Functionality essentials with your eCommerce platform for UK and cross-border growth

SCALABLE TRADING ONLINE

• The eCommerce market in 2015 – Platforms, Trends and Market Drivers

• Required capabilities – What do you need to compete successfully online

• Cross Border commerce – Why it’s exciting and what do you need to consider

WHAT WE’LL COVER TODAY

The eCommerce market 2015 - Platforms, Trends and Market Drivers

Platform options you typically will see

• Functional Commerce market options• B2C, B2B, B2B2C, Omni-channel, Call-centre, Mobile, Order Management, MDM

• Technical foundation languages• Java / .NET / PHP

• Commercial Approaches to deliver an eCommerce solution • Software License Purchase / PAYG / SaaS / Gross Merchant Value (Revenue Share)

• Deployment Architecture / Operations• You Host / Managed Service (Multi-tenant or Dedicated) / PaaS / Virtual Environment

Gartner Digital Commerce Magic Quadrant 2014 Forrester Wave B2C Commerce Q1 2015

The Enterprise eCommerce platform landscape for the Analysts

Selling through your eCommerce platform it’s not just a website to create

Pages

ImagesCustomer Journeys

ContentManagement

Reporting

Fulfillment & Order Management

Promotions

Custom Tooling Merchandising

Payments

Segmentation & PersonalisationReturns &

Exchanges

Channel Management

Back End business systems –ERP, Warehouse, Finance etc.

Business constraints and platform issues the market talks about

• Lack of basic / commodity features– search, browse, category hierarchy/mapping

• Inflexible – difficult to manipulate templates and layouts

• Expensive to develop / keep the lights on

• Project delivery poor – poor scoping and late delivery of development

• Lack of reporting

• Cannot extract data without project request through support or development

• Problems with checkout that cannot be identified or resolved

• No roadmap for international markets, very ad-hoc in approach

• Additional channels time consuming and expensive to build

and run

• No economies of scale from other retailer developments

• Lack of resources for project delivery

• No visionary roadmap

• Difficult to integrate to – cannot work well with 3rd parties

• No API capability for plug ins

• Drains resource and time internally due to effort around management

• Business users and internal teams are not empowered to control sites

So what are todays major drivers?

Drivers from the market research being carried out in UK Retail

• Deloitte’s – Digital in UK Retail 2015

• 2015 will see +15% of UK spend online

• 20% Market Growth online, but 1/3rd of spend influenced online - £100billion

• Customer Experience is the key differentiator

Drivers from the market research being carried out in UK Retail

• Adobe Digital Intelligence Survey Q1 2015 – Customer differentiation survey

• 44% - Customer Service/ Customer Experience – make online rewarding, reliable,

trusted and fun

• 28% - Product or Service Quality

• Price - …what do we think as a %?

Drivers from the market research being carried out in UK Retail

• Technology related challenges in eCommerce – Technology for eCommerce 2015

• 44% - Integration with legacy systems

• 40% - Personalised shopping experience

• 36% - Engagement across multiple devices

• 33% - Investment requirements

• 17% - International

Platform capabilities – What do you need to compete successfully online

Leverage of the 4 Pillars for Customer Engagement using the platform

Search/Navigation

Guided Selling

Reviews & Ratings

Behavioural Targeting

Social Content

Newsletter

Vouchers/Promotions

Loyality Programs

My Account

Personalisation

Cross-sell, Up-sell

Recommendations

Easy payment/

checkout

Promotions

Search Engine friendly

Affiliate Marketing

Forums

Online Marketing,

Tell a friend,

Wish-lists,

Gift Certificates

ReachBrowse or

Find

ConvertRetain

Deliver multiple types of Product Information

Rich product presentation

Product description

Product features

User-generated content

Product videos

Leveraging Content Management for a rich site

• Product reviews are key in purchase decision for consumers (76% relevance) – Provide an implicit customer reference

• Inexpensive and valuable content

• Search engine optimization uplift through more relevance

• Sustaining a positive relationship with customers

While integrating a Social dialogue using Reviews and Communities

Manage multiple sites

Reuse storefront components

Easily create landing page

Edit pages live in-place

Integrated from eCommerce

Pop-up editor

Animating your site using Rich Media

Engaging user interaction

Increased customer attention

Improved brand communication

Ready-to-use components and RIA templates

Content Caroussel

Flash Component

Manage Flash and Carousel Component via hybris WCMS Cockpit

Animating your site using Rich Media

Engaging user interaction

Increased customer attention

Improved brand communication

Ready-to-use components and templates

Content Caroussel

Flash Component

Manage Flash and Carousel Component using the Web Content Management services

Search and Navigation for Best-in-Class Merchandising

Increase online sales using relevant, quick search

Enable faceted navigation through large catalogs

Simplify search with result refinement

Increase conversion rates via improved usability

Expose long-tail catalogues effectively

Personalised journeys: Self-Segmentation and profiling

Customer profile

Preferences

Wish/gift lists

Session profile

Social networks

influ

ence

s

Targeting rules

upda

te

Recommendations

Promotions

Site versioning

Customized content and products

Personalized email

Date of birth/age/countryBought a product from a category xCreated product reviews Facebook profile information…

Search termsProducts/content viewedShopping cart (value, products)………

A/B or MVT Testing for Content Intelligence

Optimize your store based on real data

Optimize content, landing pages, store navigation, etc.

Generate revenue uplift and improved conversion

Track results based on customer response

Testing

Response tracking

Logicaldecisions

Each group is shown a different version of a page

A B

Integrated Cross-Channel Ordering

Warehouse integration

Product availability

Store locations

Shop details

Cross Border is then the challenge……

Different

• Pricing

• VAT

• Languages

• Lead time

• Shipping fees

• Campaigns

• Sales periods

Identical

• Product content

• Product Images

• Product description

Cross Border commerce – Why it’s exciting and what do you need to consider

Customers these days shop cross-border …

Source: DHL Global Mail

The motivations by market are radically different

Source: DHL Global Mail

Consumers order abroad mainly because of product availability and lower prices …

… but in emerging markets, consumers also shop abroad for quality and safety

A good opportunity for you to engage

Over 1 Billion shoppers worldwide

Over $1.5 trillion global market size

Over 60% growth in

China

More than 34 million

cross-border shoppers in

the US

Build to make customers feel “at home”You can sell to Swedenin £ Sterling …

... but how would you feel shopping in Swedish Kr? ... or in Chinese Yuan?

With an understanding of how markets buyYou can simply convert the price to Swedish Kr …

... or even better - adjust the price to the local market standard

Local currency pricing is a key driver for successful conversion

Shipping costs need to make sense, without hidden costsExpress option only …

Would you be willing to

buy?

Data shows over 25% uplift in cross-border conversion when multiple shipping options at attractive prices are offered

Better chances you would buy?

Multiple shipping options

• Payment options and multiple currencies (processing, hedging, rounding...)

• Shipping - Costs and Transit Times eg. Russia or China

• Management of Exchanges, Returns

• Avoid “nasty surprises”• Local duties & taxes calculation• Cross-border transaction and conversion fees

• Management of your Catalogue – How do you set it up

What are the big focus points then for International