Webinar, Sept 17th, 2020 - Portugal Exporta

Prepare to go global:

Webinar, Sept 17th, 2020

AICEP

2

Nice to meet you all!

Iulia CrisanManager, International Growth

Team

3

Agenda

Intros Why How Q&A

Now ?

Online?

Export ?

Google ?

Insights

International framework

Google solutions

4

What’s your industry/sector of activity?

In how many markets do you export?

Is your website available in more than 1 language? Which ones?

How many payment methods do you offer?

Your turn!

Answers in the poll!

5

HowRecap of our framework

Deepdives: Payments, Customer Care, Localization, Logistics

Proprietary + Confidential

Get your gear ready. Prepare your operations.

Customer careHow to manage

customer care when you’re expanding

internationally.

LocalizationLearn about localization when

expanding your business to new markets abroad.

LogisticsFind out the global logistics involved in shipping goods

internationally.

Talent recruitmentUnderstand tips on how to recruit talent in new export

markets.

PaymentsHelpful information about

tackling international payments.

Family history industry’s demand

Proprietary + ConfidentialProprietary + Confidential

Localization

Proprietary + ConfidentialProprietary + ConfidentialProprietary + ConfidentialProprietary + Confidential

How is Google positioned to advise on localization?

Google exports over a hundred products

and localizes in 90+ languages. We’ve got

lots of experience, and have built up

fantastic partnerships to make our products

truly global along the way.

Let us help you in your international journey.

3.5BUsers

100+Products

70+Languages


Why a localization strategy matters?Our advertising clients indicated that localization is the #1 operational hurdle in their internationalization efforts.1

Source: 1. Google internal survey with advertisers. 2. Harvard Business Review: Speak to Global Customer in Their Own Language. 3. Can’t Read Won’t Buy, Localization Survey. 4. Can’t Read Won’t Buy, Localization Survey

72%

of consumers spend most of their time on websites in

their own language.2

82%

of shoppers are more likely to buy if promotional material

is in their own language.3

44%

of exporters say that localizing their website content is a

prohibitive factor for growth.4

https://hbr.org/2012/08/speak-to-global-customers-in-t

http://www.commonsenseadvisory.com/AbstractView/tabid/74/ArticleID/8057/Title/CantReadWontBuy/Default.aspx

http://www.commonsenseadvisory.com/AbstractView/tabid/74/ArticleID/8057/Title/CantReadWontBuy/Default.aspx


What are your localization goals?

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis non erat sem


Step 1 : Understand the language in key markets

Source 1: CIA World FactbookSource 2: EF English Proficiency Index

Source 3: Google internal Data

Market Local Languages 1 English Proficiency 2 Query Share 3

Germany German 63.74 (very high) German 89%English 6%

France French 55.49 (moderate) French 94%English 4%

Poland Polish 63.76 (very high) Polish 94%English 4%

Confidential + Proprietary

Business Considerations

Step 2: Decide which solution is the best for you

● Cost

● Technology

● Internal expertise

● Time

● Quality

● Operational complexity

In-house Outsource

Best if:

★ You have internal expertise★ You have internal

resources★ You want to expand in less

than 5 markets★ You have limited budget

Best if:

★ You don’t have internal expertise/resources

★ You want to expand in more than 5 markets

★ You have budget for localization


Step 3: Set up your process


Set a regular communication cadence.

Review success metrics & KPIs regularly.

How to find the right localization partner

What services do you need?

Do you require technology support or integration?

What is language coverage?

What is expected volume?

Any special considerations (industry expertise)?

Needs assessment RFP ContractingVendor Evaluation

Vendor Management

Look to reputable industry resources for partner suggestions.

Who from the vendor company do you want to meet?

Agree on pilot timelines & success measures.

Identify risks up front.

Pilot with representative content.

Measure against success criteria.

What was the experience like working with this vendor?

Allow time to contract.

Agree upon ongoing success metrics.

More insights available on Market Finder

https://marketfinder.thinkwithgoogle.com/intl/en_us/guide/how-to-approach-localisation/#identifying-appropriate-vendors



High volume, low-visibility content

Standard to low visibility content

Localization services: Not just “translation”

Copywriting

Transcreation

Translation + Review

Creative writer

Human translation

Creative writer

Professional linguist x2

Professional linguist

Writing text for the purpose of advertising or other

forms of marketing

Original content with no source

Highly visible, specialized, and/or brand curated content

Standard visibility content

Adaptation of content into a target language by

professional copywriters

Human translation + independent review of

strings

Human translation of strings

Workflow Content Resource Profile

MT + PE Professional linguistMachine translation + post-editing of strings

Machine Translation N/AHigh volume, non-customer

facing contentTranslation by computer

Cost

Low

High

Qua

lity

Low

High


Payments

Proprietary + ConfidentialProprietary + ConfidentialProprietary + Confidential

Why Payments Matter: Significant conversion and thus (missed) revenue implications by not optimizing

Sources: (1) Paymotion -TheGlobalCheckout (2) Javelin Research, USA, 2015

$118Brevenue missed by merchants in the US, due to unnecessary

declines ²

67% of online shoppers abandon carts because a site does not support

local payment methods¹

69% Customers abandon a site or

app because there are too many steps to purchase

600+Payment Providers exist globally,

which one is the best for your business?

60%International clients say that

acquiring Market Insights is by far the most important capability

Customer challenge Business challenge Implication


Framework to set up your international payments

Step 1: Determine which payment methods are preferred by market

Step 2: Select a Payment Service Provider

Step 3: Design a flawless checkout experience

Step 4: Think through your payment operations


Step 1: Determine which payment methods are preferred by market

Poland

Most Popular PaymentsBank transfer

Alternative Payment MethodsBLIK, PayU, Pay24, Paypal

Implementation StrategyTo gain sufficient market share for Poland it is

recommended that you implement the BLIK eWallet, mobile payment method available to consumers

through major banks. For real time bank transfers PayU & P24 are the most popular options available.

Netherlands


Alternative Payment MethodsiDEAL, PayPal, Afterpay

Implementation StrategyiDEAL real-time bank transfer is the leading payment

method for e-commerce in the Netherlands. Pay Later is the second most popular payment method with

Afterpay and Klarna gaining in popularity. For eWallets, Paypal is most popular with Dutch consumers.

Germany


Alternative Payment MethodsSofort, Giropay, Klarna, PayPal

Implementation StrategyIt is critical to accept real-time bank transfer in Germany either via Sofort (pan-Europe) and/or Giropay (Germany

only). Klarna Pay Later is also popular with German consumers and PayPal is the most popular eWallet

within this market.

Source: Google Commissioned Data ,PPro EU Payment Report 2018. Worldpay Annual Report (2018)


Request for Information (RFI)Set of simple questions geared towards eliminating prospective vendors who cannot address the current need. Used for initial shortlisting.

Request for Proposal (RFP)Comprehensive spreadsheet designed to gather as much information about prospective vendor as possible. Work with cross-functional internal teams to gather all requirements from each department (Finance, Operations, Tech etc)

Step 2: Select a Payment Service Provider

Business requirementsBusiness Overview

Licences Settlements

ReportingRisk Management

Local Acquiring capabilities Account Management Tools

Market DataFOPs Supported

Market ShareNative or redirect CX

Technical RequirementsTest environment

Maintenance & upgrades System throughput

Browser supportTraffic Volume capabilities

Security AuditsEncryption

Service Level AgreementSystem Availability

Scheduled downtimeSystem OutagesResponse timeSupport hours

Escalation process

Pricing% Fee,

Flat Fee Service tax

Additional fees

RFP Sample


Step 3: Design a flawless checkout experience

Provide Secure checkout

Offer users’ preferred Form of Payment

Make it easy & fast


19% Shoppers who said they bought from an unfamiliar site because it included trust signs like Norton and McAfee*

What convinces shoppers to buy from an unfamiliar website?

Source: https://vwo.com/blog/vwo-ecommerce-cart-abandonment-report-2016/

https://vwo.com/blog/vwo-ecommerce-cart-abandonment-report-2016/


19%Shoppers who said they bought from an unfamiliar site

because it included trust signs like

Norton and McAfee*

Source: https://vwo.com/blog/vwo-ecommerce-cart-abandonment-report-2016/

Source: “Online Shop Seals of Approval“, Statista, USA 2017

Would you generally say that you would have faith in the reliability of a shop you haven’t yet purchased from if it displayed a seal of approval on its website? I trust the shop…

Seals of approval can raise trust for 74% of users on mobile. Mobile online

74%

28% significantly more

46% somewhat more 2% less than without

23% as much as without




Step 4: Think through your payment operations

What is a Decline?A Declined transaction refers to a transaction that cannot be completed when using a credit/debit card as a payment method.

There are many reasons that a card may be declined, for example it could be that there could be some sort of miscommunication between the merchant and the issuer or it could be that the customer does not have sufficient funds in their account to complete the transaction.

Declined Transaction Impact

Loss of Sales

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Reputational Impact

2

Operational Impact

3

Customer Impact

4


What can you do to increase auths and reduce declines?

Account Updater/Tokenization

Allows for a newly issued card to be automatically updated on your site. Saving time and friction for the consumer in the checkout process.

Retry Logic

Certain types of decline codes can be automatically retried up to a certain limit. Circa 7% uplift in authorisation if enabled.

Smart Routing

If you have more than one processor you should analyse your data and see which provider has the highest chance of authorising a transaction by card type. Can see a circa 3% uplift in authorisations.

Date and Time

The date and time you charge customers can be critical:

● Charging people after payday can reduce insufficient funds declines

● Charging at night can result in higher declines (issuer risk model)

Fraud Settings

Invest in analysing your decline data and testing different fraud setting with your fraud risk provider.

Experiment with different 3DS settings to find the right balance for your business.

Process Locally

Processing through a local entity in any of the international markets you operate in will increase your authorisation rates in that market.


ResourcesPlan you payments operations with MarketFinder

https://marketfinder.thinkwithgoogle.com/intl/en_ie/topic/payments/


Customer Experience


Customer Experience plays a critical role in the customer journey to increase sales & influence loyalty

Sources: (1) Microsoft, State of Global Customer Service Report, (2)'Contact Centers Must Go Digital Or Die', 2015 - Forrester.com (3) Gartner, Technology Research

Failing to support consumers at the right moment can result

in missed conversions

55% of online shoppers will abandon a purchase if they can’t quickly find

an answer to a question.2

Customer experience is a critical factor to retaining

loyal customers

60% of global consumers have stopped doing business with a brand due to a

single poor customer service experience.1

Companies need to be able to keep up with demand across different channels

By 2020, >85% of customer interactions will be managed

without a human.3

https://info.microsoft.com/dynamics365-global-state-cust-service.html

https://go.forrester.com/blogs/15-04-23-contact_centers_must_go_digital_or_die/

https://www.gartner.com/technology/home.jsp


Common challenges faced with customer loyalty

Lack of customer care insights

Unsure if the current customer care support methods available

are inline with customer expectations

1

High ticket volume

New outsourcing partnerExplore new outsourcing partners to achieve global scale and optimize cost of current support operations

High ticket volume

Have difficulty managing support enquiries or tickets,

putting customer loyalty at risk

2

Low customer satisfaction score

Experience low customer satisfaction score and low morale in the support team

3

Subpar customer self-service experience

No or limited self-serve resource (e.g. FAQs) and unsure how to

optimize the experience

4

5

Global retailers must diversify CX strategy based on user behaviors and market expectations. Post-sales retail volumes consistently high with markets in Asia showcasing highest volumes across the journey, including pre-sales.

Q: When making your purchase, at which point did you need the customer care service? Multiple answer option

26 34 30 28 24 42 21 25 27 38 32 26 70 60 49 57 50

34 49 44 31 38 46 35 35 40 39 52 31 57 30 47 47 54

54 34 49 54 51 31 55 60 58 47 34 55 39 65 67 52 50

< 30 % 30 - 50 % > 50 %

After purchase

During purchase

Before purchase

Pre-purchase top user issues: Additional product details, delivery & payment options, alongside upfront information on product refund/ return policy and in-store availability.

Q: What were your reasons for using/contacting the customer service? Multiple answer option

77 62 62 68 74 84 72 51 77 71 78 75 70 81 72 80 74

34 42 41 42 21 25 35 37 60 32 55 33 42 44 10 46 48

25 22 33 17 16 30 19 32 54 21 51 14 31 50 35 37 29

8 19 34 12 12 21 23 24 25 28 28 22 32 42 28 25 34

8 15 18 10 10 20 15 27 29 13 26 16 28 27 35 48 31

Information on delivery options

< 40 % 40 - 60 % > 60 %

Information about cancellation/refund/return policy

Information on payment methods

Available online channels/ outlet locations

Information on the product/service

During-purchase top user issues: Continued questions regarding product information, availability and promotions, alongside loyalty & promotion details.

54 48 44 65 50 58 63 41 57 50 61 44 50 56 66 54 56

24 61 47 37 41 47 56 36 53 39 59 36 51 49 53 56 52

25 23 44 10 20 41 27 36 49 44 51 34 53 32 29 65 56

17 25 20 5 4 21 10 30 12 15 5 25 23 33 19 53 41

6 11 8 4 8 10 7 13 6 9 5 8 14 23 9 15 14

Product/service current availability

< 20 % 20 - 40 % > 40 %

Claim of rewards/loyalty programme

Promotions to be applied

Password/account related issues

Information on the product/service


Post-purchase top user issues: Returns, refunds and problems with the product or delivery drive the majority of post-purchase contact volumes.


4

43 38 40 42 38 52 43 47 34 52 34 50 51 57 60 48 52

40 36 32 33 42 38 34 34 37 51 33 12 54 36 63 59 49

26 26 33 28 29 31 24 26 45 25 41 17 39 24 43 36 40

10 14 21 16 9 21 19 8 16 9 28 12 40 51 39 53 16

5 26 9 4 11 13 15 11 35 5 8 13 21 25 20 28 20

Problems with product received

< 20 % 20 - 40 % > 40 %

Questions about usage

Delayed or incorrect delivery

Change purchase

Return or refund

Globally, self-service is on the rise, indicating that a detailed, easy-to-use system can be effective in reducing subsequent customer service queries.

62 65 83 64 69 68 83 79 93 63 80 56 87 93 89 76 82

66 64 82 59 70 63 70 75 90 57 77 55 80 85 89 81 74

79 69 85 70 78 66 80 69 89 68 80 69 83 90 89 80 82

< 60 % 60 - 80 % > 80 %

After purchase

During purchase

Before purchase

Q: Do you usually use the company’s online self-service support portal (eg the Frequently Asked Questions section: FAQ) to try and find the response to a customer service question, before contacting the company?

Self-help dissatisfaction driver: Too little information is the key for user issues with self-help, followed by disorganized or outdated info or the lack of a search capability.

67 57 85 68 73 69 7 67 70 72 55 82 47 63 81 71 78

45 33 37 30 36 28 58 26 36 26 36 31 40 13 29 51 26

14 30 20 16 36 22 44 33 17 21 32 24 33 13 8 23 41

17 30 20 14 12 31 35 20 19 13 16 24 33 19 29 28 31

8 7 2 5 5 6 16 2 13 6 23 7 33 13 8 7 9

< 30 % 30 - 50 % > 50 %

Disorganised information

Outdated information

No search capability

Too much information

Too little information

Q: What are the reasons for not finding the answers to your questions? Multiple answer option

Typical path to customer service: Key takeaways

Contact levels are greatest after purchase and will often involve product issues, returns or refund requests

Product information is the primary reason for contact before and during purchase - if this is communicated clearly & comprehensively it can reduce contact levels

Refunds and returns are important factors for post-purchase communication - offering a clear & straight-forward refund policy can be beneficial in terms of building brand loyalty

1

2

3

Reasons for not using online self-service: Global preferences for personalized service and human interaction damper self-help utilization. Dynamic self-service that offers a personalized experience will cater to these users & decrease contact.

45 58 47 43 49 42 40 46 37 46 59 46 40 25 41 36 36

40 22 40 45 29 41 48 51 48 54 38 52 36 28 15 34 56

25 23 47 26 13 12 20 32 30 19 16 25 23 16 32 25 28

11 14 19 8 15 8 13 18 22 10 12 9 21 9 18 27 16

4 6 16 2 6 12 17 11 15 10 19 7 19 25 12 20 10

Preference for human interaction

< 30 % 30 - 50 % > 50 %



Not clear how to access

Prefer a personalised service

Q: Why do you not use this service (online self-service portals)? Multiple answer option

Reasons for not finding answers via self-service: Primary pain point is scarcity of information. Online self-service should be well-structured, easy to access & navigate, and comprehensive. Top user issues should be clearly addressed.

67 57 85 68 73 69 7 67 70 72 55 82 47 63 81 71 78

45 33 37 30 36 28 58 26 36 26 36 31 40 13 29 51 26

14 30 20 16 36 22 44 33 17 21 32 24 33 13 8 23 41

17 30 20 14 12 31 35 20 19 13 16 24 33 19 29 28 31

8 7 2 5 5 6 16 2 13 6 23 7 33 13 8 7 9

< 30 % 30 - 50 % > 50 %


Outdated information

No search capability

Too much information


Q: What are the reasons for not finding the answers to your questions? Multiple answer option

Online self-service portals: Key takeaways

A large proportion of consumers are already accessing online self-service portals - the key lies in ensuring they are able to find the information they need

Making online self service detailed, easy to navigate and flexible enough to respond to specific personalised needs is necessary to have a comprehensive service

The desire for personalised information and human interaction indicates that the most effective customer service platforms will offer multiple channels

1

2

3

Confidential + Proprietary40

Remove language barriers impacting customer communications with our newest technology partner

Confidential + Proprietary41


Logistics


Logistics plays a critical role in the customer journey Consider the following;

56%

...of consumers abandoning an online shopping cart did so because the delivery options on offer were too

expensive

Delivery experience is a critical factor in purchase decisions

61%

...of customers bought goods from one retailer over another because

they provided more delivery choices

Failing to meet local consumer expectations can result in missed

conversions

38%

...of consumers state they would never shop with an online merchant

again after a negative delivery experience

A poor delivery experience can result in poor brand perception and losing

out on repeat business

Sources: Source: Metapack - State of eCommerce Delivery 2017


Sources: (1) Google Ads & Insights Global Research, March 2019; (2) “Features that would motivate millennial mothers worldwide to make a digital purchase” March 2018, eMarketer PRO; (3) “Which Services Do Shoppers Worldwide Expect Brands and Retailers to Offer?” March 2019 eMarketer PRO; (4) “Satisfying returns policies can lead to loyalty”, 2018 eMarketer PRO

Awareness PURCHASE

RETENTION

ADVOCACY

CONSIDERATION

A high quality experience: The right

product at the right time

The right product available at the right delivery cost

A compelling delivery proposition to differentiate

yourself from your competition

Keep customers coming back even if they return the

product

5 Key Stages of the customer journey


Global customers state clear

information about delivery charges

before purchase is the most important delivery element to

be actioned by e-tailers

70%CONSIDERATION


Global customers state consider a

landed cost calculator at

checkout to be a critical element of

product delivery for e-tailers

51%PURCHASE


E-commerce customers want to be able to select a delivery location when they order

from online retailers

54%PURCHASE


Customers are looking for full

visibility of their shipments

throughout the delivery process

49%RETENTION


Market insights

Top delivery preferences

71% of digital buyers think it is important to be able to change the delivery day or time after a product is despatched

55% of customers say that fast delivery is important (one of the highest in Europe)

Est 2019retail ecomm

Revenue

Est YoY Growth (2020)

Avg delivery lead time

$9.9Bn

2-4Days

Only 46% of Polish consumers buy cross border, citing longer delivery lead times from cross-border purchases as the reason

Delivery to Office / Work Location

After Hours / Weekend Delivery

2%

12%

Home Delivery47%

Parcel Lockers / Kiosk Pickup Point21%

POLAND

11.5%

Source: Statista, UPS”Pulse of the online shopper”,PostNord, World Bank.

MARKET INSIGHTS

Create your fulfillment strategy: Four key questions to help you determine which strategy works for you

STRATEGY SERVICE LEVELS INVESTMENT MODE

What is your long-term strategy?

Scale regional presence

Scale & focus in a single market

What level of service is most important?

Low cost shipping

Fast delivery

Flexible delivery

What type of investment are you prepared for?

Whatever investment is necessary

Low up-front investment

What mode(s) of transport will you use?

Intermodal transport

Road only

Fastest possible mode(s)

© Google Inc. 2016. All rights reserved.

Logistics hubs in Europe

ES

FR

UKDE

IT

AT

NL

NO SEFN

PL

DK

IE

Germany (DE)

Hubs: Frankfurt, Dusseldorf, MunichThe most mature market for distribution across Europe; easy reach across all European markets, reaching majority of markets with 2-day ground delivery LT; one of the largest points of import to EU

France (FR)

Hubs: Il-de-France (greater Paris), Marseilles, LilleGreater Paris has strong air cargo capability; port at Lille is a large shipping port; Marseilles is a large shipping port & import point for sea freight; FR enables fast delivery to Spain, Portugal, UK, Italy markets

Netherlands (NL)

Hubs: Antwerp, RotterdamTwo the largest Logistics hubs in the world; significant access to western European markets; import points via air & sea

Poland (PL)

Hubs: Warsaw & LodzUp and coming logistics hub to serve Western & Eastern EU markets; connected to China through the “Belt & Road Initiative” with significant land volumes coming into Poland from China

RECYCLE

REFURBISH or REPAIR

AUCTION / DISCOUNT

REDISTRIBUTE

DONATE

SCRAP / DISPOSE

Optimise your returns by keeping them as close to their destination markets as possible

54

Thank you! [email protected]

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Webinar, Sept 17th, 2020 - Portugal Exporta