mails after
restock do not only create
good sales opportunities,
but also provide a good
experience for
customers…

Roots sends e-mails to inform customers about restocked complete deck free of charge,
items, which they could not purchase earlier due to stock-out. please contact

17

Keeping customers on-site and cross-selling before check-out require
pro-active actions, which can create substantial ROI


 % of Item Adds Abandoned
Create Check-out Intent  % of Item Adds Removed
Avoid abandonment of added items  % of Cart Value Proceeded to Checkout
providing convenient transition to check-  Average Item Time in Cart
Added Item Init. Check-out
out and following up  Average Time to Checkout

Guidelines

Provide one Cross-sell
click check- before
out check-out
Make added
Make single items
item accessible
purchase even if
faster abandoned
site

18

Single item purchase should be even easier, using already
provided information about customer

Sample Case
Make single item
purchase faster

Especially for non-grocery
retailers, one item
purchases are frequent
transactions, which should
be given extra attention…

Amazon provides ability to purchase single item right away complete deck free of charge,
without need for visit to check-out screen. please contact

19

Cart abandonment is a major issue for eCommerce sites, where
convenient check-out process as well as rigorous follow up are keys to
success


 % of Check-outs Abandoned
Avoid Abandonment  % of Potential Value Abandoned
 % of Abandoned Carts Purchased Later
Ensure completion of check-out with
 % of Abandonment to Competitor Site
convenient processes and cart follow-up
Init. Check-out Initiated Payment
 % of Subscribers with Abandoned Carts

Guidelines

Motivate
Provide
abandoned
convenience
cart
and speed in
purchase
checkout
with benefits
Remind and Make cart
follow up available in
abandoned next visit if
cart abandoned

20

Providing extra benefits for checking out abandoned cart can
motivate this transaction

Sample Case
Motivate abandoned
cart purchase with
benefits

A multi-step reminder and
benefits system for
abandoned carts can
create the highest
response rate while
keeping cost as low as
possible…

Zales uses multi-step approach in its offers, first reminding
customers about their abandoned cart without any complete deck free of charge,
promotions, than offering a discount in second reminder e- please contact
mail. info@forteconsultancy.com

21

Problems experienced in payment process not only mean lost cart sales,
but also could become a reason for customers lost forever


 % of Payments Bounced
Ensure Payment  % of Potential Value Bounced
 % of Bounced Payments Abandoned
Process payment securely and using
 Payment Attempts per Purchase
alternative means
Initiated Payment Paid
 Number of Fraudulent Cases Identified

Guidelines

Keep
Provide customers
alternative informed
means for about
payment payment
process
Ensure and Follow-up
promote and recover
payment failed
security payments

22

Providing gift cards as payment alternatives can even attract
those who do not usually shop online

Sample Case
Provide alternative
means for payment

Gift vouchers are effective
for acquiring new
customers and facilitating
payment by alternative
means…

Amazon provides gift cards for both retail and corporate complete deck. To receive the
customers, to be used as gifts and incentives for employees or
please contact
own customers as alternative means for payment.

23

With a first purchase completed, the next stage is to close the cycle,
getting customers revisit and repurchase


 % of Subscribers with 2 Purchases
Create Repeat Visits  % of Subscribers with >2 Purchases
Identify and motivate non-returning  % of Subscribers with >1 Visit
customers providing additional  % of High Value Loyalists
Paid Visited
information and value add  % of Subscribers with Returned Goods

Guidelines

Regularly Provide
provide new value add for
content and repeat
offerings business
Pro-actively
Recommend
take actions
for cross and
for dormant
up-sales
visitors

24

Pro-active communication offering additional benefits is also
necessary to reactivate dormant customers

Sample Case
Pro-actively take
actions for dormant
visitors

Showing that the
company cares about
doing business with the
customer and offering
additional benefits can
motivate customers
return to site…

Avon pro-actively communicates with its dormant customers complete deck free of charge,
and uses free shipping to motivate re-activation. please contact

25

Forte Consultancy Group provides services in increasing eCommerce
performance, through effective strategies and tactics across customer
lifecycle

Forte Consultancy Group can assist you …
Contact us for details at info@forteconsultancy.com

Do you know your own performance across Are you aware of the untapped potential of your site
Visited Subscribed Viewed Item
customer lifecycle? and have strategies and tactics to realize them?
We can assist you in
We can assist you in
 Assessment of eCommerce current state
 Definition of eCommerce KPI and targets
 Re-engineering of customer experience
 Analysis of current eCommerce performance
Added Item
Abandoned Site  Design and execution of marketing communications
 Design and set-up of performance reporting
 Design and execution of one-time and repeating campaigns
 Refinement of product portfolio and value propositions
Can you use customer intelligence effectively to Abandoned Cart
 Refinement of web site design features
target customers and take the right actions?
with customized approach for each of following objectives
We can assist you in Returned Goods Bounced Payment
 Creating visits Initiated Check-out
  Subscribing visitors
Definition of ideal data elements to be collected
  Creating interest in items
Segmentation of visitors and customers
  Creating purchase intent
Prediction of site abandonment & churn risk
  Creating check-out intent
Analysis of cross and up-sales likelihood
  Avoiding abandonment
Prediction of customer response to offers
  Ensuring payment
Automation of advanced recommendations
  Creating repeat visits
Discovery of main and niche targets for campaigns

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Consultancy Group, is for the sole use of the intended recipients. No part of this
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@ info@forteconsultancy.com
Consultancy Group.
 +90 212 366 02 66

Maximizing Sales from eCommerce Sites (Forte Consultancy Group)

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