Surprising failure factors when implementing eCommerce and Omnichannel eBusiness

Surprising failure factors when

implementing eCommerce

and Omnichannel eBusiness

Tomasz Karwatka / Divante.co

WHY IS IT WORTH READING?

2

Therefore, we can see from the inside how many companies approach this

topic. Comparing it with the obtained results, we can determine positive and

negative factors influencing success with great certainty. In this presentation

we share stories of companies that are not mentioned in our case studies.

These are the stories of bad choices, leading to failure.

If you think about Omnichannel / eCommerce and were about to do

something that we write about below - just contact and consult us :)

We work on the large Omnichannel

and eCommerce projects in Europe.

Who has to deal with Omni?

IN WHICH CATEGORIES THE INFULENCE OF THE INTERNET ON SALES IS THE BIGGEST?

4

We’ve compared the impact of the Internet on purchasing process in individual categories in 2016.

Building Omnichannel in these

industries can give you

competitive advantage.

Ar you in this industry? You need to quickly

build great Omnichannel Experience.

Full report: http://go.divante.co/ropo-sopo-zwyczaje-zakupowe-polakow-raport-2016/Diagram shows the breakdown by category of the percentage of buyers declaring the use of the Internet during their shopping process

If your industry is below, you need to have a

good e Commerce - otherwise you wouldn’t be

here:)

• Credit or cash bank loan

• Car accessories

• Cosmetics or care

products

• Medicine or medical

articles

• Furniture and home

furnishing items

• Electronic devices – e.g.

TV, radio, Hi-Fi audio

• Clothing accessories

• Car parts

• Clothing / Footwear

• Small household

appliances

• TPL / AC insurance

• Sports or tourist

equipment

• Books, toys

• DVD or Blu-Ray movies

• Mobile phones and

subscription.

• Large household

appliances

• Cameras and digital

cameras

<10% 11-20% 21-30%

• Tickets to the cinema or

other events

• Computer components

or accessories

• Music on CDs or mp3

• Booking a hotel room

• Airline or railway tickets

• Holiday or a trip abroad

• Software or computer

games

31-40% >40%

http://go.divante.co/ropo-sopo-zwyczaje-zakupowe-polakow-raport-2016/

OVERALL IMPACT OF THE INTERNET ON SALES – 2016 VS. 2011

5The overall impact of the Internet is the percentage of transactions in which the online channel was included as a source of information and /or place of purchase. The percentages rounded to the full value; the ranking is based on the values to two decimal places. Full report: http://go.divante.co/ropo-sopo-zwyczaje-zakupowe-polakow-raport-2016/

Booking a hotel room

Category Influence in

2016

Airline or railway tickets

Holiday or a trip abroad

Software or computer games

Tickets to the cinema or other events

Computer components or accessories

Music on CDs or mp3

68%

Sports or tourist equipment

Books

Change of influence

compared to 2016

Place

2016

Change of place

compared to 2016

50%

45%

43%

34%

33%

33%

29%

24%

17%

20%

8%

8%

4%

3%

9%

7%

6%

1

2

3

4

5

6

7

8

9

b.z.

+4

-1

-1

b.z.

-2

+1

+1

+1



Toys


2016

DVD or Blu-Ray movies

Mobile phones and subscription.

Large household appliances

Cameras and digital cameras

Furniture and home furnishing items

Audio/video devices

23%

Clothing accessories

Car parts

Change of influence

compared to 2016

Place

2016

Change of place

compared to 2016

23%

22%

22%

22%

19%

18%

18%

17%

14%

5%

7%

11%

-3%

6%

5%

9%

1%

10

11

12

13

14

15

16

17

18

+7

b.z.

-1

+3

-7

b.z.

-2

+1

-6



Clothing/Footwear


2016

Small household appliances

TPL/AC insurance

Credit or cash bank loan

Car accessories

Cosmetics or care products

Medicine or medical articles

16%

Change of influence

compared to 2016

Place

2016

Change of place

compared to 2016

11%

11%

9%

8%

6%

3%

10%

35%

5%

6%

1%

2%

1%

19

20

21

22

23

24

25

+1

_1

+1

+3

-2

-1

-1

Mistakes of

the BoardSource: www.viralnova.com

CAREFUL, THE DISTRIBUTORS WILL NOT LIKE IT!

9

• Hiding prices

• Raising prices

• Forcing registration

Sabotaging your own

eCommerce

• Self Service builds premium brands

• Added services

• Full „Where to buy” offer

• Images and descriptions

Ideas

Source: www.pinterest.com

DEPARTMENT X WILL CREATE ECOMMERCE ON THEIR OWN

10

• IT – choosing the "known" technology, too little emphasis on

business and client aspects

• Marketing – treating eCommerce as advertising brochure

• Sales – fear of channel conflicts and „hiding” eCommerce

• Dedicated eCommerce position for the

period of transformation

Solution


BUT WE ALREADY HAVE A WAREHOUSE

11

• 24/7

• Two-way – up to 30-40% returns

• C&c and other

• Lower AoV

eCommerce logistics is

different

• External service at the beginning

Solution

Source: witzshared.com

WE HAVE INTEGRATED SYSTEMS FOR AGES, IT’S NOT A PROBLEM

12

• Systems adapted to a traditional business

• Customers may receive a data package (prices, product

catalog and availability) made specifically for them

• Orders get lost when the ERP system slows down or

crashes.

• Omnichannel data bus

Solution

Source: witzshared.com

WE ALREADY HAVE IMAGES AND DESCRIPTIONS

13

• Images and descriptions aren’t just a complement

anymore - it’s the only thing the user sees

• Systemic and quick adding images

• Duplicate content in Google

• Translation

• Proofreading

• Process

• PIM software

Solution

Source: www.amusingtime.com

OUR OWN HOSTING IS ROCK-SOLID

14

• High online traffic

• Large traffic spikes (x10 is common)

• A lot of excess equipment required

• IT loooooves our servers, cables and wires

• Private Cloud, CDN

Solution


Managers’

mistakesSource: www.viralnova.com

COLLECT YOUR BUSINESS NEEDS

16

• Gathering business needs from all departments

of the company

• But... 40% briefs results in contradictory,

mutually exclusive requirements.

• What the customers already have and

use

• Implementation, then designing

Solution

Source: http://www.2dayfm.com.au/

COLLECT CUSTOMER NEEDS

17

• Ask your customers what they want

• Very diverse groups

• Mutually exclusive opinions and needs

• There is no golden mean

• Lack of prioritization

• Implementation, then designing

• Feedback: livechat, a/b testing, ..

Solution

Source: http://www.2dayfm.com.au/

OUTSOURCE IT

18

• Businesses would like to have a project where

someone tells them what, how much and when

• This unfortunately leads to a lack of strategic IT

planning

• No control over the product in the long term

• Building a virtual team

• Open Source

Solution

BUY CHEAP

19

• Comparing offers and choosing the cheapest

• In eCommerce usually Development cost >>

Deployment cost

• Work out a coherent vision of

development with all vendors

• Magento is popular because developing

in PHP is cheap

Solution

THIS PLATFORM BEST MEETS OUR REQUIREMENTS

20

• Let's choose a platform which feature list

agrees with our feature list

• But ... 50% of the requirements is collected

badly

• Flexible platform – framework

• Select 20% key functions for the

deployment

• Development instead of pre-planning

Solution

Why do eCommerces

go bankrupt?

MEASURE YOUR ROI

22

• Measuring ROI of each action shows that you treat your

business seriously

• But ... one of the stores consistently eliminated all

unprofitable (in the short term) sources of acquiring new

customers.

• Lack of a strategic vision for customer acquisition.

• Customer base gradually decreased.

• Measuring long term ROI

• Loyalty

Solution

IF IT WORKS – DON’T TOUCH IT!

23

• If it works, let’s not change it

• But ... as time goes on, it becomes more and more difficult

to: add, maintain security, update

• Magento 1.x - – end of support in 2 years

• Basecamp creators – the application is rewritten every 4

years

• Plan development and migration strategically

• IT architect in your team

Solution

INTENSIVE ACQUISITION OF NEW CUSTOMERS

24

• Intense acquisition of new customers

• New customer = loss

• "We have no loyalty in our strategy„

• In on-line sales it’s unfortunately a lot easier to "move away

from cash„

• Acquiring customers without loyalizing them in eCommerce

leads straight to bankruptcy.

• Monitor loyalty

• Create a loyalty program – even if only for the

on-line channel.

Solution

25

Would you like to get

ROPO/SOPO 2011-2016 report?

Tomasz Karwatka

CEO

[email protected]

WE LOOK FORWARD TO COOPERATING WITH YOU

About DivanteTeam, experience and clients

28

eBusiness Software House

• We deal with eCommerce technology and

Omnichannel design solutions,

• We have operated since 2008,

• More than 150 professionals in Wroclaw

• Clients from Europe and the USA,

• We include Clients to our teams and work in

SCRUM methodology,

• We are a reliable partner, Divante belongs to

OEX SA group,

• Offices in Wroclaw and Rotterdam.

29

We employ more than 150 professionals:

• 60 PHP Developers (Magento, Zend, Symfony),

.NET, Java, iOS, Android),

• 11 certified Magento Plus Developers,

• 5 certified Magento 2.0 Developers,

• 9 Front-end Developers,

• 12 Testers, 4 Analysts (business, system),

• 10 Project Managers,

• 12 UI/UX Designers,

• 8 Marketing Technology & Big Data Specialists.

Divante UK

286C Chase Road

London, N14 6HF

United Kingdom

(+44) 20 30115154

[email protected]

Divante Sweden

Divante HQ

Divante NL

Divante UK

Divante HQ

14 Kosciuszki Street

50-038 Wroclaw

Poland

(+48) 733 355 596

[email protected]

Divante Holland

Rivium Quadrant

141-181, 2909 LC

Capelle aan den IJssel

The Netherlands

(+31) 657 625 006

[email protected]

Divante Sweden

Erik Dahlbergsallén 15

115 20 Stockholm

Sweden

[email protected]

Surprising failure factors when implementing eCommerce and Omnichannel eBusiness

Business

Transcript of Surprising failure factors when implementing eCommerce and Omnichannel eBusiness