Modernchallenges of the e-commerce

Grow customer retention and personalize approach

Milan RadakovicE-commerce directorof the eComlogic

+2 real case studies

Key challenges:

Making customer

data actionable

Customer retention

Different sales channels

management

Cross-channel

communication

1. Making customer data actionable

a. Purchase history

b. Type of marketing to which

customer responds

c. History of the customer

behavior on the web page

a

b

c

2. Customer retention

1. Trigger actions based on the customer behavior

2. Customer segmentation

3. LTV

2.1. Trigger actions based on the customer behavior

1: Customer didn’t

buy anything

3: We received the

customer size

2: Customer didn’t

come to the web page

> 2 M O N T H S M S + E M A I L N O T I F I C AT I O N

N O T I F I C AT I O N

2.2. Customer segmentation

— We shouldn’t treat all the customers in

the same way

— Classical segmentation: first-time users,

highly valued users and inactive users

— Modern segmentation: each customer =

individual segment

2.3. LTV

N E W C L I E N T A F T E R 1 Y E A R

50€ 60€ 250€ }- + +

3. Different sales channels management

4. Cross-channel communication

It is not enough to have only multi-channel communication it is important to have cross-channel

automatization based on the customer behavior and changes with the customer order (e-mail, sms,

messengers, push notifications etc).

PROTEIN PROTEIN

SHORTSSELECTION

PROTEIN REMINDER

Example 1:

Example 2:

2 CASES STUDIES

CASE STUDY 1

FiziosferaOnline shop for physiotherapy(medical supplies and devices)

How did they work with customers before eComlogic?

Problems:

Incoming and missed calls

Different sales channels

management

Upsell and cross-sell

No SMS notification

Lack of customer

retention

OTHER PROBLEMS:

EXAMPLES:

Lack of delivery service

integration

1. E-mail marketing was without any segmentation

2. To send a newsletter we had to export all database

3. It was difficult to find customers who buy specific product

4. Every time was necessary to export e-mails and phone numbers

Lots of data that doesn’t give

any information

After implementation of the eComlogic

1. We customized order statuses so that the employees could work as a conveyor.

They shouldn’t have any order in the status they are responsible for.

WHAT DID WE DO:

Transferred to packaging 3

Packaging in progress 7

Transferred to packaging

Packaging in progress

2. All sources are integrated with eComlogic

3. Integration with delivery

service DPD

4. Customers were divided into the static and dynamic customer segments

Based on the type of medicine we divide customer by the type of the problem they have.

Twice per month we send them e-mail with advices / news based on the problems they have.

STATIC SEGMENTATION:

C U S T O M E RW I T H A B A C K A C H E

G O O D SF R O M B A C K A C H E

Based on the customer behavior we create rules for different scenarios.

DYNAMIC SEGMENTATION:

1: VIP customer didn’t buy anything

2: After surgery recovery

C U S T O M E RA F T E R S U R G E RY

G O O D S F R O MT H I S C AT E G O RY

> 2 M O N T H N O T I F I C AT I O N

3: Pregnant woman

4: Customer testimonial

P R E G N A N T C U S T O M E R F O R 9 M O N T H S

A U T O M AT I C TA S KO F R E P LY C O L L E C T I O N

5: Medical treatment with 1 month break

R E M I N D E RT O B U Y A M E D I C I N E

M E D I C I N E T R E AT M E N T

Results of the implementation

Clear structure of the business

process

It is easy to control wick points

of the business

Full control of the packaging

Automatization of the customers

retention rate

Complete order history

RESULTS 1 YEAR AFTER THE IMPLEMENTATION:

— 40% less time for order processing

— 70% increase of the retention sales

— 250% increase of the profit within 1 year

CASE STUDY 2

101 roseFlowers online shop

How did they work with customers before eComlogic?

All orders were in Excell spreadsheet

PROBLEMS WITH ORDER MANAGEMENT IN EXCELL

Everything is good until we have 1 sales

manager and up to 10 orders per day

Problems begin as soon as the company grow

and we add another sales manager:

— It is difficult to find information about the customer

— Lot’s of manual work

— It is difficult for two sales managers to work at the

same time

How did the implementation of eComlogic look like?

Q U I C K I M P L E M E N TAT I O NW I T H I N 4 W E E K S :

Configurationof the business process

Implementationof the Stock

management system

Integrationwith CMS

Integrationwith VOIP

Business processes

N E W O R D E R Q U A L I T Y C O N T R O L

PAY M E N T C O N T R O L

O R D E R L I S T F L O R I S T P R E PA R E S B U N C H

D E L I V E RY

Order processing from status new to completed take in average one hour

Order list List of order with the map

Retention sales

1. Progressive discount rate for all the customers of the e-shop

Customer recognition helps to personalize customer service

and reduce time needed to find customer in the database

2. Integration with VOIP Zadarma

Integration with stock management system

Second step of the integration

Synchronization between

eComlogic and ERP

Customer ordered a bouquet of red and white

roses. During the complectation the absence of

fresh flowers appears. Product status is changed

to "Poor quality".

The operator gets the task to offer other flower

combinations to the customer.

Customer segmentation

“special days” in the year (mother day, women day, St. Valentin day etc).

STATIC CUSTOMER SEGMENTS:

Example 1:

All the customers receive:

・ E-mail 7 days before women day with top offers

for women

・ E-mail 5 days before women day – special offer

・ E-mail 3 days before woman day – reminder

・ SMS message 1 day before woman day – it seems

that you forgot to buy flowers

S M S + E M A I LA N Y H O L I D AY

based on the customer behavior and habits we create rules for different scenarios.

DYNAMIC CUSTOMER SEGMENTS:

Example 1:

Based on the purpose of the order we divide customer

into the different customer segment. If your wife has

birth day on the 1.12. there is almost 100% probability

that she will have birthday next year on the 1.12

Example 2:

Based on the AOV and age of the customer we offer to the customer to buy also teddy bear or chocolate.

If the ...

1 6 - 3 0Y E A S O L D

AOV > 50€

AOV > 100€

AOV > 200€

<10€

10-20€

20-40€

> 3 0Y E A S O L D

AOV > 50€

AOV > 100€

AOV > 200€

<10€

10-20€

20-40€

? ? ?Y E A S O L D

AOV > 50€

AOV > 100€

AOV > 200€

<10€

10-20€

20-40€

OR

OR

OR

Number of sold teddy

bears was increased

Number of sold

chocolates was increased

x3 x4

Example 3:

Personal discount for the favorite color.

-5% -15%-7% -10%

Impacts of the implementation

— Number of orders has

been increased by 40%

— The same number of sales

managers can process all

orders

Questions?

Thank you foryour attention!

www.ecomlogic.com

milan@ecomlogic.com

+44 2070437182

Come to visit us on our stand №25