GROWING SHARE OF WALLET WITH GROWING CUSTOMERS · the target customer 1 2 3. generation y (1981 –...
Transcript of GROWING SHARE OF WALLET WITH GROWING CUSTOMERS · the target customer 1 2 3. generation y (1981 –...
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GROWING SHARE OF WALLET WITH GROWING CUSTOMERS
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FACTS & FIGURES• 540 MILLION REVENUE • 1,5 MILLION TRANSACTIONS• 34 STORES • #1 BABY SPECIALIST RETAILER • 35% MARKETSHARE IN DENMARK• 84% RETAIL STORE SALES /
16% E-COMMERCE SALES • 125.000 ACTIVE EMAIL SUBSCRIBERS
(NOT CLUBMEMBERS) • 80% CONVERSION OF PREGNANT
WOMEN TO EMAIL DATABASE
2
387 43
9 477 50
0 540
F Y 1 4 1 5 F Y 1 5 1 6 F Y 1 6 1 7 F Y 1 7 1 8 F Y 1 8 1 9 E
R E VE N U E M D K K
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22
31
34
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F Y 1 4 1 5 F Y 1 5 1 6 F Y 1 6 1 7 F Y 1 7 1 8 F Y 1 8 1 9 E
E B I TD A M D K K
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THE TARGET CUSTOMER
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GENERATION Y (1981 – 1995)
• CHOICES & FLEXIBILITIES • DIGITAL NATIVES • PREFERS HUMAN CONTACT IN HIGH TICKET PURCHASES
FAST TRACK IN & OUT
• 75% REVENUE IN GROUP 0 – 2 YEAR OF AGE • 182.000 BABIES IN CORE GROUP • VALUE CHILD #1 = 100, CHILD #2 = 50% AND CHILD #3 = 25%
YOU CAN’T BUY LOVE…
• LOYALTY IS EARNED NOT BOUGHT• RIGHT PRODUCT, RIGHT TIME, RIGHT PRICE • RELEVANT CONTENT• GREAT EXPERIENCE IN ALL CHANNELS
80% Revenue From IOS
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WHERE WE CAME FROM…. ….IN 2015
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• WWW.BABYSAM.DK WAS CONSIDERED TO BE #1 COMPETITOR TO PHYSICAL BABYSAM STORES
• RETAIL TEAM PUSHING FOR “$$ REWARD $$” FOR HANDLING CLICK N COLLECT
• A TOP 3 COMPLAINT IN CUSTOMER SERVICE = LACK OF SERVICE WHEN PICKING UP AN ITEM BOUGHT ONLINE FOR IN-STORE PICK UP (NO GIFTWARPPING, NO INSTALLATION OF CAR SEAT ETC.)
• FALSE BELIEVE IN OMNICHANNEL! “IF WE SAY IT ENOUGH TIMES IT IS TRUE” SYNDROME
• DIGITAL STRATEGY WAS “ALL OVER THE PLACE” WITH LACK OF FOCUS AND WHAT WOULD CREATE VALUE FOR CUSTOMERS AND THE COMPANY
• LEGACY UPON LEGACY SYSTEM COMBINED WITH OPEN SOURCE E-COMMERCE WITH 5 (CREATIVE) E-COMMERCE MANAGERS IN 5 YEARS
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2015 FULL STOP!
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• CLOSE DOWN OF ALL “UTOPIA” DIGITAL PROJECTS
• ACCEPTING SUNK COSTS ON PROJECTS AND LOST DREAMS AND HOPES OF TEAMS (EGO’S)
• REALITY CHECK IN THE BOARD ROOM
• CUSTOMER CENTRIC FOCUS IN ALL CHANNELS
• BREAK DOWN OF SILO THINKING IN BOTH RETAIL & E-COMMERCE
• CREATION OF NEW VISION FOR BABYSAM’S DIGITAL JOURNEY; WHERE TO PLAY AND HOW TO WIN
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THE STRATEGY
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WHERE TO PLAY AND HOW TO WIN
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STRATEGIC INSIGHT:75% OF REVENUE COMES FROM AGE GROUP 0 – 2
YEARS
INCREASE PRESENCE IN AGE GROUPS 3 – 10 YEARS
WORKS REALLY WELL IN EXCEL
FOCUS ON OUR CORE STRENGTH
BABY PRODUCTS & NEW PARENTS
THE MOST RELEVANT RETAILER FOR PARENTS TO
BE AND FAMILIES WITH BABIES
NEW BRAND PROMISE #HELTÆRLIGT
EASY AND CONVINIENT TO CHOOSE TO SHOP WITH
BABYSAM – IN ALL CHANNELS
SHARE OF WALLET FOCUS
NEW PLATFORMSNEW RETAIL STARTEGYNEW SERVICE OFFERNEW PRODUCT STRATEGY
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WHERE TO PLAY AND HOW TO WIN
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• RUNNING A SUCCESFULL DIGITAL TURNAROUND IN A HERRITAGE RETAIL COMPANY IS LESS ABOUT DIGITAL IT IS MUCH MORE ABOUT CHANGING CULTURE AND PERSONAL BELIEFS IN ALL BUSINESS UNITS
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DO NOT GET LOST IN THE DIGITAL FORREST
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• WHAT MATTERS TO YOUR CUSTOMERS? FIX YOUR BASICS FIRST!
1. EASY RETURN & CLAIM HANDLING
2. EASY & SAFE PURCHASE AND RETURN
3. SMILING, VISIBLE AND PASSIONATE SALES ASSOCIATES (OR GREAT UX)
4. PRODUCTS ON STOCK AT THE RIGHT PRICE
5. NICE AND INVITING RETAIL STORES WITH GOOD AMBIENCE (OR GREAT UX)
Kilde; http://knowledge.wharton.upenn.edu/article/getting-to-wow-consumers-describe-what-makes-a-great-shopping-experience/
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NEW 2015 LIGHT HOUSE
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1:1 CUSTOMER P&L 20% E-COMMERCE SHARE
2020
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BUILDING A NEW INFRASTRUCTURE
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INFRASTRUCTURE
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INFRASTRUCTURE
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Data Service Layer (DMP)A central hub where all customer data
are gathered
Dynamics Nav Business Central
Agillic
Raptor
Events
Transaction DataPOS & WEB
Profile Customer Data
Favorites
BabyBox
BROAD TACTICAL E-MAILS
ABANDONED BASKETRECOMENDATIONS PERSONALISED SITE
PERSONALISED E-MAILS SMS (NOT TESTED YET)
RETARGETING
TRIGGER E-MAILS
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THE CUSTOMER JOURNEY
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CUSTOMER JOURNEY
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Credit: Vertical Strategy
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CUSTOMER RETAIL JOURNEY
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@
@
66 E-MAILS WITH CONTENT MATCHING TO STAGE OF PREGNANCY OR BABIES AGE 0 – 24 MONTHS
Credit: Vertical Strategy
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THE NEW JOURNEY BEGINS…
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• 2015: NEW CONCEPT FOR THE BABYBOX
• 2017: AGILLIC IS IMPLEMENTED
• 2017: MY ACCOUNT IS LAUNCHED ONLINE
• 2018: 89% PENETRATION OF PREGNANT WOMEN SIGNING UP with; NAME, ADRESS, DUE DATE, TELEPHONENUMBER, EMAIL ADDRESS, OTHER CHILDREN + AGE, PERMISSION
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MARKETING AUTOMATION IS NOT AUTOMATED AT ALL!
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CRASH AND BURN….
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WHAT WENT WRONG?
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• WE COMPLETELY UNDERESTIMATED THE MANUAL WORK GOING INTO A STATE OF AUTOMATION!
• DESPITE OUR FOCUS ON WHAT CONSUMERS WANT - WE GOT LOST IN AMBITIONS AND EXCITEMENT FOR THE DIGITAL POSSIBILITIES AT HAND
• FAR TOO AMBITIOUS ON OUR ROADMAP THUS REACHING TOO HIGH AND FALLING FLAT ON OUR NOSE
• LACK OF RIGHT COMPETENCIES IN-HOUSE
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THE JOURNEY BEGINS AGAIN…
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• WE MADE A FULL STOP – NO INVESTMENT, NO TIME SPEND AND WENT BACK TO 100% TACTICAL EMAIL COMMUNICATION
• EVALUATED OUR FAILURES AND MADE A NEW ROADMAP
• WE PARTNERED UP WITH AN AGENCY TO HELP BUILD THE PLATFORM
• NEW COMPETENCIES IN-HOUSE TO DRIVE AUTOMATION PROJECT
• WE SET NEW AND REALISTIC TARGETS TO HELP US UNDERSTAND WHAT GAVE ACTUAL ROI AND WHAT DID NOT. BABYSTEPS.
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KEY RESULTS
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IT’S ALL ABOUT SHARE OF WALLET AND PROFITABLE GROWTH …
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• THE INVESTMENT IN OUR JOURNEY IS NOT ALONE IN SYSTEMS AND CONSULTING DEVELOPING CONTENT IS A MAJOR PART OF THE JOURNEY AND INVESTMENT.
• WHAT IS OUR MEASUREMENTS? WHEN ARE WE SUCCESSFUL OR WHEN DO WE FAIL?
1. PAID VS. OWNED MEDIA 2. REVENUE PER ACTION 3. GP2 PER SESSION 4. NUMBER OF BASKETS 5. CLV
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FACTS & FIGURES • OWNED MEDIA IS 60% MORE
PROFITBLE THAN PAID MEDIA
• 70% OF BABYSAM GP2 COMES FROM OWNED MEDIA
• 59% OF TRAFFIC COMES FROM OWNED MEDIA
• 47% OF REVENUE COMES FROM OWNED MEDIA
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0
0,5
1
1,5
2
2,5
apr-19 may-19 jun-19 jul-19 aug-19 YTD
GP2 PER SESSION
GP2 Paid Media GP2 Owned Media
2.800.000 2.350.000 2.400.000
3.300.000
2.500.000
3.000.000
1.000.000
3.000.000 3.400.000
2.000.000
apr-19 may-19 jun-19 jul-19 aug-19
Revenue Paid Media Revenue Owned Media
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STARTING SMALL…
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FACTS & FIGURES • BASED ON 16M E-MAILS SENT
• E-MAILS BASED ON BEHAVIOUR AND PURCHASE HISTORY ARE 6X MORE EFFECTIVE THAN GENERIC E-MAILS
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0 0,5 1 1,5 2 2,5
Generic Campaign E-mail
1:1 E-mail
R E V E N U E P E R E - M A I L
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THE CLV JOURNEY
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• SMALL VARIANCE IN CLV SPEND
• THE SHARE OF PURCHASES ARE HOWEVER SIGNIFICANT
• +6M POTENTIAL IN MOVING “SLEEPING” SUBSCRIBERS TO THE PURCHASE LEVEL OF ACTIVE SUBSCRIBERS
• NOTE: THIS IS JUST 16% OF THE PICTURE.
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
980
1.000
1.020
1.040
1.060
1.080
1.100
1.120
1.140
ACTIVE UNSUBSCRIBED SLEEPING
C L V
CLV HOW MANY HAVE MADE A PURCHASE
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THE 1:1 CUSTOMER P&L
1. SIGN UP (PERMISSION)2. PICK UP OF BABY BOX 3. BOOK AN ADVISOR 4. PURCHASE HISTORY IN ALL CHANNELS 5. RETURNS IN ALL CHANNELS 6. CLAIMS IN ALL CHANNELS 7. USE OF CUSTOMER SERVICE 8. EVENTS PARTICIPATION 9. NPS SCORE 10. PRODUCT RECOMMENDATIONS11. ROI @ CUSTOMER LEVEL
EACH CUSTOMER PROFILE MUST HELP US STAYING RELEVANT THROUGH OUT THE JOURNEY.
THROUGH RELEVANT CONTENT AND RIGHT IN TIME PRODUCT RECOMMENDATIONS WE AIM TO INCREASE SOW WITH +2 PURCHASES PER 0,35 CHILD BORN = A REVENUE POTENTIAL OF 30,4M P.A.
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WE STILL BELIEVE OMNICHANNEL IS THE ONLY WAY!
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• CONSUMERS DON’T SHOP ONLINE OR OFFLINE – WE SIMPLY SHOP! IN RETAIL WE NEED TO HAVE ONE OMNICHANNEL STRATEGY AND NOT AN OFFLINE AND ONLINE STRATEGY
• ACCORDING TO GOOGLE 67% OF CONSUMERS RESEARCH ONLINE BEFORE VISITING A RETAIL STORE
• 55% OF VISITORS TO A BABYSAM STORE HAVE HAD A DIGITAL TOUCHPOINT WITH BABYSAM BEFORE ENTERING A STORE
• ATTRACT AND RETAIN CONSUMERS IS KEY FOR SUCCESS. PERSONALISATION IS A PIVOTAL PART OF THAT JOURNEY
• KEY TO REMEMBER THAT OMNI = INVESTING IN ALL CHANNELS AND ASPECTS OF THE CUSTOMER JOURNEY
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NEVER GIVE UP!
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MY IDEAL MY REALITY
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THANK YOU
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