driving decisions with real- time data · increasingly, personalising the in-store experience to...

etailgermany.wbresearch.com

D R I V I N G D E C I S I O N S W I T H R E A L - T I M E D A T A

1

D R I V I N G D E C I S I O N S W I T H R E A L -T I M E D A T A

https://etailgermany.wbresearch.com/



2

A well-rounded event brimming with great insights from a diverse range of

experts, coupled with outstanding networking

opportunities.

Jens Fischer Head of Online Marketing

babymarkt.de




3

CONTENTSIntroduction 4

Foreword by John O’Keeffe, Vice President 5 EMEA, Looker Data Sciences, Inc.

We Design Digital Customer Relations – 6 Christian Otto Grötsch, Founder & Managing Director, dotSource GmbH

Mapping The Customer Journey 7 Matthieu Blandineau, Product Marketing Manager, Algolia

Part One: 8 Automating eCommerce

Part Two: 12 Aligning Data in Real-Time

Part Three: 17 Utilising Marketplaces

Part Four: 21 Driving Decisions with Data

About Looker 24

About dotSource 24

About Algolia 25

About WBR Insights 25




4

INTRODUCTIONOnline shoppers today have more choice, more information and crucially, less time. To compete with commercial giants like Amazon, smaller online retailers are finding ways to meet customers wherever and whenever they want to shop- but flexibility is no longer enough. Now, eTailers need to find innovative new ways to personalise their offerings in real-time so they can build a loyal customer base- and they’re going to need to harness customer data to do it.

In Q4 of 2018 WBR Insights, Looker Data Sciences Inc., Algolia and dotSource surveyed 100 Directors of eCommerce from across the Germany and Europe to find out more about the challenges they face and the innovative solutions they bring to the table.

The survey was conducted by appointment over the telephone. The results were compiled and anonymised by WBR Insights and are presented here with analysis and commentary by Looker Data Sciences Inc., dotSource, Algolia and the eTail Germany community.

CONTRIBUTORSJohn O’Keeffe Vice President EMEA Looker Data Sciences, Inc.

Tobias Kosten Head of Marketing & Sales Konstantin Slawinski

Martin Roulund Jakobsen eCommerce Manager, Nordics Radisson Hotel Group

Miro Morczinek Chief Executive Officer 24factory

Matthieu Blandineau Product Marketing Manager Algolia




5

Amazon continues to open brick-and-mortar retail stores. Walmart expects online sales to grow by around 40% for the year. Zalando are well on their way to their target of doubling in size by 2020. While it can be easy to think of the future of retail as a struggle between online and offline retail, the real success for the growing retail space comes from putting the customer’s experience first, both online and in-store.

Simply put, in-store retail isn’t dead, and online

retail isn’t winning – both are evolving with changes

in customer behaviour and technological advances.

Understanding the customer is what matters the

most, and at the heart of understanding customers

is data. The new hybrid retail environment requires

customer data that is comprehensive across

channels, that is always up-to-date, and that can be

acted on quickly before customer interest is lost.

Commonly used types of data include customer

behaviour data, customer demographics, and

buying history. But often in-store point-of-sale

information and eCommerce data sets are

segregated. Each type of data only provides a

limited view into the customer. With customers

increasingly researching purchases online before

making them, the ability to connect this data to

a store visit becomes paramount. Understanding

how customers research online can help retailers

present them with compelling offers or promotions

to use in a local brick-and-mortar store, driving

in-store sales and customer satisfaction. Only by

combining a range of data sources into a unified

view of a customer can a retailer better understand

how to build appeal, customer loyalty, and a

sustainable sales model.

But combining data sources isn’t enough. The

data itself needs to be as fresh and up-to-date as

possible. Without fresh, accurate data it’s easy to

miss a sales opportunity. As many retailers work to

provide the same compelling buying experience

online that customers experience in-store, old data

can result in customers receiving offers for products

that have already been purchased. Ultimately,

retailers need to be able to quickly take action on

the customer knowledge they glean from data. To

understand a customer isn’t enough alone, crafting

a compelling retail offer for customers requires the

data to guide how a retailer behaves.

Innovative retailers with a comprehensive view

of their customers are defining the future of retail

online and offline. These retailers are customising

both the online shopping experience and,

increasingly, personalising the in-store experience

to drive customer engagement. Data further helps

increase conversion rates by connecting online

browsing to store visits, often via promotions or

cross-selling. Understanding the customer can

fundamentally alter how a retailer presents itself to

customers and defines the customer experience.

FOREWORD BY JOHN O’KEEFFE, VICE PRESIDENT EMEA, LOOKER DATA SCIENCES, INC.




6

A few years ago, digital transformation was primarily about introducing digital marketing and distribution channels, in parallel with an existing business model. Today, it means aligning the entire corporate strategy and organisation internally and externally with the requirements of a digital world. Radical changes in environmental factors require brands to be highly adaptable in designing their digital customer relations.

In the revolutionary digital age, companies need an

evolutionary advantage: digital DNA.

At the same time, the biggest misconception of

digitisation is the often-limited focus on technology.

Web shops, smartphones, IoT or smart assistants

are not an end in themselves. Digital tools should

be used to achieve business goals rather than

determine them. Retailers and manufacturers

heading haphazardly in the wrong direction

are saved neither by a software project nor by

enormous digital marketing budgets.

Artificial intelligence and agile working conditions

can only develop their potential where companies

are eager to experiment. New work is thus

becoming the top issue for brands in the digital

age. The connection of humankind, space and

technology involves customers, users, and artificial

intelligence alike in the development of solutions.

Agile methodologies, design and data thinking are

established tools for transformation and innovation.

Digital means more than just ‘on the internet’. It

is more than the code of digital tools and smart

devices. Digital has long been a mindset. It’s a way

of thinking, of tackling challenges, and working

together. Instead of struggling with major projects

year after year – or even for years – successful

brands rely on continuous improvement. Fast and in

small steps. Evolution instead of revolution.

As a boutique agency, our mindset makes us the

ideal partner for our clients in developing their

own digital DNA. Our 240 digital experts offer

comprehensive services and know-how to design

digital customer relations. In doing so, we continue

to live up to our claim: ‘Digital Success right from

the Start.’

WE DESIGN DIGITAL CUSTOMER RELATIONS CHRISTIAN OTTO GRÖTSCH – FOUNDER & MANAGING DIRECTOR DOTSOURCE GMBH




7

Shopper expectations are higher than ever.

There are only a few key reasons why shoppers

initially buy from a retailer and come back after:

The retailer has strong acquisition channels

and the right product offering

It offers an outstanding customer experience,

from onsite experience to delivery to customer

service

Yet, an appealing product offering isn’t enough to

maximise conversion and ultimately revenue.

The key lies in how quickly and efficiently each

individual finds the product they desire: the less effort

it takes to find the right product and navigate across

relevant offerings, the higher the conversion rates

leading to more revenue, engagement and retention.

According to Forrester, 43% of site visitors go

immediately to the search box, and Salesforce

showed that shoppers using search spend 2.6x

more than non-searchers.

Algolia lets retailers access this untapped revenue

by offering a suite of tools on top of its highly

performant search and navigation engine that

enables them to further optimise their search and

discovery experience. This is all possible without the

need for constant, dedicated engineering resources.

With Algolia, retailers can build and customise a

state-of-the-art search and discovery experience,

bringing search-as-you-type, typo tolerance,

synonyms management, filters and facets, query

suggestions and many more to their shoppers.

Using Algolia’s visual dashboard, merchandisers

can fine-tune the products ranking based on their

popularity, reviews, profit margins or any data,

as well as uncovering best performing relevance

strategies with A/B testing, promoting specific

results, displaying promotional banners, or

redirecting customers to a special landing page

when they search for the latest trends.

MAPPING THE CUSTOMER JOURNEY MATTHIEU BLANDINEAU, PRODUCT MARKETING MANAGER, ALGOLIA




8

PART ONE

AUTOMATING eCOMMERCE




9

63% of respondents are automating the preloading and publishing of new products, and 60% are automating the adjustment of prices based on combinations

WHICH ASPECTS OF eCOMMERCE ARE YOU CURRENTLY AUTOMATING?

I see the biggest potential for automation in overcoming the bottlenecks between departments and hard/software e.g. between ERP, Webshop, Warehouse and Finance.

Tobias Kosten Head of Marketing & Sales

Konstantin Slawinski

Many data points are dynamically changing based on market demand and development, hence the need for more automated processes across eCommerce. The rise of technology opens the door for new ways of adding data sources to the automation process.

Martin Roulund Jakobsen eCommerce Manager, Nordics

Radisson Hotel Group

Marketers face marketing programmes and associated data spread across a wide range of applications and interfaces. Centralising marketing data is crucial to understanding if campaigns and programmes are delivering value to the organisation. Moving data into a database and using a data analytics platform to understand your marketing metrics and KPIs will allow you to better allocate your resources to maximise ROI.

John O’Keeffe Vice President EMEA

Looker Data Sciences, Inc.

Preloading and publishing 63% new products

Adjusting prices at checkout 60% based on product combinations

Price changes and promotions 53%

Unpublishing out-of-stock 46% products

Tagging high-value customers 45% and notifying customer service

Identifying, tagging, and 25% segmenting customers who buy from specific sales channels

RESPONDENTS WERE ASKED TO SELECT ALL THAT APPLY




10

41% of Heads of eCommerce surveyed are struggling to recruit the best talent to implement automation

WHAT IS THE MAIN CHALLENGE WHEN DECIDING TO AUTOMATE YOUR eCOMMERCE/MARKETING DEPARTMENT?

y Attracting and hiring the right 41% people to make it all happen

y Lack of resources 20%y Demonstrating ROI 16%y Choosing the right technology 12%

and vendors

y Gaining support from senior 10% management

y No idea where to start 1%

41%

20%

16%

12%

10%

1%

A decent payment, a nice atmosphere and interesting projects are the best triggers to attract, hire and keep the right people.



eTailers should focus on ensuring that their talent pool understands tech development. Education is an on-going process that needs to be as dynamic as technology. Creativity is not just about campaigns, but also about exploration within the usage of partners and platforms. Involve vendors in assessing your needs. Automation is relatively new, so its source could be helpful in the recruitment process to make sure the right people are on board form the beginning.






11

46% of respondents uSE chatbots on their ecommerce websites, and 37% also use voice activated conversational commerce

WHICH OF THESE CONVERSATIONAL TECHNOLOGIES ARE YOU LOOKING AT IMPLEMENTING?

Chatbots

Voice activated conversational commerce

46%

37%

31%

37%

19%

22%

4%

4%

y Already Implementing

y Looking into this

y Maybe in the future

y No Interest

Companies which utilise chatbots have fewer first level phone calls coming in, and therefore fewer people are needed in the back office which reduces overall cost.



Chatbots offer the customer a faster and more convenient medium to interact with. As tech evolves, AI chatbots have great potential to add value to customer service.






12

PART TWO

ALIGNING DATA IN

REAL-TIME




13

Personalise recommendations 60%

Integrate relatable user-generated 54% content in product pages

Store card details for repeat purchasing 47%

Give access to upgraded delivery options 47%

Encourage users to create online profiles 45%

Personalise offers 42%

Offer a seamless shopper journey 38% such as one click checkout

Integrate relatable videos into the 36% online buying journey

Offer free returns 36%

60% of Heads of eCommerce are using personalised recommendations to encourage loyalty in online customers

WHAT DO YOU DO TO ENCOURAGE SHOPPER LOYALTY ONLINE?


One of the most important automation opportunities going forward will be personalisation from optimised product curation through ranking algorithms or recommendation engines. This will allow eTailers to display the most relevant similar or related products.

Miro Morczinek Chief Executive Officer

24factory

Personalised communication is key in a market that has seen significant increase in commercial messages. The marketer needs to see each customer as an individual valuable asset to the business.






14

yDaily 37%yWeekly 26%yReal-time 20%yMonthly 9%yQuarterly 8%

20% of respondents are able to make decisions based on data in real-time

HOW RAPIDLY IS YOUR TEAM TYPICALLY ABLE TO DIRECTLY ACCESS OR EXTRACT DATA TO HELP DRIVE BUSINESS DECISIONS?

37%

26%

20%

9% 8%

Agility in going to market is vital, as the market and client today are extremely dynamic. This needs to be translated into the operational joint in the digital value chain. Today, we can pull real-time data that quickly identifies opportunities and threats on a daily basis.



Without doubt, evolutions in technology and reductions in cost have made real-time data more accessible than ever. However, just because something is possible doesn’t necessarily mean it is the right investment.

It is critical to keep focused on where real-time data and analytics drive business value. A good example of this might be using real-time data on an item that is not selling, to automatically apply discounts to encourage an uptake in sales. By the same token, high-level data sets – such as orders per week – serve little value in being updated in real-time. The key to success in real-time data sets is usability.






15

Retargeting cookies 62%

Aligning data sources to improve 62% cross-device insights using other methods

Members login 55%

Aligning data sources using a Data 42% Management Platform to improve cross-device insights

Modelling the customer journey 39%

Single sign-on system (social sign in) 29%

62% of Heads of eCommerce surveyed are aligning data sources across channels and using retargeting cookies in order to improve mobile conversion rates

WHAT TECHNIQUES ARE YOU USING TO TRY TO IMPROVE YOUR MOBILE CONVERSION RATE?

One of the top priorities for mobile success remains simply the performance of the web page. If the website loads over two seconds on low-powered smartphones, you can lose up to 60% of the revenue potential from those users.


24factory


It’s important to merge data to create a more relevant and integrated customer journey. One size does not fit all any more; customers are much smarter and more selective nowadays. This makes the role of the digital marketer much more complex.



While mobile commerce and retail sales conducted via mobile only accounted for only about 3% of all retail sales in 2018, mobile commerce was 23% of all online retail. A significant portion of pre-sales research and decision making is made via mobile devices. This highlights the importance of aligning data sources to drive mobile conversion.






16

PART THREE

UTILISING MARKETPLACES




17

Selling through marketplaces

81% of respondents are currently selling their goods through a marketplace

WHAT STAGE ARE YOU AT WITH THE FOLLOWING?

Maxing out growth of the existing sales channels requires first and foremost accurate tracking and attribution across channels and devices. We often see shops in our industry who don’t invest sufficiently into this first, and are therefore losing out to competitors when they end up focusing solely on selling through marketplaces.


24factory

8%

11%

81%

Implementing mCommerce

3%

21%

76%

Expanding your business internationally

4%

31%

65%

Accurately tracking revenue from mobile

7%

48%

45%

y It’s not currently a priority

y Planning to implement in the next 12 months

y Accurately tracking revenue from mobile

I am not surprised to see so many players moving in this direction. Presence on marketplaces is the strongest growth channel for many brands.






18

y Growing the business very quickly 49%y Entering new markets and 22%

expanding internationally y Logistics are handled by a third party 19%y It helps to gain the trust of the 10%

customer

Almost half of Heads of eCommerce surveyed report that the biggest benefit to selling through a marketplace is growing the business very quickly

WHAT IS THE BIGGEST BENEFIT TO SELLING THROUGH A MARKETPLACE?

49%

22%

19%

10%

Although the bulk of marketplace-based selling is through only a few large marketplaces, it is increasingly common that eCommerce requires participation in multiple marketplaces. Tracking data across multiple marketplaces is the only way to understand customer behaviour and to drive success.



More and more, marketers are seeing the potential in marketplaces. I think this is due to the massive reach they can provide through their own marketing programmes, and the localisation of online shops – which is especially useful when working in a global market.



Whilst conventional marketplaces like Amazon disintermediate the customer ownership for sellers, marketplaces like Moebel24 don’t close the loop, but pass on the customer information in full to the shops.


24factory




19

y Lack of control over customer 36% service as logistics are handled by a third party

y Loss of brand identity 34%y Commission charge 30%

When it comes to the disadvantages of selling through a marketplace, respondents are split between lack of control over logistics, loss of brand identity and

commission charge

WHAT IS THE BIGGEST DISADVANTAGE TO SELLING THROUGH A MARKETPLACE?

36%

34%

30% Fixed commission fees are a way to take the least risk in acquiring new customers, but to the disadvantage of losing the customer relationship and becoming fully commoditised.


24factory

A major disadvantage to selling through a marketplace like Amazon is the price competition amongst players selling the same product in the same place.



Having marketplaces as part of the overall distribution opens up new revenue streams, but with the rise of marketplaces, retailers need to rethink how they can gain and manage control over brand and customer service.






20

PART FOUR

DRIVING DECISIONS WITH DATA




21

Sales optimisation - e.g. customer 72% journey analytics, A/B testing, demographic or behavioural targeting, mobile experiences, email marketing

Digital or physical outlet expansion: 53% e.g. location of a new store opening, a new web entity or application

Business efficiency - e.g. analysing, 48% managing or optimising operational flows - such as returns, vendor management, logistics

Business category expansion: 42% e.g. introduction of a new brand or product line

Respondents are most likely to use data analysis to influence decisions around sales optimisation such as customer journey planning

WHAT TYPES OF DECISIONS DOES YOUR TEAM MAKE THAT ARE DERIVED FROM ANALYSING OR REVIEWING DATA?


We constantly monitor our sales and thereby see tops and flops in our assortment. This gives us a chance to optimise our portfolio and reduce cost and warehouse space.



We use data to understand how and where we should target customers, and with what message. From there we can build a campaign architecture. We also use data which outlines key metrics across the eCommerce ecosystem, combined with data from our business intelligence unit and key stakeholders to clearly decide and justify if the investments we are making are profitable.



eCommerce and retail companies collect more data than ever before. This has the power to enable a deeper understanding of the business, which can empower employees to make data-driven decisions. The critical consideration is how to combine and centralise data sources – e.g. customers, web and transactional data – and provide access to users across the organisation so they can make smarter decisions.






22

Organic social posts linking back to 69% product pages

Advertising social posts linking 61% back to product pages

We have a shoppable Instagram 46% solution

We do not integrate social media 11% with eCommerce

Consumer photos associated with the product or service (UGC)

Video content

Photos of models with the product or within the service environment

Text ads

Photos of products or photos that depict the service provided

When raking the most effective content in a social media campaign, consumer photos associated with the product

came out on top

IF YOU LEVERAGE SOCIAL MEDIA ADVERTISING, WHICH TYPE OF CONTENT HAS PROVEN MORE EFFECTIVE FOR YOUR BRAND?

RESPONDENTS WERE ASKED TO RANK BY ORDER

OF IMPORTANCE FROM 5 – THE MOST EFFECTIVE

TO 1 – THE LEAST EFFECTIVE

In online furniture we strongly believe in using real-life imagery for social media channels. Therefore, we cooperate with relatable celebrities to promote products onsite and in social media channels, in order to increase attention.


24factory

3.37

3.16

2.96

2.96

2.82

69% of respondents use organic posts linking back to product pages

to integrate eCommerce into social media

HOW HAVE YOU INTEGRATED YOUR SOCIAL MEDIA CHANNELS WITH eCOMMERCE?





23

Only 31% of respondents believe that giving customers control of their personal data is either very important or critical

GIVING CUSTOMERS MORE CONTROL OF THEIR PERSONAL DATA IS EMERGING AS A KEY RETAIL BRAND DIFFERENTIATOR FOR 2019. HOW IMPORTANT WOULD YOU SAY PERSONAL DATA SECURITY AND ACCESS TO DATA ARE IN YOUR OVERALL 2019 STRATEGY?

Not at all important

Somewhat im

portant

Important

Very important

Critical

We see personal data management options as a qualifier across shops in the eCommerce landscape, because of the heightened sensitivity of consumers. However, we don’t expect it to become a significant purchase driver in itself compared to trustworthy purchase processes and accurate price and terms presentation.


24factory

0%

46%

23%25%

6%

For many companies, allowing access to data has typically required copying, exporting, and extracting data – which leaves a trail of personal data across any number of laptops, servers and systems, both inside the company and with third parties.

A scalable, long-term solution has to address the root of the problem. Businesses need a single access point for their data. They need to see who has accessed it and what they’ve done, all in one centralised, managed, secure place.






24

ABOUT LOOKER

Looker is a modern Platform for Data that offers data analytics and business insights to every department at scale, and easily integrates into applications to deliver data directly into the decision-making process. Over 1,600 industry-leading and innovative companies such as Sony, Amazon, The Economist, IBM, Spotify, Etsy, Lyft and Kickstarter have trusted Looker to power their data-driven cultures.

The company is headquartered in Santa Cruz, California, with offices in San Francisco, New York, Chicago, Boulder, London, Tokyo and Dublin, Ireland. Investors include CapitalG, Kleiner Perkins Caufield & Byers, Meritech Capital Partners, Redpoint Ventures and Goldman Sachs.

For more information visit looker.com

ABOUT DOTSOURCE

dotSource, that’s over 200 digital natives with one mission: designing digital customer relations. Our work rises from the connection of humankind, space, and technology.

We’ve been supporting businesses in their digital transformations since 2006. Whether e-commerce and content platforms, customer relationship and product data management, or digital marketing and artificial intelligence: our solutions are user-oriented, emotional, targeted, and intelligent. We see ourselves as a partner of our clients, whose special requirements and needs flow into the project straight from the first idea. From strategy consultation and system selection, to concept creation and UX design, to operation in the cloud – together we develop and implement scalable digital products. Our approach relies on new work and agile methodologies such as scrum and design thinking. Companies like EMP, BayWa, Axel Springer, hagebau, C.H. Beck, Würth and Stabilo trust in our competence.

Learn more at dotSource.com


http://www.looker.com

http://www.looker.com

http://www.dotSource.com



25

ABOUT WBR INSIGHTS

We use research-based content to drive conversations, share insights and deliver results. Connect with our audience of high-level decision makers in Europe and Asia from industries including: Retail & eCommerce, Supply Chain & Procurement, Finance, as well as many more. From whitepapers focused on your priorities, to benchmarking reports, infographics and webinars, we can help you to inform and educate your readers and reach your marketing goals at the same time.

Contact us to find out how your business could benefit from:q Year-round access to our network of decision makers and industry

leaders q In-depth research on current fast-moving issues and future trends q Lead generation campaigns that fit your priorities q Promoting your organisation as an authority in your industry

To find out more contact:Teri Clarke Insights Portfolio Manager T: +44 (0)20 7036 1315 E: [email protected]

ABOUT ALGOLIA

Our mission is to make every search interaction meaningful and rewarding, through developer-friendly and enterprise-grade APIs. Algolia is the leading Search & Discovery API for websites and mobile apps. We help the most innovative companies across e-commerce, media and SaaS industries create powerful, relevant and scalable discovery experiences for their users. Unlike other solutions, our hosted platform reduces the complexities of building and scaling a fast, relevant digital experience and helps teams accelerate development time. More than 5,000 companies like Lacoste, Bringmeister, Periscope, Medium, and Stripe rely on Algolia to manage 40 billion search queries a month. Founded in 2012, we’re backed by $74M in funding from Accel Partners, Alven Capital, Point Nine Capital and Storm Ventures. The team is headquartered in San Francisco with offices in Paris, London, New York, and Atlanta. To learn more about innovations in site search, visit https://go.algolia.com/search-beyond-the-box.

Website: https://www.algolia.comPhone number: +33 (0)175858346Industry: Computer SoftwareSpecialties: Search as a Service, Developer Tools, API, Search, and SaaS


mailto:[email protected]

https://go.algolia.com/search-beyond-the-box

https://www.algolia.com

26

© WBR Insights 2018. All rights reserved. This document and its content are proprietary to WBR Insights and may not

be reproduced, republished or resold. The information contained within is provided on an “AS IS” basis for information

purposes only and WBR Insights makes no warranties of any kind including in relation to the content or suitability.

The name WBR Insights, the logo and any associated brand names are all trademarks of Worldwide Business Research.

driving decisions with real- time data · increasingly, personalising the in-store experience to...

Documents