Barclaycard and customweb Discuss International eCommerce Strategies
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Transcript of Barclaycard and customweb Discuss International eCommerce Strategies
Confidential
For customers looking to expand their business overseas
4 June 2015
Agenda
– Setting the scene
– The journey to success
• Defining your overseas
ecommerce strategy
• Speaking your customer’s
language
• Understanding international
payment preferences
• Building an international
payments solution
• Looking to the future and
case study
– Summary
– Q&A
The internet never sleeps
You’re ‘always on’, all over the world, and people are looking at you…
New customers Competitors Press and media Investors Suppliers
Confidence is returning to UK businesses…
“Below the radar, growth in Europe
starts swelling UK company profits.”
(Reuters, Feb 2015)
“Businesses are exporting more, in
particular to the Asia-Pacific region,
but they now also feel more bullish
about exporting to Europe since its
exit from recession.”
(BBC)
Exports to the USA in January up
23% vs same time in 2014.
(ONS, 2015)
Number of visits abroad by UK
residents up 4% in 2014, spending
nearly £36bn.
(gov.uk)
The opportunity for ecommerce is even more encouraging.
The global cross-border ecommerce industry was worth USD$105bn in 2014,
and is expected to grow to USD$307bn by 2018.
But we’re not quite there yet
Barriers to overseas buying Consumer Business
Businesses and consumers share many of the same concerns.
Companies who can overcome these can achieve a competitive advantage.
Unreliable and lengthy transit times
Customs bottlenecks
Price opacity
Complex and ambiguous return processes
Limited transparency and flexibility of delivery
(Boston Consulting Group, Sept 2014)
Note: Total retail and online retail sales does not include categories such as travel, cars and prescription drugs. It also does not include food and drink sales at a restaurant or fast-food chain, consumer-to-consumer
commerce, or gasoline sales.
Source: Forrester Research Online Retail Forecast, 2013 to 2018 (Western Europe).
Online retail sales as a percentage of total retail sales by country
So what’s driving this?
UK
12%
2013
15%
2018
France
6%
2013
10%
2018
Spain
2%
2013
5%
2018
Sweden
4%
2013
6%
2018
Netherlands
6%
2013
8%
2018
Germany
7%
2013
10%
2018
Italy
2%
2013
4%
2018
Key question no. 1 – Do we know enough about our new target market(s)?
taxation duties technology
culture visibility
regulation legal payments
currencies brand
banking
Defining
your overseas
ecommerce
strategy
Speaking your
customer’s
language
Understanding
international
payment
preferences
Building an
international
payments
solution
Looking to
the future
Key question no. 1 – Do we know enough about our new target market(s)?
Can you also:
• speak to your customers, when and how they want?
• provide customer services and product support?
• cross or upsell?
• renew and retain?
• be legal, compliant, on-brand and culturally sensitive?
• talk to non-customer audiences?
• integrate with the rest of your business systems?
It’s not just about sales over the web
Defining
your overseas
ecommerce
strategy
Speaking your
customer’s
language
Understanding
international
payment
preferences
Building an
international
payments
solution
Looking to
the future
Market
and sell
Support
and serve
Purchase Recommend
Ma
inta
in
Se
lec
t
Research Use
Defining
your overseas
ecommerce
strategy
Speaking your
customer’s
language
Understanding
international
payment
preferences
Building an
international
payments
solution
Looking to
the future
70% of the world doesn’t
speak English and every year
the percentage of web traffic
viewed in English drops.
In 2013 over 50% of queries
on Google were submitted in
languages other than
English.
As economic migration
grows, foreign language
customers may even be
in your own country.
If this worries you, you’re
not alone…
60% of companies admit
to having no international
content marketing strategy.
(Content Marketing World, 2013)
Key question no. 2 – How prepared is the rest of our business to operate in multiple languages?
Effectiveness/
agility
Complexity/
cost
Single language
communications
Outsourced
language
services
In-house
language
services
Automated translation tools should never be
used without being checked by a real person.
Marketing
& comms IT
Regulatory Finance
Sales
Defining
your overseas
ecommerce
strategy
Speaking your
customer’s
language
Understanding
international
payment
preferences
Building an
international
payments
solution
Looking to
the future
Key question no. 2 – How prepared is the rest of our business to operate in multiple languages?
Settling vs holding considerations
• Cashflow
• Internal currency requirements
• Costs of settling
• Banking
• Returns and refunds
• FX fluctuations
• Minimising fraud
Key question no. 3 – What do we do with the revenue we generate?
Did you know?
of online shoppers abandoned their
purchase when their preferred
payment method was not offered.
59 %1
1Source: Frenchweb.fr – May, 2014.
Defining
your overseas
ecommerce
strategy
Speaking your
customer’s
language
Understanding
international
payment
preferences
Building an
international
payments
solution
Looking to
the future
Key question no. 4 – What do we need to do to make this happen?
Defining
your overseas
ecommerce
strategy
Speaking your
customer’s
language
Understanding
international
payment
preferences
Building an
international
payments
solution
Looking to
the future
Financial Technical Cultural
Different countries have different
perspectives on security.
What are the purchase habits?
When/what/how?
Is your target market comfortable
with buying from overseas?
Be device agnostic.
Can you reskin or add layers for
languages, brands or currencies?
Are you showing local prices at
catalogue or basket stage?
Is your site resilient 24/7?
What’s the risk profile of each
currency?
What are the fraud characteristics?
How do you protect yourself
against FX fluctuation?
Should you start simple and grow
over time?
Building an international gateway and acquiring solution
At its core, a fit for purpose international gateway is about one thing –
improving conversion.
To succeed, it’s not just about collecting payments. You need to understand
the technical, financial and cultural subtleties of your overseas target market.
Where should you focus?
• Website optimisation
• Future payment methods
• Geo-targeted content
• Mobile first
• Big data, insight and analytics
Key question no. 5 – What is our strategy for the future?
1Source: Barclaycard statistics, 2014.
2013 rise to
10% 1
2011
1% 1
2017 forecast
25% retail ecommerce
on tablets
1
Defining
your overseas
ecommerce
strategy
Speaking your
customer’s
language
Understanding
international
payment
preferences
Building an
international
payments
solution
Looking to
the future
CustomWeb case study
Switzerland Domestic strategy
Expansion UK Expansion into UK market due to
interesting opportunities
Mobile first Mobile optimisation of content
and information
Phase 2
Expansion to UK/US
Phase 3
Optimisation/outlook
Phase 1
Domestic strategy
Expansion Benelux Added market specific payment
methods and translations
Outlook Wallets?
Market specific optimisation
of content and processes
2012 2013 2014 2015
Defining
your overseas
ecommerce
strategy
Speaking your
customer’s
language
Understanding
international
payment
preferences
Building an
international
payments
solution
Looking to
the future
CustomWeb case study
Switzerland Domestic strategy
Market pull Expansion strategy into new
markets UK (market pull)
2012 2013
Domestic strategy:
• Languages: DE/FR
• Payment methods: Visa/MasterCard/PostFinance Debit Card/PayPal
• Currencies: CHF
Business plan/expansion strategy:
• Languages
• Currencies and settlement
• VAT
• Consumer law and regulations > specialty digital goods
• Time zones: hours of customer services
Phase 1
Domestic strategy
Defining
your overseas
ecommerce
strategy
Speaking your
customer’s
language
Understanding
international
payment
preferences
Building an
international
payments
solution
Looking to
the future
CustomWeb case study
Expansion UK/US Card countries: credit
card as preferred
payment methods
Phase 2
Implementation
Expansion Benelux AT/DE Alternative payment methods:
invoice, PayPal, ELV etc.
2014
Expansion UK/US:
• English support desk
• Refund policy (market push)
• Deactivation 3-D Secure (Fraud)
• Currencies: reduced to CHF and EUR fixed FX-rates
(due to administrative overhead)
Expansion Benelux/AT/DE:
• Translations/language support
• New payment methods
(regulatory hurdles and collecting fees)
Defining
your overseas
ecommerce
strategy
Speaking your
customer’s
language
Understanding
international
payment
preferences
Building an
international
payments
solution
Looking to
the future
CustomWeb case study
Phase 3
Outlook
Outlook Customer specific content
Process and content optimisation
2015
Outlook:
• New checkout experience (wallets: MasterPass)
• Mobile optimisation (tokenisation)
• New payment methods (Bitcoin)
• Target-specific content (landing pages, A/B testing)
Defining
your overseas
ecommerce
strategy
Speaking your
customer’s
language
Understanding
international
payment
preferences
Building an
international
payments
solution
Looking to
the future
To summarise
What does the full user experience look like?
An overseas
sale has become
the norm
Content and prices
that your customer
can understand
Customer recognises
and trusts your
payment methods
You collect, hold and
make best use of the
currencies you collect
Your customer
comes back
What do we need to take back to our business?
• Do we know
enough about
our new target
market(s)?
• How prepared is
the rest of our
business to
operate in multiple
languages?
• What do we do
with the revenue
we generate?
• What is our
strategy for
the future?
• What do we
need to do to
make all this
happen?
Are you seeing an increased demand for mobile
ready websites and apps? Yes, an ever increasing number of enquiries, requests
and implementations. Businesses need to consider
having their website and payment page optimised to
support mobile devices. We are seeing an increasing
demand from businesses to develop a mobile
application presence.
What stage do you start offering local, domestic
websites? Translation of your web presence to meet local and
cultural demand will be costly. We see a number of our
clients translating certain web pages into the language
of the target markets when initially starting to penetrate
a new market. It is worth considering booking your
localised domain name as early as possible.
What are main non-card payment methods
across the EU that should be considered? This is a key area based on detailed research from
companies operating overseas. It is important that
you achieve the ‘right’ payment options coverage. As
an example, if the Netherlands is your target market,
you must offer iDeal. In Germany, you would
seriously need to consider SEPA Direct Debit, plus
Sofort and Giropay.
What do you think about the popularity of
eWallets internationally as an alternative payment
method such as PayPal, Skrill etc? Are they
known overseas and worth it? Yes they are known overseas and they are
increasingly popular, particularly in countries such as
Germany as they allow customers to add a funding
service that is not a credit card. You need to be
mindful that wallet acceptance is relevant to the
country and the consumers that you are targeting.
There is a place for them particularly for specific
sectors and consumer audiences.
There’s a lot in the press at the moment about UK
businesses spending over £2bn per year on
processing payments collected overseas. What tips
would you give them to help reduce those costs? Ensure that you are offering the relevant currencies and
payment types to the markets that you are targeting.
Businesses should consider whether they are settling
funds into multiple currency bank accounts or
minimising their banking exposure to their primary
trading currencies. Businesses also need to be mindful
of the varying interchange rates globally. A card issued
by a Bank outside of the EU will attract considerably
more cost than one issued within the EU.
Help is out there
• UK Government Trade
and Investment
• Ecommerce Europe
• Econsultancy
• Our team
Steve Clay
Head of International
New Business
Barclaycard
www.barclaycard.co.uk/business