the impact of ecommerce growth insight function … · 2014. 8. 11. · $350 supermarket $396 $492...

© @danny_silverman @clavisinsight #IIEX ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET

THE IMPACT OF ECOMMERCE GROWTH ON THE INSIGHT FUNCTION IN CPG BRANDS IIEX JUNE 18TH, 2014 DANNY SILVERMAN, VP BUSINESS CONSULTING SERVICES


FMCG ECOMMERCE IS TIPPING


Channel CAGR

'08-'13E

CAGR

'13E-'18E

3.5% 4.3%

5.4% 6.8%

1.6% 3.3%

2.2% 4.1%

-1.8% 0.11%

8.2% 7.6%

2.6% 4.8%

3.4% 3.0%

-2.2% -0.6%

12.0% 11.4%

2.5% 4.4%

KR Channel Totals 2.9% 4.5%

ECOMMERCE IS THE FASTEST GROWING CHANNEL

$350 $396 $492

$83 $145

$250

$120 $108

$104

$239

$282

$328

$151

$172

$217

$52

$76

$110

$101

$92

$93

$50

$55

$68

$355

$385

$453

$113

$147

$204

$100

$118

$145

-

400

800

1,200

1,600

2,000

2,400

2008 2013E 2018E

Sale

s in

Bill

ion

s ($

)

Apparel

Clubs

Category Specialist

Convenience

Department

Discounter

Drug

Supercenter

Mass

Non Store Retail

Supermarket

$1,713

$1,978

$2,465 Source: Kantar Retail Analysis, KantarRetailiQ.com


CHANGING THE NATURE OF FMCG BUSINESS

Online Brick & MortarOnline Brick & MortarOnline Brick & Mortar

Today’s online Grocery is 3-5% of retail sales.

2016 online will be 10-20% of retail sales.

Web Influenced sales already more than half of your business


90%

10%

* Forrester, 2012

Amazon.com visitors who purchase on Amazon.com**

Amazon.com visitors who purchase elsewhere ****

** Etailing Solutions

90% OF AMAZON VISITORS CONVERT ELSEWHERE!

Key Insight:

WINNING OFFLINE STARTS WITH WINNING ONLINE!!


So what oes it all mean?

Great! But How Do I Measure It?


NUMEROUS KPI’S EXIST; FEW ARE UNIVERSAL

Awareness & Consideration

Evaluation

Trial & Conversion

Loyalty

Advocacy

Key metrics: • Open rates • Click-through rates • No. of Ratings and Reviews • Average rate sentiment • Product detail page views • Brand reputation scores • Number of buyers • Digital IQ • Reach • Category traffic index • Web impressions • Attitude & Usage • Average basket value / size • Shipments • POS • Conversion rate • Auto-replenishment subscriptions • Repeat orders • Reviews per product • Social media mentions per tactic /campaign


INSPECTION / AUDIT OF PHYSICAL STORES IS STANDARD PRACTICE

Assortment

Price

Availability

Pack Info

Promotions

Shelf Placement

CPG Top Brands Spend on Average 0.4% of Revenue on Retail Measurement


CAN WE ADAPT THAT APPROACH TO ECOMMERCE? YES!

Promotions Portfolio Content Availability Reviews Search Rank

Demand Research Feedback Fulfilment Purchase Evaluate


THE SALES IMPACT IS MEASURABLE

Portfolio

Content

Placement

Availability

Media Tracking

Rating & Reviews

Better ranging (Power SKUs) to achieve 2-5% increase in average “share of basket”

Improve content compliance to deliver 3-5% Increase in conversion rates (add to basket rates)

Achieve higher search rank for 10%-30% increase in product page views (via search)

Optimize distribution for 50 - 75% Reduction in online “orders not available for shipping”

Ensure compliance with media spend - 20-40% Increase in ROI on Online Store Promotions budget

Improve engagement in underperforming categories - 5-18% increase conversion rates

* Indicative market average numbers based on Clavis & MIT studies. Numbers will vary by category

15%-30% increase in annual online sales revenue (excluding industry average growth)


ECOMMERCE MATURITY MODEL

Increasing Manufacturer Maturity, Online Store Sophistication Deeper Analysis & More Actionable Insights

Digital Presence Management

Digital Performance Insights

eCommerce Program Test & Optimize

Predictive Analytics

? Performance Presence Watch-Lists Media Reviews Placement Availability Content Portfolio


Glo

bal

Pap

er C

om

pan

y

Glo

bal

Fo

od

Co

mp

any

Glo

bal

Co

ngl

om

erat

e

USE CASES: CPGS ADAPTING TO CHANGING MARKETS

eCommerce COE

Perfect Online Presence

Digital Presence/ Beautiful Basics

Performance Search/Promos

Digital Shelf Project

Frequent New Product Intros

Monitor online content roll-out for 500 SKUs

Aim: grow sales & protect its brands

7 key online stores in the US, UK and China.

Quickly identify wins for Search, content quality & Availability


Visit Online Stores

Portfolio

Content

Availability

Placement

Rating & Reviews

Media Tracking

CLAVIS AUDITS ONLINE STORES

Audit & Analyze Deliver Actionable Results

Clavis Insights

Price

© @danny_silverman @clavisinsight #IIEX ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET 14

GLOBAL STORE COVERAGE

BR

US

CA UK

NL

FR

ES AU

TR

CN

JP


CLAVIS VISION

The Industry Standard for

Online Store Audit and Analytics for

FMCG Manufacturers & Retailers

Empower our customers with eCommerce Intelligence & Insights to drive online sales growth and beat the competition

©

FOR MORE INFORMATION ABOUT CLAVIS INSIGHT: Danny Silverman

VP, Business Consulting Services (734) 276-3282

[email protected]

the impact of ecommerce growth insight function … · 2014. 8. 11. · $350 supermarket $396 $492...

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