Optimizing the Customer
Experience
Retail & Consumer Goods
The Online Customer Lifecycle &
Best Practices Report
Content
Forte Consultancy Group Introduction
How We See The Online Customer Lifecycle
Online Customer Lifecycle Best Practices
Business Intelligence Marketing Sales Customer Care
We are data-driven management consulting firm focusing on engagements in marketing, customer care, and sales-related functions across select industries...
Functions Focused On...
Focus Sectors
Marketing
Sectors Practiced In...
Telecommunications
Financial Services
Real Estate
Retail & FMCG
We have experience in nearly a dozen countries, managing operations through our Istanbul and Dubai offices...
Istanbul Office Dubai Office Countries Practices In Countries Practiced In
Content
Forte Consultancy Group Introduction
How We See The Online Customer Lifecycle
Online Customer Lifecycle Best Practices
In order to capitalize on such opportunity, we help companies build and grow relations with their customers
UNAWARE AWARE
INTERESTED
PURCHASED
LOYAL
Moving 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.
We analyze such relations for eCommerce sites across customer lifecycle… Added Item Abandoned Site Abandoned Cart Bounced Payment Returned Goods Initiated Check-out
Visited Subscribed Viewed Item
Initiated Payment Paid
…and develop actions and programs for opportunities we identify across this cycle Added Item Abandoned Site Abandoned Cart Bounced Payment Returned Goods Initiated Check-out
Visited Subscribed Viewed Item
Initiated Payment Paid
Around 40% of customers have 1 and out behavior.
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.
We add value by putting information at the heart of all decisions and actions throughout this cycle, as well as identifying and acting on untapped opportunities
D ecision Qua lit 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 you make most out of your information base and take
actions based on them…
Content
Forte Consultancy Group Introduction
How We See The Online Customer Lifecycle
Online Customer Lifecycle Best Practices
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
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…
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
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.
Objectives Sample KPIs Focus Area
Guidelines
First step in eCommerce customer lifecycle is visit to the online store, which requires effective acquisition activities
Create Visits
Attract different types of visitors to site using alternative channels and approaches, providing differentiating
value add
Number of Visits per Month Unique Visitor Count per Month Advertising Cost per Visitor % of Visitors Bookmarked Site Page Rank of Homepage
Visited Use search engine optimization using traffic insights Utilize variety of acquisition channels Customize acquisition approach by prospect segment Provide additional reasons for visiting site
Sample Case
In addition to traditional SEO tools, RadioShack uses search-within-a-search option of Google to increase accessibility of its
products.
In addition to traditional SEO for keywords searched, various Google
tools are available towards increasing web
site accessibility, hence traffic…
Use search engine optimization using traffic insights Fast and easy accessibility from search engines can substantially improve
Sample Case
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
Sample Case
On September, ebay launched an Internet browser add-on which allows customers to compare price of products on any web site (e.g. Amazon.com, Google.com) with ebay offerings in
one click
Having visibility and accessibility on sites where prospects are likely to be looking for products is an effective acquisition
approach…
Utilize variety of acquisition channels Visibility in relevant web pages increases brand awareness and interest
Sample Case
Amazon.com effectively acquires new customers through its associate web sites, using tools such as ‘Page Recommender
Widget’
Referral programs with business partners, channel
affiliates as well as existing customers are effective means for new
customer acquisition…
Utilize variety of acquisition channels Partner and customer involvement in acquisition allows further and
Sample Case
1-800 Contacts provides a laddered commission program for its affiliates as well as structured support, with dedicated
relationship managers.
Motivation of affiliates requires both monetary
and non-monetary benefits…
Utilize variety of acquisition channels Involvement of partners in acquisition requires well-defined commission
Sample Case
Thomson uses kiosks located in shopping malls to increase visibility and acquire traditional shoppers on-site.
Kiosks located at relevant sites and partner stores can boost awareness and
interest…
Utilize variety of acquisition channels Acquisition of traditional customers with limited web surfing behavior
Sample Case
Greenpoints uses online catalog as the foundation of coalition loyalty program.
Nature of online and catalog retail businesses
make them ideal candidates for loyalty program management…
Utilize variety of acquisition channels Coalition with online and traditional retailers can result in access to
Sample Case
Staples provides three different faces to its customers, based on their segment (e.g. below/over 150 employees, industry).
Similarly, eCommerce sites dedicated to certain retail
customers also exist (e.g. AAFES for military, DisneyDirect for kids)…
Customize acquisition approach by prospect segment Customized content and merchandising by segment increases interest
Sample Case
BlueFly attracts fans of Gossip Girl, selling cloths in series’ characters’ closets online.
It is possible to attract visitors by understanding
what else they are interested in, and leveraging relevant
lifestyle concepts…
Customize acquisition approach by prospect segment Lifestyle and interests of customers can be also leveraged to attract
Sample Case
Foster and Smith provides regularly updated articles for pet owners, creating additional reason for visit for this targeted
segment.
Articles, news, tools are effective means for
creating traffic, if including relevant content
for targeted prospects…
Provide additional reasons for visiting
site Focusing beyond products and providing additional value for customers
Objectives Sample KPIs Focus 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 Visitors
Motivate subscription at first sight, providing additional value add and good
first impression
Subscriber / Visitor Ratio Total Unique Subscriber Count Number of Subscriptions per Month % of Subscribers with Full Data Duration From Visit to Subscription
Visited Subscribed Call to action for subscription on landing page Make subscription fast and convenient Provide immediate value add for subscription Promote competitive value propositions
Sample Case
Market Day calls its visitors to action, by promoting subscription all across its landing page.
Landing page has the ultimate power to lose or
gain a subscriber, which requires a well positioned
call to action…
Call to action for subscription on
landing page Motivating customers to subscribe from first sight can substantially
Sample Case
Netflix uses a two-step approach to registration, creating account with minimum information (recording customer
e-mail) and requesting additional details for purchase.
Multi-step registration and drip irrigation techniques are effective in
collecting customer information without
causing irritation…
Make subscription fast and convenient Customer registration process is a key one, which should collect enough
information to know and communicate with the customer yet still stay convenient and fast
Sample Case
Barnes & Noble provides customers ability to create and customize their own pages motivating subscription in return.
Customization of content by customer and maintenance of customer generated content create
additional reasons for subscription…
Provide immediate value add for
subscription Content personalization is not only a good value proposition for
Sample Case
Newegg provides access to other customers for technical expertise exchange, both motivating subscription and building
community loyalty.
Forums, chats and discussion boards create
ability to attract customers while making
minimal investments in content development…
Provide immediate value add for
subscription Building community interactions on-site can motivate interactive visitors
Sample Case
ebay takes one step further and builds sub-communities with similar interest areas to motivate subscription and leverage
social networking concept.
Communities developed around different topics of interest attract prospects
from different backgrounds and with
different needs…
Provide immediate value add for
subscription Providing variety of communities facilitate interaction between different
Sample Case
BlueFly provides 10% discount on first purchase, motivating subscription and use of its online channel.
First purchase discounts are effective in subscription, yet require close monitoring to avoid
abuse…
A more basic value add is direct discount or promotions for initial subscription of first purchase
Provide immediate value add for
Sample Case
Overstock capitalizes on the idea of ‘Online Best Prices’ to become a preferred supplier for its customers.
Being the best price provider is a key competitive positioning,
which creates customer interest regardless of
other factors…
Promote competitive value propositions Having a unique value offering, such as lowest prices is an ultimate magnet
Sample Case
Amazon recently promoted its ‘Frustration-Free Packaging’ as an additional value proposition to motivate visitors become
customers.
Competitive value propositions can focus not
only on the products or prices themselves, but in
the way they are packaged or delivered…
Promote competitive value propositions Unique value propositions focusing on various customer needs can
Sample Case
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
Objectives Sample KPIs Focus 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 Items
Make items of interest easily accessible and pro-actively communicate relevant
information on merchandise
Number of Items Viewed per Visit Number of Items Viewed per Subscriber % of Subscribers Viewing Items
Number 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 means Provide creative and instructive item views
Sample Case
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
Sample Case
Amazon provides daily recommendations and motivates customers to share more information in order to improve its
recommendations. Customer specific recommendation requires understanding of associations between products as well as customers’ needs and
preferences…
Pro-actively recommend items Pro-active recommendations increase cross-sales rates and provide ability to
Sample Case
Zappos uses a number of tools (e.g. multi-criteria search, popular search list, brand newsletter) to make its products
easily searchable.
Providing ability to search by various means (e.g. price, brand, features) increase usability and
visibility of items…
Provide ability to search with alternate means An effective site search function has substantial impact on accessibility
Sample Case
TigerDirect provides in-depth search options, while collecting more information about its customers.
Customers reveal important information about themselves when searching for items, which
should be effectively leveraged…
Provide ability to search with alternate means Site search is also an effective means for gathering additional
information about customers preferences, which can be used to provide further recommendations
Sample Case
Provide creative and instructive item
views Information provided about products and how they are represented also
have significant impact on customers’ likelihood of viewing items
Martin & Osa provides 360 degree rotating view of its products, to increase interest in its site visits and provide more
detailed information.
Providing detailed information in a creative way increases preference
for site over alternatives, even if products are available in other sites as
Objectives Sample KPIs Focus Area
Guidelines
Conversion of interest into purchase intent is a key step, where high performing retailers can increase their bottom-line significantly
Create Purchase Intent
Translate interest into action by learning from customers’ interests and following
up effectively
% of Views Resulting in Item Add Number of Items per Cart
Value 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
Netflix keeps list of previously viewed DVDs and enables one click purchase of these items.
Managing list of items viewed by customer
trigger impulsive purchases, while providing
convenience…
Follow-up and promote viewed
items’ purchase Products which are easiest to sell are the ones already viewed by
Sample Case
Halifax identifies its customers who haven’t purchased any services yet and provides one time refund of its fees.
Activation of non-purchasing subscribers is
possible with the right value offering, such as lowered fees for first
purchase…
Identify and act on subscribers using site for viewing only Subscribers who frequently view products but do not purchase any are
likely to be using other providers for purchases, who can be motivated by extra value offerings
Sample Case
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
Sample Case
Williams-Sonoma enables registry for weddings, enabling purchase of added items by others.
Gift registries are effective means for both having full
share of wallet from an event and getting new
customers…
Translate interest into wish lists for future purchase Wish lists and gift registries translate interest into purchase, even if the
Objectives Sample KPIs Focus Area
Guidelines
Keeping customers on-site and cross-selling before check-out require pro-active actions, which can create substantial ROI
Create Check-out Intent
Avoid 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 Checkout Average Item Time in Cart
Average Time to Checkout
Init. Check-out Added Item Provide one click check-out Make single item purchase faster Cross-sell before check-out Make added items accessible even if abandoned site
Sample Case
One click check-out minimizes the time to proceed, leaving less time for customer to change his/her mind while providing convenience
Provide one click check-out
GAP allows one-click checkout while customer keeps adding to his/her shopping cart.
One-click checkout option should be available across
all pages, to make it accessible whenever customer makes his/her
Sample Case
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
Sample Case
Shopping cart based recommendations before checkout are effective ways to motivate impulsive purchase before final action
Cross-sell before check-out
Amazon makes recommendations based on shopping cart content before customer proceeds to checkout.
Recommendations based on current shopping cart and not only the customer
history ensure relevance for both the customer and
Sample Case
Dell keeps a separate ‘My Saved Items’ list to manage added items which are decided to be considered for purchase later.
Providing ability to register selected items
increases likelihood of purchase later if customer
will abandon cart in current occasion…
For customers who will review alternative sites or products, providing access to items selected earlier can trigger sales in next visit
Make added items accessible even if
Objectives Sample KPIs Focus 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 Abandonment
Ensure 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
benefits Make cart available in next visit if abandoned
Sample Case
Provide convenience and speed in
checkout
Ruelala gets all necessary information and enables updates on one screen during checkout process.
One page checkout with auto-fill fields is a fast and
convenient way of finalizing transaction…
An easy and fast checkout step decreases likelihood of abandonment at this very last stage
Sample Case
Nordstrom sends e-mails reminding customers about their abandoned carts, providing detailed information on their
content.
Detailed information about and direct access to
checkout in targeted e-mails can facilitate
completion of transaction…
Remind and follow up abandoned cart For customers with abandoned carts, reminder e-mails can refresh
Sample Case
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
Sample Case
Drugstore.com keeps shopping carts available for certain period, but clears out later to call customers to action.
In cases where customer has initiated checkout yet
not completed payment, likelihood of return is
considerably high…
Make cart available in next visit if
abandoned Keeping cart available for certain duration ensures saving losses due to
Objectives Sample KPIs Focus Area
Guidelines
Problems experienced in payment process not only mean lost cart sales, but also could become a reason for customers lost forever
Ensure Payment
Process payment securely and using alternative means
% of Payments Bounced % of Potential Value Bounced % of Bounced Payments Abandoned Payment Attempts per Purchase Number of Fraudulent Cases Identified
Paid Initiated 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
Louis Vuitton uses BillMeLater service to enable deferred payment of goods purchased by its customers.
Installments and no upfront payments are effective for customers with limited liquidity at
time of purchase…
Provide alternative means for payment Providing alternatives to bank transfers and credit cards can decrease
Sample Case
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
Sample Case
TicketsNow focuses on reliability by proposing unconditional guarantee and using most trusted security service providers.
Guarantee offerings, backed up with security
certification can differentiate online stores in a highly sensitive area…
Ensure and promote payment security Payment security is one of the key concerns about online shoppers,
Sample Case
Dell sends order confirmation e-mail to its customers, with details on payment terms as well as contact information for
follow-up.
Detailed and immediate information on payment confirmation and problems is critical in closing sales… Keep customers informed about payment process Providing information about the payment status and details increases
Sample Case
Barnes & Noble informs customer about the authorization failure and recommends alternatives on how to proceed, in
addition to details of failed order.
Convenience, alternative options and immediate
response in payment failure can avoid loss of
sales…
Follow-up and recover failed
payments In case of failures in authorization of payments, follow-up and pro-active
Objectives Sample KPIs Focus Area
Guidelines
With a first purchase completed, the next stage is to close the cycle, getting customers revisit and repurchase
Create Repeat Visits
Identify 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
Barnes & Noble provides new content and information, updated weekly, daily and even hourly.
Recommendations, articles and news can become reasons for return
if relevant and frequently updated…
Regularly provide new content and
offerings Refresh cycle of content is a key parameter in visit frequency of
Sample Case
Newegg provides new deals every day and week to keep its subscribers coming back.
Providing pick of the day promotions or changing
list of discounted items create reason for frequent
revisit…
Regularly provide new content and
offerings Frequency of update and variety of promotions are critical in motivating
Sample Case
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
Sample Case
Oriental Trading lets customers set-up reminders about special events for repeat business on such occasions.
Ability to set up personalized reminders
create value for customers, while creating
opportunities for additional sales…
Provide value add for repeat business Reminders for special events which commonly trigger sales can increase
Sample Case
ProFlowers sends personalized (by sender and receiver) periodical e-mails to motivate repeated purchase of gifts on
common occasions.
Making one-click offers targeted at same receiver
and occasion can guarantee repeat
business…
Provide value add for repeat business Targeted and personalized reminders are effective means for repeat and
Sample Case
Harry & David gets its customers subscribe to clubs with monthly product deliveries to ensure repeat business from one
purchase.
Product of the month clubs create opportunity
to future-sell products ensuring relation with the
customer for months…
Provide value add for repeat business Schemes creating repeat business upfront are effective means for
Sample Case
Borders provides a loyalty program with points schema, including initial subscription benefit to increase interest and
collect additional information in registration process.
High performing loyalty programs not only promote repeat business
but are also used as means for collection more
customer information for actions, (e.g. with
registration)…
Provide value add for repeat business As in traditional retailing, loyalty programs are effective means for
Sample Case
Tesco pro-actively sends e-mail to its customers for purchases in never-purchased categories with extra benefits.
Identification of never-purchased relevant
products and their promotion means increased share of wallet
and loyalty…
Recommend for cross and up-sales Personalized and targeted recommendations for cross-sales create high
return on investment while avoiding irritation due to over-communication
Sample Case
Tesco informs customers about new products, which are relevant to customers’ purchase histories.
New products can be effectively promoted to customers with relevant
history for re-activation and quick sales of new
products…
Recommend for cross and up-sales New product launches create important opportunities for
communications and promotions, which need to be managed in a targeted manner
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?
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