3. Agenda
• Strategic developments in e-commerce and multi
channel retail considerations for your business model
• Planning
• Challenges/issues
• Requirements gathering
• The RFP
• Supplier selection
• ROI
4. My deliverables today
• Insight
• Inspire
• Provoke
• Make more effective decisions
• Improve your ROI
• Reduce costs
• Have a better chance of getting live on time
• Mildly entertaining
5. My other involvement this week
• Tuesday: ‘Mind the gap’: Recruitment, retention
and skills issues
• Wednesday: Technology panel, fashion panel, live
site reviews
• Thursday: Website optimisation masterclass
8. About us
• Practicology is about providing actionable insight delivered by people who have
done the job
• We’ve all been at the coal face: I have previously been head of e-commerce for
Ted Baker, Burberry, Harrods and Pentland brands
• We’re a full service global e-commerce and multi channel retail consultancy
• We have clients in Australia, UK, US, Malaysia, Scandinavia, Germany, Croatia,
Switzerland and Belgium
• International judge of Australia’s Online Retail Awards and Judge of Draper’s
etail awards 2011
• Run E-Commerce UK (LinkedIn.com)
• Listed in Retail Week’s top 50 ‘etail power list’
9.
10. We don’t rely on our looks to earn a
living...It’s a good thing too!
30. •During 2010, shoppers have spent $10 to $12bn
online, about 5% of total retail sales of $250bn.
[Source: SMH.com, January 2011]
•It’s predicted that spending online will grow to
$18bn by 2014
[Source: Frost & Sullivan, via SMH.com, Jan 2011]
•I’ve also read that current sales online are more
than $20bn!
31. 94% of the Australian population access the internet,
79% do so every day.
[Source: AIMIA / Sensis Social Media Report, May 2011]
35. Fashion, followed by Electrical goods are the most
researched products or services on social networking sites
[Source: AIMIA / Sensis Social Media Report, May 2011]
36. 36% of Australians made a purchase after
researching products via social media.
[Source: AIMIA / Sensis Social Media Report, May 2011]
37. 57% of Australians search the internet for
something to buy at least once a week and more
than half buy something online every month
[Source: Digital Futures 2010, CCi, May 2010]
38. 44% of online purchases are
made to overseas retailers
40. The combination of no GST, and the high dollar
are challenging and leading to a retail war
on 2 fronts
With ever-increasing competition from
International retailers on and offline...
41. Lulu Lemon’s first online localised proposition
outside of North America will be in
Australia...and they’re opening more stores here
52. But some of your retailer’s are still
well behind the curve
53. Keep your eye on the ball...
the pace of change is frightening!
54. The big changes (This month!)
• Retailers no longer hold the power
• Consumers choose the channel of engagement
• And they expect a seamless experience through all channels
• So retailers must make the move from ‘multiple channel’ to ‘cross
channel’
• Consumers are influenced by their peers, not by the retailer
• FMCG and CPG players looking to have a direct to consumer play to
drive insight and sales
• Mobile is THE game changer
• Social Media is a service and engagement driver
• Internationalisation is all the rage...but localisation is required
• The gap between buying offline and online continues to narrow
55. The web has evolved....largely driven by
broadband, wireless and more usable devices
56. Drivers of growth
• The drivers for continued growth of sales online will be:
• Increasing broadband penetration
• Emerging International markets maturing
• Ever – increasing media consumption online
• Social networking and social commerce
• Smartphone penetration fuelling mobile Internet adoption
• The alignment of online and offline shopping experiences
• The convergence of technology....TV/Web
• Convenience of the shopping experience...driven by cross channel
• Online propositions localised for the needs of the local market
61. • 75%
of
Australians
using
GPS
devices
are
open
to
viewing
targeted
deals
when
visi.ng
bricks
and
mortar
outlets
• 41%
of
Australians
using
GPS
devices
are
open
to
viewing
targeted
deals
at
.mes
they
select
• 83%
of
18-‐34
year
old
Australians
find
geo-‐
targeted
content
via
mobile
when
shopping
an
appealing
prospect
• [Source:
Galaxy
Research,
via
DMI,
June
2011]
61
62. The majority of Australians have not bought using
mobile...but that will change very soon
Payment for goods and services purchased via mobile handset
(Source: Australian Mobile Phone Lifestyle Index, AIMIA, October 2010)
67. Mobile
=
THE
game
changer!
M-‐commerce In-‐store
naviga.on
Development
of
mobile
websites
Mobile
ac*ng
as
in-‐store
and
apps
which
make
shopping
‘sat
nav’
for
shoppers
with
advice
online
more
seamless
for
shoppers on
where
to
find
par*cular
products
or
offers
in-‐store
Barcode
scanning/Image
Proximity
marke.ng
recogni.on Retailers
can
leverage
loca*on-‐
Tools
which
allow
shoppers
to
add
based
marke*ng
offers
through
items
to
their
online
basket
by
mobile
scanning
items
in
the
home
e.g.
Tesco’s
grocery
app
68. • 15% of Ocado’s sales during H1
2011 came from its smartphone app
• Debenhams took £1m through their
iPhone app in the first 6 months
• River Island will take over £2m this
year through their app
70. Developments in Asia lead the way
-‐
Over
500
of
its
most
popular
products,
complete
with
QR
codes
which
can
be
scanned
using
the
Homeplus
app
-‐
Products
range
from
daily
essen.als
such
as
milk
and
fresh
produce,
to
pet
food
and
sta.onery
-‐
Orders
placed
before
13:00
will
be
delivered
to
customers'
homes
on
the
same
day
79. Multi channel just means more than one
channel
‘Cross-channel’ is bringing together the
strengths of each channel to create a
better overall customer experience
80. Multi channel is not about managing
customer expectations
It’s about meeting customer
expectations
82. Today’s consumer is a multi channel shopper
Today‘s consumer is a multi-channel shopper
“Almost everyone is a multi-
channel shopper, 86%
regularly use more than one
channel”
– Leo Burnett, 2010 Multichannel customer research
86. The way we communicate has fundamentally
changed
87. The purchase path is no longer linear
Presales Information Product Availability Assistance Trans-action
Channels
Print
TV/Radio
Store
Internet
Letter
E-Mail
Telephone
Fax
SMS/MMS
Usage of channel Channel combination example of multichannel customers
88. • 63% research online before buying instore
• 89% who buy online also shop instore
• 20% of all online customers pick up their goods instore
• 29% researched offline before buying online
• Multi channel customers spent 3.5 times as much as single channel customers
• ‘Shop engagement is key’: Branch online orders grew by 130% in 2010
• The store is credited with the sale
• Click and collect growing at 2 x the rate of online sales
• Mobile drives 5m visits to the website
• A £3k bed was bought through mobile!
• Multi Channel Shoppers visit stores three times more frequently
• Multi Channel Customers are twice as loyal
89.
90. Remember that the web is a
sales driver for all of the
retailer’s channels, and not just
a source of incremental
revenue...
91. •Ted’s cameras know that their website only
represents around 5% of the company's total
sales but it influences 50-60% of all sales made
through all channels.
•And it is because of this, that they realize
integration across all channels is essential to
provide a complete user experience
•Dick Smith: 23% of online order revenue now
picked up in store
94. There’s too much talk about multi channel and
not enough focus on aligning the business with
the customer’s journey
95. Let me tell you a story...
• Casino customer journey:
• Having breakfast I realise I’m out of milk and cornflakes so
I order them on my iPad
• Then at lunch I remember I’ve forgotten to order juice for
dinner so I use my PC to do so
• On the way to the store I then remember I need wine and
I use my iPhone app to order
• In store I’m pinged a coupon offering me 50% off a
different cereal as I’m standing in the aisle looking at
cereal
• I also get a reminder on my phone that I haven’t bought
96. • Opticians/Optometrist customer journey
• Let’s imagine you were buying a new pair of glasses. What would be the
optimum customer journey?
• I went online using my iMac at home to make an appointment to have my
eyes tested
• I was also able to select a few brands of frames I might be interested in
• When I went into the store, the staff and the optician new who I was and
had the frames I was interested in ready
• After my test and after I had selected a new frame, I was waiting for my
glasses to be made up with the lenses when using an interactive in store
mirror I tried on different sunglasses with different tints
• I bought them and I went home
• 2 weeks later I sat on my glasses and broke them
• I opened up the glasses case as I remembered there were contact details in
there along with my customer reference
• I called the store, or maybe I went online, either way they had my
prescription to hand and they made me up a new pair of glasses in 24 hours
97. • So keep this in mind when you start to
define your requirements for your
e-commerce platform
• If you’re a multi channel business, what
might the optimal customer journey
be?
98. The number one driver for
customer’s is ‘convenience’ and the
other driver is ‘immediacy’
99. The optimal customer
convenience proposition
• Buy from the channel of choice: Online, in
store, by phone
• Return to the channel of choice…free
• Have your order delivered to the place of
choice: Work, home, your store for pick up
• Have the order fulfilled at a time of their
choosing
• Have your order gift wrapped with a gift card
109. The mature e-commerce markets in the
US & UK will grow annually by 15% to
20% over the coming years
(Source: IMR World)
110. It’s a small world isn’t it?
“Yes, but a successful Internationalisation strategy is more
than just language translation and currency conversion”
111. 4 strategies in play
1. Do nothing: Don’t allow anyone to buy
from overseas
2. Standardisation: Switch on the buy button
only
3. Adaptation: Localise some aspects
4. Localisation: Fully localise the customer
proposition
112. Some of us find it hard enough
selling domestically
126. The results?
• Since launch, traffic to clarks.de is 4 times higher
than previous, this includes traffic generated by
PPC
• Conversion rate has grown from launch to
become very similar to the UK site
• Returns rate is much higher than the UK..again
due to German catalogue heritage
• Basket size and bounce rates are very similar on
DE to UK
143. If you want to know the difference
just look at Eurovision!
144. • Different currencies
• Different payment methods
• Different values
• Different cultures
• Different tastes
• Different fears
• Different motivations
145. If you haven’t localised yet....
Analyse existing web traffic patterns in order
to make some informed assumptions around
the opportunity from international markets
146. • Traffic x conversion rate x AOV = Sales
potential
172. Consumer trust in various sources of information
and media: most trusted sources
[Source: Nielsen Social Media Report, February 2010]
173. Key drivers for new customers and/or
inexperienced web users =
- Trust markers
- Contact number
- Your credentials
- What other people bought
174. What’s the customer
proposition?
• Product/range the same?
• Category hierarchy and naming the same?
• Products, colours and styles the same name?
• Americanise the English on the US site
• Cross channel experience – Enable return to
store in relevant markets?
175. What’s the customer
proposition?
• What currencies?
• What languages? You can probably get away with an
English language site for some EU markets such as the
Netherlands and even Scandinavia
• What payment methods? Local market debit and
credit cards as well as other options such as pay on
invoice or bill me later?
• Enable customers to place orders over the phone?
• Price positioning…same pricing?
181. In Japan, shopping represents a social activity, an
opportunity to meet friends and socialise.
Due to this social function and reluctance to use credit
cards, online shopping has struggled to really take off in
Japan whereas M-Commerce has
182. • And of course, each country will observe its own
public holidays and festivals:
• Basic operational issues and requirements such as the
fulfilment of customer orders and handling customer
service at these important times of year
194. The
term
social
media
refers
to
the
use
of
web-‐based
and
mobile
technologies
to
turn
communica*on
into
interac*ve
dialogue
and
social
interac*on
that
allow
the
crea*on
and
exchange
of
user-‐generated
content
11
197. • An
integrated
online
experience
is
now
a
key
requirement
rather
than
a
nice-‐to-‐have
• Customers
expect
to
swap
effortlessly
between
online
shopping
(e-‐commerce
pla^orms),
social
pla^orms
(such
as
Facebook)
and
related
online
touch
points
197
202. It’s now all about ‘word of web’ as
opposed to offline word of mouth
203. You already do
it offline
• Meeting prospects
• Building relationships
• Asking questions
• Answering questions
• Building trust
• Building your reputation
204. Business investment in social media is extremely
low suggesting the approach is very tactical
[Source: AIMIA / Sensis Social Media Report, May 2011]
205. Percentage of marketing budget allocated to social media
average for medium and large businesses is less than 5%!
[Source: AIMIA / Sensis Social Media Report, May 2011]
206. 25% of Australian medium sized businesses have a social
media presence, only 44% have a Twitter account =
That’s a lot of businesses with NO social media presence
and a lot with no Twitter presence
[Source: AIMIA / Sensis Social Media Report, May 2011]
207. Who is responsible for a business’ social media presence?
= A real lack of customer service engagement through social
[Source: AIMIA / Sensis Social Media Report, May 2011]
211. •It is our contention that it should penetrate the whole
organization
•Social Media shouldn’t :
•Be a ‘campaign’ or a ‘tactical’ sales tool
•Nor should it only be customer facing
•Social media should :
•Embrace the internal business
•Harness the knowledge and insight available within those who
don’t always have a voice or a vehicle to impart their knowledge
through
212. Who has leveraged their employees
knowledge and engaged them with
social media in their business?
213. •Their Best Buy Connect social media platform has
the aim of showcasing their people, their culture and
with unedited perspectives, presents a transparent
picture of the business and its employees.
•It puts a truly human face on the brand, whilst
increasing accessibility and driving transparency.
•This in turn can have a tremendously positive effect
on current and future customer perceptions as well as
on current and future employees.
214.
215. Social media is a service driver and
key customer retention tool
216. Think ‘local social’:
Growing role of social interactions within customer
shopping missions
Ability to drive footfall, advocacy and insight
228. Do
you
have
a
roadmap
and
a
strategy
for
e-‐commerce?
228
229. If
you
don’t
have
a
plan,
then
you
are
planning
to
fail
229
230. A Commercial Plan & Roadmap
• You need a plan for how you’re going to get
from where you are, to where you want to be
• High level will do for the key building blocks
• Show how strategy, resource/people, marketing
and technology will change over time
234. • There
are
many
challenges
and
issues
to
address
in
order
to
implement
successful
e-‐commerce
projects
• Projects
fail
typically
due
to
issues
on
both
the
client
and
the
supplier-‐side.
Rarely
are
they
only
caused
by
one
of
the
par.es
• From
a
client-‐side
perspec.ve,
the
organisa.ons
culture
and
people
significantly
impact
upon
the
success
or
failure
of
an
e-‐commerce
implementa.on
234
235. • On
top
of
that,
many
issues
arise
from
the
lack
of
there
being
a
seasoned
e-‐commerce
prac..oner
on
the
board
• We
have
seen
many
examples
(too
many)
where
projects
fall
short
of
expecta.ons,
fail
altogether,
or
cost
much
more
than
an.cipated
235
236. Why
do
e-‐commerce
projects
fail?
• When
there
isn’t
an
experienced
e-‐commerce
prac**oner
on
the
board,
this
oEen
leads
to
key
decisions
being
taken
without
the
depth
of
insight
required
to
support
them.
Issues
can
include:
– SeJng
unrealis*c
expecta*ons.
Forecasts
are
too
high
and
unsubstan*ated.
Timescale
es*mates
are
too
oEen
incredibly
op*mis*c
– An
insufficient
level
of
investment
in
the
development
of
the
channel
– The
structure
being
ineffec*ve
– The
e-‐commerce
channel
is
developed
as
a
silo
and
not
integrated
with
key
business
func*ons.
The
web
drives
visits
to
stores,
and
vice
versa.
This
should
be
factored
in
236
237. Why
do
e-‐commerce
projects
fail?
• A
lack
of
cross-‐func.onal
teamwork
(because
it
takes
more
than
a
head
of
e-‐commerce
to
deliver
a
successful
web
channel)
• For
the
best
results
collabora.on
must
take
place
between
the
following
opera.onal
units:
• Buying
and
Merchandising
• Marke.ng
• Supply
chain
• Fulfilment
• Customer
service
• In-‐store
personnel
• IT
and
development
team
237
238. Why
do
e-‐commerce
projects
fail?
• Involving
team
members
who
need
to
interact
with
and
be
involved
with
the
e-‐commerce
applica.on
too
late
(early
stakeholder
engagement
is
a
necessity)
• Inadequate
team
skills
(the
speed
and
level
of
growth
of
e-‐commerce
growth
has
meant
there’s
a
shortage
of
skills
across
various
remits)
• Overall
resistance
to
change...for
most
people,
change
comes
at
a
cost
238
239. What
can
you
do
about
it?
• Proac*ve
and
forward-‐thinking
businesses
can
prevent
many
of
these
piOalls
and
in
doing
so,
save
*me
and
money
while
crea*ng
a
smoother
transi*on
and
implementa*on
of
e-‐commerce.
• Follow
these
steps
for
the
best
results:
– Enrol
key
stakeholders
in
the
planning
phase,
including
execu*ves
who
will
input
into
the
vision
and
opera*onal
stakeholders
who
will
be
involved
day-‐to-‐day
with
suppor*ng
the
e-‐commerce
opera*on.
As
a
minimum
try
to
involve
in-‐store,
e-‐
commerce,
supply
chain,
IT
and
marke*ng
execu*ves
from
the
outset.
An
experienced
project
manager
/
business
analyst
can
play
a
crucial
role
in
making
things
happen.
– Communicate
the
benefits
of
the
channel
to
all
affected
opera*ng
units
ensuring
everyone
sees
the
benefit
to
them
and
to
the
business.
Given
the
growth
poten*al,
this
should
be
a
simple
task.
Make
everybody
aware
of
the
success
stories
in
your
industry,
and
what
a
joined-‐up
approach
can
do
for
your
business.
– Run
stakeholder
workshops
and
interviews
assessing
the
impact
e-‐commerce
will
have
on
remits
and
job
tasks,
func*ons
and
processes,
and
employee
roles
in
the
execu*on
phase.
– Develop
an
opera*onal
structure
that
maximises
the
opportunity
and
op*mised
processes
that
minimise
the
likely
impact
caused
by
the
change
e-‐commerce
brings
to
people’s
roles
239
240. • To
be
successful,
e-‐commerce
projects
also
require
execu.ve-‐level
sponsorship
or
senior
leader
consensus
around
the
business
need
for
the
project
• Again
the
growth
of
e-‐commerce
should
make
it
a
rela.vely
easy
task
for
project
sponsors
to
again
execu.ve
level
buy-‐in
240
241. • You
also
need
to
ensure
that
the
overall
business
strategy
takes
account
of
the
impact
that
e-‐commerce
has
on
all
other
channels
of
the
organisa.on
• By
demonstra.ng
the
poten.al
for
organisa.on-‐
wide
benefits
it
will
be
easier
to
build
a
business
case,
for
budget
and
support
• Aher
all,
as
demonstrated
earlier,
e-‐commerce
is
a
driver
of
sales
for
all
channels
of
the
business
241
242. • So
don’t
think
of
e-‐commerce
as
a
silo,
or
an
individual
channel
• And
if
you
can
communicate
this
successfully
then
the
board
will
see
that
the
value
of
e-‐
commerce
and
of
the
web
channel
in
general
terms
is
business-‐wide
• But
consider
that
in-‐store
personnel
should
be
rewarded
for
genera.ng
sales
online
otherwise
they’ll
stay
in
a
silo
mentality
and
will
fail
to
support
the
business
as
a
whole
242
243. • If
you
don’t
focus
on
geing
stakeholder
commitment
and
a
clear
understanding
of
the
challenges
and
capabili.es
required
from
the
outset
of
your
e-‐commerce
project,
you
run
the
risk
of
spending
too
much
.me
and
money
at
the
back
end
of
the
project,
trying
to
resolve
internal
problems
• So
ensure
you
engage
all
stakeholders
in
the
planning
phase
for
e-‐commerce
243
244. • You
can
select
the
best
technology,
have
a
clear
vision
and
roadmap
with
regards
to
where
you
want
to
take
the
e-‐commerce
channel,
but
if
you
don’t
have
an
experienced
and
highly
effec*ve
project
manager,
your
project
will
fall
down
in
one
or
more
of
the
following
ways:
•
•It
will
be
late.
This
is
preVy
much
guaranteed.
We
have
seen
a
number
of
examples
of
poor
project
management
that
have
seen
sites
go
live
a
year
aEer
the
intended
go
live
date
•
It
will
be
lacking
in
scope
and
therefore
won’t
be
‘fit
for
purpose’.
Long-‐term
thinking
is
required
here.
•Invariably
it
will
be
over
budget,
as
it
will
run
late,
and
may
also
require
various
aspects
of
code
to
be
re-‐wriVen.
•Your
internal
stakeholders
will
be
dissa*sfied
and
may
lose
faith
altogether
in
the
e-‐commerce
opportunity.
•It
won’t
achieve
it’s
full
poten*al
in
terms
of
revenue
genera*on
–(unfortunately,
the
significant
organic
growth
experienced
by
most
online
retailers
oEen
masks
the
inefficiencies
of
their
websites).
244
247. • The
different
models:
• 1.Mid
sized
mul.
channel
retailers
(Ted
Baker,
Mulberry
etc):
– Head
of
e-‐commerce
tends
to
own
much
of
the
end
to
end
process
– OEen
co-‐owns
fulfilment
and
logis*cs
– E-‐commerce
developed
as
a
‘bolt
on’
with
dedicated
opera*ons
and
services
such
as
merchandising,
marke*ng
and
customer
service
– So
this
a
classic
‘mul*ple
channel’
retail
environment,
but
not
an
integrated
one
247
248. • The
different
models:
Con.nued
• 2.Large
FTSE
retailers
(M&S,
John
Lewis
etc):
– The
head
of
e-‐commerce
is
ohen
responsible
for
everything
on
the
website
– But
board
or
opera.onal
Director’s
own
different
parts
of
the
opera.on
such
as
supply
chain,
merchandising,
customer
service
– It
tends
to
be
a
more
integrated
scenario,
but
with
some
businesses
such
as
M&S
or
John
Lewis,
home
shopping
or
their
‘direct
business’
un.l
recently
was
a
completely
separate
business
unit
– The
model
below
reflects
where
I
believe
most
mul.
channel
retailers
should
be
heading
structure
wise;
248
249. • The
different
models:
Con.nued
• 3.Groups/Mul.
brand
owners
(Pentland
brands,
Arcadia):
– The
brands
have
their
own
management
team
ohen
including
a
head
of
e-‐commerce
– The
centre
of
the
business
provides
a
service
to
all
of
the
brands
across
marke.ng,
technology,
supply
chain
etc.
It’s
a
facilitator,
whereas
the
brands
own
management
teams
actually
trade
the
online
business
• 4.
Pureplays:
– They
do
everything
in
the
business.
i.e.
The
full
end
to
end
process
including
the
coding
and
web
development
side
• 5.
The
outsourced
model:
– This
is
where
there
is
a
small
e-‐commerce
team
ohen
only
responsible
for
content
and
some
trading
aspects.
Customer
service,
marke.ng,
supply
chain,
fulfilment,
the
pla^orm
are
all
outsourced
to
a
supplier
such
as
GSI
commerce,
PFS
web
etc
249
253. • Schedule
a
kick
off
mee.ng
with
key
stakeholders
• (project
sponsor,
project
manager,
project
team
etc)
to
develop
the
high
level
roadmap
and
strategy
for
e-‐commerce
253
254. Create
a
steering
group
• A
recommended
project
team
structure
might
look
like
this:
– A
project
sponsor.
Ideally
someone
at
board
level.
– A
project
manager.
Someone
in
the
e-‐commerce
team.
– A
project
team:
the
head
of
e-‐commerce,
the
internal
project
manager
(if
you
have
one),
the
IT
manager,
someone
from
finance,
the
project
manager
from
the
agency,
etc.
– A
steering
commigee
comprising
of
key
members
from
cross
func.onal
areas
of
the
business
that
will
impact
upon
e-‐
commerce
(finance,
merchandising,
opera.ons,
fulfilment,
etc).
• Ensure
that
each
of
the
project
team
members
has
the
necessary
level
of
skills
and
experience
and
can
commit
the
required
level
of
.me
to
the
project.
254
256. • A
supplier
contract
with
appropriate
SLAs
• You’ll
need
a
high
level
roadmap
and
strategy
for
e-‐
commerce
• You
will
need
a
detailed
financial
plan
• Func.onal
specifica.on.
This
will
cover
your
e-‐commerce
system
capabili.es,
func.onality,
integra.on
and
interac.on
with
users.
The
details
for
both
this
and
the
requirements
document
will
have
been
captured
during
stakeholder
workshops
and
one-‐to-‐one
interviews.
• Change
request.
This
is
usually
a
brief
document
outlining
the
objec.ve
and
requirements
of
the
change,
which
is
then
circulated
to
the
project
team
to
respond
with
the
proposed
solu.on,
cost,
.mings
and
impacts.
256
257. • Risk
log
and
impact
assessment.
This
is
normally
done
in
response
to
a
change
request.
An
impact
assessment
is
where
key
opera*onal
func*ons
and
departments
review
the
proposed
change
to
evaluate
whether
there
will
be
an
impact
on
systems,
people
or
processes.
Risks
and
issues
are
highlighted
up
front
and
managed
appropriately.
• Resource
plan.
Create
a
GANTT
chart
and
use
it
to
ensure
appropriate
resource
is
available
for
e-‐commerce
implementa*on.
• Cri*cal
path
and
*ming
plan.
This
covers
the
proposed
*mescale
for
the
project
and
helps
to
iden*fy
dependencies
of
all
ac*vi*es.
This
will
let
you
put
together
the
resource
and
*ming
plan.
You
need
to
es*mate
how
long
each
element
of
the
project
will
take.
It’s
always
best
to
build
in
some
con*ngency
to
the
*meline
for
each
key
milestone,
and
use
the
cri*cal
path
as
to
con*nually
measure
your
progress
against
the
*meline.
• Tes*ng
schedule.
This
will
cover
user
acceptance
tes*ng
(UAT)
as
well
as
load
and
stress
tes*ng
the
system
and
should
cover
tes*ng
required
as
a
result
of
change
requests.
257
258. • Tes*ng
schedule.
This
will
cover
user
acceptance
tes*ng
(UAT)
as
well
as
load
and
stress
tes*ng
the
system
and
should
cover
tes*ng
required
as
a
result
of
change
requests.
• Release
schedule.
A
schedule
of
when
changes
are
planned
to
be
released
to
the
website,
ensures
priori*es
are
met
and
that
the
appropriate
test
environments
are
available
at
the
right
*me.
• Project
go/no
traffic
light.
This
highlights
any
outstanding
requirements
prior
to
go-‐live
and
provides
a
view
of
the
status
of
these
elements
and
they’re
poten*al
impact
which
is
communicated
by
giving
each
item
a
red,
green
or
amber
status.
• Build
a
communica*ons
plan.
Review
it
regularly,
and
communicate
frequently
with
all
the
key
stakeholders.
This
is
a
key
aspect
of
successful
project
management,
and
it
will
also
help
to
ensure
that
all
stakeholders
remain
engaged
throughout
the
lifecycle
of
the
project.
• Conduct
risk
assessment.
It
is
wise
to
carry
out
a
full
risk
analysis
and
document
all
risks
in
a
risk
register.
You
need
to
regularly
review
each
risk
to
ensure
you
are
managing
them.
If
you
have
an
internal
audit
department,
then
they
are
the
ideal
people
to
manage
this
aspect
of
the
project.
258
263. Which stakeholders requirements
should be captured?
• IT and system development resources
• Website design resources
• Buying & Merchandising resources
• Commercial planning and stock management
resources
• Pricing and promotions management resources
• Content creation and content management
resources, including photography and copy
264. Which stakeholders requirements
should be captured?
• Product photography and artworking resources
• Online/digital marketing resources
• Order management resources
• Loss-prevention fraud-screening
• Customer contact management resources
• Warehousing facilities: Pick, pack and despatch resources,
returns processing resources
• Parcel carrier service
• Reporting and control resources
266. Brand/design
• What are the brand values and ethos, existing
visual collateral, guidelines we need to consier?
• What aspirations, sites liked/disliked, etc?
• What brand experience do we need to create?
267. Front end
• Site wide functionality
• Discuss functionality that runs across whole site
• Newsletter sign-up, email-a-friend, social links, recently viewed,
mini basket, login, etc.
• Main Pages
• Discuss requirements for main site navigation, Home Page,
Category & Brand landing pages, search and product listing pages
• Search
• How ‘sophisticated’ does search need to be?
• Does content other that products need to be returned in search
results
268. • Guided (faceted) Navigation
• By which search facets should users be able to select/filter products?
• Single or multi-select facets?
• Products
• Discuss product range, and any special requirements relating to display
of products/Brands on the site
• Personalisation
• What level of personalisation, if any, should the site support?
• Merchandising Tools
• How are the products to be merchandised?: manually, rules based,
algorithm based, mixture…
269. • Promotions
• What promotions types, triggers, & targets does the platform need to
support
• Checkout Pages
• Discuss the checkout process – single or multi-page, guest checkout, do or
don’t’ promote other products in checkout, etc.
• General Site Pages
• ‘Static’ content pages: About us, contact us, Help/FAQ’s, etc.
• Customer
• What features & functionality will be in the ‘My Account’ session of the
site
• What integration requirements are there around customer for other systems
(OMS, CRM, other?)
270. • Wish List
• Will you have one? What level of
functionality?
• Triggered Emails
• At which points should the site send emails
to users (order, registration, shipping,
abandoned basket, other?, etc.
271. Back End
• Content Management (CMS)
• Requirements for, who will use, authorisation workflow, etc.
• Product Information Management (PIM)
• Requirements for, who will use, authorisation workflow, etc.
• Order Management (OMS)
• Is one required? IF so, requirements.
• Stock
• Handling of out of stocks, back-orders?, stock level feeds?
• Shipping
• What will the customer proposition be here?
• Split delivery? Gift card & wrap?
• Where to?
272. • Which payments will be accepted? Paypal?, loyalty?
• Fraud?
• PCI Security
• Call Centre
• Outsourced or internal?
• Requirements for?
• Email Marketing
• Level of Integration with
• Integration
• To back-end systems (products, stock, orders, customer)
• 3rd party systems?
273. • 3rd Party Product Feeds
• Are these required, if so, details.
• Analytics
• Requirements for
• Reporting
• Requirements for
• Hosting
• Requirements for
• Account Management
• Requirements for
274. Products and content
• Photography: Where and how will we do this?
• Rich Content: A fundamental requirement to drive
sales...however it needs to be created to drive sales
• Exclusive Products: Could you offer some exclusive
products online?
• Head or long tail products?
275. Logistics
• Outsource logistics?
• Packaging: Fit for purpose for B2C?
• Stockholding: Requirement to forecast
• Returns handling: Processes required to handle this
• Customer proposition to be determined: Matrix of existing
delivery service levels to be produced
• Australia only to begin with?
276. Customer Care: Call centre
• Managing B2C customer services
• Service provision only?
• Or, also as an additional sales driver: Card
sales, live chat etc?
• Operating hours
• Managing International calls
• Language and time requirements
277. IT and Integration
• ERP/legacy systems
• Stock management
• PIM
• CRM
• Other Data Services
278. • Ensure that the platform you choose can be easily
integrated with other parts of your business, such
as your CRM and product information channels
• Many companies are realising that sales and
marketing functionality is increasingly important
• Your ecommerce solution should be the engine
room of your online sales and marketing efforts,
helping with customer acquisition, customer
retention, cross selling and upselling etc
279. Roll Out
• Australia to begin?
• Then English language countries?
• EU when?
• White label?
282. Timeline:
5
days
with
itera*ons
Process:
Produced
by
head
of
e-‐commerce
and
IT
director
or
by
a
consultant
282
283. Are
you
thinking
about
what
the
customer
wants?
• Your
e-‐commerce
strategy
needs
to
focus
on
the
customer
experience
to
ensure
success
and
in
order
to
make
sure
that
you
are
doing
jus.ce
to
your
brand
and
differen.a.ng
yourself
in
an
increasingly
compe..ve
marketplace
• Does
your
company
really
understand
what
your
customers
want?
• Are
all
the
necessary
stakeholders
within
your
company
feeding
in
to
your
e-‐commerce
strategy
to
ensure
that
you
have
an
integrated
approach
• Is
the
supplier
on
the
ball
in
terms
of
usability
and
accessibility?
283
284.
285.
286.
287.
288. 1. Introduction
• State your objectives and provide clear guidance on expectations
• The X Shop has ambitious plans for their growth online, and is
considering a new platform to help them achieve this. They have a
desire to be live by pre-Christmas 2011. This will require a new
site design, and this requirements document is to be used as an
RFP for both design and platform
• However, any particular vendor may respond to either one or the
other aspect, or both
• Please make clear in your submission which aspect(s) you are
tendering for, and how the cost is allocated between them
289. 2. This Requirements Document
• This document sets out X Shop’s requirements for their new transactional websites. It uses
the MoSCoW ratings approach for the level of requirement as follows:
• M – ‘Must Have’
• Clear requirement for first phase launch of site
• S – ‘Should Have’
• Ideally part of the 1st phase launch, but as long as the Functionality was confirmed
deliverable shortly after launch, could form part of a 2nd phase launch
• C – ‘Could Have’
• Indicates Functionality X Shop might like to have, as long as the cost & complexity
were reasonable. It would be helpful to know how your platform could deliver
this Functionality, but could be phase 2 or even 3 releases.
• W – ‘Won’t Have’
• Indicates Functionality X Shop don’t need now, or in the medium term.
290. 2. This Requirements Document
• Of course, it would be great if everything contained in
this document were ready & available for immediate
launch at modest cost
• However, since this might not be the case, the winning
tender is likely to be the company that is able to deliver
the largest portion of Functionality, at the earliest time,
for the lowest cost
• Where the proposal is to phase the delivery of
functionality, please quote separately for the Must Haves,
the Should Haves, and the Could Haves
291. 3. The Tender Process
• We aim for this to be a very clear & transparent tender process, with each vendor
ranked against the following key criteria:
• Your proposal
• Functional Fit ‘out of the box’
• Ability to deliver any outstanding Functionality
• Time frame for delivery of all agreed Functionality, over 1 or 2 phases
• Project Management approach
• Ability to service & support the site on an on-going basis
• Contract terms
• Client references
• Costs
• For the design element, the ability to translate X Shop’s brand values into a
high-conversion transactional site with great usability and accessibility.
292. • Please ensure your proposal responds explicitly to
the requirements in this document – ideally in the
same order (and with the same outline numbers)
presented here, as well as directly addressing the
key criteria listed above
• Submissions that are just standard marketing
about your platform, and don’t respond to the
specifics will be judged poorly
• Please demonstrate clearly how your proposal
delivers these requirements, and back this up with
screen-shots of back-end systems & live websites
that demonstrate the Functionality purported.
293. • In general, the tender process will have 3 phases:
•
1 – Review received proposals and evaluate against criteria listed
above, in order to reduce list of ‘possibles’ down to 2, or at most, 3
options.
•
2 – Full-day on-site visits with short-listed options, where full
demonstrations of the systems (not just PowerPoint!) will be expected, as
well as commercial discussions and ‘cultural fit’ can be gauged.
•
3 – Due diligence and customer references for the best-fit options,
in order to evaluate the winning tender.
• All submissions should be in electronic form, and emailed to
294. 3.1 Timeline
• A somewhat more legible, landscape version of the
above is on the last page of the document. However,
the high-level plan is for:
• 1)
Discovery/Design to begin XXX 2011
• 2)
Build to begin XXX 2011
• 3)
UAT XXX 2011
• 4)
Go-live XXX 2011
295. 3.2 Cost basis
• Please note The X Company is looking for a fixed
price quote for this project, not a T&M estimate
• This quote will of course be dependant on a detailed
discovery phase, but we would hope that the price
after discover varies no more than 10-15% from your
quote during the tender process
• If your quote is on any other basis, please make this
explicitly clear, as the assumption will be fixed price,
and this will be the basis of all discussions going
forward, unless agreed otherwise.
296. 3.3 Confidentiality
• The contents of this document should be
considered commercial in confidence, and are
not to be distributed outside of those in your
organisation required to prepare a response
• You’d want them to sign a NDA
297. 4. The Brand
• The X Company wants to grow their online their business to account for
15-25% of their overall business within 3 years
• The X Company wish to differentiate themselves online by listening to their
customers and provide high quality customer service. They want to be seen as
offering good value for money, bringing to market exclusives, first to offer
products, whilst maintaining excitement and an element of surprise amongst
their customer base.
• They have identified 3 main reasons why customers come to their current site:
• For replenishment
• To browse
• To Indulge
• X is seen as a very personal purchase; the X Company want to try and create
some of this experience online via for e.g. personal customer stories so it is
more than just about product and price.
307. Consider
adding
a
basket
lightbox
when
item
added
to
basket
An
intui.ve
CTA
to:
1.add
to
cart
or
•con.nue
shopping
Also
a
great
opportunity
for
cross
selling
307
331. FC AS Theory Tommy CT GANT
Persuasive
product
descrip1on
Good
quality
product
image
with
zoom
Mul1ple
views
of
product
image
inc
model
Product
price
Size
op1ons
Stock
and
availability
Delivery
price
and
op1ons
Expected
delivery
date
Clear
‘Add
to
Basket’
Wishlist
/
forward
to
a
friend
/
social
Customer
ra1ngs
and
reviews
Returns
Policy
Sizing
Chart
Email
me
when
back
in
stock
Cross-‐sells
/
up-‐sells
/
complete
the
look
SEO
H1
/
H2
Tags
355. Image Size
• Each product displays only slight discernable differences to each other,
fit, stripe, check, cuff, collar etc…
• Informing the customer of these style differences quickly is very
important in the customer journey
• Online, the visual merchandising has to convey the product detail and
brand values of quality to the customer. Image size is critical to this
356. Image Size
On product listing …difficult to discern product detail… check or strip?
357. Image Sizes
• TP image size on product listing and product detail page is the smallest of
those reviewed. -40% to the average (of those reviewed) on both product listing
and product detail page.
• Image size is too small to get across the quality and design details of the
product and does not sit with brand core values.
• Net a Porter images on product listing nearly 3 x that of Thomas Pink.
• On the whole, retailers trading on quality/ designer have 3 images across on
their product listing.
362. Image Size
•On tailoring with high selling prices … the small images do not
validate the product quality. It is difficult to get any sense of
quality
•The banner gives some quality assurance and reference
376. Only £25 away from free next day
delivery...question is, how much is delivery?
377. • 3 testing options for Remarketing with a classic abandoned
shopping cart follow-up email, but with 3 alternative follow-
ups which were tested with these results:
1. Generic branded follow-up email : +10% conversion rate
2. Personalised remarketing email with a promotional code for a
5% discount time limited to 72 hours: +100% conversion rate
3. Personalised remarketing email with a promotional code for
a 5% discount time limited to 48 hours: +200% conversion
rate
Source: Smart Insights
384. 46.4%
of
customer’s
don’t
even
make
it
from
the
bag
to
the
1st
stage
of
the
checkout...
why?
385. Why do they abandon here?
•No delivery options
•No delivery info to total order value
•No idea whether or not I can add a
gift message?
•Gift wrap message is hidden/too
small
•They may not have a promotional
code but think they should have
•Data capture is just a distraction
•Difficult to see update basket or
continue shopping buttons
•Not everyone is ready to buy
412. The
system
should
enable
the
set-‐up
of
affiliate
&
campaign
codes,
which
can
be
assigned
to
each
affiliate
or
PPC
campaign,
and
tracked
by
the
system,
via
the
analy*cs
tags,
through
to
the
campaign
management
repor*ng
in
the
analy*cs
applica*on.
The
system
should
support
best-‐prac*ce
affiliate
and
campaign
tracking
(the
repor*ng
and
analy*cs
of
this
will
be
done
through
the
3rd
party
analy*cs
package,
but
the
site
database
&
HTML
should
be
coded
sufficiently,
and
with
enough
granularity,
to
feed
the
analy*cs
package
appropriately,
and
the
affiliate/campaign
codes
wriVen
to
the
customer
&
order
tables
so
they
can
be
reported
on
locally.
6.11 Affiliate and Campaign codes
416. 9. Mobile
• The X Company is interested in incorporating a mobile approach into their
overall Digital Strategy. Initially the main site should be built to be accessible via
a mobile device. They would like to explore creating a device specific mobile
app to provide for e.g.
• Stores near me using GPS
• Use of SMS to notify customer of order status
• Experimentation with QR codes
• Looking to implement PDAs/tablets for staff in-store as used in Apple
Store.
• Need to be able to reskin main website
• It should be device and browser compatible & integrated with mobile payment
gateways
• Overall requirements TBA
420. 12. Account Management
• While this document has focused on platform functionality, we can’t stress enough the
importance of on going account management as a selection criterion for this project. As part of
your proposal, please describe and confirm the following key points:
• Who would be our named account management team, and what are their responsibilities?
• Is this person/are these people technical, commercial, or both?
• What do you offer, on an on-going basis, as far as best practice and innovation, for example?
• What is your development road-map for your platform and services?
• What direct access will we have to technical support staff, and during which days/hours?
• Please describe your process for handling bugs/issues, and change requests, and how the
two are defined and delineated
• Do you have standard SLA’s around account management? If so, please describe these
421. 13. Hosting
• When explaining your hosting proposal, please, as a minimum, confirm the following:
• Your recommended hosting architecture for a ‘minimum’ & ‘optimal’ solution
• Bear in mind that even minimum hosting must reach the performance requirements mentioned below
• The operating system, and any 3rd party software required to deliver your solution
• What monitoring & alerting processes are available
• What support options are available
• Your experience with load balancing web servers (hardware and/or software – please confirm) and clustering
databases
• Please give specific examples and references for your claims here
• Performance is expected to delivery page load times no greater than x seconds on a 512k broadband connection
• Downtime is expected to be no greater than 0.5%
• What business continuity and disaster recovery procedures do you have in place to support downtime SLA of
0.5%?
• 24/7monitoring with helpdesk and alerts support
• Cloud or dedicated hosting with scalability for peak traffic
• SQL database(s)
• Multiple redundant DNS and SMTP servers
422. • Manage multiple B2C & B2B ecommerce storefronts, corporate sites, micro-
sites, extranets, forums, and blogs from one central platform
• Individual web stores can have different or same designs (or mixture of),
same or different functionality, different or shared content
• Host different domain and manage and share content across these; either
shared or exclusive
• New version rollouts on bi-annual basis
• Supports sharing of customers across multiple web stores with a single
registration, facilitating shared baskets across sit
• Please describe the various SLA’s agreement offered, and the associated
costs
• Security
425. • Timeline:
4
weeks
in
total
• Process:
– Give
them
the
RFP
and
2
weeks
to
respond
– Take
3
days
to
review
responses
– Take
2
to
4
days
to
conduct
due
diligence
with
full
day
demos
– Score
the
vendors
and
make
a
decision
425
426. Some
ques.ons
to
ask
at
the
outset...
• How
‘future-‐proof’
are
the
vendor’s
technologies?
• Is
your
technology
easy
to
use
and
manage
(so
that
you
will
not
be
incurring
extra
costs
and
stretching
your
internal
resources
on
a
regular
basis)?
• Has
the
pla^orm
been
built
with
Search
Engine
Marke.ng
in
mind?
• Web
analy.cs
are
important
to
ensure
that
you
can
measure
what
is
happening
so
you
can
adapt
and
grow
accordingly.
What
kind
of
capabili.es
does
the
pla^orm
have
in
this
respect?
• –
Will
the
analy.cs
give
you
the
level
of
granularity
you
need?
426
427. • Find
out
what
kind
of
repor.ng
comes
as
standard
and
what
will
cost
you
extra
• Are
there
features
in
the
pla^orm
that
you
don’t
need
on
Day
1?
Understanding
how
much
these
will
cost
to
implement
once
the
site’s
live
will
help
you
plan
your
budget
and
your
approach
to
market
• Will
you
be
geing
the
level
of
strategic
consultancy
you
are
hoping
to
make
sure
that
the
technology
is
working
for
you
at
an
op.mal
level? 427
428. • If
you
are
using
an
agency,
are
you
convinced
that
they
have
the
project
management
capabili*es
to
deliver
your
requirements
on
*me
and
within
budget?
• Are
you
prepared
to
pay
more
to
get
an
agency
with
a
proven
track
record
in
your
market
sector?
• Are
the
capabili*es
real
or
planned?
Make
your
assessment
evidence
based,
relying
on
what
they
agency
has
delivered,
rather
than
on
what
they
say
they
can
deliver.
428
429. Main
Process
Steps
• Agree
the
scope
of
what
this
procurement
process
covers
• Define
your
requirements
• Priori.se
your
requirements
• Invite
proposals
specifically
against
these
requirements
• Objec.vely
manage
the
tender
process,
&
score
op.ons
against
your
requirements
• Ensure
non-‐func.onal
requirements
are
evaluated
along
with
func.onal
ones
430. Agree
the
scope
of
what
this
procurement
process
covers
• There
are
a
lot
of
different
elements
(and
possibly
3rd
party
tools)
that
can
form
part
of
an
eCom
pla^orm
(the
graphic
on
the
right
is
only
a
part
–
doesn’t
include
Order
or
Warehouse
Management,
for
example)
• So
be
clear
what
the
remit
for
this
project
is.
Does
it
cover
all
of
these
items,
or
just
a
subset?
• Can
some
of
them
be
evaluated
in
a
2nd
phase
aher
launch,
or
are
they
intrinsic
to
the
projects
success?
• Which
ones
are
‘core’
to
the
pla^orm,
&
which
ones
possibly
ancillary
add-‐ons
431. Define
your
requirements
• Once
the
scope
is
defined,
you
can
dig
down
into
the
detail
of
the
requirements
for
what
is
in
scope
• Remember,
if
you
ask
for
the
world,
expect
to
pay
for
it!
So
think
carefully
about
what
really
is
going
to
make
a
difference
to
how
you
run
your
business
• Watch
out
for
func.onality
that
sounds
great,
but
that
you’ll
never
get
‘round
to
using
433. Priori.se
your
requirements
• Unless
your
check-‐book
is
open-‐ended,
priori.se!
• You
won’t
be
able
to
do
it
all,
so
make
sure
what
you
do
get
is
what
you
need,
and
will
deliver
an
acceptable
ROI
• Remember,
the
best
way
to
increase
the
risk
of
a
project
failing
is
to
try
to
do
too
much
in
one
go
–I’m
not
sugges.ng
to
lower
your
ambi.ons,
but
if
you
can
phase
the
delivery,
you’ll
have
much
beger
chance
of
success