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Improve your Online Sales with
data driven e-Commerce
10th webinar of the retail ecommerce series
an embitel initiative
30th August 2012
                                              Better eCommerce 2012 Embitel
Speaker

                                           Founder
                                              dmc digital media center GmbH,
                                              Germany
                                              www.dmc.de

                                           Chairman
                                              Embitel, India
                                              www.embitel.com

Daniel Rebhorn
dr@dmc.de
•   Studied Computer Science at University of Stuttgart
•   Entrepreneur since 1992
•   Investor, manager and/or business angel for 10+ IT companies
•   Working in retail e-Commerce for last 17 years
•   Responsible for development of large e-commerce sites, e.g. Kodak, Bosch, …
                                                                     Better eCommerce 2012 Embitel
„In most companies, web data analysis is done
     by junior people or even students.“



  Successful online players are taking this far
                more serious …
„We‘ve placed our most experienced people to
       look into and analyse our data!“


                                         Better eCommerce 2012 Embitel
Agenda


• Current challenges in increasing online sales

• Idea of data driven e-commerce

• Insights for a better view on data driven e-commerce

• Examples, how you use analytics data to boost your
  online sales

• What is next in data driven e-commerce




                                                       Better eCommerce 2012 Embitel
Current challenges in increasing online sales



                                       Better eCommerce 2012 Embitel
Maturity of e-commerce

No of customers




                                      eCRM




   online
  marketing

                  cross-channel
                    marketing



                                             share of wallet


                                             Better eCommerce 2012 Embitel
e-commerce sales




                                          customer retention




                   customer acquisition



                                                         time


                                                         Better eCommerce 2012 Embitel
Chain of effect in e-commerce


Marketing            Cost per
 budget               click
                                                                        product
               +                                                        portfolio

                                             conversion
                                                                +
                       Visits                   rate

                                                                         shop
                                     +                                  usability



                                                Orders


                        Price per                                   +
                        order line

                                                   shopping
                                         +                                   Sales
                                                   cart value

                       No of order
                          lines



                                                                         Better eCommerce 2012 Embitel
Idea of data driven e-commerce


                                 Better eCommerce 2012 Embitel
Evolution in approaches


feature driven e-commerce

• based on expert intuition
  and decision                  data driven e-commerce
• „state-of-the-art“ thinking
• create impression at          • based on analysis of
  consumer                        data
• also irrational decision      • efficency is king
                                • success oriented
                                  approach
                                • rational decisions
                                • validation possible

                                                  Better eCommerce 2012 Embitel
e-Commerce components and data pods

   SEO/SEM
                   Newsletter

                         Affiliate


                                                          Web analytics


                                     Web shop platform     A/B testing


                                                          Reco engine



  Basic SW                                   Order management
 components

Marketing SW
                                                   ERP
statistical data
                                                                         Better eCommerce 2012 Embitel
Aggregation of data

   SEO/SEM
                   Newsletter

                         Affiliate


                                                          Web analytics


                                     Web shop plattform    A/B testing


                                                          Reco engine



  Basic SW              external             Order management
 components

Marketing SW
                                                    ERP
statistical data
                                                                         Better eCommerce 2012 Embitel
Process cycle



                 define


 conclude
                              measure
   & act




        report            analyse


                                        Better eCommerce 2012 Embitel
Personalization vs. data for business decision

• personalization
  – isolated and limited data
  – based on consumer behavior
  – system-reaction possible
    (e.g. product recommendation)
  – increase sales

• data driven e-commerce
  – used for business decisions
  – focus on business goals
  – no automated system reaction,
    maybe automated informations
  – improve sales (ROI)
                                                 Better eCommerce 2012 Embitel
Challenges


• data security acts / privacy protection

• merge of multiple sources

• amout and complexity of data

• different „units“ to measure (PI vs. visits vs. user)

• different definition of time

• realtime vs. near-realtime vs. batch processing


                                                          Better eCommerce 2012 Embitel
Insights for a better view on data
driven e-commerce

                                 Better eCommerce 2012 Embitel
Limitations


• All components have their own reporting interface,
  dashboards and user management

• Components have a limited view on „real world“
   – Web-analytics has no or little knowledge on products,
     margins, …
   – Webshop has little view on channels, campaigns
   – ERP has little view on client source, …


• Overlap of data and reports
   – they might also deliver different report for same question



                                                         Better eCommerce 2012 Embitel
Reporting samples: web analytics




                                   Better eCommerce 2012 Embitel
Reporting samples: webshop platform




                                      Better eCommerce 2012 Embitel
Reporting samples: additional tools




                                      Better eCommerce 2012 Embitel
Sample of very different source




Source: eResult                                     Better eCommerce 2012 Embitel
Sample of very different source




                    product detail page   large image display




                  brand overview page                      product overview page




Source: eResult                                                          Better eCommerce 2012 Embitel
Sample of very different source




                                                                         homepage

                  landing page




                                 product overview page

                                                         shopping cart




Source: eResult                                                                     Better eCommerce 2012 Embitel
Examples, how you use analytics data
to boost your online sales

                               Better eCommerce 2012 Embitel
Example 1: Merge for better A/B testing


       A/B test                  Web analytics                                ERP




            Users            Orders            Conv rate

Homepage            43,202            1,175          2.72 %
default
Homepage            22,136             631           2.85 %
Version 1
Homepage            22,116             588           2.66 %
Version 2




            Users            Orders             Conv rate       Return rate     Margin

Homepage            43,202             1,175           2.72 %         20.22 %        12.02 %
default
Homepage            22,136              631            2.85 %         28.67 %        11.75 %
Version 1
Homepage            22,116              588            2.66 %         18.93 %        14.04 %
Version 2
                                                                                               Better eCommerce 2012 Embitel
Example 2: Merge for better campaign tracking


    Web analytics                           Google Adword                              Webshop                           ERP


                   Users                 Orders              Conv rate
Direct user                  321,742               6,853             2.13 %
Keyword set 1                   78,293               947             1.21 %
Keyword set 2                   21,954               143             0.65 %




                                           Users               Orders                   Conv rate
Direct user - Cat: „Shoes“                           89,471                     2120                      2.37 %
Direct user - Cat: „Watches“                         45,916                     1106                      2.41 %
Direct user - Cat: „Apparels“                       186,355                     3627                      1.95 %




                                          Users               Orders            Conv rate           Return rate         Margin
Direct user - Cat: „Shoes“                          89,471               2120             2.37 %             20.22 %                  12.02 %

Direct user - Cat: „Watches“                        45,916               1106             2.41 %             28.67 %                  11.75 %

Direct user - Cat: „Apparels“                      186,355               3627             1.95 %             18.93 %                  14.04 %


                                                                                                                       Better eCommerce 2012 Embitel
Example 3: Merge for better channel analysis


   Webshop order                                                                                                     external:
                                              POS System                                    ERP
     management                                                                                                    demographic


               Orders             Order value             # orderline (avg)
Web user                10,341            $ 1,070,431                  3.12
Mobile user               965              $ 856,428                   2.67
POS user                23,562            $3,567,927                   5.96




                          Orders                 Order value            # orderline (avg)      Own brands
Web user                             10,341             $ 1,070,431                     3.12                78 %
Mobile user                                965             $ 856,428                    2.67                82 %
POS user                             23,562             $ 3,567,927                     5.96                67 %




                        Orders              Order value          # orderline          Own brands       % rural areas        % urban areas
                                                                (avg)
 Web user                        10,341          $ 1,070,431                   3.12             78 %               25%                     75%
 Mobile user                       965            $ 856,428                    2.67             82 %               47%                     53%
 POS user                        23,562          $ 3,567,927                   5.96             67 %               21%                     79%

                                                                                                                         Better eCommerce 2012 Embitel
What is next in data driven e-commerce


                                Better eCommerce 2012 Embitel
• eCRM and campaign management
   – single-user-campaigns
   – after-sales-campaigns


• Real time alerting
   – Set thresholds for existing reports


• Mobile access to reportings

• Reuse data by transfering back to ERP etc.

• Include external data sources from partners etc.


                                                Better eCommerce 2012 Embitel
Summary & Essentials


Daten driven e-commerce
is best if merging data from
different sources.
                                      Though it is complex,
                                      ROI can be seen fast.

Replace intuition based decision by
fact driven decisions.

                    Let your smartest people analyse data
                            and call actions based on this.


                                                   Better eCommerce 2012 Embitel
Our Company



• E-Commerce service company             • 300+ employees in
  since 1995                                Stuttgart (HQ) and Berlin, Germany
• e-commerce projects in                 • 150+ employees in Bangalore
  30+ countries (incl. Europe, US,       • Offering Online Commerce services
  Australia, India, Japan)                  in India and overseas
• Responsible for …                          – consulting
   – 100+ Webshops                           – design
   – 1.000.000.000+ USD                      – technology
      E-Commerce Order Volume/year           – hosting
   – 5.000.000+                              – shop management
      E-Commerce Transactions/year           – online marketing (SEO, SEM, SMM)




                      platinum partner
                                                                    Better eCommerce 2012 Embitel
List of our webinars




•   # 1: E-Retailing - A perfect storm in India
•   # 2: Essence of Retail e-Commerce and its optimization
•   # 3: SEO - More Visibility, More Traffic & More Sales for free?
•   # 4: Social Media Marketing
•   # 5: Customer Acquisition & Retention
•   # 6: Mobile Commerce for Retailers
•   # 7: Online Retailing using facebook
•   # 8: Multi-Channel Retailing
•   # 9: Webshop personalization


                                                          Better eCommerce 2012 Embitel
Thank you for your interest!

                                              Any questions?
Daniel Rebhorn
dr@dmc.de
www.xing.to/dr
www.linkedin.com/in/danielrebhorn



embitel Technologies (India) Pvt Ltd.
www.embitel.com
www.smarte-commerce.com
www.linkedin.com/companies/embitel
www.facebook.com/embitel


                                                               Better eCommerce 2012 Embitel

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Improve your Online Sales by Using Data Driven e-Commerce

  • 1. Improve your Online Sales with data driven e-Commerce 10th webinar of the retail ecommerce series an embitel initiative 30th August 2012 Better eCommerce 2012 Embitel
  • 2. Speaker Founder dmc digital media center GmbH, Germany www.dmc.de Chairman Embitel, India www.embitel.com Daniel Rebhorn dr@dmc.de • Studied Computer Science at University of Stuttgart • Entrepreneur since 1992 • Investor, manager and/or business angel for 10+ IT companies • Working in retail e-Commerce for last 17 years • Responsible for development of large e-commerce sites, e.g. Kodak, Bosch, … Better eCommerce 2012 Embitel
  • 3. „In most companies, web data analysis is done by junior people or even students.“ Successful online players are taking this far more serious … „We‘ve placed our most experienced people to look into and analyse our data!“ Better eCommerce 2012 Embitel
  • 4. Agenda • Current challenges in increasing online sales • Idea of data driven e-commerce • Insights for a better view on data driven e-commerce • Examples, how you use analytics data to boost your online sales • What is next in data driven e-commerce Better eCommerce 2012 Embitel
  • 5. Current challenges in increasing online sales Better eCommerce 2012 Embitel
  • 6. Maturity of e-commerce No of customers eCRM online marketing cross-channel marketing share of wallet Better eCommerce 2012 Embitel
  • 7. e-commerce sales customer retention customer acquisition time Better eCommerce 2012 Embitel
  • 8. Chain of effect in e-commerce Marketing Cost per budget click product + portfolio conversion + Visits rate shop + usability Orders Price per + order line shopping + Sales cart value No of order lines Better eCommerce 2012 Embitel
  • 9. Idea of data driven e-commerce Better eCommerce 2012 Embitel
  • 10. Evolution in approaches feature driven e-commerce • based on expert intuition and decision data driven e-commerce • „state-of-the-art“ thinking • create impression at • based on analysis of consumer data • also irrational decision • efficency is king • success oriented approach • rational decisions • validation possible Better eCommerce 2012 Embitel
  • 11. e-Commerce components and data pods SEO/SEM Newsletter Affiliate Web analytics Web shop platform A/B testing Reco engine Basic SW Order management components Marketing SW ERP statistical data Better eCommerce 2012 Embitel
  • 12. Aggregation of data SEO/SEM Newsletter Affiliate Web analytics Web shop plattform A/B testing Reco engine Basic SW external Order management components Marketing SW ERP statistical data Better eCommerce 2012 Embitel
  • 13. Process cycle define conclude measure & act report analyse Better eCommerce 2012 Embitel
  • 14. Personalization vs. data for business decision • personalization – isolated and limited data – based on consumer behavior – system-reaction possible (e.g. product recommendation) – increase sales • data driven e-commerce – used for business decisions – focus on business goals – no automated system reaction, maybe automated informations – improve sales (ROI) Better eCommerce 2012 Embitel
  • 15. Challenges • data security acts / privacy protection • merge of multiple sources • amout and complexity of data • different „units“ to measure (PI vs. visits vs. user) • different definition of time • realtime vs. near-realtime vs. batch processing Better eCommerce 2012 Embitel
  • 16. Insights for a better view on data driven e-commerce Better eCommerce 2012 Embitel
  • 17. Limitations • All components have their own reporting interface, dashboards and user management • Components have a limited view on „real world“ – Web-analytics has no or little knowledge on products, margins, … – Webshop has little view on channels, campaigns – ERP has little view on client source, … • Overlap of data and reports – they might also deliver different report for same question Better eCommerce 2012 Embitel
  • 18. Reporting samples: web analytics Better eCommerce 2012 Embitel
  • 19. Reporting samples: webshop platform Better eCommerce 2012 Embitel
  • 20. Reporting samples: additional tools Better eCommerce 2012 Embitel
  • 21. Sample of very different source Source: eResult Better eCommerce 2012 Embitel
  • 22. Sample of very different source product detail page large image display brand overview page product overview page Source: eResult Better eCommerce 2012 Embitel
  • 23. Sample of very different source homepage landing page product overview page shopping cart Source: eResult Better eCommerce 2012 Embitel
  • 24. Examples, how you use analytics data to boost your online sales Better eCommerce 2012 Embitel
  • 25. Example 1: Merge for better A/B testing A/B test Web analytics ERP Users Orders Conv rate Homepage 43,202 1,175 2.72 % default Homepage 22,136 631 2.85 % Version 1 Homepage 22,116 588 2.66 % Version 2 Users Orders Conv rate Return rate Margin Homepage 43,202 1,175 2.72 % 20.22 % 12.02 % default Homepage 22,136 631 2.85 % 28.67 % 11.75 % Version 1 Homepage 22,116 588 2.66 % 18.93 % 14.04 % Version 2 Better eCommerce 2012 Embitel
  • 26. Example 2: Merge for better campaign tracking Web analytics Google Adword Webshop ERP Users Orders Conv rate Direct user 321,742 6,853 2.13 % Keyword set 1 78,293 947 1.21 % Keyword set 2 21,954 143 0.65 % Users Orders Conv rate Direct user - Cat: „Shoes“ 89,471 2120 2.37 % Direct user - Cat: „Watches“ 45,916 1106 2.41 % Direct user - Cat: „Apparels“ 186,355 3627 1.95 % Users Orders Conv rate Return rate Margin Direct user - Cat: „Shoes“ 89,471 2120 2.37 % 20.22 % 12.02 % Direct user - Cat: „Watches“ 45,916 1106 2.41 % 28.67 % 11.75 % Direct user - Cat: „Apparels“ 186,355 3627 1.95 % 18.93 % 14.04 % Better eCommerce 2012 Embitel
  • 27. Example 3: Merge for better channel analysis Webshop order external: POS System ERP management demographic Orders Order value # orderline (avg) Web user 10,341 $ 1,070,431 3.12 Mobile user 965 $ 856,428 2.67 POS user 23,562 $3,567,927 5.96 Orders Order value # orderline (avg) Own brands Web user 10,341 $ 1,070,431 3.12 78 % Mobile user 965 $ 856,428 2.67 82 % POS user 23,562 $ 3,567,927 5.96 67 % Orders Order value # orderline Own brands % rural areas % urban areas (avg) Web user 10,341 $ 1,070,431 3.12 78 % 25% 75% Mobile user 965 $ 856,428 2.67 82 % 47% 53% POS user 23,562 $ 3,567,927 5.96 67 % 21% 79% Better eCommerce 2012 Embitel
  • 28. What is next in data driven e-commerce Better eCommerce 2012 Embitel
  • 29. • eCRM and campaign management – single-user-campaigns – after-sales-campaigns • Real time alerting – Set thresholds for existing reports • Mobile access to reportings • Reuse data by transfering back to ERP etc. • Include external data sources from partners etc. Better eCommerce 2012 Embitel
  • 30. Summary & Essentials Daten driven e-commerce is best if merging data from different sources. Though it is complex, ROI can be seen fast. Replace intuition based decision by fact driven decisions. Let your smartest people analyse data and call actions based on this. Better eCommerce 2012 Embitel
  • 31. Our Company • E-Commerce service company • 300+ employees in since 1995 Stuttgart (HQ) and Berlin, Germany • e-commerce projects in • 150+ employees in Bangalore 30+ countries (incl. Europe, US, • Offering Online Commerce services Australia, India, Japan) in India and overseas • Responsible for … – consulting – 100+ Webshops – design – 1.000.000.000+ USD – technology E-Commerce Order Volume/year – hosting – 5.000.000+ – shop management E-Commerce Transactions/year – online marketing (SEO, SEM, SMM) platinum partner Better eCommerce 2012 Embitel
  • 32. List of our webinars • # 1: E-Retailing - A perfect storm in India • # 2: Essence of Retail e-Commerce and its optimization • # 3: SEO - More Visibility, More Traffic & More Sales for free? • # 4: Social Media Marketing • # 5: Customer Acquisition & Retention • # 6: Mobile Commerce for Retailers • # 7: Online Retailing using facebook • # 8: Multi-Channel Retailing • # 9: Webshop personalization Better eCommerce 2012 Embitel
  • 33. Thank you for your interest! Any questions? Daniel Rebhorn dr@dmc.de www.xing.to/dr www.linkedin.com/in/danielrebhorn embitel Technologies (India) Pvt Ltd. www.embitel.com www.smarte-commerce.com www.linkedin.com/companies/embitel www.facebook.com/embitel Better eCommerce 2012 Embitel