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Retailer’s	
  Dilemmas	
  on	
  the	
  
Way	
  to	
  Mul4channel	
  Sale	
  


Krzysztof	
  Włodarczak	
     Marek	
  Górecki	
  
E-­‐Commerce	
  Manager	
     eCommerce	
  Specialist	
  
h<p://prak4ker.pl/	
          h<p://divante.pl/	
  
	
                            	
  
What’s	
  this?	
  




source:	
  facebook.com/MaciekGajwer	
  za	
  realitypod.com	
  
Timeline	
  
•  March	
  2010	
  –	
  we’re	
  going	
  e-­‐commerce!	
  
•  March	
  2011	
  –	
  do	
  we	
  have	
  e-­‐commerce?	
  
•  March	
  2012	
  –	
  OMG	
  e-­‐commerce!	
  
20%
                                                                                       40%
                                                                                                   60%
                                                                                                                                80%
                                                                                                                                               100%




                                                               0%
                                     Browser (i.e., Google,




                                                                                             43%
                                           yahoo)

                                      On-line DIY stores
                                      (e.g., praktiker.pl ,




                                                                                             42%
                                    ezakupy.leroymerlin.pl)



                                                                                                                                                                                                                               47%
                                    Websites of DIY stores
                                     presenting general




                                                                                  27%
                                         information
                                      Websites connected
                                      with Home&Garden




                                                                                 24%
                                           products
                                                                                                                                                                                         the store, do it online.
                                    Manufacturer’s website




                                                                                22%
                                    On-line product or price
                                          comparison




                                                                          14%
                                                                                                                                                                                                        clients who plan




                                          service(e.g.,
                                                                                                                                                                                         shopping ahead, before visiting




                                         On-line auctions




                                                                          13%
                                        (allegro, ebay etc.)

                                      On-line stores selling
                                         Home&Garden

                                                                         12%
                                            products

                                      Websites (e.g., onet,              8%
                                            wp etc.)

                                          On-line blogs and
                                         forums on building
                                                                         8%




                                              materials

                                      Consumers’ opinions
                                                                     6%




                                        on the Internet
                                                                                                                                                                                            Sanitary products



                                                                                                                                                  Tools
                                                                                                                                                                                                                Building materials



                                                                                                                                                          Home decoration and lighting



                                                                                                                                      Garden




                                          Video sites, e.g.,
                                                                                                         0%




                                                                    0%




                                              YouTube

                                         Social networking
                                           service (e.g.,
                                                                    0%




                                            Facebook)
                                                                                                                                      43%
                                                                                                                                                  46%
                                                                                                                                                          48%
                                                                                                                                                                                            49%
                                                                                                                                                                                                                                           product category

                                                                                                                                                                                                                51%
                                                                                                                                                                                                                                     The role of online sources vs.




                                                                                                         20% 40% 60% 80% 100%
                                                                                                                                                                                                                                                                      Where	
  do	
  people	
  buy?!	
  We	
  ask	
  offline	
  




foto:	
  whdhwhb.blogspot.com	
  
Where	
  do	
  people	
  buy?!	
  We	
  ask	
  offline	
  
                 Do	
  you	
  know	
  prak4ker.pl	
  e-­‐store?	
  

                                 Awareness                                                                                   Visit                         Purchase


                                                                                                                                                              Yes
                                                                                                                                                              5%
                                            Yes
                                                                           Yes	
                                                       Yes,	
  
                                            52%                                                                                  Yes
                                                                           N=732	
                                                     N=495	
  
                                                                                                                                 68%




                                                                                                                                                            No
                                                                                                                                                           95%



Online	
  purchase	
  of	
  products	
  in	
                      The	
  possibility	
  of	
  online	
  purchase	
  in	
  
Home&Garden	
  category	
                                         Home&Garden	
  product	
  category	
  


                                                                • Very	
  likely	
  
                                                                • Rather	
  likely	
  
                                                                • Neutral	
  
                           Yes	
                  No,	
  	
  
                                                                • Rather	
  not	
  
                                                 N=260	
  
                                                                likely	
  
                                                                • Not	
  likely	
  at	
  all	
  
                                                                • I	
  don’t	
  know	
                                                             foto:	
  whdhwhb.blogspot.com	
  
Where	
  do	
  people	
  buy?!	
  We	
  ask	
  online	
  
        What is your reason to visit the Website?
• Learning	
  about	
  discounts	
  
• Checking	
  prices	
  
• Searching	
  for	
  a	
  product	
  and	
  checking	
  its	
  availability	
  in	
  a	
  Prak4ker	
  
store	
  
• Finding	
  the	
  address	
  and	
  opening	
  hours	
  of	
  a	
  Prak4ker	
  store	
  
• Online	
  purchase	
  of	
  a	
  product	
  
• Others	
  
• Tasks,	
  ques4ons,	
  help	
  
• Gegng	
  professional	
  help	
  




       Check	
  product	
  availability	
  
       in	
  Prak5ker	
  stores	
  
ROPO!	
  
Check	
  product	
  availability	
  
in	
  Prak5ker	
  stores	
  
                                        =	
  22x	
     +	
  ADD	
  TO	
  CART	
  
More	
  ROPO!	
  

                               Poorly	
  described	
  
                                  products	
  




                                                            There	
  are	
  less	
  
                                                         products	
  displayed	
  
  Small-­‐sized	
  
                                                           than	
  the	
  actual	
  
    font	
                                               number	
  of	
  products	
  
                                                              in	
  storea	
  


                              The	
  most	
  
                              common	
  
                            commentaries	
  
                            regarding	
  the	
  
                              Website	
  
                                                           Lack	
  of	
  small	
  
                                                          products	
  (drills,	
  	
  
Very	
  few	
  colors	
  
                                                           screws,	
  etc.)	
  




                              No	
  promo4onal	
  
                                     paper	
  
We’re	
  building…	
  




Source:	
  facebook.com/MaciekGajwer	
  za	
  realitypod.com	
  
• Product	
  descrip4on	
  
                                                          Product	
  Descrip4ons	
  
• Product	
  photos	
  
• Addi4onal	
  descrip4on,	
  e.g.	
  size,	
  weight,	
  
etc.	
  
• Discount	
  price	
  or	
  addi4onal	
  extras	
  
• Informa4on	
  about	
  product	
  availability	
  in	
  
stores	
                                                                     What	
  is	
  the	
  most	
  important	
  
• The	
  possibility	
  to	
  ask	
  a	
  ques4on	
  about	
  the	
  
product	
                                                                    feature	
  of	
  a	
  product	
  page	
  for	
  
• Opinions	
  of	
  other	
  users	
  
• The	
  possibility	
  of	
  recommending	
  a	
  product	
                 you?	
  	
  
to	
  a	
  friend/friends	
  
• Similar	
  products	
  chosen	
  by	
  other	
  users	
  
• Product	
  number	
  and	
  EAN	
  code	
  
• Others	
  
• Sugges4ons	
  of	
  the	
  most	
  commonly	
  
purchased	
  products	
  




            How	
  does	
  a	
  detailed	
  product	
  
            descrip4on	
  influence	
  
            purchase	
  decision?	
  
Test:	
  Product	
  Descrip4ons	
  –	
  
                     Guidelines	
  
We	
  added	
  500-­‐700	
  characters-­‐long	
  descrip4ons	
  
of	
  100	
  products	
  from	
  5	
  categories:	
  
•  divided	
  into	
  2	
  paragraphs;	
  	
  
•  including	
  the	
  following	
  informa4on:	
  	
  
   –  Appearance	
  (color,	
  texture,	
  e.g.	
  ma<,	
  shiny,	
  etc.);	
  	
  
   –  Product	
  use	
  (home/office,	
  type	
  of	
  room:	
  bathroom,	
  
      kitchen,	
  living	
  room	
  etc.);	
  	
  
   –  Style	
  (modern,	
  classic,	
  rural	
  etc.);	
  	
  
   –  Materials;	
  	
  
   –  Technical	
  defini4ons	
  (thermal	
  head	
  etc.).	
  	
  
Test:	
  Product	
  Descrip4ons	
  –	
  Results	
  	
  




                            A"er	
  adding	
  unique	
  product	
  descrip2ons,	
  
                            Google-­‐generated	
  traffic	
  responding	
  to	
  the	
  
                            chosen	
  keywords	
  grew	
  by	
  120%.	
  	
  
                            	
  
                            Similarly,	
  sales	
  of	
  these	
  products	
  grew	
  3	
  
                            2mes	
  from	
  July	
  to	
  August.	
  
                            	
  
                            33%	
  of	
  sales	
  comes	
  from	
  SEO.	
  
Product	
  Descrip4ons	
  Today	
  
  Technical	
  
 descrip4on	
  
   (buyers/
  suppliers)	
  



                           Product	
  
                          descrip4on	
  
Keywords	
  for	
  
   a	
  given	
  
   product	
  
  category	
  
(SEM	
  agency)	
  




    ….but	
  product	
  descrip4on	
  is	
  not	
  just	
  words!	
  
    h<p://www.prak4ker.pl/produkt,37786,258/
    mlotowiertarka_makita_hr2450_780w_sds-­‐plus.html	
  
Almost	
  new…	
  




źródło:	
  facebook.com/MaciekGajwer	
  za	
  realitypod.com	
  
Strategy	
  –	
  Communica4on	
  Synergy	
  	
  



                                                                                                      TV	
  +	
  OOH	
  +	
  radio	
  
                                                                                               –	
  Maciek	
  Gajwer	
  and	
  the	
  
   OOH	
  	
                                                                                             lawn	
  mower	
  
                                                                             TV	
  +	
  OOH	
  +	
  radio	
  
buy	
  online!	
  
                                  TV	
  +	
  OOH	
  +	
  radio	
        –	
  Maciek	
  Gajwer	
  and	
  
                     –	
  Maciek	
  Gajwer	
  and	
  the	
  washcloth	
   the	
  shower	
  cabin	
  
Mobile-­‐Generated	
  Traffic	
  and	
  Sales	
  –	
  Consistency	
  
 Regarding	
  the	
  Offer,	
  Communica4on	
  and	
  Sales	
  
                        Channels	
  
Strategy	
  of	
  Development	
  +	
  Synergy	
  
•  Online	
  sales	
  increase	
  aver	
  launching	
  new	
  
   channels	
  of	
  promo4on	
  
•  Using	
  the	
  ROPO	
  effect	
  to	
  increase	
  sales	
  in	
  
   stores	
  
•  Gaining	
  unique	
  market	
  domina4on	
  regarding	
  
   func4onality,	
  usability	
  and	
  technology	
  
•  Increasing	
  the	
  effec4viness	
  via	
  op4miza4on	
  of	
  
   client	
  service,	
  store	
  management,	
  logis4cs	
  and	
  
   legal	
  processes	
  
In	
  the	
  end,	
  sales	
  is	
  always	
  crucial!	
  
Summary	
  




źródło:	
  facebook.com/MaciekGajwer	
  za	
  realitypod.com	
  
Rekomendacje	
  –	
  06.2011	
  




             Test,	
  learn,	
  go!	
  
HOW TO FIX (ALMOST)
                               EVERYTHING

                                   Does	
  it	
  move?	
  




                                     Yes	
       No	
  
                                                             And	
  should	
  it	
  
        And	
  should	
  it	
  
                                                             move?	
  
        move?	
  


                        Yes	
                                 No	
              Yes	
  
         No	
  
                                    Problem	
  
                                    solved!	
  

 Silver	
  tape	
  

                                  Thank	
  you!	
  
facebook.com/MaciekGajwer	
  
Information about
Divante
The Quality of Service
•  Sa/sfac/on	
  from	
  the	
  coopera/on	
  with	
  our	
  agency:	
  4.6	
  /	
  5	
  	
  
   -­‐	
  2nd	
  place	
  in	
  Poland	
  The	
  survey	
  carried	
  out	
  on	
  all	
  Divante	
  clients	
  by	
  
    Media&Marke4ng	
  Poland	
  in	
  2011.	
  

•  Sa/sfac/on	
  from	
  our	
  customer	
  service:	
  4.9	
  /	
  5	
  	
  
   –	
  3rd	
  place	
  in	
  Poland	
  The	
  survey	
  carried	
  out	
  on	
  all	
  Divante	
  clients	
  by	
  
    Media&Marke4ng	
  Poland	
  in	
  2011.	
  

•  100%	
  of	
  our	
  clients	
  would	
  recommend	
  us	
  to	
  their	
  friends.	
  
    The	
  survey	
  carried	
  out	
  on	
  all	
  Divante	
  clients	
  by	
  Divante	
  Company	
  in	
  2010.	
  

•  Almost	
  60%	
  new	
  ques/ons	
  which	
  we	
  receive	
  comes	
  from	
  the	
  references	
  from	
  
    our	
  previous	
  customers.	
  	
  	
  

•  10	
  /10	
  points	
  in	
  „punctuality	
  and	
  reliability”	
  category.	
  The	
  
    survey	
  carried	
  out	
  on	
  all	
  Divante	
  clients	
  by	
  an	
  independent	
  unit	
  in	
  2009.	
  
The Quality of Work
     New	
  ideas	
  helping	
  to	
  improve	
  the	
  func2oning	
  of	
  a	
  company.	
  
     -­‐	
  Puls	
  Biznesu	
  magazine,	
  2009	
  	
  

     Such	
  examples	
  show	
  that	
  our	
  economy	
  is	
  really	
  innova2ve	
  and	
  has	
  a	
  huge	
  poten2al	
  of	
  
     the	
  human	
  capital.	
  
     -­‐	
  Sebas4an	
  Christow,	
  Ministry	
  of	
  Economy	
  of	
  the	
  Republic	
  of	
  Poland	
  	
  	
  

     Divante	
  is	
  able	
  to	
  connect	
  product	
  innova2ons	
  with	
  the	
  care	
  for	
  the	
  best	
  quality	
  of	
  its	
  
     customer	
  service.	
  Thanks	
  to	
  that,	
  Divante	
  carries	
  out	
  projects	
  for	
  clients	
  in	
  Poland	
  and	
  
     all	
  over	
  the	
  world.	
  
     -­‐	
  Michał	
  Żyliński,	
  Microsov	
  

     A	
  great	
  communica2on	
  and	
  openness	
  to	
  new	
  solu2ons,	
  these	
  are	
  certainly	
  the	
  strong	
  
     sides	
  of	
  the	
  team.	
  	
  
     -­‐	
  Izabela	
  Dauksza,	
  Coordinator	
  of	
  Project	
  Managers,	
  Gazeta.pl	
  
Technology
•  Scalability	
  –	
  PromoRing	
  enables	
  ca.	
  5	
  mln	
  PV	
  per	
  day,	
  serving	
  3	
  mln	
  UU	
  per	
  
   month	
  
•  Flexibility	
  -­‐	
  .NET,	
  Django,	
  PHP	
  
•  We	
  are	
  a	
  partner	
  of	
  Apple	
  and	
  the	
  Microsov	
  Company	
  
•  We	
  are	
  integrated	
  with	
  many	
  outside	
  systems	
  (improvement	
  systems,	
  
   warehouse	
  systems,	
  ERP,	
  CRM)	
  
Thank you for your attention
Contact
	
  
divanteltd.com	
  
info@divanteltd.com	
  
twi<er.com/divanteltd	
  
phone:	
  	
  +48	
  71	
  34	
  22	
  406	
  	
  

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Praktiker - eCommerce for Retailer

  • 1. Retailer’s  Dilemmas  on  the   Way  to  Mul4channel  Sale   Krzysztof  Włodarczak   Marek  Górecki   E-­‐Commerce  Manager   eCommerce  Specialist   h<p://prak4ker.pl/   h<p://divante.pl/      
  • 2. What’s  this?   source:  facebook.com/MaciekGajwer  za  realitypod.com  
  • 3. Timeline   •  March  2010  –  we’re  going  e-­‐commerce!   •  March  2011  –  do  we  have  e-­‐commerce?   •  March  2012  –  OMG  e-­‐commerce!  
  • 4. 20% 40% 60% 80% 100% 0% Browser (i.e., Google, 43% yahoo) On-line DIY stores (e.g., praktiker.pl , 42% ezakupy.leroymerlin.pl) 47% Websites of DIY stores presenting general 27% information Websites connected with Home&Garden 24% products the store, do it online. Manufacturer’s website 22% On-line product or price comparison 14% clients who plan service(e.g., shopping ahead, before visiting On-line auctions 13% (allegro, ebay etc.) On-line stores selling Home&Garden 12% products Websites (e.g., onet, 8% wp etc.) On-line blogs and forums on building 8% materials Consumers’ opinions 6% on the Internet Sanitary products Tools Building materials Home decoration and lighting Garden Video sites, e.g., 0% 0% YouTube Social networking service (e.g., 0% Facebook) 43% 46% 48% 49% product category 51% The role of online sources vs. 20% 40% 60% 80% 100% Where  do  people  buy?!  We  ask  offline   foto:  whdhwhb.blogspot.com  
  • 5. Where  do  people  buy?!  We  ask  offline   Do  you  know  prak4ker.pl  e-­‐store?   Awareness Visit Purchase Yes 5% Yes Yes   Yes,   52% Yes N=732   N=495   68% No 95% Online  purchase  of  products  in   The  possibility  of  online  purchase  in   Home&Garden  category   Home&Garden  product  category   • Very  likely   • Rather  likely   • Neutral   Yes   No,     • Rather  not   N=260   likely   • Not  likely  at  all   • I  don’t  know   foto:  whdhwhb.blogspot.com  
  • 6. Where  do  people  buy?!  We  ask  online   What is your reason to visit the Website? • Learning  about  discounts   • Checking  prices   • Searching  for  a  product  and  checking  its  availability  in  a  Prak4ker   store   • Finding  the  address  and  opening  hours  of  a  Prak4ker  store   • Online  purchase  of  a  product   • Others   • Tasks,  ques4ons,  help   • Gegng  professional  help   Check  product  availability   in  Prak5ker  stores  
  • 7. ROPO!   Check  product  availability   in  Prak5ker  stores   =  22x   +  ADD  TO  CART  
  • 8. More  ROPO!   Poorly  described   products   There  are  less   products  displayed   Small-­‐sized   than  the  actual   font   number  of  products   in  storea   The  most   common   commentaries   regarding  the   Website   Lack  of  small   products  (drills,     Very  few  colors   screws,  etc.)   No  promo4onal   paper  
  • 9. We’re  building…   Source:  facebook.com/MaciekGajwer  za  realitypod.com  
  • 10. • Product  descrip4on   Product  Descrip4ons   • Product  photos   • Addi4onal  descrip4on,  e.g.  size,  weight,   etc.   • Discount  price  or  addi4onal  extras   • Informa4on  about  product  availability  in   stores   What  is  the  most  important   • The  possibility  to  ask  a  ques4on  about  the   product   feature  of  a  product  page  for   • Opinions  of  other  users   • The  possibility  of  recommending  a  product   you?     to  a  friend/friends   • Similar  products  chosen  by  other  users   • Product  number  and  EAN  code   • Others   • Sugges4ons  of  the  most  commonly   purchased  products   How  does  a  detailed  product   descrip4on  influence   purchase  decision?  
  • 11. Test:  Product  Descrip4ons  –   Guidelines   We  added  500-­‐700  characters-­‐long  descrip4ons   of  100  products  from  5  categories:   •  divided  into  2  paragraphs;     •  including  the  following  informa4on:     –  Appearance  (color,  texture,  e.g.  ma<,  shiny,  etc.);     –  Product  use  (home/office,  type  of  room:  bathroom,   kitchen,  living  room  etc.);     –  Style  (modern,  classic,  rural  etc.);     –  Materials;     –  Technical  defini4ons  (thermal  head  etc.).    
  • 12. Test:  Product  Descrip4ons  –  Results     A"er  adding  unique  product  descrip2ons,   Google-­‐generated  traffic  responding  to  the   chosen  keywords  grew  by  120%.       Similarly,  sales  of  these  products  grew  3   2mes  from  July  to  August.     33%  of  sales  comes  from  SEO.  
  • 13. Product  Descrip4ons  Today   Technical   descrip4on   (buyers/ suppliers)   Product   descrip4on   Keywords  for   a  given   product   category   (SEM  agency)   ….but  product  descrip4on  is  not  just  words!   h<p://www.prak4ker.pl/produkt,37786,258/ mlotowiertarka_makita_hr2450_780w_sds-­‐plus.html  
  • 14. Almost  new…   źródło:  facebook.com/MaciekGajwer  za  realitypod.com  
  • 15. Strategy  –  Communica4on  Synergy     TV  +  OOH  +  radio   –  Maciek  Gajwer  and  the   OOH     lawn  mower   TV  +  OOH  +  radio   buy  online!   TV  +  OOH  +  radio   –  Maciek  Gajwer  and   –  Maciek  Gajwer  and  the  washcloth   the  shower  cabin  
  • 16. Mobile-­‐Generated  Traffic  and  Sales  –  Consistency   Regarding  the  Offer,  Communica4on  and  Sales   Channels  
  • 17. Strategy  of  Development  +  Synergy   •  Online  sales  increase  aver  launching  new   channels  of  promo4on   •  Using  the  ROPO  effect  to  increase  sales  in   stores   •  Gaining  unique  market  domina4on  regarding   func4onality,  usability  and  technology   •  Increasing  the  effec4viness  via  op4miza4on  of   client  service,  store  management,  logis4cs  and   legal  processes  
  • 18. In  the  end,  sales  is  always  crucial!  
  • 20. Rekomendacje  –  06.2011   Test,  learn,  go!  
  • 21. HOW TO FIX (ALMOST) EVERYTHING Does  it  move?   Yes   No   And  should  it   And  should  it   move?   move?   Yes   No   Yes   No   Problem   solved!   Silver  tape   Thank  you!   facebook.com/MaciekGajwer  
  • 23. The Quality of Service •  Sa/sfac/on  from  the  coopera/on  with  our  agency:  4.6  /  5     -­‐  2nd  place  in  Poland  The  survey  carried  out  on  all  Divante  clients  by   Media&Marke4ng  Poland  in  2011.   •  Sa/sfac/on  from  our  customer  service:  4.9  /  5     –  3rd  place  in  Poland  The  survey  carried  out  on  all  Divante  clients  by   Media&Marke4ng  Poland  in  2011.   •  100%  of  our  clients  would  recommend  us  to  their  friends.   The  survey  carried  out  on  all  Divante  clients  by  Divante  Company  in  2010.   •  Almost  60%  new  ques/ons  which  we  receive  comes  from  the  references  from   our  previous  customers.       •  10  /10  points  in  „punctuality  and  reliability”  category.  The   survey  carried  out  on  all  Divante  clients  by  an  independent  unit  in  2009.  
  • 24. The Quality of Work New  ideas  helping  to  improve  the  func2oning  of  a  company.   -­‐  Puls  Biznesu  magazine,  2009     Such  examples  show  that  our  economy  is  really  innova2ve  and  has  a  huge  poten2al  of   the  human  capital.   -­‐  Sebas4an  Christow,  Ministry  of  Economy  of  the  Republic  of  Poland       Divante  is  able  to  connect  product  innova2ons  with  the  care  for  the  best  quality  of  its   customer  service.  Thanks  to  that,  Divante  carries  out  projects  for  clients  in  Poland  and   all  over  the  world.   -­‐  Michał  Żyliński,  Microsov   A  great  communica2on  and  openness  to  new  solu2ons,  these  are  certainly  the  strong   sides  of  the  team.     -­‐  Izabela  Dauksza,  Coordinator  of  Project  Managers,  Gazeta.pl  
  • 25. Technology •  Scalability  –  PromoRing  enables  ca.  5  mln  PV  per  day,  serving  3  mln  UU  per   month   •  Flexibility  -­‐  .NET,  Django,  PHP   •  We  are  a  partner  of  Apple  and  the  Microsov  Company   •  We  are  integrated  with  many  outside  systems  (improvement  systems,   warehouse  systems,  ERP,  CRM)  
  • 26. Thank you for your attention Contact   divanteltd.com   info@divanteltd.com   twi<er.com/divanteltd   phone:    +48  71  34  22  406