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10 marketing insights for tokopedia (2015)

10 marketing insights untuk tokopedia dalam rangka tanya jawab tentang apa yang perlu dilakukan tokopedia untuk mengembangkan layanannya

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10 marketing insights for tokopedia (2015)

  1. 1. 10 MARKETING INSIGHTS FOR TOKOPEDIA Written by Ananda Perwira
  2. 2. Digital marketing is not only about: • Building partnership / back links with third-party publishers. • Publishing online ads in Facebook or other social medias. GREATER THAN THAT, DIGITAL MARKETING IS ABOUT: • Selling benefits not products • Winning the zero moment of truth • Building personalized content • Buyer personas • Conversions • Working on big data • Integrated marketing • User experience • Retargeting and remarketing • Understand buying phases • Visual and message clarity • KAI ZEN aka. Continuous improvement WHAT WE CAN DO TO GROW TOKOPEDIA AS A LEADER? I will not speak about tools or technical stuff in digital marketing as we can try many tools and strategies and see which work for us and which don't (A/B). More important, I would like to tell the big pictures of how Tokopedia can improve. 1. STOP SELLING PRODUCTS, SELL SOLUTION
  3. 3. This is what I see when visiting Tokopedia homepage (few days ago I even saw women products like Corset / bra on Hot List). And my questions as a visitor: • Why do you show female products to male visitors like me? If a kid visits, do you also offer the same product? • Why don't you show products that are very relevant to me on the Hot List? • Why don't you ask me what I'm interested in to help me find what I need? • If I want to sell, not to buy, why don't you welcome me with a guide to help me open the store? We need to collect information of visitors as much as possible to provide most relevant products / helps for their problems. It means that we offer solution not a product. Nice inspiration There is a big online store in US which sells a wide range of baby products. Instead of showing all products and categories above the fold, they brilliantly put interactive form asking the age and gender of a baby, when mom tells this information, it's easy for the website to show recommended products for her baby. 2. STOP WASTING MONEY, BUILD REAL BUSINESS
  4. 4. If I have USD 100 millions, I prefer to build storage and delivery solution for 100,000 merchants instead of building Googleplex-like office for 100 employees. Why? Tokopedia is not just an ordinary marketplace. We need to bring the service to the next level where other marketplaces can't do. Think about it: Do you ever order small stuff from China on eBay, Tabao or Alibaba? I did. I ordered mini MP3 4GB for only $4 and it's free shipping. What made me happy, they really sent it to my home. I asked myself how come they can sell such cheap product and deliver it to other countries. Why we care about delivery solution? You probably ask this question because you think companies like JNE, Tiki and other delivery services do the job. Yes, but our merchants needs Tokopedia to organize their product delivery. Let's see why they need our help Many merchants are micro and small businesses which sell small stuff such as: hot chocolate, pancake durian, homemade necklaces, etc which cost Rp 5,000 to Rp 100,000.
  5. 5. Example: Seller in Medan sells Pancake Durian on Tokopedia for Rp 50,000 / box. Then someone in Jakarta orders 4 box after see it on Tokopedia. What is the best offer seller can give to the buyer? Here are the current possibilities: • The seller uses airplane cargo which costs Rp 100,000 (because of 10 kg minimum weight). It's delivered on the same day but buyer needs to take it at the airport (no home delivery). Considering the total cost of Rp 300,000 + time and energy to go to the airport, the buyer prefer to buy pancake from reseller on the street around Jakarta. • The seller offers express delivery using Tiki JNE (the food can only last for 1-2 day). It means that the buyer need to pay shipping cost for also Rp 100,000 and it's expensive. Why don't we organize delivery of all merchant products by having hub stores in the cities? Example: We can build hub store in Medan, collect all merchant products (sort it based on destinations and types of products), send them collectively by using cargo, then hub store e.g. in Jakarta will take it from airport to the store. Then buyers in Jakarta will be notified by Tokopedia application that their orders has arrived at Tokopedia Jakarta hub store. It's win for sellers Let's do simple math. If a seller sells homemade necklace with a weight of 100 gr from Medan to Jakarta, it's possible for us to charge shipping cost of Rp 2,000 since we send it collectively. For sellers, it's possible to offer free shipping to buyers and include shipping cost to the price. Tokopedia can be a game changer Make an offer to popular expedition companies or other related third parties to join. When we managed to build this system, there is no reason for them but to be in the same boat. 3. STOP GUESSING, DO A/B TESTING Take a look at Tokopedia homepage:
  6. 6. Can you answers these questions? • Why do we put 4 sliders on homepage, do they convert better or make distraction (banner blindness)? Or can we take them down? • Why do we show products categories above the fold? Why do we show 18 categories, why don't we show less categories? Why don't we have category search? • Why do we put women sweater, corset, and chocolate on hot list product? Are those what visitors want? Stop guessing, the best digital marketing is to test everything on the website. 4. STOP JARGON OR FANCY STUFF, SPEAK AS YOU SPEAK WITH MOM Short story 1: I told my mother that I will have an interview with Tokopedia with nice salary offer. I asked her if she ever heard of Tokopedia. She said yes as it's seen on TV every day. Then she asked
  7. 7. me about what Tokopedia does and what is it about? Walah, my mother failed to understand what Tokopedia does from the TV ad. Short story 2: Then I also saw huge physical banner on crossroad somewhere in Jogja. It has green background, Tokopedia logo, and big text: "Ciptakan peluangmu." (or "Masa depan ada di tanganmu." if I'm not wrong). For me this is a jargon of motivator and we do not need it. Why don't we say something strong but clear that even ice cream sellers on the street know it. For such big budget advertisement, I prefer to put clear message e.g. "Laris manis online dengan Tokopedia". it's very clear, right? 5. BE USER-CENTRIC, NOT EGO-CENTRIC Every marketplace wants to show that they have everything: rice cooker, bike, ice cream, scissors and even duck tape. Yes, you can say the names of your products from 1 to 1,000,000 and tell people how great you are. Please stop. We need to tell and offer something that they want to see. To be user-centric, we need to build personalized content on our website, email, ads, everywhere. Think about it: If you go to a shop and the seller welcomes you by offering dozens of products they have, is it comfortable? Not for me. Like everyone else, I expect that the seller will ask me what I'm looking for, analyze what I need, and then come back with 3 or 4 recommended products based on my preferences in few minutes. 6. OFFER BENEFITS , NOT PRODUCTS Nowadays, people really care about the detail of products they are looking for. Our question, can Tokopedia helps them to find and recommend products based on their benefits? E.g. • Chocolate cake with preservative-free
  8. 8. • Baby products with organic material • Leather jacket with free shipping, etc. 7. DON'T BE A PRODUCT DISPLAY, BUILD SMART SHOP ENGINE Don't you remember? Remember when YellowPage book was the only business directory? Then, IndoTrading came to offer an online business directory with a quick search feature. It gained much success that day. But now, it seems to be stuck as spammy online business display (considering the bounce rate of 71.87%). What to do for future citizens? Build a marketplace which offer products comparison, insight about trends, what products need to buy, what products need to sell, localized seller listing, etc. Tokopedia can become a smart shopper advisor by working on big data. 8. BUILD STRONG RELATIONSHIP WITH MICRO - SMALL BUSINESSES I would like to focus on building strong relationship with micro and small businesses instead of doing fancy advertisement with several artists. Why? It's a long-life relationship. They are our partners and they will make our business bigger and bigger in the future. P.S. We can support all UKM communities on the internet, work with them and be their mentor: 9. BE PROACTIVE, DO REMARKETING I tried to register on Tokopedia 2 weeks ago to see how the system communicates with me. What I've got? • There is no single email from Tokopedia asking whether I want to sell or buy after 1 week registration.
  9. 9. • There is no personalized email asking why I'm not login for so long after registration. • There is no email which encourage me to take action immediately. • There is no email offering free ebook or online material to give me insights and help to start. • There is no email offering products which I'm interested in. E.g. If a user searches a certain product but doesn't do transaction. Why don't you send email to him later informing some recommended sellers which sell the product (the recommendation could be based on seller rating, price, or nearest location to the buyer). Come on! Why does Tokopedia leave email marketing? It's still powerful. Make weekly newsletter, auto responders, and newsletter segmentation based on user preferences. We should give applause to BukaLapak BukaLapak did a good start. They sent me personalized newsletter (with the name and signature of their real staff) that encouraged me to contact the staff if I have any question. They also reminded me that I didn't login for more than 14 days and asking why. We should avoid what Qoo10 ID did They do email remarketing where I receive 3 - 5 emails a day about special sale of various products. Unfortunately, all offered products are irrelevant to me which is only spamming my email inbox. 9. WORK ON BIG DATA We need to track every process to collect insights. What people search, what pages they visit, their personal information (cookies), how many transactions made, how many payment made, how many sellers available (active and inactive), how many buyers available, transaction average, how and when people leave, why people do not continue order process, etc. Collecting big data is the only way to understand what buyers and sellers need and where we can improve. 10. KAI ZEN (CONTINUOUS IMPROVEMENT)
  10. 10. Why Indonesian tech companies failed? They focus on short term improvements and feel satisfied with their current level. There are many things to improve, even the smallest things. When you work on big data, you can see many things to test and improve every day. Ultimately, it will bring a huge improvement. It's what we call magic math of continuous improvement: Think about it: Based on SimilarWeb, Tokopedia has about 10M visits / day. Let’s say there are about 500,000 visitors / day. How many transactions are made on Tokopedia / day? Do we reach avg. 25,000 daily transactions (if we expect conversion rate of 5%)? If the number of conversions is much lower than our expectation, then we have big task to improve. TOKOPEDIA FOR EVERYONE'S DREAM I believe Tokopedia can be a game changer to rise SMBs and people economy in Indonesia. Focus on solutions, work on big data, do continuous improvement, help people and always ask God for directions is the way to realize our dream.