New Study on FMCG Brand: Slow-Moving Giant Buying Up Niche Players Posted on 3. August 2015 | by Christian Otto Grötsch Photo: Pixel Drip Hard times for the FMCG branch: the average growth rate of the 50 strongest consumer goods producers in the world is in decline for the second consecutive year since 2014. Growth has shrunk from a subdued 2.9% in 2013 to just 1.7%, according to the figures in the 14th edition of the “Trends und Strategien im Konsumgütermarkt” study from OC&C Strategy Consultants. Continue (No Ratings Yet) Loading... Categories E-Commerce
Customer loyalty – collected wisdom Posted on 30. July 2015 | by Christian Otto Grötsch Photo: Thomas Lapperre There’s a new article on customer loyalty in my feed almost daily and all look at different stages in the customer journey. So I thought I’d collect some of the top tips for you here in one place. Exceed Expectations When it comes to creating repeat customers and building brand loyalty this is a no brainer. So once you’ve covered the basics (fast shipping, friendly customer service), you can start looking at other possibilities for communicating excellence. Each touch point in the customer journey offers different opportunities. There are different ways to denote these touch points, but every online retailer probably shops online themselves and can identify with these: Photo: Starbucks’ cup design campaign The Browse This is where customers clicking through your shop actually experience the look and feel of your company and brand. There is so much more to do here than just product images and info texts. There has been a lot of talk about video being essential. I remain unconvinced. But wherever you stand on video, and whatever your preferred look utilise user generated content. User reviews build trust, and use generated images and stories help brand building and a personal connection with your customer base. Of course, getting up close and personal with customers can be a great way to bond – but not too close or you might come across as creepy! Filling the Cart If you’ve done your job right during browse, this will be the euphoric phase of filling the shopping cart before seeing the final bill and possible cart break-off. Adding a surprise bonus if your customer starts emptying their cart can help push them towards checkout. Purchase This is where customers finally make the decision to fork out their cash. Make sure there is a guest option so new customers don’t have to make an account and incorporate one-click buying options for existing accounts. Payment Payment options can be a huge cause of late cart break-off. Make sure you offer a payment method which does not involve a card or paypal as well as the usual visa options. Shipment There are exciting developments in shipping happening and if you can afford to implement them, it can make all the difference. Amazon’s drones are still awhile away, but if you have a service provider who will do it, scheduled delivery can be a life saver for busy people. It’s no use getting your package within 2 business days if it arrives at your house midday on a work day and you have to sacrifice your lunch break in the next three days to queue for it at the post office because (surprise surprise) you weren’t home. Many companies in Japan now, for instance will let you call and reschedule delivery if you missed your parcel – even for the same evening. The power of low expectations: It is better to say you can deliver in 2-3 business days and have the parcel arrive the next day, than offer one day shipping and fail to meet that promise. Even though same day delivery is being pushed more and more, 2-3 day delivery is still fine. Customers are more likely to remember that their parcel arrived early and always on time than that you offered fast shipping times. And if you couldn’t make good on your promise even just once, that will stick forever. Receipt (Packaging and Freebies) The customer finally gets their parcel and sees the products they ordered for the first time. Many shops to a great job of drawing customers in with gorgeous shop presentation, but forget this key moment when the customer actually experiences the products in analogue – so to say. There are many disappointing things in life, but one of the worst in online shopping has to be ordering what looks like classic boutique clothing online, imagining yourself in the look and atmosphere presented in the shop, and getting a bunch of plastic bags instead. Stationary stores can be divided into the paper or plastic approach: those who chuck your items in a plastic bag vs. those who lovingly pack them in tissue paper and place them in a paper carrier bag with ribbon handles. The offline presentation of your products makes a huge difference in online trade. Sometimes nice packaging can result in social sharing (the best kind of free advertising), like this DYI project Everyone loves a freebie. Even the smallest surprise goody has a huge impact. Keep it small. I still remember the added touches and surprise lolly pops in my first order from a certain special up market shop for women. Steer clear of a ‘hidden’ agenda. There is a place for vouchers, but most of those 5 Euro voucher *only valid with orders of 60 Euros or more end up in the trash and feel more like a cheap flyer than a real gift. Small, but personal is better. On-Going Contact Mail: No one likes spam. Decrease the frequency of mailings and provide high quality content instead. A birthday mail is nice, a real birthday card in the mail is better if you can afford it. Loyalty programmes: The latest report from the 2015 Colloquy census shows that loyalty programme membership has increased by 26% since 2013 with Americans holding an average of 29 loyalty programme memberships per household. However, customers will only be active in a fraction of these. » “Think of the U.S. loyalty market in terms of a crowded party where half of the party-goers are standing in the corner without mingling” – Jeff Berry, COLLOQUY research director « The key to a good loyalty programme is to keep it simple and make benefit direct. Spending brackets, point use-by-dates, and a difficult redemption processes all get in the way of actually bonding with the customer. The basic model – single stage sigh-up, show your card, get points, get a gift voucher or cash back once a points threshold is reached and repeat – is still the best way. Anything more complex than that and few have the time or energy for it. Online card activation is a killer for instance. Returns This is always a tricky one. Returns cost money – make them difficult to deter serial returners or make them easy and no fuss to improve repeat custom? It is a balancing act every shop has to work on themselves. A B testing can help. Personally, I prefer an easy return. Zalando’s resealable box and pre-filled returns form is a great best practice example Customer service Most customer service communication happens once something has gone wrong, making it the last chance to regain customer trust and loyalty before losing them for good. The price of poor customer service is high compared to getting it right. Being able to just write an email and get a personal, real response is the best form of customer service for busy people dealing with problems. Video technical support is great if it fits your shop profile, but not every branch really needs it. In Summary Whatever measure you decide to put your budget into, keep it pretty, consistent, personal, simple, and give a little more than advertised. Finally, the customer is not a different species – fickle, elusive and highly prized. If you have an online shop, chances are you shop online yourself. Buy something from your own shop, sit behind your customer’s keyboard and see what the view is like from there. Continue (No Ratings Yet) Loading... Categories E-Commerce
New Initiatives: What Are Women Doinging in E-Commerce? Posted on 25. July 2015 | by Christian Otto Grötsch Screen: Women in E-Commerce There is no question about it, the e-commerce scene still lies in the hands of men. It was long considered a technical trade, which was more about system landscapes, interfaces, and maintenance than the question, how to awake the impulse to buy. This situation has long since changed. In the past years, traders, system providers, and agencies have started to look at how to create a shopping experience under the banner of key words like: emotionalisation, and female commerce. The female view point as a further development of previous e-commerce concepts has fought its way through to a permanent position on the e-commerce agenda. This is why I though that the “Women in E-Commerce” group I recently found has been long overdue. But a closer look raised some questions. Jochen Krisch has already noted that it is surprisingly the traders association which is pressing forward. While this could be taken as a critique of the organisation itself, the aims of the “WIE” are not clear. Continue (No Ratings Yet) Loading... Categories E-Commerce
Storytelling: How Sanifair and AirBnB Fail at Emotionalisation Posted on 23. July 2015 | by Christian Otto Grötsch Screen: Sanifair advert Storytelling and emotionalisation are core topics in digital brand management and we don’t just deal with them intensively here in our blog. The choice of colour, the right content and should shop systems include emotionalisation as a standard feature, are all questions we pose together with our clients. This isn’t always easy, because apart from excitement and (hopefully) a shopping mood, there is also a whole palette of other emotions you don’t want to awake. For instance, the cringe factor or fremdscham. This is exactly what happened this week with the emotionally charged toilet video from Sanifair and the Tweets about the new AirBnB campaign, which point out the stalker element. Continue (No Ratings Yet) Loading... Categories E-Commerce
Klarna’s Happy: Press Enthusiastically dubs SOFORT Transfer “Unconscionable” Posted on 21. July 2015 | by Christian Otto Grötsch Welcome to the low point of summer 2015! They say there is no such thing as bad publicity. But what happens when leading media starts to spread only half of a court ruling in their headlines? The idea is to get clicks, suspense and all that. But this isn’t ok, especially when the attribute “unconscionable” is used and the idea snowballs into the rest of the internet press. This is currently what is happening with the message “Court Ruling Dubs SOFORT Transfers Unconscionable”, in numerous variations. Background: travel portal start.de offered credit card with a 12.90 Euro charge as the only payment method apart from SOFORT transfers. The district court Frankfurt am Main deemed this to be unconscionable. Continue (No Ratings Yet) Loading... Categories E-Commerce
Amazon Live: The Spending Opportunity Place of The Future Posted on 17. July 2015 | by Christian Otto Grötsch Never mind drones and that pesky long 1/2 hour wait for your products, Colbert has the answer! Continue (No Ratings Yet) Loading... Categories E-Commerce
Cart Outsourceing and Buying Directly in Video: Buy Button Commerce Is Both a Blessing and A Curse for Traders Posted on 15. July 2015 | by Christian Otto Grötsch Click on the products directly in the video. Screen: L’Oreal Paris Videos have been the darlings of e-commerce for a long time. With buy buttons, which we’ve already talked about, the trend is picking up speed and clearly heading in the direction of e-commerce scenarios. Initial tests are going well: US traders Wayfair have reported threefold sales via videos. Shoppable Trueview-ads, which can be combined with interactive cards (offering further information) make this possible. Continue (No Ratings Yet) Loading... Categories E-Commerce
Terrific or Terrible? At What Point Does the Customer Dread the “Future Store”? [Infografic] Posted on 13. July 2015 | by Christian Otto Grötsch Photo: Jamie McCaffrey We have already noted how digital point of sales have left some open questions. What technology is allowed to do is one of these. Push messages on your smartphone, controlled by beacons without your permission, are known to be deemed creepy by customers. Paradoxically, personalised offers are in demand, as long as they give the customer an advantage. So, the store of the future has to achieve a balancing act – have personalised offers at the ready without creating a weird atmosphere. RichRelevance asked 1000 North American consumers where their boundaries are, in their “Creepy or Cool” survey based on in-store services – what is great service, where is the border between that and harassment? Continue (No Ratings Yet) Loading... Categories E-Commerce
Net Find: How Wix.com Made a #Win out of Their Naming #Fail Posted on 13. July 2015 | by Christian Otto Grötsch The Israeli homepage building block provider Wix.com certainly didn’t know what wix means wank in German which they started out in 2006. But they have showed a lot of humor in their entry into the Germany market with tongue in cheek catch phrases like do it yourself, millions do it every day, or my wife got me into it Via t3n Continue (No Ratings Yet) Loading... Categories Net Find of the Week
Perspectives & Intervals: How Do I Build Up a Business Mectrics Systems? Posted on 13. July 2015 | by Christian Otto Grötsch Photo: Josep Ma. Rosell Normally, people differentiate between data which is called-up on a daily, weekly, or monthly basis. Ideally, this means that there are no more than 15 central key metrics left over which have to be looked at every day. It makes no sense to determine 80 metrics, just because it is technically possible. We show you how a business metrics system can be structured and what metrics to pull-up when. Continue (No Ratings Yet) Loading... Categories E-Commerce