Tools to increase customers’

conversion

Nadezhda Romanova,

CEO PickPoint

2

Delivery infrastructure across Russia

- 1 -

In Russia the number of online consumers is

more than 20 mln. people, that reaches

71% of active online audience;

About 90% internet users that shop online have high income (20-50 ths. RUR);

The most active e-consumers men/women

aged 25-34 years.

Federal District Number of e-shoppers

CFD 18,8 mln.

PFD 12,6 mln.

SFD-NCFD 10,1 mln.

NFD 9,1 mln.

NWFD 6,9 mln.

UFD 6 mln.

Far Eastern FD 2,8 mln.

Statistics: Online shoppers regional

presence

If online store has other regional structure

of distribution of flows it means that some

regions poorly covered.

3

Delivery infrastructure across Russia

- 1 -

4 deliver channels:

Each has its own audience

Mail Courier Postamats

Values for e-shoppers in delivery

channels selection

1 2 Pickup 3 4

Delivery to working address

Delivery to post office near

home address

Delivery to convenient address on the way between work and home

4

Statistics of selecting delivery channels in B2C

- 1 -

Redistribution the choice of delivery channels towards self pick-up.

What delivery channels used

customers in online shops Methods of delivery of the last

purchase in the online store

* According to Yandex and GFK research, August-September 2014

2%

2%

15%

23%

24%

33%

0% 10% 20% 30% 40%

Other

Express delivery

hand2hand

Pick-up point

(postamat)

Pickup

Normal courier

delivery…

Delivery to

Russian Post…

38%

19%

17%

27%

23%

15%

17%

38%

43%

38%

34%

59%

51%

45%

49%

48%

52%

0% 20% 40% 60% 80% 100%

The most convenient delivery

Used in the last 12 months. at least one time

2014

2013

2013

2013

2013

2014

2014

2014

Courier

delivery

Russian

Post

Pickup

Postamats

5

Rules of "delivery“ section and basket interface

- 1 -

1

2

Good example

The lack of affordable discription of delivery

methods, indicating the cost and timing

The sequence of data input in the basket:

The sequence of filling delivery steps: a) Choose city

b) Choose delivery channel

c) Depending on delivery channel:

print address or choose pick-up point on

the map

3 Figure the return conditions

6

Rules of "delivery“ section and basket interface

- 1 -

Great fails in Russian reality in the shopping cart:

First you need to input address before

choosing the delivery channel

What address e-shop wants me to

enter?!?!?!

In case of courier delivery

I want working address

In case of Post delivery

I need to input home address

In case of pickup (Postamats delivery)

I need to choose convinient point on the

map without printing any address

1

7

Rules of "delivery“ section and basket interface

- 1 -

Why I can’t choose the point on the map during the order?!?!?!

The chosen delivery

channel is not clear

After order the extra mail is sent to choose the

point of the delivery.

This mail complicates the process and confuses

the customers.

2

Great fails in Russian reality in the shopping cart:

8

Rules of "delivery“ section and basket interface

- 1 -

How it must be:

1

Customer chooses the

delivery method 2

In case of choosing pickup or postamats the

customer selects the convenient point of the

delivery on the map (already created widget ready

to be integrated on the web-site)

NO EXTRA STEPS (or e-mails)!

3

Customer chooses the city of the

delivery

To filter the delivery channels

Logistics mistakes

The consumer perceives the delivery service as

a service of online store

The lack of transparent conditions for goods return

Delivery terms: Not only terms that provide logistics companies

+ period of order completing,

+ stock status (not available in the warehouse)

+ other internal online store processes

Limitation of delivery channels: Online store can lose till 14% of orders providing unsatisfactory for the

customers delivery conditions

Trust If copies of customer’s personal documents are required, the form for

their collection must be maximum simple, ergonomic and trusted

9

Logistics KPI

For customers:

Keep the declared delivery

terms (the best on the market:

98%)

Delivery services, additional

options

Term of return of goods -

reverse logistics (the best on the

market: 3 working days)

Period of repayment in case COD

(the best on the market: stable 3

banking days)

% of unclaimed items (the best

on the market: 8%)

For retailers:

We count up their

satisfaction and loyalty ...

10

Logistics KPI

- 1 -

Для ритейлеров

NPS PickPoint = 76%

NPS Index (Net Promoter Score) – KPI

of delivery service

1 purchase 74%

2 purchases 14% 26% repeat

orders with

PickPoint delivery

for 3 months

3 purchases 5%

4 purchases 3%

> 5 purchases 4%

4% of customers chose PickPoint

Postamats delivery option

more 5 times again during 3

months

Short-term – for 3 months 2015

Conversion of repeat orders with

PickPoint delivery

Internal statistics delivery throug

postamats*:

*Statistics is taken within delivery through PickPoint postamats, 2015

Market participants believe that the

average NPS of online retail market 15%.

100 Perfect

85-99 Spectacular

70-84 Excellent

55-69 Very good

40-54 Good

25-39 Average

0-24 Mediocre

-25 -1 Poor

-50 -26 Terrible

-100 -51 Abysmal

The standard scale for NPS:

11

PickPoint in numbers

12 12

м

CLIENT RETURNS

Collection of return goods

previously received through other

delivery channels (courier, Russian

Post, pick-up points, postamats) in

PickPoint postamats.

The largest network in Russia

PROJECT WITH QIWI:

+1000 postamats in PickPoint net

based on QIWI payment terminals

PICK-UP POINTS CONSOLIDATOR

Strategic Partnership:

2010 year of foundation

5 years on the market

1200 Postamats & pick-

up points

>12 000 Zip codes

All regional centers + 150

cities

All market leaders

> 1 800 000 recipients

26% stable customer base

>1 500 E-shops

Sorting center

2 000 sq. m.

> 2 500 000 Delivered parcels

7,4% unclaimed parcels

98% parcels

are delivered on

time

Federal and local pick-up points nets in PickPoint delivery network

Questions?

Nadezhda Romanova,

PickPoint CEO