More Related Content
Similar to Getting from Here to There: How to assess your business, define an overall eCommerce strategy, and create a roadmap
Similar to Getting from Here to There: How to assess your business, define an overall eCommerce strategy, and create a roadmap (20)
Getting from Here to There: How to assess your business, define an overall eCommerce strategy, and create a roadmap
- 2. Multi-channel
eCommerce Strategy
Bernardine Wu
CEO, FitForCommerce
February 8, 2011
© FitForCommerce
- 3. O mni-c hannel
eCommerce Strategy
Bernardine Wu
CEO, FitForCommerce
February 8, 2011
© FitForCommerce
- 4. Com merce
eCommerce Strategy
Bernardine Wu
CEO, FitForCommerce
February 8, 2011
© FitForCommerce
- 10. About FitForCommerce
• FitForCommerce is a consultancy founded to help online businesses ‘figure out what
they need and how/where to find it’
– Team of former multichannel retailers, marketers, technologists and service providers, with
hands-on expertise in eCommerce and mCommerce
• eCommerce Diligence™ is a philosophy and methodology based on diligent
preparation and decision-making to ensure success
– Strategic Diligence – eMerchandising, eMarketing, Multichannel, Operations, Technology,
Organization, Financial Planning
– Selection Diligence – Requirements, RFP, Selection of eCommerce technologies and
providers including: platforms, mCommerce, back-end, all point solutions, 3PL/CS
– eCommerce Marketing Consulting
– mCommerce Strategy
– Implementation Coaching
• eCommerceKnowHow.com is the first eCommerce knowledge base:
– Best practices, feature evaluations, expert advice and info on 100s of features, functions
and topics
– 100s of provider and solution comparative info
• FFC mCommerce Benchmark & Buyers Guide is a structure benchmark to assess
the market, compare where you stack up, help prioritize improvements (2Q 2011)
10
© FitForCommerce
- 12. The Obvious
Assess Develop
Develop a
where a full Execute
tactical plan
you are strategy
• Evaluate • Goals • What • Do it
• Competition • Approach • Who • Re-evaluate
• Benchmark • How • Adjust
• When • Re-do
• How much $
Keep it Simple!
© FitForCommerce
- 13. © FitForCommerce
eMerchandising
eMarketing
Webstore
Technology
P&L / Budgeting
Operations
eCommerce Strategy
Organization
- 14. Critical Success Factors
MERCHANDISE MARKETING
The appropriate assortment for the target Being found when someone is searching
audience in line with the brand and and driving qualified traffic that will buy
showcasing products to sell the most and return to buy from the webstore
FUNCTIONALITY TECHNOLOGY
Appropriate features, functions, Appropriate tools, technology, integrations
capabilities for a great customer to support the business in the most
experience and for efficient management efficient and fail-safe manner
and growth of the business
ORGANIZATION OPERATIONS
Right skills, right people, doing the right Processes that add value and are efficient;
things at the right time – and working and are not substitutes for sub-optimal
together with shared objectives and organization, functionality, technology
accountability under clear leadership
BUDGET / P&L
Investment thinking so funds and
resources go to the right places and there
is room for experimentation
© FitForCommerce 14
- 17. ( Sample )
IR Top 500
• Comparison of sites for conversion rate and average ticket
17
© FitForCommerce
- 18. Gathering Intel
• Consult with an Expert • Other competitive data sources:
– Quantcast
• Mystery Shopping – Hitwise
– Google Trends
• Hoovers, D&B & other financial – Google Insight
sources – Google Adwords
• IR Top 500 Guide – Way Back Machine
– The Search Monitor
• Vendors – Comscore
– Alexa
• Industry news, Blogs, Newsletters – BuzzNumbers
– Compete.com
• Attending & Networking at Events
– ZoomInfo
• Recruiting – Statsaholic
– nielsen-online.com
• Usability Studies, Eye Tracking, – Netcraft
Focus Groups – Ranking.com
– Highbeam
18
© FitForCommerce
- 19. MERCHANDISE
The appropriate assortment
for the target audience in line
with the brand and
showcasing products to sell
the most
© FitForCommerce
- 20. eMerchandising
• What are you selling?
– Brand alignment
– Merchandise assortment
– Merchandise depth
– COGS, Pricing, Margin
– Multichannel dynamics
• How are you selling?
– Robust information on webstore
– Emotional connection
– Leading her to a sale, making it easy
– Guided selling
– Cross-channel drivers
© FitForCommerce
- 23. Others:
Hero image
Lifestyle
Swatching
Zoom
360
© FitForCommerce
- 24. MARKETING
Being found when someone
is searching and driving
qualified traffic that will buy
and return to buy from the
webstore
© FitForCommerce
- 25. Marketing Investment
• Creating Marketing Budgets is both an art and a science
with more emphasis on individual success of marketing
programs. Industry benchmarks are guides rather than
rules.
Source:
The Econsultancy / ExactTarget Marketing Budgets 2010 Report is based on a
survey of more than 1,000 client-side marketers and agency respondents.
© FitForCommerce
- 26. Balancing the eMarketing Investment
CUSTOMER ACQUISITION CUSTOMER RETENTION
• Branding, Advertising • Consistently great experience
• Outreach: Email, Social, • Outreach: Email, direct mail
Mobile • Loyalty programs
• Get found (80% rule!): SEO, • Community, social
PPC/SEM, Affiliate, • Content
Marketplaces (CSE)
• Cross-channel: PIP
• Offline: print ads, catalog,
direct mail
• Cross-channel: store-to-web,
web-to-store, catalog-to-web,
package inserts programs
(PIP), in-store kiosks/endless
aisle, POS programs (POP)
© FitForCommerce
- 27. Attribution of Marketing Spend
• Track sources for traffic, quality, conversions
• Use matchbacks for catalog or print
• Analyze house file for size, age, activity
© FitForCommerce
- 28. Detailed Analysis
• Abandonment by Channel - Email-driven traffic is is showing
significant signs of weakness, particularly in View Bag and Order
Complete stages of checkout
Abandonment Rate
© FitForCommerce
- 29. Email Marketing
• Performance
– Bounce rate: 11% (first campaigns) 2.5-3.5% (established)
– Open Rate: 25-30%
– Click Through Rate (CTR): 10-15%
• Key to Execution
– Segmentation & Targeting
– Messaging (Relevancy) & Frequency
– Trigger
– Reporting
– Think in context of contact strategy
– Beware of attrition
• Measuring Success
– ROAS = Return on Advertising Spend (a.k.a. ROI)
– CPA = Cost Per Acquisition
– Are you overpaying for any of your sales?
– Cannibalization vs. Lift
• Lift is the net amount of traffic that is added to the mix
• Cannibalization is the portion of traffic that comes at the expense of another driver
© FitForCommerce
- 30. Source: emarsys eMarketing Systems 2010 Email Report
The data for this report was collected between January 1 and December 31, 2009. Results based on analysis of response data from
more than 30,000 regular B2B and B2C email campaigns (newsletters, promotional emails) sent by more than 500 companies.
© FitForCommerce
- 31. Marketing Spend
• Paid Search
– Average conversion rate for Paid Search is 3.15% (Source: eConsultancy)
– Percentage of site visits via paid search 19.8% (Source: eConsultancy )
– Retailers on average spend 40% of their budget on Search (Source: Internet
Retailer)
• Marketplaces/Feeds/Comparison Shopping Engines
– Average conversion rate for Comparison Shopping Engines is 3.7% (Source:
Marketing Sherpa)
– Shopping Feed demand is mostly driven by consumer looking to comparison
shop for prices
– Apparel Retailers are less likely to be successful with shopping feeds
• Banner Ads
– CPM = $10 (a typical rate for general, not-very-targeted websites) (Source:
eConsultancy)
– CTR = 0.5% (Source: Marketing Sherpa)
– Conversion Rate = 2% (Source: Marketing Sherpa)
© FitForCommerce
- 32. Distribution of Spend (example)
Example of Spend/Revenue Scenario
• Budget - 61% increase
• Revenue - 23% increase
• Email - Need aggressive growth in email capture/housefile. Numbers based on more targeted
email strategy and trigger program.
• Paid Search - ROAS comes down and revenue increases 30%
• Banner - Optimize program on no additional spend
• Social - Optimal area to grow
• Feeds - no growth planned
• Other/Testing - No revenue $’s attached to Program/Bucket
© FitForCommerce 32
- 35. eMarketing KPIs
• These KPIs should be compiled and reviewed to help drive the
business:
– Weekly Site Metrics Report
– Channel Report
– KPI’s
Channel Report Website Metrics
• Revenue by Media LY • Buying Sessions
• Orders by Media LY • Orders per Session
• AOV by Media LY • New Vs. Returning Visitors
• Items per Order TY & LY • Shopping Cart Abandonment
Rate
• Conversion Rate LY
• Days and Visit to Purchase
• Visits LY
• NTF
• CPA
• ROAS
• Cost
© FitForCommerce 35
- 36. FUNCTIONALITY
Appropriate features,
functions, capabilities for a
great customer experience
and for efficient management
and growth of the business
© FitForCommerce
- 37. ( Sample )
Funnel Analysis
Percent Lost Between
Sessions: Each Stage
21,022
15%
Multi Page Sessions:
17,806
33%
Browsers
11,975
73%
Add To Bag
3,256
4.45% Checkout
14%
convert Shopping Bag
2,801
44%
Bill & Ship
1,572
12%
Ship Meth
1,378 Could have
Optional Offer abandoned Ship
Code Page Meth or Offer 5%
Omitted
Pymt/
Code Page
Review
1,310 29%
Receipt 37
937
*Monthly averages since 3/07 37
© FitForCommerce
- 38. ( Sample )
Competitive Feature Comparison
Shopping Bag Features of an Site vs Competitors
Retailer
38
© FitForCommerce
- 39. Seek out ‘market Feature: Ratings & Reviews
data’
• Ask your peers
• Read key reports, blogs
– Forrester
– Gartner
– Getelastic blog
• Benchmarking studies
– e-tailing group
EG100 Gauge
(“egeg”)
• Knowledge bases
This is real data on
the feature: Ratings
Source: & Reviews
© FitForCommerce 39
- 40. ( Sample )
Eye Tracking / Usability Study
Heatmaps Gaze Plots Cluster Maps
Fixation Count, Observation Time, Participant % Charts
40
© FitForCommerce
- 41. ( Sample )
Top Recommendations: This Year
Benefit/Impact vs Tech Effort
1. Save Bag Longer: tie bags to user cookie, and save longer link B:XL T: L
2. Offer Code in Bag: offer code entry in bag and edit payment pg link B:XL T: XL
3. Edit Items in Bag: edit color, size, qty in bag, remove items in 1-click link B: L T: L
4. Shipping Method Selection: select method/see rates in bag, Mini-bag link B: L T: XL
5. Gift Card Balance: show GC and eGC amounts used, balance, check link B: L T: M
6. Add-to-Bag Confirm Page: add ATB overlay w/cross sells & offers link B: L T: M
7. Full Mini-Bag Overlay: show full bag in drop-down from mini bag icon link B: L T: M
8. Mini-Bag Icon: show item count in mini bag icon link B: S T: S
9. Gift Boxing in Bag: select gift boxing options in bag link B: M T: XL
10. Calculate Tax in Bag: calculate/show tax in bag link B: L T: XL
11. Cross Sells: show cross sells in ATB overlay, Mini-bag and bag link B: L T: M
12. Move Items to Wishlist: move items to/from wishlist, save for later link B: L T: L
13. Error Messaging: improve HazMat, Trademark, etc errors link B: L T: L
14. Address Error Messaging: improve address validation error msgs link B: L T: L
15. Promotion Communication: show promotions differently, deal pricing link B:XL T: L
16. Shopping Bag Item Detail: show delivery date, ‘was’ price, color name link B: M T: M
41
17. Log-in/Registration: login/registration at top of Bill/Ship pg only link B: M T: M
18. Email/Print Bag: email or print bag link B: M T: M
41
© FitForCommerce 41
- 43. TECHNOLOGY
Appropriate tools,
technology, integrations to
support the business in
the most efficient and fail-
safe manner
© FitForCommerce
- 44. eCommerce Galaxy Multichannel
eMarketing
Affiliate
Email
Mobile
SEO/SEM
Facebook
Click-Recording Comparison Marketplaces Social
Engines Twitter MySpace
Web Analytics
Payment Ratings & Reviews
CMS MCP
Logistics
Hosting ECP OMS Site Search
Fulfillment Returns CDN
WMS ERP
Inventory Performance
Searchandising
Chat Security PCI Fraud
Call Center eMerchandising
Zoom
Customer Care
CR 360° Rich Internet
Loyalty eCatalog
M Apps (RIA)
Customer Satisfaction
Gifting Quick View
Measurement Personalization
International
© FitForCommerce
- 45. Key Indicators it’s Time for a Change
• Falling Behind the Competition
• Missed Benchmarks vs. Best Practices
• Cannot Overcome Current Deficiencies
• Internal Costs are Too High
• Strategic or Future Growth is Dependent
45
© FitForCommerce
- 46. ( Over-simplified! )
Key Components & Integrations
Mobile store
Catalog
(MCP)
Traffic
Marketing
Webstore Customer
Catalog
(ECP) Service
Pricing
Content
Images
Merchandising Inventory
Sales
Tracking
Price/Stock Qty. info
Shipping info
Order Mgmt Fulfillment
(OMS) Tracking info WMS
Retail Inventory Customers/orders
(POS)
ERP
46
© FitForCommerce
- 47. Mobile adoption
• 58% of companies do NOT have mobile marketing OR mCommerce.
• Of the 42% that have mobile:
– 39% are using mobile marketing
– 81% have a fully optimized mobile site
– 42% have a mobile app
Does your company have a:
Mobile 42%
• 34% of companies have mCommerce, not just mobile marketing
© FitForCommerce Source: FitForCommerce M-Commerce Survey Sept 2010 47
- 48. Plans for mCommerce
• mCommerce website • mCommerce application
• Only 17% have no plans • 37% have no plans
• 46% have plans in next 12 • 46% in next 12 months
months • 17% more than a year from now
• 35% more than a year from now
© FitForCommerce Source: FitForCommerce M-Commerce Survey Sept 2010 48
- 50. OPERATIONS
Processes that add value
and are efficient; and are
not substitutes for sub-
optimal organization,
functionality, technology
© FitForCommerce
- 52. Fulfillment Decision Tree + Leverage real estate
+ Leverage pooled inventory
Modify DC - Not enough space
(Bldg 4) - Too costly
- Inefficient configuration
Build new + Lower cost than 3PL long-term
Fulfill warehouse
in-house - Higher startup cost than 3PL
- Slower time-to-market
- New competency risk
Inventory Size - All stores
Fill from Store - Stores cannot handle volume
- Regional stores
SKU count
Fill from Store
Sources - Regional stores + Increase fill rate
(as needed)
+ Leverage outside expertise
+ Lower investment cost
+ Speed-to-market
+ Variable cost base
Fulfill from 3PL
- Increased inventory
- More expense over time
+ Leverage top vendors
+ Lower MSG inventory
Vendor drop-ship
(as supplement) - Dependence on others
- Lower margin
© FitForCommerce 52
- 53. Cross-Channel
• Check item availability in stores
In-Store • Purchase Item online, pick-up in store
• Drives store traffic
Pickup • Inventory accuracy is crucial
• Self service webstore access
• Locate inventory in other markets
Kiosk • Find products not offered in stores (vendor drop ship
items)
• Associate driven order entry for items not in stock
Endless • “Ship anywhere” service in stores
• Items shipped to guest from
Aisle warehouse (no shipping charge)
• Supplement inventory with items not in warehouse
Store • Regional high volume stores
• Pick/pack/ship in back stock area
Fulfillment • Inventory accuracy crucial
• Select store as a delivery destination in webstore &
Ship To endless aisle
• Use store inventory when in-store pickup is rolled out
Store • Store to store shipping supported by store fulfillment
© FitForCommerce 53
- 54. ORGANIZATION
Right skills, right people,
doing the right things at the
right time – and working
together with shared
objectives and accountability
under clear leadership
© FitForCommerce
- 55. ( Sample )
eCommerce Org Structure
Business Units
Direct-to-Consumer
eCommerce eCommerce Creative/Art eCommerce eCommerce
Merchandising Marketing Direction Technology Operations
“A” Merchandising/ Front-end
Search Marketing Web Design Fulfillment
Business Unit Development
“B” Merchandising/ Email/Retention Back-end
Graphics Design Customer Service
Business Unit Marketing Development
“C” Merchandising/ Photography
Affiliate Marketing QA
Business Unit
Mobile
Catalog Social Media Mktg Site Support M-Commerce
Management Strategic Partner
Content / Asset Strategic Tech Project/ Mobile Marketing
Analytics / Reporting
Management Partnership Mgmt Program Mgmt
Merchants Marketing IT Operations
Corporate Functions (Finance, HR, Legal)
55
© FitForCommerce
- 56. ( Over-simplified! )
Organizational Growth
(Oversimplified) Growth Patterns LEVEL 7
LEVEL 6
LEVEL 5 Full Team
Covering All
Full Team Disciplines
Full Team Covering All with
Covering Disciplines Deep
LEVEL 4 All with in-house
Disciplines Deeper expertise,
with Scale expertise, Scale,
LEVEL 3 Full Team & Scale Heavy Mktg
Covering Balanced Heavy Mktg Cross-
Full Team All Outsourc’g Multi-channel channel
LEVEL 2 Covering Disciplines & In-house Bringing it Some 3rd
LEVEL 1 All with Scale 3rd Party back in-house Party/OS
Handful of Disciplines & Vendors & Some 3rd
1-2 People Poised for Some Integration Party/OS
Person Team Growth Outsourc’g s
Shop (<5 FTE) (~15 FTE) (~20 FTE) (~30 FTE) (~40 FTE) (~60 FTE)
< $1mm <$10mm $10-20mm $20-50 $50-150 $150m+ $250m+
56
Note: includes tech, but not fulfillment/customer service 5
© FitForCommerce 6
- 57. Why not mobile?
• Technical obstacles, resource constraints and skills, but not that they should not be.
• Many need to focus on eCommerce before mCommerce - “One thing at a time”
• Need to support the upside potential with hard data to make mobile commitment.
Why are you not yet Mobile?
© FitForCommerce Source: FitForCommerce M-Commerce Survey Sept 2010 57
- 58. BUDGET / P&L
Investment thinking so
funds and resources go to
the right places and there
is room for
experimentation
© FitForCommerce
- 59. $15M Revenue P&L
Option 1 Option 2 Option 3 Option 4
FF in-house FF in-house FF outsrc (3PL) FF outsrc (3PL)
Status Rate Best Pr CS in-house CS outsourced CS in-house CS outsourced Notes
Gross Sales 15,000,000 15,000,000 15,000,000 15,000,000
Orders (Demand) $85.00 176,471 176,471 176,471 176,471 Based on GSI 2010 AOV
Cancelled 3.5% (525,000) (525,000) (525,000) (525,000)
Shipped Sales $ 14,475,000 $ 14,475,000 $ 14,475,000 $ 14,475,000
Orders (Shipped) 170,294 170,294 170,294 170,294
Returns 11.0% (1,592,250) (1,592,250) (1,592,250) (1,592,250)
Adjustments 1.0% (144,750) (144,750) (144,750) (144,750) Cost of MVP Points
Net Sales $ 12,738,000 $ 12,738,000 $ 12,738,000 $ 12,738,000
Cost of Goods Sold
Initial COGS 45.0% 5,732,100 5,732,100 5,732,100 5,732,100
Freight In 1.0% 127,380 127,380 127,380 127,380
Markdowns 8.0% 1,019,040 1,019,040 1,019,040 1,019,040
Other/Shrink/Damages 1.0% 127,380 127,380 127,380 127,380
Total Cost of Goods Sold $ 7,005,900 $ 7,005,900 $ 7,005,900 $ 7,005,900
% of Net Sales 55% 55% 55% 55%
Gross Revenue $ 5,732,100 $ 5,732,100 $ 5,732,100 $ 5,732,100
Operating Expenses
Credit Card Fees 3.0% 434,250 434,250 434,250 434,250 Estimated fees based on industry average
Bad Debt/Chargebacks 0.5% 72,375 72,375 72,375 72,375 Estimated fees based on industry average
Shipping 15.0% 2,171,250 2,171,250 - - Estimated actual cost of shipping
Shipping Revenue 17.0% (2,460,750) (2,460,750) - - Shipping & Handling charge to online customer
Total Operating Expenses $ 217,125 $ 217,125 $ 506,625 $ 506,625
% of Net Sales 2% 2% 4% 4%
Marketing Expenses 10.0% 1,273,800 1,273,800 1,273,800 1,273,800
Agency Fee 15.0% 161,070 161,070 161,069 161,070
Ongoing catalog maintenance(item copy; attributes/tagging;
Content (copy & images) 30,000 30,000 30,001 30,000 images)
SEM/PPC 25.0% 270,683 270,683 270,683 270,683 Pay for performance (search engines, network buys)
Affiliates 15.0% 162,410 162,410 162,410 162,410 Third party costs & support
email Marketing 5.0% 54,137 54,137 54,137 54,137
Cross Channel (DM, store adv.) 20.0% 216,546 216,546 216,546 216,546
Compare Shop Sites 5.0% 54,137 54,137 54,137 54,137
Promotions 10.0% 108,273 108,273 108,273 108,273 Free ship, Free gift w/ purchase, Channel Partner exclusive
SEO 5.0% 54,137 54,137 54,137 54,137
Total Marketing Expenses $ 1,111,391 $ 1,111,391 $ 1,111,391 $ 1,111,391
% of Net Sales 9% 9% 9% 9%
© FitForCommerce 59
- 60. Summary of Options
SUMMARY
Current Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 5-Year
2010 Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative
%incr %inc %incr %inc
r r
Gross Sales $ 9,000,000 $10,000,000 $15,000,000 33 $20,000,000 25% $25,000,000 20% $30,000,000 17% $ $10m is baseline "min" and basically equals
% 100,000,000 current site .$15m is "par" and should be
achievable with additions and improved site.
$20m is "max" or stretch goal for 2 yrs, but
achievable in 3 yrs. Growth to $30m in 5 yrs is
aggressive but achievable.
Net Sales $ 8,492,000 $12,738,000 $17,174,729
Gross Revenue $ 3,821,400 $ 5,732,100 $ 7,728,628 $ 9,650,000 $11,580,000 $ 38,512,128
Expenses
Option 1 FF & CS in-house $ 4,711,841 $ 4,822,816 2% $ 4,871,347 1% $ 5,358,481 10% $ 5,805,021 8% $ 25,569,505 Includes investment in
new/multichannel capabilities
Option 2 FF in-house / CS outsourced $ 4,794,341 $ 5,074,191 6% $ 5,243,347 3% $ 5,767,681 10% $ 6,248,321 8% $ 27,127,880 "
Option 3 FF outsourced / CS in-house $ 4,533,141 $ 5,063,891 10 $ 5,483,947 8% $ 6,032,341 10% $ 6,535,036 8% $ 27,648,355 "
%
Option 4 FF & CS outsourced $ 4,615,641 $ 5,315,266 13 $ 5,855,947 9% $ 6,441,541 10% $ 6,978,336 8% $ 29,206,730 "
%
Gross Rev minus Expenses
Option 1 FF & CS in-house $ (890,441) $ 909,285 $ 2,857,282 68% $ 4,291,519 33% $ 5,774,979 26% $ 12,942,624 See details for Expenses in yrs1-3
Option 2 FF in-house / CS outsourced $ (972,941) $ 657,910 $ 2,485,282 74% $ 3,882,319 36% $ 5,331,679 27% $ 11,384,249 "
Option 3 FF outsourced / CS in-house $ (711,741) $ 668,210 $ 2,244,682 70% $ 3,617,659 38% $ 5,044,964 28% $ 10,863,774 "
Option 4 FF & CS outsourced $ (794,241) $ 416,835 $ 1,872,682 78% $ 3,208,459 42% $ 4,601,664 30% $ 9,305,399 "
9% 15% % of Gross Rev. FYI, $10m store: 10-
15% profit
CapEx (36 mth depr)
Option 1 FF & CS in-house $ 1,874,667 $ 1,874,667 $ 1,874,667 $ 100,000 $ 100,000 $ 5,824,000 See details for CapEx; $100k in yr4&5
is nominal
Option 2 FF in-house / CS outsourced $ 1,874,667 $ 1,874,667 $ 1,874,667 $ 100,000 $ 100,000 $ 5,824,000 "
Option 3 FF outsourced / CS in-house $ 708,000 $ 708,000 $ 708,000 $ 100,000 $ 100,000 $ 2,324,000 "
Option 4 FF & CS outsourced $ 708,000 $ 708,000 $ 708,000 $ 100,000 $ 100,000 $ 2,324,000 "
Gross Rev minus Expenses minus % of rev % of rev % of % of rev % of
CapEx (36 mth depr) rev rev
Option 1 FF & CS in-house $ (2,765,107) - $ (965,382) - $ 982,615 5% $ 4,191,519 17% $ 5,674,979 19% $ 7,118,623 7%
28% 6%
Option 2 FF in-house / CS outsourced $ (2,847,607) - $ (1,216,757) - $ 610,615 3% $ 3,782,319 15% $ 5,231,679 17% $ 5,560,248 6%
28% 8%
Option 3 FF outsourced / CS in-house $ (1,419,741) - $ (39,791) 0% $ 1,536,682 8% $ 3,517,659 14% $ 4,944,964 16% $ 8,539,773 9%
14%
Option 4 FF & CS outsourced $ (1,502,241) - $ (291,166) - $ 1,164,682 6% $ 3,108,459 12% $ 4,501,664 15% $ 6,981,398 7%
15% 2%
Retail Store Revenue $ 568,000,000 $ 600,000,000 $ 618,000,000 3% $ 636,540,000 3% $ 655,636,200 3% $ 675,305,286 3% $ 3,185,481,486 Assumes 3% growth across 5 years
Online as % of Retail Store Revenue 1.58% 1.67% 2.43% 3.14% 3.81% 4.44% 3.10% Average over 5 yrs
'Profit' - Same growth as MSG $ 700,000 $ 1,050,000 33 $ 1,400,000 25% $ 1,750,000 20% $ 2,100,000 17% $ 7,000,000 However, this assumes can grow MSG
% significantly even though they haven't
been able to in past years
'Profit' - Same growth as past perf $ 630,000 $ 700,000 $ 791,000 6% $ 893,830 6% $ 1,010,028 6% $ 1,141,332 6% $ 4,536,190 More moderate growth
© FitForCommerce 60
- 63. Can you leapfrog the competition?
eCommerce
Evolution 4th Generation
Functionality / Customer Value
BEST-IN-CLASS
• Personalized experience
• Continuity/Subscription
• MicroSites
3rd Generation • Integrated OMS
ADDED FEATURES • Integrated call center
• Search • Integrated POS
• Promotions • Dynamic content mgmt
2nd Generation • Micro-targeted
• Merchandising
FEATURES • Order Status content/offers
• Catalog • Cross Sells • Guided navigation
• Shopping cart • Bolt-on approach • Rich media
1st Generation • Web analytics
• Payments (3rd party systems)
• Customer intelligence
Marketing
Homegrown Product-centric Customer-centric
Only
Manual updating Single-channel Merchandiser control
Scaling issues Limited features Multi-channel
© FitForCommerce
© FitForCommerce 63
- 64. Resources
• There are many great resources out there for you –
some are literally at your fingertips; others require more
time and effort!
• To name a few:
– Tradeshows: IRCE, Shop.org, eTail
– User Conferences Omniture & many others
– Associations: MGA/DGA, NRF/Shop.org, DMA
– Consultancies: FitForCommerce ☺
– Informational websites: eCommerceKnowHow.com,
InternetRetailer.com,
GetElastic.com
– Industry papers/magazines: Internet Retailer, Stores,
Multichannel Merchant
– Networking Groups: Women in Ecommerce
64
© FitForCommerce
- 65. eCommerceKnowHow.com
• Knowledge base and Community expertise
• Searching and sorting for eCommerce Solutions
• Do-It-Yourself requirements posting on Opportunity Corner
65
© FitForCommerce
- 66. Best Practices Checklists
Affiliate Marketing Loyalty / Promotions Management
Comparison Shopping / Marketplaces Mobile Commerce
Consultancy / Professional Services Online Catalog / Catalog Management
Content Delivery Networks Online Customer Support / Demos / Chat
Content Management Systems Order Management Systems
CRM Systems Payments / Fraud Services
Customer Care Personalization
Customer Satisfaction Measurement Rich Media
Data Mining / Warehousing Search Engine Marketing / PPC
eCommerce Platforms Search Engine Optimization
Email Marketing Shipping
Gift Card / Certificates Site Search
International eCommerce Social Media
Internet Security Web Analytics
ISP / Hosting Web Design / User Experience
Logistics Website Performance / Monitoring
• Best Practices Checklists
• Key Questions to Ask Providers
• 32 different topics
• www.eCommerceKnowHow.com/bestpractices
66
© FitForCommerce
- 67. Q&A
Bernardine Wu
CEO, FitForCommerce
bwu@fitforcommerce.com
+1 973.379.7399
www.FitForCommerce.com
www.eCommerceKnowHow.com
Thank You
67
© FitForCommerce