How Ancillary Sales Can Drive Revenues and Optimize Customer ExperienceSam K.Research Analyst

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Why Me?

Quantitative and Qualitative Expert

Expert in Integrating E-Commerce with Businesses

Passion is helping you convert challenges to opportunities!

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Research & Business Objectives

•Does optimizing ancillary sales drive revenues and enhance customer experiences (CX)?

•Highlight challenges in the data

•Recommend how to convert the challenges to opportunities

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How?What: The project fielded a survey on 159 companies and a100% were completed

Who: CEOs and managers in different industries with responsibility for ancillaries

How: The survey asked about vital signs of ancillary sales and how this affects revenues

and CX.

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Executive Summary

Ancillary sales are here to stay!

Businesses need to better integrate e-commerce in their websites to customize ancillaries

Businesses need to better understand drivers of CX

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E-commerce is growing!

Key Performance Indicators

Ancillary sales are a priority

Ancillary sales perform well

Businesses need to better understand the drivers of CX

Detailed FindingsAncillary P&S are a Priority!

Critical Priority14%

High Priority49%

Moderate Priority29%

Low Priority8%

How Much a Priority is it to Grow Revenues From Cross-Sell of Ancillary P&S?

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77% of respondents offer ancillaries through their online channels.

Performance Indicators81% are on or above target!

Well Below Target3%

Somewhat Below Target16%

On Target37%

Somewhat Above Target37%

Well Above Target7%

How Has the Sales Revenue of your Ancillary Products Performed Against Targets outset for this Program Overall?

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Reven

ue

Margins

Custom

er ex

perie

nce

Innov

ation

Custom

ized o

fferin

gs

Relatio

nship

with

custo

mer

New pr

oduc

t dev

elopm

ent

Compe

titive

diffe

rentia

tion

Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

7% 9% 5% 3% 6% 7% 3% 3% 5%

29% 21% 26% 32% 27% 22% 29%22% 19%

46%

39% 41%38% 44% 50% 42%

43% 47%

16%

28% 25% 25%22% 19% 25%

28%27%

Significant positive impact

Moderate positive impact

Neutral

Moderate negative impact

What Impact have your Ancillary P&S Sales had on the Following Areas?

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Focus

on th

e sale

of an

cillar

y prod

ucts

Broade

n or s

hift o

ur tar

get m

arket

Conve

rting a

high

er pe

rcenta

ge of

web

traffic

Proacti

vely

cross

-sell p

roduc

ts po

st-pu

rchas

e

83%

67%

50% 50%

What Strategies Will your Company Employ to Respond to Decreasing Margins in your Digital Channels?

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0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.450.422764227642277

0.268292682926829 0.260162601626016

0.219512195121952

0.0650406504065041

Companies Test Their Ancillary P&S to Great Results!

What Testing Methods, if any, Do You Use for Ancillary P&S?

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But… Challenges Exist…

Technology and Other Logistics are Not Easy to Implement

Timing of Ancillaries in Customer Journey

More Engagement Necessary with CX

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Technology does not allow customization of ancillaries

Getting execu-tive buy-in

No relevant product options

Not enough people who can focus on

this

Lack of budget No challenges No technical resources available

37%35%

22% 21%

18%

11%

7%

What Are your Biggest Challenges in Selling Ancillary P&S?

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0.472222222222222

0.1944444444444450.1944444444444450.1944444444444450.1388888888888890.138888888888889

0.111111111111111

Why Do You Not Sell Ancillary P&S on your Website?

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On a de

dicate

d anc

illary

produ

ct pa

ge

In the

shop

ping c

art

On the

side

bar

In po

st-pu

rchas

e com

munica

tions

In ba

nner

ads

Via int

erstiti

al pa

ges o

r pop

-ups

50%

36%33% 32% 31%

26%

Where on your Website Do you Suggest Ancillary P&S?

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Again… Summary

Ancillary sales are here to stay!

Businesses need to integrate technology to customize ancillaries in the right time and place

Businesses need to better understand the drivers of CX

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Next Steps…

The CEO or Middle Managers won’t know the CX more than the customers themselves!

Integrate online ancillaries in customer journey more directly.

Companies need to more closely engage with CX.

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Sam K.Researcher

Thank you!

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