the idexx ecommerce journey · surveys are idexx -branded – customers know they are doing the...
TRANSCRIPT
The IDEXX eCommerce Journey Donalee Santoro, Vice President Business Operations Companion Animal Group
Lulu Santoro
2 © 2017 IDEXX Laboratories, Inc. All rights reserved.
What I’ll cover
The journey begins
Structure and planning
Staying focused
Measuring up
Founded in 1983 as AgriTech Systems 1991 IPO as IDEXX Laboratories ~$1.77 Billion annual revenue Over 7000 employees More than 175 countries S&P 500 index NASDAQ -100 index
4 © 2017 IDEXX Laboratories, Inc. All rights reserved.
Our purpose: To be a great company that creates exceptional long-term value for our customers, employees, and shareholders by enhancing the health and well-being of pets, people, and livestock.
Companion Animal Group (CAG) – Pets Water, Dairy – People Livestock, Poultry - Livestock
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Exceed the expectations of our
customers
Empower and reward employees
Achieve and sustain market leadership
Cultivate entrepreneurial spirit
Contribute to our communities
Innovate with intelligence
We are guided by 6 core principles
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IDEXX has generated exceptional performance over the past 25+ years
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($ per share)
IDEXX Stock Price 1991 to 2017(1)
(1) Monthly stock price ending February, 2017, adjusted for dividends and stock splits.
The journey begins
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Territory-Centric
Distribution model for recurring revenue
Hospital-Centric
Fully direct customer-centric model
Product-Centric
Product-centric model
‘13 ’15 + ‘14
Our journey began with a vision to get closer to our customers
IDEXX eCommerce Distributor eCommerce
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Customers were enjoying an online ordering experience with their distributor; parity was a must
Market research guided our understanding of the
current customer experience and informed our high level objectives…
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Low Customer Effort
High Adoption
Pleasing Experience
Structure and planning
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We engaged industry experts to help us ensure functionality, scalability, and sustainability and avoid organizational bias
External consulting partners Former Senior VP Corporate Marketing and eCommerce
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Strong partnership and collaboration across the team is essential; focus on roles, not the number of people
Product Owner
Brand Owner
Digital Marketing
Channel Revenue Owner
IT Project Owner
• Product owner – responsible for the strategy, platform roadmap, capabilities, requirements development, primary interface with IT
• Brand owner – responsible for consistent look and feel
• Digital Marketing – responsible for site marketing, personalization, descriptions, hierarchy, positioning, awareness, adoption, utilization
• Channel revenue owner – responsible for demand generation through the system
• IT project owner – responsible for system implementation of the roadmap, system uptime and reliability
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Our current platform is an on-premise solution; which has limitations compared with a cloud-based solution
V.S.
Technical debt – maintenance of platform Expensive delivery of functionality Infrequent releases
Low technical debt – low maintenance Out of box functionality Frequent releases
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An informed roadmap delivers functionality that resonates with customers; at a pace that can be adopted
IDEXX Online Order ExperienceFebruary 2017CAG Customer Insights
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MethodologySurveys are IDEXX-branded – customers know they are doing the survey for IDEXX.
Invitations were sent to all active IOO users, lapsed users and non-users.
Active and lapsed users were emailed a survey invitation with a link to the online survey. 13958 were sent an invitation and 1207 responded for a response rate of 9%. [Margin of error: +/- 2.7]
We faxed the survey to non-users, realizing technology could be a barrier, since they’re not currently ordering online. 3298 were sent an invitation and 364 responded for a response rate of 11%. [Margin of error: +/- 4.8]
To maximize response rate, respondents were entered into a drawing to win 1 of 20 $100 Amazon gift cards.
Surveys were in the field from February 8-24, 2017.
6 © 2017 IDEXX Laboratories, Inc. All rights reserved.
46%
36%
10%
8%
100%
81-99%
50-80%
Less than 50%
% of Orders Placed OnlineBased on current IOO users (n=1207)
Q. Approximately what percentage of the time do you order using idexx.com/ordersQ. Why don't you place all of your IDEXX orders online?
Over 80% of survey respondents place the majority* of their orders online, which is their preference. They call when they need assistance.
Total(n=586)
<50%(n=54)
50-80%(n=111)
81-99%(n=421)
Call when assistance is needed**
54% 15% 42% 63%
Preference/easier to call 21% 52% 34% 14%
IDEXX contact us 18% 7% 10% 22%
Technology limitations 7% 6% 11% 7%
Getting familiar with IOO 6% 24% 13% 2%
Website is difficult to navigate 5% 15% 2% 5%
Want to ensure order is right 3% 6% 4% 2%
To expedite order 1% - - 1%
Need to order while driving 1% 2% 2% 0%
Why not 100% Online?Based on those who order <100% online (n=586)
*majority = 80% or more
Text highlight green = significantly higher
**types of assistance broken out on the next page
‘The fastest and easiest way is to use the online system. I can see my history and expiry dating on product to make better stocking decisions. I do not like to call in and have to work through the phone tree.’
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Assistance ranges from product questions, to help finding certain products, help with discounts, etc.
27%
15%
9% 8%
2% 1%
Call when I havequestions
Call when I can't findsomething
Credit for expiredproducts/points/specials
Call support and order atthe same time
Triplebackorder
Call to add something toorder
Types of Assistance NeededBased on those who order <100% online (n=586)
‘If I have a question about something I'm ordering, I like to get a quick answer, and that's just simpler if you are talking to a person.’
‘Occasionally I have questions about order and after speaking with rep she offers to put order in for me. I think it's great that she is willing to do this for us’
‘I love the ease and convenience of online ordering, you've done a great job making the website easy to navigate! The only time I call is if I have a question.’
‘Some of the IDEXX products we use aren't available online, instead the website directs us to call in the order.’
‘The majority of products I order online but last time I needed to order Sedivue products they were still unavailable to order online, if they are all available to order online then I will order everything online.’
‘If I need to request credit for expired product, I have to call in to have it applied to a reorder. The website doesn't have that capability.’
‘Checking and using points.’
2013 2015 2016
Launched US CAG site
Launched WLPD and International sites
Simplified registration
Added Practice Supplies
Promo codes and Points
2017
Site redesign w/ mobile-responsive UI
Sales ordering in Customer Support Portal
User survey
Added Reference Lab Supplies
Scheduled Orders
Frequently Ordered Products
Homepage redesign
Call to order
User experienceNew capabilitiesLarge initiatives
Improved search
Single sign-on integration w/ other IDEXX properties
User survey
Shipping policy updates
New marketing capabilities
Offline ordering
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Key performance indicators ensured we measured the critical few; informing marketing efforts and roadmap development
2015 Standing up the platform
2016 Improving the
experience
2017 Maximizing the
capability
Integrated, low effort experience
• Percent of customers ordering
• Percent of direct revenue • Customer Satisfaction
User-centric redesign to further adoption
• Customer satisfaction • Percent of direct revenue • Percent of orders
Drive awareness and adoption
• Monthly site traffic • Registrations • Percent of direct revenue • Customer satisfaction
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An integrated and targeted marketing plan supports desired results
2015 Standing up the platform
2016 Improving the
experience
2017 Maximizing the
capability
Staying focused
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Prior to the launch of our eCommerce site, IDEXX already had several independent digital properties…
A confederation of digital sites, each with a unique customer experience and technology platform, which lead to an
unintentionally high effort experience for our customers
Idexx.com ILC
Social Media
Phone
VC+
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…a digital identity project was re-initiated in 2016 with a new strategy and vision to create an integrated digital experience
RELATIONSHIP Facilitate use of all sites with easy access Personalized experience on sites Customized access and self-service
capabilities
IDENTITY Simplified, universal registration One login using email address Ability to view and update profile
information in one place from anywhere
Online Orders
ILC
VC+
MyIDEXX BillTrust
Points
IDEXX. com
CURRENT STATE Siloed sites with multiple logins required No unified, consistent navigation between sites Fragmented digital approach to engaging users
Live 2 days ago!
Measuring up
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1© 2017 IDEXX Laboratories, Inc. All rights reserved.
Internal use only.
Current Month
vs. Previous
Month
vs. Previous
Year Month
YTDYE
Goal
YE Forecasted
Goal
Mitigation (if >3%
below goal)
Total Visits 104,494 + 13% + 60% 294,279
Unique Visitors 31,483 + 9% + 20% 64,801
New Registrations 398 - 20% - 26% 1,478
Unique Customers Ordering
11,480 + 5% + 21% 13,314
% of Direct Customers Ordering
58% + 1 + 8 56% 61% 61%
Total Orders 43,633 + 16% + 24% 119,459
% of Direct Orders 61% + 1 + 8 61% 68% 65% See slide 2
Total Revenue (M)RA/VetLab/Practice Supplies
$27.6$8/$19/$0.2
+ 15% + 23% $74.2$21/$53/$0.6
% of Direct IHD Revenue
68% + 1 + 8 67% 75% 72% See slide 2
Satisfaction 96% - 3 - 1 97% 97% 97%
System Uptime 99.6% - 0.4 + 2.0 99.7%
Online Orders Monthly Dashboard – March 2017
Highlights
• Traffic up 13% in March as a result of 5% increase in unique customers ordering and 16% increase in total orders
• New registrations down in March due to delayed launch of Digital Identity
• % of all direct orders increased 1 pt to 61% due to RA and VetLab increasing to 60% and 67% respectively
• % of direct IHD revenue increased 1pt to 68%
• Decrease in satisfaction due to storm shipping delays in March
• 3 hr. outage delay during R1 launch on March 12
Tra
ffic
Use
rsO
rder
sE
xper
ienc
e
o Monitoring against KPIs helps with course correction if needed
o Monthly dashboard shared broadly across the commercial organization and IT partners
We measure against our KPIs monthly with a dashboard that informs on our progress against our goals
1© 2017 IDEXX Laboratories, Inc. All rights reserved.
Internal use only.
Current Month
vs. Previous
Month
vs. Previous
Year Month
YTDYE
Goal
YE Forecasted
Goal
Mitigation (if >3%
below goal)
Total Visits 92,212 - 3% + 55% 189,785
Unique Visitors 28,814 - 3% + 16% 46,260
New Registrations 495 - 9% - 15% 1,080
Unique Customers Ordering
10,882 + 0% + 20% 12,419
% of Direct Customers Ordering
57% + 0 + 8 56% 61% 61%
Total Orders 37,471 - 5% + 19% 76,791
% of Direct Orders 60% + 2 + 9 59% 68% 68%
Total Revenue (M)RA/VetLab/Practice Supplies
$24.1$7/$17/$0.2
+ 3% + 22% $47.5$13/$35/$0.3
% of Direct IHD Revenue
67% +0 + 9 67% 75% 75%
Satisfaction 99% + 2 + 5 98% 97% 97%
System Uptime 100% + 0.5 + 0.1 99.8%
Online Orders Monthly Dashboard – Feb. 2017
Highlights
• Traffic and new registrations were flat or slightly down after the ISR “Fax-to-IOO” initiative ended first week of Feb. driving 96 of the 495 new registrations
• % of all direct orders increased 2 pts. to 60% due to RA, VetLab, and Reference Lab Supplies increasing to 59%, 64%, and 63% respectively
• % of direct IHD revenue remained the same at 67%
• Satisfaction increased to 99% in Feb. based on 69 responders and quick, easy experience
• No outages in Feb.
Tra
ffic
Use
rsO
rder
sE
xper
ienc
e
1© 2017 IDEXX Laboratories, Inc. All rights reserved.
Internal use only.
Current Month
vs. Previous
Month
vs. Previous
Year MonthYTD
vs. YTD Forecast
Goal
Total Visits 97,573 + 17% + 73% 97,573
Unique Visitors 29,831 + 13% + 22% 29,831
New Registrations 585 + 85% + 6% 585
Unique Customers Ordering 10,919 + 7% + 26% 10,919
% of Direct Customers Ordering
57% + 0 + 9 57% + 0 60%
Total Orders 39,320 + 17% + 41% 39,320
% of Direct Orders 58% - 1 + 8 58% - 1 63%
Total Revenue (M)RA/VetLab/Practice Supplies
$23.4$6/$17/$0.2
+ 14% + 41% $23.4$6/$17/$0.2
% of Direct IHD Revenue 67% + 2 + 9 67% + 2 70%
Satisfaction 97% + 0 + 0 97% + 0 97%
System Uptime 99.5% - 0.4 - 0.5
Online Orders Monthly Dashboard – Jan. 2017
Highlights
• Double-digit traffic increases in Jan. due to increases in new registrations and users
• ISRs were heavily focused on IOO in Jan, reaching 50% or 2k of the order-by-fax accounts with significant contribution to new customer registrations
• % of direct orders decreased 1pt due to IHD with % of Ref Labs and Practice Supplies increasing to 62% and 57% respectively
• % of direct IHD revenue increased 2 pts due to increases in customers, orders, & revenue
• Satisfaction remains high at 97%
• 1 outage on Jan. 4 for 4hrs due to Common Middleware Services
Tra
ffic
Use
rsO
rder
sE
xper
ienc
e
KPI – Key Performance Indicator
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While we stood up our online store ~ 2 years ago, the percent of customers purchasing through our online store places us with Digital-First Firms for % of customers buying online…
Fifty-five percent of “digital-first” B2B organizations (those that began focusing on eCommerce five or more years ago) report that more than half of their customers currently complete transactions online, compared to only 22 percent completion for “lagging” firms that began focusing on eCommerce less than three years ago. (Source: Accenture)
22%
10%
55% 55%
0%
10%
20%
30%
40%
50%
60%
Lagging Firms
Mid-Maturity Firms
Digital-First Firms
IDEXX
eCommerce Maturity X % of Customers Buying Online
Lagging Firms – focus on eCommerce < 3 years ago Digital-First Firms – focus on eCommerce > 5 years ago
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…with a large portion of our revenue flowing through our online store
Thirty-three percent of the digital-first B2B organizations see more than one-third of their revenue come from online sales, compared to six percent of lagging organizations. (Source: Accenture)
50%
27.1%
4.1%
18.8%
% of Revenue Online
0 - 10% revenue online 11 - 35% revenue online
36 - 50% revenue online > 50% revenue online
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o You must have a strategy informed by customer data with a clear vision of the desired experience
o Seek expertise (consult or hire) from outside to capitalize on experience and avoid organizational bias
o Have a plan and continually test / measure against the plan
o You should expect to get some things wrong and need strong agility to adjust
There are several keys to success…
IDEXX Laboratories, Inc. holds the copyright in this material. No part of this document may be reproduced or transmitted in any form or by any means, whether electronic, mechanical or otherwise, for any purpose, without the express prior written permission of IDEXX Laboratories, Inc. IDEXX® is a registered trademark of IDEXX Laboratories, Inc.
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