inside ecommerce - micksgarage masterclass - april 15th 2014

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April 15th 2014 - Dublin www.insideecommerce.ie @insideecommerce Inside eCommerce has partnered with online retailers, MicksGarage.com, to share their experiences in Building for Scale Internationally. This one day event will provide invaluable insights into the strategy, innovation and technical implementation behind creating a successful eCommerce offering. Six speakers from the company’s top management team including the two founders will give masterclass sessions focusing on key areas of the business. Attendees will learn over the course of the day how all these functions fit together to form a well oiled machine. MicksGarage, car parts experts and now one of Irelands leading “eTailers”, was started 10 years ago in the bedroom of company founder, Mick Crean. Mick and his brother, Ciaran, now ship over 1000 products daily to more than 70 countries worldwide and employ 48 people in their Dublin headquarters.

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Inside eCommerceMicksGarage.com Masterclass

April 15th 2014The Gibson Hotel, Dublin

contact: john@insideecommerce.iewww.insideecommerce.ie

Inside eCommerce: Supported By

MicksGarage.com

MicksGarage Key Metrics Procurement Fulfillment Customer Service

Key Metrics : P&L1. Cost of Product2. Unit Ship Cost3. Unit Ship Accessory

Cost4. Margin

Key Metrics: P&L Zooplus.de

Key Metrics: Trading1. Orders2. AOV3. Conversion Rate CVR4. Margin

Key Metrics: Trading per Channel1. Orders2. AOV3. Conversion Rate CVR4. Margin

Key Metrics: Reporting1. Expose Data2. Share Tools3. Drive Insights

Procurement : Materials• Buy Right – Sell Right• What is not on the product cost / Discounts• Where is the marketing support• Share data – promote open relationship• Purchase the entire product – data

Procurement : Materials• Supply chain dependant• Stock / virtual stock• Ring fencing / Exclusivity• Global Market

Carraige: In / Out

Shipping kills

margin!

Carriage: Out• To free ship or not to free ship• Product / AOV / Margin Service level dependent• Free shipping over…• Standard vs Priority• Trend away from free shipping• Click & Collect• Know the unit cost – analyse statement

Carriage: MicksGarageAn PostInnovative Service offerings• Domestic Tracked• UK Tracked• EU Small Parcel• IBMS• Click & Collect• Integrated WMS Label print• Stamp machine• Return Labels• Account Management

Unit Ship Additional CostPackaging• Reuse • Branded Boxes• Branded Bags

Freight In• Shipper eg Expeditors

P&L: Above the line• Buy Right• Unit Costs – Measure• Influencing factors

Customer Service• Measured– NPS / Scorecard– Volume levels– => Product Level

• Integration– Order Platform

Customer Service

• 7-Day Customer Service• eMail / Chat / Phone /

Facebook / Twitter / Blogs• Deliver a uniform experience• Unified Platform• Training - Experts

MotoToro.com

Inside eCommerceMarketing:

From Click to Conversionwww.insideecommerce.ie

@insideecommerce

@micksgarage@j_smyth

John Smyth

What works for MicksGarage

What we define as success

From Click To Conversion

• Who’s Your Customer?

• Gaining the Click – Traffic Drivers

• Marketing driven by Metrics

• Going Beyond the Click

Who is Your Customer?• Users v Customers• Starting Point• Who • Where • How• Why• Understand Your Traffic Thoroughly• Metrics Drive Understanding

Traffic Drivers• Google AdWords Search• Search Engine Optimisation• Affiliate• Partnerships• Email• Social

Why AdWords?• Performance Driven Marketing• Complete Purchase Funnel• Have Clear Goal in Mind• Know Your Product / Service• Research Your Audience

– How do they search?• Competitive Analysis• Create Ads that Stand Out!

‘car parts’

‘VW car parts’

‘VW golf wiper blades’

“VW golf mark 5 wiper blades”

Why AdWords?• Performance Driven Marketing• Complete Purchase Funnel• Know Your Product / Service• Research Your Audience

– How do they search?• Competitive Analysis• Create Ads that Stand Out!

KPIs – Weekly & Monthly • Complete Channel Measurement

• Visits• Orders• Revenue• Conversion Rate• Average Order Value• Cost• CPA

• Know where to focus your attention• Have targets, work towards them• Targets v Run Rate

Learn…Evolve…Grow• Not Perfect

• Constant Learning

• Live By Your Metrics

• Focus On Your Users – Learn From Your Customers

• New Challenges - New Channels

Going Back to the Office

• Goals – Are they defined? Write them down• Have You Targets? Write them down• Do You Know Your Customers? • Before…During…After • What are your Metrics? – How do you track them?– Are you spending enough time on them?

Further Resources• Websites– Google blogs – (AdWords & Analytics)– Marketing Land / Search Engine Land / Search Engine

Watch– GetElastic.com– PracticaleCommerce.com– Occam’s Razor – Avinash Kaushik

• Twitter Accounts– Rand Fishkin @randfish– Danny Sullivan @dannysullivan– Sean Si - SEO Hacker @seo_hacker– Matt Cutts - @mattcutts

Questions?

Inside eCommerce Content is King

www.insideecommerce.ie@insideecommerce

@micksgarage@DerekThaDog

Rob King – Content Manager

Content is King

email - video – photography - category management - social

Do’s & Don’ts:DON’T mention religion……ever

email

Bad taste I’ll never buy from you againIn some countries you’d get beheaded for that!

“ “email

Do’s & Don’ts:DO: Visualise your audience then test, test & test again

email

Go Create!Plain text: Great deliverability but no visual impact. html templates: Simple & fast to set up but poor inbox consistency, repetitive, limited creativity & flexibility. Image mapping: Great flexibility, great inbox consistency but slow load times. No text version. Slicing: Great flexibility, visual impact, inbox consistency and load times

OptimisedPlatform consistency – creativity – speed - open rate - revenue

email

When?Largely over emphasised. There are hundreds of reports & studies all contradicting each other. A bit of common sense & some A/B testing brought us to a set of simple guide lines we generally work to:

• General car parts: 11am-2pm mon-fri (needs)• Tools, accessories, gadgets: 7.30pm-8.30pm (wants)• High value items: 25th – 30th of the month (pay day) • 9am– 10am mon-fri (work stuff)• Friday afternoon (limited numbers)• 4pm-6.30pm (home/dinner)

email

Subject lines, open rates, segmentation & personalisation Segmentation, relevance & personalisation are key to open rate

email

video

We did some in-house A/B testing and found that when a video was present on a product details page it drove a sales increase of 40% Hence why we now have an in-house team of experts working on video.

“ “John Smyth – head of marketing, Micksgarage.com

video

video

“ “

video

Software & HardwareWe use the Adobe Creative Suite. Videos are edited in Premier Pro and After Effects provides text, graphics & special effects, Lightroom and Photoshop are used for photography and email creation.

Basics - Camera, tripod, lights, mic, backdrop: €1290Total: €5635

video

video

+ AVS video editor

Despite filming in a dark warehouse and working on a part of the car that would normally be in shadow, through good lighting setup we have a clear, bright and crisp view of what is going on. (shot in 1080p full HD)

Video Content :• Attention spans are short but don’t assume your video has to be a certain length• Watch-ability is key. No matter what the subject, your video has to be interesting enough to watch• Get straight to the point. Don’t tell people what they’re about to see, get on and show them. (20% of viewers gone in 1 st 10s)• Know your stuff! Unscripted usually works better. That said, planning is essential. Have a clear vision & concept worked out• Accuracy! Remember there are no pedants on the internet!• Make sure the piece flows. if you do need a script, try to bullet point the topics you need to talk around, it will help you plan your shots• Research. Watch similar videos, learn from their mistakes, fill in the blanks & make yours better!

Poor sound and light can ruin a good video but they won’t make a bad video good, so first concentrate on the content

video

• 3.6m video views• 1.1m from embedded player• 25,000 views per week• 1964 CTA clicks YTD• Average view duration: 1.57 (48%)• Top 10 videos all ‘How To’

Before ‘How To Video’• 45 subscribers per month

After ‘How To Video’• 200 subscribers per month

PC Mobile Tablet0%

10%20%30%40%50%60%70%80%

Video Analytics

video

What posts work?Know your fan baseCheck out your insights

social

62 interactions, 3.5K reach

variety – photos – news – competitionsVideo – humour - genre – advice – ask!controversy (careful now) – mention the government if you dare!

social

The Twitter Machine• Make use of the background• Activity • Relevance• Keep sales messages to a minimum• Engage / interact• Post with image• Video: screenshot image

email

The Filter:• Jumping on the bandwagon• Editorial pieces /Original content• Opinion• SEO optimisation

social

Stuff you can try immediately:• Download AVS Video editor for FREE• Shoot a video on your smart phone, upload it to YouTube and link (annotate) to a product (Don’t forget to include a related product in your video!)• Double your Facebook activity for a week and monitor the change in reach and likes.• Do the same for Twitter• Run a simple Facebook competition• Segment your email list• Go on a half day film/photography course• Use your website on a daily basis – see it through the eyes of your customer • Let your company’s personality shine through

recap

Any Questions?

Michael Crean – IT & Operations Manager

About Me

• Co-founded MicksGarage.com while unemployed in 2004.• IT Systems architect, software developer and operations

manager• Involved in all aspects of business from IT to warehousing,

marketing, customer Service, Voip phone systems and everything in between.

About MicksGarage.com

• 42 Employees across IT, marketing, Warehousing, CS, Accounting

• Sell to approx 70 countries on monthly basis• 6+ million data records• Average age of our employees is just under 30• Innovation is key to our success• We try to lead rather than follow with everything we do.

Website is your shop window

• Must be kept updated• Must be kept clean• Must be current• Must entice customers to take a further look

“Its just a website, cant be that difficult”

Infrastructure Management

Data Management Content

Management Order

Management Order Dispatch Customer Service Returns

Management Fraud

Management Pricing Strategies Marketing

Technical Considerations

• Platform Selection• Payments, what service, what method, Paypal, Realex,

Stripe • PCI compliance issues• Order management tools• What level of automation do I need?• What volume of orders do I anticipate?• What sort of hosting do I need? Cloud, Shared, Dedicated• Automated Fraud Management• Outsource software development?

Order Management

• Keeping track of orders• Order change requests• Handling queries from customers• Unified systems, tracking numbers, payments, order history• Returns and refund handling• Filtering out fraudulent orders• mCRM – How we did it?

Order Management

We have one system to manage orders

Order HistoryTracking Numbers + PicturesPayment DetailsRefund DetailsAudit History

Order ManagementOrders managed through StatusesEach status part of pipelineUnified System – all parts of order visible

Barcode Packing

Accurate Dispatch first timeAll orders picked and packed via barcodeDispatch labels are printed automatically to save time

Data Management

• Handling millions of records• Correct product categorisation• Does your website handle mis-spellings?• Is your website navigation clean simple and quick?• Where will your data come from• What images do you have, where can you get the rest• Selectable attributes (Gender, Size, Colour etc)• Additional Attributes (Weight, Pack Size, Colour etc)• Descriptions• Barcodes• Accuracy

Payments & Fraud• Paypal• Realex• Stripe

• PCI compliance• Control required• 3DSecure

Any Questions?

Inside eCommerceMultichannel

www.insideecommerce.ie@insideecommerce

@micksgarage@vinnyobrien

Vinny O’Brien

@vinnyobrien@micksgarage

Multichannel – Gateway to the WorldThe ChallengeThe OpportunityHow to get startedHow we do itThe Playbook

Spoiler Alert

The gateway to the world

"in time of war as in time of peace, by every vessel of commerce or of war, without distinction of flag."

The Challenge

The Challenge

72

“It is no longer about channels; it is about the customer life cycle across everywhere we touch them.”

Customer feedback is central to everything that makes marketplaces tick. When Amazon or eBay make a change, we listen.

The Challenge

The Journey

• Probably best not to start here

The Journey

What they Offer

The Reality

What Works?

OUR

Global Play

113 Countries

5 currencies

5 Languages

Multi Lingual Storefront

Direct API Compatibility

Strategic Relationship

Our Platforms

Me on market research

Me !!

The Canary in the Mines

The Confession Box

The Confession Box

The Confession Box

The Thinning Hairline Playbook

When can I start

Questions

@vinnyobrien@micksgarage

Inside eCommerceDesign for Success

@micksgarage@so_uh_yeah

Brendan McMahon

Designing for Conversion

• 1998: Joined Organic Inc.• 2001: dot.com bubble burst

• 2001-2005: Independent Consulting/ G2 Interactive

• 2006-2008: Dell Inc.

• 2009: Hotels.com

• 2009-2013: Sears Holdings Corporation

About Me

Ecommerce - Conversion

Marketing - Audience

IT - Engine

Content - King

Design - Experience

Traditional ‘Website’ Design is Dead

Questions?

Traditional ‘Website’ Design is Dead

If you aren’t designing and developing for a multi-device experience you are missing the boat

Purchase Funnel Expectation

Questions?

Purchase Funnel Reality

Design pulls it together

Questions?

Designing for Conversion

Design has to be part of any tactical or functional implementation

What are we designing for?• Top of Funnel

(browse)• Bottom of Funnel

(cart/checkout)• Page weight• Data set• Page Goals

What are we measuring?• Bounce Rate• Exit Rate• Conversion Rate• Interactions• A/B

1. Introduce your customers the style of the store – Home page is the page you are giving the basic information about your business

2. Style and design should be the same for all pages

3. Compose the central part of home page

4. Product catalogue must be visible right from the home page

5. Organize the header of the home page

6. Don’t forget to include the search engine on your home page

7. Manage the catalogue categories in fine and logical way

8. Contact information must be visible and easy to find –

9. Information regarding delivery, returns, and general terms & conditions

10. One or two inserts from testimonials page. .

Design for Trust

What response does your HP elicit?

2

3

4

5

6a

6b

78

1

9 10

2

2

KISS - Keep It Simple Stupid

The KISS Method

Simplicity. Readability. Consistency• Landing Pages

• Defined Path to Product

• Large, Hi-Quality Product Images/Video

• Reviews

• Purchase Response Triggers

• Clear Call to Action

• Simple account and checkout

KISS – Basics of Site Design

KISS - Landing PagesNavigational

Search Landing Page

Lifestyle with a view to customization

KISS – Refine the Results

KISS – Support the User

KISS – Refine by Attributes

KISS - Assurance

KISS – The Right Results

KISS – Detailed Product Pages

KISS – Detailed Product Pages

KISS – Product Images

KISS – Purchase Triggers

KISS – Purchase Triggers

KISS – Purchase Response Triggers

KISS – Reviews

KISS - Accounts

KISS - Cart

KISS - Checkout

KISS - Checkout

• Design for PURPOSE

• Cut the Response Time – don’t over engineer

• Respect your Customers Time

• Understand the Traffic Drivers

• Hit The Visitor’s Interest

• Be Responsive – design with Multi-device in mind

Conclusion

Inside eCommerceStarting again – MotoToro.com

@micksgarage@ciarancrean

Ciaran Crean - CEO

MotoToro.comWhy– Passionate about bikes– Key resources in place– Fits exiting Data Centric model– Existing parts knowledge– Key enthusiastic supplier– Great shipping proposition– Complementary product lines– Powered by MicksGarage.com

Cost of ProductUnit Ship CostUnit Ship Accessory CostMargin

Inside eCommerce

THANK YOU!

For more visitwww.insideecommerce.ie

@insideecommerce@micksgarage@Johnnywestcoast@vinnyobrien@j_smyth@DerekThaDog@so_uh_yeah@ciarancreanjohn@insideecommerce.ie

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