Luc de Munck - bpost international - eRetail14

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Page 1: Luc de Munck - bpost international - eRetail14

APPLIED DELIVERY as a MARKETING tool

Increase your customer loyalty and conversion

by applying delivery

Luc De Munck – bpost International

Page 2: Luc de Munck - bpost international - eRetail14

Consumers are well informed and demanding

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Social media influences online purchases

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FEEDBACK

Promote & recommend

‘I share my + experience’

CONVERT

Trigger

‘I realize I need

something’

Search & evaluate

‘I decide why I want’

Buy

‘I buy what I

want

DELIVER

Delivery

service

‘I receive

what I

bought’

Consume

‘I open and use

my purchase’

Return

‘Decide I

don’t want

it’

Consumer e-commerce journey Touch points during decision moments

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Trigger

‘I realize I need something’

Search & evaluate

‘I decide what I want’

Buy

‘I buy what I want’

Delivery service ‘

I receive what I bought’

Consume

‘I open and use my purchase’

Return

‘Decide I don’t want it’

Consumer decision moments

Peers/WOM

Social Media

Mass Media

Online Media

Need

Targeted Media

Spontaneous

Pro

cess t

ou

ch

po

ints

Google

Social Media

Etailer sites

Brick & Mortar shops

Comparison / review sites

Peers/WOM

Purchase intention

Purchase made

Package reception

Satisfaction with purchase

Overall satistaction

Homepage

Landing page

Promopage

Product page

Basket

Checkout

Delivery options

Order confirmation

Dispatch confirmation

Track & trace

Home/pudo/… delivery

Unpacking

Review packing slip

Consume / use

Evaluate

Search on return process

Compare return options

Re-package & label

Return: post office?

Acceptance confirmation

Money return

Consumer e-commerce journey Touch points during decision moments

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yy/mm/dd - title presentation - author - qualifier 6

Delivery and returns are main decision buying criteria's

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0%

5%

20%

49%

26%

Not important at all

Not important

Neutral

Important

Very important

Shipping costs

Product information

Price

Source: Intomarkt gft research november 2012

Delivery and returns are main decision buying criteria's

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Delivery and returns are also main criteria's when it comes to repeat buying

68%

80%

80%

85%

85%

89%

89%

90%

93%

Delivery next day

Track&Trace information

Confirmation shipment by e-mail …

Delivery on specific agreed day

Delivery within 2-4 days

Flexible and easy delivery

Free shipping

Flexible return solutions

Low shipping costs

Source: E-commerce and delivery. A study of play of EU parcel markets with particular emphasis in e-commerce.

Considered important

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Free delivery = marketing

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Etailers offering free shipping becomes the more and more the norm

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Always free shipping Free shipping above specified basket value

No information on shipping costs

NL

DE

UK

FR

BE

Source: Simtrec studie : Logistiek voor webwinkels 2013

and it can increase shopping basket value with 30% at check-out

Page 13: Luc de Munck - bpost international - eRetail14

The journey starts by getting buyers to your website and CONVERTING them

Illustration

Homepage

Product overview

page, review page, service

providers page, etc

Detailed product page

Shopping basket

Check-out

100%

30%

20%

10%

5%

2,5%

70%

70%

50%

50%

50%

Information and communication on deliver price and options as well as the return process are key decision buying criteria (75%)

Peer recommandations and WOM are main traffic drivers (82%)

Shoppers use 10,4 sources of information before making a decision

Trigger

‘I realize I need

something’

Search & evaluate

‘I decide why I want’

Buy

‘I buy what I

want

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And you make them LOYAL by DELIVERING your promise to them

Delivery

service

‘I receive

what I

bought’

Consume

‘I open and use

my purchase’

Return

‘Decide I

don’t want

it’

After purchasing a product the consumer builds expectations based on experience to inform their next decision journey

A customer that received the order as promised (intact, on time) will be a repeat buyer and promote your website to his peers (~influencer)

Over time ‘organic traffic’ will be self sustainable and paid traffic will be limited

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Tracking item to country of destination EU28 customs clearance

No tracking

Tracking to country of destination

Tracking on item & scan at door

≤ 2

kg

Tracking on item to scan at door & signature

Tracking an item to scan at door & signature Int’l customs clearance = landed cost solution

≤ 3

0 k

g

S

E

R

V

I

C

E

B

A

S

K

E

T

V

A

L

U

E

Tracking on item & scan at door

≤ 5

kg

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APPLIED DELIVERY As a marketing tool – the business case

Trigger

‘I realize I need something’

Search & evaluate

‘I decide what

I want’

Buy

‘I buy what I want’

Delivery service

‘I receive what I

bought’

Consume

‘I open and use my

purchase’

Return

‘Decide I don’t want it’

Promote & recommend

‘I share my + experience’

What is the + effect of the

right shipping and return options on

conversion

How is a good ‘physical

experience’ translated into satisfaction and loyalty

How does this translate into a

positive recommendation/

like

What is the effect on repeat sales and customer acquisition

Will I have to invest less in customer care and in online marketing

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APPLIED DELIVERY As a marketing tool – the model

conversion

repeat sales

repeat sales

eyeballs

Trigger

‘I realize I need something’

Search & evaluate

‘I decide what

I want’

Buy

‘I buy what I want’

Delivery service

‘I receive what I

bought’

Consume

‘I open and use my

purchase’

Return

‘Decide I don’t want it’

Promote & recommend

‘I share my + experience’

satisfaction satisfaction recommendation like

shipping choice

shipping performance return performance

Page 18: Luc de Munck - bpost international - eRetail14

APPLIED DELIVERY As a marketing tool

At bpost International we want to invest in measuring the outcome of delivery, i.e. the positive effect on

each customer journey, rather than just measuring delivery performance

Together with our customers

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Applied delivery as marketing builds organic traffic, lowers CPA and increases CLV

Time

Euro € Customer

Lifetime Value

Cost Per Acquisition

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European Commission

Roadmap for cross border delivery

18 months to realise objectives

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More information and transparency

Improved delivery solutions

Improved complaints handling

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eCommerce Interconnect Program

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Tracking

Delivery options

Return options

Network Performance

Technology

24 member postal operators

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Delivery and returns are main buying decision criteria (75%) and main reasons for shopping cart abandonment (50%)

We intend to use applied delivery to actually measure effect on conversion, repeat sales and acquisition

Your delivery and return strategy is as important as your product – use it as a marketing tool!

Conclusions

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Come talk to us: Infostand 9

bpost International

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Our talented people enjoy delivering boundless

international mail and B2C parcel shipping solutions to our

customers worldwide

www.wemoveyourideas.com [email protected]

@LucDeMunck www.bpostinternational.com