January 2013 Trader Training Meetings Marketing Update.
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Transcript of January 2013 Trader Training Meetings Marketing Update.
January 2013Trader Training Meetings
Marketing Update
What have we done?
Key highlights:•Different sized supplements•New website •Mobile POS (Adelante)•Facebook•Fundraisers
Different Sized Supplements
New Website
Current Trader Websites
2012 numbers:•Total Sales: £571K•Average customer order value = £30.38
Mobile POS Update
• Nearly £300K of sales
• Over 12,000 customers
• Average order value = £23
• In November, 491 Traders took repeat orders
• Over 6,500 ‘likes’• 1,342,735 friends
of fans• What do these
people look like?
Autumn Fundraiser
Current Sales Aids
New FABBAGS•Available end February 2013•Trader price: 70p + VAT
Phoenix Trading Mugs•They are on their way!
What are we going to do?
• Product releases• Company Fulfilled Websites• Fundraisers for 2013• Butterfly Tea Party 2013
2013 Timings
• Four supplements (smaller size):–March–May – August – Christmas– October
• Newsletters:– Every month except December
Freight Costs
• Increased costs due to fuel prices• 10% increase on all Trader Freight
charges • Applicable from 1st March 2013:– Small packet (3 day service from date of
despatch) - £3.30+VAT– Normal orders (Next day service from date of
despatch) - £6.60+VAT– Price if order > 150BV (Next day service from
date of despatch) £4.40+VAT
Trader Websites
• There are currently two options for Traders:1. Standard website • Free to all Traders
2. Trader Fulfilled Website – you deal directly with payment and delivery on orders placed (current option) • Trader price £25
Company Fulfilled Trader Websites
• What is it?– A new third Trader Website option– Your own ecommerce shop - allowing your
customers to shop and pay for their goods, with you, online
Company Fulfilled Trader Websites
Why are we doing it?•Customers want to shop online; we want to give them the option
– UK online shoppers spent £50 billion in 2012 – 12% of total retail spending
– Average shopper spent just under £1,500 online in 2012, and bought 39 items
– 25% of John Lewis turnover is now through its website
•Not all Traders can support customer expectations in terms of online shopping•We have found an ecommerce solution – you are in control and manage the customer relationship•Our website is now more user-friendly and set up for shopping
Company Fulfilled Trader Websites
• How will it work?– Your customers go to your website and choose
products– They pay for these goods online– They are charged £3.70 postage and packing
(including VAT)– Phoenix Trading fulfil the orders on your behalf,
sending the goods directly to your customers– Customers receive a confirmation email from you,
the Trader (automatically!)– You the Trader are charged a 10% fulfilment charge– Goods delivered 3 – 5 days later
CFTWSHow will it look?
• The website will look as per your current Trader Website
• The shopping experience is as per web best practice
Company Fulfilled Trader Websites
• How will you get paid?– You will receive a confirmation email from Phoenix
Trading, acting as your fulfilment house, when the order is placed• This email will be give you customer details
– You will receive an invoice from Phoenix Trading with the wholesale prices of the goods ordered by your customers
– Your Account will be credited with the retail profit less 10% fulfilment charge, excluding the customer postage charge
– You will receive FULL BV on all customer orders– ‘Slurp-up’ – can we make this easier?
Company Fulfilled Trader Websites
• Launch date: Early February 2013• There will now be 3 options for Traders:– Standard website (free)– Trader Fulfilled Website – you deal directly with
payment and delivery on orders placed (current option) £25
– New Company Fulfilled Trader Websites £25– £25 charge to ‘move’ from Trader Fulfilled to
Company Fulfilled or vice versa which can be done online
Introductory Offer: Move from Trader Fulfilled to Company Fulfilled for free until Good Friday (29th March 2013) – talk to us if you’d like to change!
Company Fulfilled Trader Websites
Food for thought:•John Lewis managing director Andy Street: "Online and shops are growing together. There's still a story about people wanting to go into department stores and have that experience of seeing things, touching and even tasting it.“
•Your face to face retailing will drive interest and introduce you to more people – web based sales are a perfect way of supporting this.
Company Fulfilled Trader Websites
Is this the right option for you, your customers and your
business?
Fundraisers
• Autumn Fundraiser 2012– Total Retail Sales:
£400K– Total for good
causes: £120K (30%) – Total to Phoenix
International Charity: £7K
– Inspiration came from the US market
How does a Fundraiser work? Example
£600 Fundraiser order from an Organisation:•The Organisation keeps 30% = £180•You place the order with Phoenix and buy at a 45% discount rather than their normal 30% discount. Cost to Trader to place order = £275 (plus VAT)•BV will accrue to you, and your upline, at 55% (i.e. what is left after the 45% discount is applied) = 275 BV.•Trader earns:
– Retail Profit of 15% of order value = £90– Retail Bonus of 5% = £13.75 (275 BV x 5%). A higher
Retail Bonus of 10% or 15% could be earned if Trader’s total BV for the month is above 500 or 1000 respectively.
Fundraisers
• This is a new and different type of business
• Incremental opportunity
• Fundraiser business is run in a different way:– Company taking a lower margin – You take a lower discount (15%) - less
than your usual 30% discount
Fundraisers
Feedback•Organisations couldn’t wait to sign up - take-up was far higher than expected•Number of customers who took up the offer was lower than expected•Product offering was well liked•Customers bought higher priced packs (Average customer spent £13.98)•Not enough time for either Traders or Organisations to plan effectively•Christmas is too busy already!•Postage charges led to disappointment
Feedback
‘Everyone that did it said they were glad they did and what they didn’t get out of it in financial terms was far outweighed by what else they got from it.’ Jo Fairey, Executive Trader
Fundraisers
Feedback•You don’t get a good return for a little effort! •Best results were from Traders who did the following:– Worked with the organisation, took time to
explain how to maximise their success– Set targets with the organisation to get
everyone focussed– Worked and motivated a few, who then did the
selling!
Fundraisers
How could we make it better?•Keep similar price points•Offer broader range of packs to appeal to a wider audience•Improve and encourage customer relationship•Work with organisations in a different way to improve engagement and therefore sales
Fundraisers
• US Example– Goal - 5th graders needed money for a science
camp – Active Sellers - 105 5th graders, of which 32
children took part – Results - sales exceeded $4,000 (average of
$124.50 per active seller), over $1,000 raised. Phoenix Fundraiser for the whole school now planned
How can we make it work in this way in the UK?
Fundraisers
• UK Example• Ruth Steggles – Whitchurch High School• ‘Can I help with your fundraising?’
– No of Leaflets given out – 160– No of active sellers – 30 (teenage boys!)– Sales - £877– Goal – £263 for the school Rugby Tour– Organised through Head of PE via an engaged
and encouraging parent
Fundraisers
• Why was Ruth’s Fundraiser a success?– Each participant had 3-5 order forms
and were encouraged to collect orders from other people
– There was a need – each boy has to raise £2,500 for the Rugby Tour
– Sue (parent) encouraged and co-ordinated
Fundraisers
• UK Example • Helen Preston – Widdington Guides
– 30 Christmas Supplements and Fundraisers given out
– Helen talked through the products and explained the amount they could receive with the guides and leaders as a group
– Sales • Normal stock (10% donation) £338.90• Fundraisers (30% donation £103
– Goal – whoever brings in the most sales gets a free Advent Calendar as a prize
Fundraisers
• How can we maximise Fundraiser sales?
• It’s not the size, but the level of engagement that makes the difference…
How can we improve Fundraiser take up?
• Goal setting!• In a perfect world, find engaged volunteers within
the organisation • Target these volunteers with leaflets• Work with these volunteers supporting them to
maximise the sales• Keep involved with the organisation – what
resources do they have to help you?• Make it a regular event• The tested approach is the best - follow the 5 x 5
approach
Use resources!
5 x 5 rule for Organisation Leaders
1. Find 5 volunteers (if possible!)2. Give each volunteer 5 Fundraiser Leaflets
and a 3 week deadline3. Volunteers collect orders from their
friends/family and supporters of your charity/organisation
4. Return the orders with payment less 30% to me
5. I will deliver your orders
2013 Fundraiser Timings
• Year-round everyday Fundraiser – Launching 1st February–Will run throughout 2013
• Autumn Fundraiser– Launching with the Christmas range– Running up until November (date TBC)
Plan in now and talk to organisations about the timings that will work best for them.
2013 FundraisersSupport Material prices
• Fundraiser Information Packs (leaflet and letter for the organiser) – 1 pack = 50p– 5 packs = £1.00 – 10 packs = £1.50
• Fundraiser leaflets– Pack of 25 leaflets = £1.50– Pack of 100 leaflets = £5– Postage – to be charged as per the normal Trader
postage prices– Fundraiser leaflets and Information Packs can be
added to a normal order
2013 FundraiserProduct Line-up and Prices
Children’s Packs, Mixed Packs and Floral Packs at the following prices:
•5 cards for £7.50•10 cards for £12•20 cards for £24
Both current and discontinued products will be included in the Fundraiser Packs
Other mixed packs (currently under review):
•Gift Wrap Pack – 6 Giftwrap designs and matching Tags for £9•Bookmark Pack – 10 Bookmarks for £5•Themed Party Sets – selection of products for approximately £12
2013 FundraiserHow will it look?
Butterfly Tea Party
What is it?
Get planning – it’s back!1st May 2013