Dan Ferguson

Deciding Which Vendors To Work With for Online Retailingfor Online Retailing

• Before selecting vendors know your

things youinternal context!

•Include context and industry specific criteria i RFP’ need to

know…in RFP’s

•Introduce Performance as a selection criteria

h iblknow… wherever possible

•Travel light!

•Evaluate the Fuzzies!

Questions? [email protected]

•An insiders view..

Choosing the right online retail suppliers isn't just about the prospective partner

companies……..


Agreement Signed


Before you go looking for vendors , know your context first. This yincludes ;

t- your customers - - your company stakeholders

and project goals a d p oject goa s- your agreed definition of

success in whatever online retail activity your pursuing!


activity your pursuing!

1Know your customer1

Standard sources include; - Focus Groups / Research, - Customer touch points - Online SurveysOften overlooked -> Mine any and all existing

online data exhaustively


1Know your company1

Understand stakeholder concerns and requirements across multiple business functions. Don’t forget Legal, HRg g ,Be aware of precedent for distinct types of vendor relationships – ad agencies, recruitment, property ie Full outsource hybrid vs in houseproperty – ie. Full outsource, hybrid vs in-house bias - as these can drive expectations in online.Understand organisational strengths and

k h t kill t tQuestions? [email protected]

weaknesses – what skill sets are your teams light on and conversely strong in.

1Know your future1

What is the expected rate and scale of growth, Is there implicit direction to grow towards a p gcertain model of business (away from outsourcing) What other related but incremental goals are on the company roadmap that involve online.


Include your internal criteria along with industry/marketalong with industry/market specific requirements in RFP’s to a cross section ofRFP s to a cross section of prospective suppliers


2An RFP (Request For Proposal)RFPs can be extremely valuable in optimising the

2RFPs can be extremely valuable in optimising the

chances that suppliers deliver the solutions that you need, & encourage the following:you need, & encourage the following: Internal agreement: allow you to discuss and finalize your requirements with all of the internal y q(and agency) stakeholders before involving a further supplier.


22An RFP (Request For Proposal) :

A t l ll li t l l d t dAccurate proposals: allow suppliers to clearly understand your needs so they can provide you with the most accurate estimates of their best solution.

Comparable solutions: ensure that each supplier receives the same set of requirements and therefore replies with a similar and comparable set of proposedreplies with a similar and comparable set of proposed solutions.


22RFP’s for Ecommerce platforms and Site builds- Key- Define scope ,overall design, functional components and p , g , p

objectives of your e-commerce project

- Decide whether you have any applications that performDecide whether you have any applications that perform similar functions within your business that you wish to retain, and, whether there are any key dependencies between existing applications and the new applications

iyou require.

- Each of these will need to be identified and the integration


grequirements included in your business requirements.

22RFP’s for Ecommerce platforms and Site builds

- Scope should include End-user functionality, Back-office functionality Technical requirements, Integration requirements, Reporting requirements, Future q p g qrequirements

- Further detail on their business background, ecomm u t e deta o t e bus ess bac g ou d, ecosolution, and support style


22RFP’s for Email Service Providers

Decide on service provider vs tech platform. based on your resource strengths & weaknesses- Chemistry is vital in this high traffic supplier- Everyday staffing quality is key

Scope your needs and match capabilities don’t over- Scope your needs and match capabilities – don t over scope as you’ll pay unnecessarily now for the advanced feature set that won’t be used for another few years


22RFP’s for SEM / SEO – Some suggested focusesSeek a transparent approach to search engine marketingSeek a transparent approach to search engine marketingLook for a structured approach to keyword analysisUses industry best practice Will openly describe the strategies and techniques they will

use for SEOHas a performance-based approach to SEOHas a performance based approach to SEOViable as a long term strategic partner


Introduce Performance as a l ti it i & /selection criteria & / or

contractual element h iblwherever possible


33Where possible consider;

- Arrangements that reward vendors on- Arrangements that reward vendors on performance – either solely or as a componentcomponent.

- Try before you buy performance trials- Set a benchmark- Set a benchmark- Be flexible on price………….


See Ben Kirshner, CEO, Coffee for less.com on Marketing Sherpa

33- Try before you buy performance trials- Set a benchmark- Be flexible on price- Get a full trial- Negotiate better exit terms


See Ben Kirshner, CEO, Coffee for less.com on Marketing Sherpa

T l li ht d b tTravel light and be sure to evaluate the trade-off's in

‘ t h ’a ‘one stop shop’


44Travel LightWhen planning online projects ,

developments, and functionality –fespecially for launches or relaunches – err

on keeping your scope lean.


4Consider specialisation

4of functionality before paying for a ‘1 stop shop’


Go (far) beyond an RFP and k l t thmake sure you evaluate the

‘fuzzy’s


55Beyond the RFP - Supplier Evaluation

Does the supplier / vendor challenge your brief or objectives?Do they ‘want’ your business?Creativity vs ROI - Do they ‘get’ e-C ea y s O o ey ge ecommerce?Cultural fit – esp issue response


Cultural fit esp issue response

55Beyond the RFP - Supplier Evaluation

Do you like them?Do you like them? Make sure you talk to enough potential

li t b i ithsuppliers to begin withWhats the online community like for their technology?Do they have value to add across key


y yelements of the end-to-end e-commerce process

An insider’s view :

‘straight to the point’

l i i iselection criteria to help you narrow things down..


66Ask for a list of the suppliers top ten clients by revenue, in no particular order. , pThen ask the supplier how long they’ve been working with each of these top ten. Ch t th t h d t blChoose partners that have demonstrable experience in organisations with both retail and etail arms;Don’t bother meeting with the business development manager!


66Ask the agency to teach you how they go about conducting SEO or SEMconducting SEO or SEMAsk them to propose an informal, preliminary set of clear KPIs.Ask for an early termination clause in case of underperformance relative to KPIs;Ask them to send you an anonymised sample ofAsk them to send you an anonymised sample of their monthly reporting templates.


66Conduct research on the agency through Google. Ask to visit the agency’s office, and meet the consulting team in person. Visiting their environment and shaking their staff’s hands will ggive you a good gut feeling about the agency;Insist on receiving, and actually call, 3 referees. Once you get on the phone with the refereesOnce you get on the phone with the referees, ask them about what they feel are consistently the weakest features of the agency.


THAT’S IT

Q ti ?Questions?

I’m always interested to discuss any questions you have on this presentation or other online challenges.

If I can’t help you I can refer you to another etailer that can.

Email me : [email protected]

Network with me @ http://www.linkedin.com/in/danferguson1


Additi l & f l fAdditional & useful referencesEmarketer.com & search under MarketingSherpa.com vendor selectionE-consultancy & their ‘supplier selection templates’y pp phttp://theoatmeal.com/comics/design_hell for the opening examplehttp://www.marketingsherpa.com/article print.html?id=31http://www.marketingsherpa.com/article_print.html?id 31273 How to Negotiate Trials and Lower-rates with Vendors: 5 Strategies

Thanks to Tom Skotidas & Mark Baartse from First Rate & some of the star suppliers I’ve worked with including ; SOM / DT Melbourne, Carl, Kellie & Ben @ Reactive, EuroRSCG, Javelin Group


Dan Ferguson

Business

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