eCommerce Services
Managing Customer Lifecycle in Online Stores
Limited EditionNovember, 2008
Note: This is a limited edition of a comprehensive deck which includes 59 best practices. To
receive the complete deck free of charge, please contact
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eCommerce market presents vast opportunities for companies with the right capabilities and in order to capitalize on such opportunity, we help companies build and grow relations with their customers
UNAWARE AWARE
INTERESTED
PURCHASED
LOYALMoving online store visitors up the relationship ladder provides significant opportunities for growth:
Loyal customers have almost double visit to carts Loyal customers have almost triple conversion rate Loyal customers have 10% higher cart value
We identify amount of customers and prospects in each
stage and define targets as basis for strategic priorities.
Source: MarketLive Performance Index
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Companies should analyze such relations for eCommerce sites across customer lifecycle…
Added ItemAbandoned Site
Abandoned Cart
Bounced PaymentReturned GoodsInitiated Check-out
Visited Viewed ItemSubscribed
Initiated PaymentPaid
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…and develop actions and programs for opportunities identified across this cycle
Added ItemAbandoned Site
Abandoned Cart
Bounced PaymentReturned GoodsInitiated Check-out
Visited Viewed ItemSubscribed
Initiated PaymentPaid
Around 40% of customers have 1 and out behavior.
Source: MarketLive Performance Index
Only 9% of visits end up in carts.
Overall cart abandonment rate
is around 60%.
Over 50% of check-outs are
abandoned.80% of online customers do
not have repeat orders.
Only about 35%of visits are
generated from search engines.
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Information should be at the hearth of all decisions and actionsthroughout this cycle
Maturity
Dec
isio
n Q
ualit
y
Free Fall Stage
Guesswork Stage
Impromptu Stage
Well-Informed Stage
• Decisions are not consciously made• Actions do not have consistency• Daily happenings direct business• Key factor for success is luck
• Decisions are based on opinions• Actions have limited consistency• Personal motivations direct business• Key factor for success is experience
• Some decisions are based on facts• Some actions have consistency• Facts direct some parts of business• Key factor for success is focus
• Decisions are based on absolute facts• All actions have consistency• Facts direct business• Key factor for success is accuracy
We help companies make most out of their information base and
take actions based on them…
Mature Decisions
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Purchase Behavior Needs Demographics Category Behavior
Brand Aspirationals
Price Value Shoppers
Trendy Quality Seekers
Price Sensitive Affluents
One Stop Shoppers
Conscientious Objectors
Social Shoppers
Office Administrator
Business Reseller
Institutional Buyer
Foodservice Entrepreneur
Traditional Club Shopper
Demanding / Experiential Shopper
Mom / Family CEO
Active Boomer
Sophie (Older shopper / empty nester)
Caroline (Young, single working woman)
Vanessa (Married with children)
Value-Seeking
Variety-Seeking
Brand-Seeking
Simplicity-Seeking
Discovery-Seeking
Quality-Seeking
Sample
Most leading retail and eCommerce companies leverage customer insights in their operations, using various tools, such as customer segmentation
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Additional Services for Information
Differentiation of Corporate vs. Individual Registration
Customer Clubs for Information Collection and Interest Identification
Golden Questions in Registration
Sample
Such analytics practices require collection of right customer data, through various means…
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Personal Shopper provides highly customized recommendations and value added services in return for
detailed demographics, life-style and preference information.
…which can range from basic customer identification data to in-depth customer and social network profiling
Sample
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In addition to customer data, it is also critical to analyze pure web traffic data to incorporate Internet user insights into actions
Sample
Seasonal search engine optimization for ‘shopping’ keyword would result in higher ROI.
Search keyword analysis, as well as traffic source/destination analyses can have substantial impact on visibility of online stores.
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Objectives Sample KPIsFocus Area
Guidelines
First step in eCommerce customer lifecycle is visit to the online store, which requires effective acquisition activities
Create VisitsAttract different types of visitors to site
using alternative channels and approaches, providing differentiating
value add
Number of Visits per MonthUnique Visitor Count per MonthAdvertising Cost per Visitor% of Visitors Bookmarked Site Page Rank of Homepage
Visited
Use search engine
optimization using traffic
insightsUtilize
variety of acquisition channels
Customize acquisition
approach by prospect segment
Provide additional reasons for visiting site
Sample Case
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ebay’s launch of desktop and mobile version of its shopping environment increases convenience for customers accustomed
to use of certain tools and channels.
Enriching means and media of access is inline
with the global telecommunications trend
towards convergence…
Utilize variety of acquisition channels
Providing alternative means for visit attracts prospects with certain channel habits
Note: This is a sample out of 59 best practices available in
complete deck. To receive the complete deck free of charge,
please contact [email protected]
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Objectives Sample KPIsFocus Area
Guidelines
Once visitor traffic is created, the next step is subscription of visitors, in order to enable tracking and acting on customer information
Subscribe VisitorsMotivate subscription at first sight,
providing additional value add and good first impression
Subscriber / Visitor Ratio Total Unique Subscriber CountNumber of Subscriptions per Month% of Subscribers with Full DataDuration From Visit to Subscription
Visited Subscribed
Call to action for
subscription on landing
pageMake
subscription fast and
convenient
Provide immediate
value add for subscription
Promote competitive
value propositions
Sample Case
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Circuit City provides in-store pickup for faster and cheaper delivery of online purchases.
In-store pickup is a lower cost option for retailers, where speed and lower
pricing can also be attractive for customers…
Promote competitive value propositions
Over 70% of customers are interested in in-store pickup service, which can differentiate multi-channel retailers against pure eCommerce players
Note: This is a sample out of 59 best practices available in
complete deck. To receive the complete deck free of charge,
please contact [email protected]
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Objectives Sample KPIsFocus Area
Guidelines
In order to have subscribers make purchases, the first requirement is creating interest in items and making merchandise easily accessible
Create Interest in ItemsMake items of interest easily accessible and pro-actively communicate relevant
information on merchandise
Number of Items Viewed per VisitNumber of Items Viewed per Subscriber% of Subscribers Viewing ItemsNumber of Categories Viewed per Subs.% of Items Not Viewed for Long Time
Subscribed Viewed Item
Use effective and
alternative categories for items
Pro-actively recommend
items
Provide ability to
search with alternate
meansProvide
creative and instructive item views
Sample Case
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Schwan’s provides alternative categorization, making its products more accessible for customers looking for certain
types of offerings.
Providing alternative categorizations for
products let customers reach out to searched
items faster and easier…
Use effective and alternative
categories for items
Using alternative categorization schemas for items increase usability and are proven to increase conversion rates by 34%
Note: This is a sample out of 59 best practices available in
complete deck. To receive the complete deck free of charge,
please contact [email protected]
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Objectives Sample KPIsFocus Area
Guidelines
Conversion of interest into purchase intent is a key step, where high performing retailers can increase their bottom-line significantly
Create Purchase IntentTranslate interest into action by learning from customers’ interests and following
up effectively
% of Views Resulting in Item AddNumber of Items per CartValue per Added Item% of Items Viewed but not Added Freq.% of Subscribers Viewing Items Only
Viewed Item Added Item
Follow-up and promote
viewed items’
purchase Identify and act on
subscribers using site for viewing only
Follow-up interest in
out-of-stock items
Translate interest into wish lists for
future purchase
Sample Case
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Roots sends e-mails to inform customers about restocked items, which they could not purchase earlier due to stock-out.
Personalized e-mails after restock do not only create good sales opportunities, but also provide a good
experience for customers…
Follow-up interest in out-of-stock items
Customers who were interested in out-of-stock items are the most likely targets for these items after replenishment
Note: This is a sample out of 59 best practices available in
complete deck. To receive the complete deck free of charge,
please contact [email protected]
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Objectives Sample KPIsFocus Area
Guidelines
Keeping customers on-site and cross-selling before check-out require pro-active actions, which can create substantial ROI
Create Check-out IntentAvoid abandonment of added items
providing convenient transition to check-out and following up
% of Item Adds Abandoned% of Item Adds Removed% of Cart Value Proceeded to CheckoutAverage Item Time in CartAverage Time to Checkout
Init. Check-outAdded Item
Provide one click check-
out
Make single item
purchase faster
Cross-sell before
check-outMake added
items accessible
even if abandoned
site
Sample Case
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Single item purchase should be even easier, using already provided information about customer
Make single item purchase faster
Amazon provides ability to purchase single item right away without need for visit to check-out screen.
Especially for non-grocery retailers, one item
purchases are frequent transactions, which should be given extra attention…
Note: This is a sample out of 59 best practices available in
complete deck. To receive the complete deck free of charge,
please contact [email protected]
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Objectives Sample KPIsFocus Area
Guidelines
Cart abandonment is a major issue for eCommerce sites, where convenient check-out process as well as rigorous follow up are keys to success
Avoid AbandonmentEnsure completion of check-out with
convenient processes and cart follow-up
% of Check-outs Abandoned% of Potential Value Abandoned% of Abandoned Carts Purchased Later% of Abandonment to Competitor Site% of Subscribers with Abandoned Carts
Init. Check-out Initiated Payment
Provide convenience and speed in
checkout
Remind and follow up
abandoned cart
Motivate abandoned
cart purchase
with benefitsMake cart
available in next visit if abandoned
Sample Case
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Zales uses multi-step approach in its offers, first reminding customers about their abandoned cart without any
promotions, than offering a discount in second reminder e-mail.
A multi-step reminder and benefits system for
abandoned carts can create the highest
response rate while keeping cost as low as
possible…
Motivate abandoned cart purchase with
benefits
Providing extra benefits for checking out abandoned cart can motivate this transaction
Note: This is a sample out of 59 best practices available in
complete deck. To receive the complete deck free of charge,
please contact [email protected]
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Objectives Sample KPIsFocus Area
Guidelines
Problems experienced in payment process not only mean lost cart sales, but also could become a reason for customers lost forever
Ensure PaymentProcess payment securely and using
alternative means
% of Payments Bounced% of Potential Value Bounced% of Bounced Payments Abandoned Payment Attempts per PurchaseNumber of Fraudulent Cases Identified
PaidInitiated Payment
Provide alternative means for payment
Ensure and promote payment security
Keep customers informed
about payment process Follow-up
and recover failed
payments
Sample Case
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Amazon provides gift cards for both retail and corporate customers, to be used as gifts and incentives for employees or
own customers as alternative means for payment.
Gift vouchers are effective for acquiring new
customers and facilitating payment by alternative
means…
Provide alternative means for payment
Providing gift cards as payment alternatives can even attract those who do not usually shop online
Note: This is a sample out of 59 best practices available in
complete deck. To receive the complete deck free of charge,
please contact [email protected]
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Objectives Sample KPIsFocus Area
Guidelines
With a first purchase completed, the next stage is to close the cycle, getting customers revisit and repurchase
Create Repeat VisitsIdentify and motivate non-returning
customers providing additional information and value add
% of Subscribers with 2 Purchases% of Subscribers with >2 Purchases% of Subscribers with >1 Visit% of High Value Loyalists% of Subscribers with Returned Goods
Paid Visited
Regularly provide new content and
offerings
Pro-actively take actions for dormant
visitors
Provide value add for
repeat business
Recommend for cross and
up-sales
Sample Case
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Avon pro-actively communicates with its dormant customers and uses free shipping to motivate re-activation.
Showing that the company cares about
doing business with the customer and offering additional benefits can
motivate customers return to site…
Pro-actively take actions for dormant
visitors
Pro-active communication offering additional benefits is also necessary to reactivate dormant customers
Note: This is a sample out of 59 best practices available in
complete deck. To receive the complete deck free of charge,
please contact [email protected]
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 26Forte Consultancy Group
Added ItemAdded ItemAbandoned SiteAbandoned Site
Abandoned CartAbandoned Cart
Bounced PaymentBounced PaymentReturned GoodsReturned GoodsInitiated Check-outInitiated Check-out
VisitedVisited Viewed ItemViewed ItemSubscribedSubscribedSubscribed
Initiated PaymentInitiated PaymentPaidPaid
Forte Consultancy Group provides services in increasing eCommerce performance, through effective strategies and tactics across customer lifecycle
Forte Consultancy Group can assist you …Contact us for details at [email protected]
We can assist you in
Definition of eCommerce KPI and targets Analysis of current eCommerce performance
Design and set-up of performance reporting
Do you know your own performance across customer lifecycle?
We can assist you in
Definition of ideal data elements to be collected
Segmentation of visitors and customers
Prediction of site abandonment & churn risk
Analysis of cross and up-sales likelihood
Prediction of customer response to offers
Automation of advanced recommendations Discovery of main and niche targets for campaigns
Can you use customer intelligence effectively to target customers and take the right actions?
We can assist you in
Assessment of eCommerce current state
Re-engineering of customer experience Design and execution of marketing communications
Design and execution of one-time and repeating campaigns
Refinement of product portfolio and value propositions
Refinement of web site design features
with customized approach for each of following objectives
Creating visits
Subscribing visitors
Creating interest in items
Creating purchase intent
Creating check-out intent
Avoiding abandonment
Ensuring payment Creating repeat visits
Are you aware of the untapped potential of your site and have strategies and tactics to realize them?
Forte Consultancy Group | Istanbul Office
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