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In-house fulfilment to be customer centric?
Lisa Freynick, Group e-commerce manager at Euroflorist
A BIT ABOUT ME Lisa Freynick
LANGUAGES
DIGITAL MARKETING
HANDS-ON TARGET ORIENTED
CREATIVE EAGER FOR KNOWLEDGE
SELF-RELIANT TEAMPLAYER
DIGITAL NATIVE
ENTREPRENEURIAL FUN NETWORK
ACCOUNTABILIY
German English French Dutch
Strategy & Concepts
Leadership
(IT) Project Mgmt
CRM
campaign Mgmt
copy writing
SEO
social media
Web analytics
e-learning / webinars
SOME FACTS ABOUT US Euroflorist
» Flower delivery company
» Est.1982 in Malmö, Sweden
» Yearly turnover of €115m
» 12 countries, 27 ecom sites, 8 languages
» 200 colleagues
» 9 brands
...but why do we exist?
To help our customers make their friends, family, colleagues
and loved ones feel happy, noticed and remembered
and to make our florists lives easier and more profitable
Euroflorist sends >2 100 000 SMILES yearly!
How did we get to > 2 100 000 SMILES
yearly?
“It is not the strongest of the species that survives, nor the most intelligent that survives.
It is the one that is most adaptable to change”
Quote attributed to, but not actually, Charles Darwin
Euroflorist WHAT WE LEARNED
» We must listen to customers, watch the market carefully and be adaptive to change, innovative and fast
» But also stick to our WHY
Brand value
Customer needs
Market conditions
Euroflorist E-COMMERCE SINCE 1995
1995
First online
order
1998
2010
acquire Eflorist, launch boxing
Early 2000’s International expansion O
rders
2010-2014
CAGR 30%
First online order in 1995
What we do to stay customer centric
» Listen to and stay in dialogue with customers
» (social media, customer service, surveys, face-to-face interviews)
» Markets are different!
» Testing is crucial – your solution might not fulfil customer demand
» Be up to date regarding technical developments
» Be innovative as services (products) might not exist so far, but customer want
Our products are: Flowers
& Gifts
Our fulfilment models
Euroflorist 1# CUSTOMER FULFILMENT MODEL - FLORISTS
Flower order: London, 10:00 o’clock
Same day delivery: Paris, 14:00 o’clock
FLORIST FLORIST
Right now our strongest USP is Same Day Delivery
and Last Mile Delivery
…via a network of 13.000 professional florists across Europe
Tomorrow this will be standard for all
Euroflorist HOW CUSTOMER CENTRIC IS THE MODEL?
Pros Cons
Delivery time - Same day / in hours - Limited opening hours, white spots
Track & Trace - Very limited after order confirmation was sent out
Product quality - Very good - florist quality & very
individual/personalized
- Limited regarding match to product pic used in e-Shop
Storage - Florist keeps stock - Controlled by florist - Limited regarding product variety
Returns - Mainly no returns - No auto process - Customer service needs to be involved
Branding - Possible, but with limits & hard to track
Euroflorist WHAT WE LEARNED
» This model has a lot of advantages in regard to growing our business and having time to engage with our customer while no costs for storage & low expenses
» To ensure a customer centric approach both parties need to commit on a consistent fulfilment process (e.g. exact product/s, what packaging, feedbacks during and after delivery etc.)
Euroflorist #2 CUSTOMER FULFILMENT MODEL - BOXING
Flower order: Paris
Next day delivery: Berlin
box provider
Euroflorist HOW CUSTOMER CENTRIC IS THE MODEL?
Pros Cons
Delivery time - No same day delivery
Track & Trace - Great
Product quality - Very good - No personalization
Storage - At boxing provider - Controlled by EF - Big variety of products
Returns - Mainly no returns
- No auto process - Customer service needs to be involved
Branding - Full control
Euroflorist WHAT WE LEARNED
» With this approach we have low costs for storage and pay an expenses not employee
» A customer centric approach is easily to ensure as we can put our expectations regarding the fulfilment process in the contract with the provider
Euroflorist #3 CUSTOMER FULFILMENT MODEL – OWN STOCK MANAGEMENT
Flower order: Paris
Next day delivery: Berlin
Euroflorist
Euroflorist HOW CUSTOMER CENTRIC IS THE MODEL?
Pros Cons
Delivery time - No same day delivery
Track & Trace - Great
Product quality - Very good
Storage - Own storage - Big variety of products
- Limited storage
Returns - Auto process – in-house return management
Branding - Full control
Euroflorist WHAT WE LEARNED
» With this approach we have costs for storage and need employees to do the fulfilment
» Depending on product – better pricing / higher margins due to cutting out middlemen
» A customer centric approach is easily to ensure as we have the fulfilment process almost fully in-house
Conclusion:
Fulfilment doesn’t have to be done in-house to
exceed customer expectations
Euroflorist CUSTOMER CENTRIC FULFILMENT
EF brand experience framwork
order Order release Picking or production
Packing Shipping
Euroflorist WHAT WE LEARNED
» Outsourcing process steps help to be even more customer centric:
– More time for growing our business customer centric
– More time to engage with customers
– Companies specialist on a certain fulfilment process step will be always better than us
» The key: a customer centric fulfilment process must be clearly defined and followed - doesn’t matter if in-house or by external fulfilment companies
What will come next?
https://www.youtube.com/watch?v=5v1hKMNl034
