webshoppers 29th edition - english version

Sponsors:

29°edition29°edition

Index

What WebShoppers is.................................................................................................. 03

E-bit.................................................................................................................................. 04

E-bit Products................................................................................................................ 05

Report Methodology.................................................................................................... 07

Executive Summary...................................................................................................... 08

Report Structure............................................................................................................ 10

Chapter I - 2013 Balance Sheet and Expectations for 2014............................... 11

Chapter II – Product exchanges and returns........................................................... 21

Chapter III – Net Promoter Score (NPS)................................................................... 31

Chapter IV – The omnichannel consumer in Brazil.............................................. 42

Chapter V – FIPE/Buscapé Index................................................................................ 49

Main E-bit Clients........................................................................................................... 57

Credits............................................................................................................................... 58

Press Information.......................................................................................................... 63

Contacts............................................................................................................................ 64

Copyright E-bit - All rights reserved

What Webshoppers is

WebShoppers, an E-bit initiative, aims to disseminate critical

information with the purpose of promoting an understanding about

e-commerce in Brazil.

The report, which is published semi-annually, analyses

e-commerce´s evolution, points out estimates, behavior changes and

e-consumer preferences, as well as market trends, contributing to

the development of the sector.


03

Present in the Brazilian market since January 2000, E-bit has been accompany-

ing the evolution of digital retail in the country since it began, becoming a ref-

erence on this topic.

Through a sophisticated system, which collects data directly with the online

buyer, E-bit generates detailed information about e-commerce on a daily basis.

On the website, E-bit (www.ebit.com.br) provides relevant information for

consumer purchase decision-making, as well as o�ering products and

services to retailers.

For consumers, the E-bit store certification helps to increase online purchase

trust. Through classifications with medals (diamond, gold, silver and Bronze),

which confirm the quality of the services provided by the retailer, consumers

find arguments that help their decision process. For entrepreneur´s, E-bit is a

source of knowledge regarding e-commerce in Brazil, contributing to the de-

velopment of the business and industry in General.

The WebShoppers report , published semi-annually, analyses e-commerce´s

evolution, trends and estimates, behavior changes and e-consumer preferenc-

es, as well as suggesting improvement needs, thus, contributing to the develop-

ment of the sector.

Find out more about E-bit and its main products, below.

E-bit


04

• E-bit Certification - Is a virtual store evaluation service, a Latin America

pioneer and reference for e-commerce in Brazil. E-bit has agreements with more

than 20.000 stores and consumers from these stores are invited to answer a

survey, right a�er confirming their purchase on the internet. There are three

steps: one immediately a�er the e�ective purchase and another performed a

few days later, to evaluate the delivery, and then a third survey regarding the

usability of the product. The process is automatic and simple, performed on the

internet.

• E-bit Ajuda - An exclusive and free service, which seeks to assist consumers´

contact with virtual stores. E-bit Ajuda aims to reduce the di�culty and time

spent by consumers when trying to communicate with stores, in case they do not

receive the purchased product.

• E-commerce Information – The questionnaires answered daily by consumers

about the quality of services provided by virtual stores feed the E-bit database.

By crossing data, E-bit produces reports that trace the profile of online

consumers- with info about gender, age, income, education, habits-and also

comparatively evaluate the services provided by virtual stores, such as payment,

billing, etc. The major highlighted reports include:

• e-Dashboard - A modern tool that provides daily information with market and

online store evolution, featuring data which includes: number of orders, billing,

average ticket, number of one-time consumers, geographic region share,

category market share (computers, electronics, etc), purchase motivators,

delivery status, payment forms used, among others.

E-bit Products

• E-commerce Overview Report and Forecast: Presents the market´s evolution

data since 2000, with projections for 2020.

• Price Monitor - In addition to the Brazilian e-commerce sales monitoring

reports, E-bit o�ers a price, competitiveness and virtual consumer purchase

intention monitoring service. With Price Monitor, it is possible to monitor, in

real-time practically, the price of products in virtual stores, as well as evaluate

the categories, products and brands that are most sought a�er by consumers

when they use the internet to make a purchase, as well as the transport rates and

the purchase intention for a product.

• TOP HITS – Presents the products that are most sought a�er by Brazilian

e-consumers, with detailed information about each category and subcategory´s

share, with data from the Buscapé network.

• Behavioral Analysis Report - Displays Executive information about the

satisfaction level regarding services provided and the consumer profile of your

virtual shop, tracing a comparative with the e-commerce market. In addition,

you can choose to receive real-time comments from unsatisfied customers,

along with the order number. Thus, it is possible to immediately detect any

problem and take on resolution and customer retention actions, transforming

unsatisfied customers into loyal customers.

Find out more about E-bit products by sending an email to:

[email protected].


05








internet.




































[email protected].

Produtos E-bit


06

The 29th edition of the WebShoppers report uses information from surveys

conducted by E-bit with more than 20,000 online stores and its e-Consumer

Panel, in addition to ad hoc researches and external information.

E-bit Certification Survey

Since January 2000, E-bit has already collected more than 18 million answered

questionnaires a�er online shopping processes, and more than 300,000 new

questionnaires are added to this number monthly.

E-bit data is also collected with online buyers, a�er purchases. The E-bit

certification service allows consumers to evaluate a�er-sales services, client

services, and the probability they will return to the virtual store, the percentage

index that they will refer this store to friends and relatives, known as NPS (Net

Promoter Score), as well as the store and shopping experience evaluation.

This compiled information, generates monthly market intelligence reports that

indicate the socio demographic profile of the e-consumers, as well as the

best-selling products, most used payment forms, repurchase indicators, among

other information.

Through another WebShoppers edition, E-bit expects to continue contributing

to the development of the internet and e-commerce in Brazil. Enjoy!

E-bit Team.








internet.
















Report Methodology





















[email protected].


07

• Brazilian e-commerce registered R$ 28.8 billion in sales in 2013, which

represents a 28% nominal growth compared to 2012. The initial forecast was that

the industry would have a 25% nominal growth.

• The number of orders made through the internet, in 2013, reached 88.3

million, 32% higher compared to the previous year.

• The best-selling category was "Fashion & Accessories", but "Cosmetics and

Perfumery/personal care/health" and "Appliances" also remained as top

categories in 2013.

• Throughout the year, 9.1 million people made their first online purchase, with

this, the number of one-time consumers, i.e. consumer who have already made

at least one purchase on the internet, reached 51.3 million.

• In January 2013, transactions completed through mobile devices corresponded

to 2.5% of all online sales. In December, that number was already nearly double:

4.8%.

• For 2014, the sector´s nominal growth is estimated at 20% , in relation to 2013,

with R$ 34.6 Billion in sales.

• Most consumers have already thought about returning or Exchanging some

product. According to E-bit's research, 40% of the respondents have already

considered a product exchange and 36% already wanted to return a purchased

item.

• The product exchange and return processes in Brazil must advance. Out of

every ten respondents, only three were able to perform an exchange, without

facing di�culties. This number is even smaller in regards to product returns. Out

of every ten respondents, only two managed to return a without facing

problems.

• The di�culty to exchange or return a product, made half the respondents stop

purchasing from a certain shop and they also began purchasing less through the

internet.

• Although the NPS has a reduction tendency when the delivery deadline is

greater, what most impacts the index negatively are the delivery delays.

• By analyzing the sales channels, online and o�ine, it became clear that the

price between them is one of the most delicate and discussed issues for

omnichannel strategies. Two-thirds of the physical stores did not accept

negotiating prices to reach the Internet levels, without, however, presenting

arguments for such negative response.

• Considering a period of 12 months, from January 2013 to January 2014, the

FIPE /Buscapé Index, a monthly report that analyzes electronic commerce prices

in Brazil, registered a -1.78% drop.

• From the ten product groups analyzed by the FIPE /Buscapé Index during

2013, six presented price reductions and four recorded increases. The group with

the greatest reduction was "Fashion & Accessories" (-7.70%), followed by

"Telephony" (-7.32%), "Photography" (-6.12%), "Electronics" (-5.43%),

"Informatics" (-0.70%) and "Appliances", accordingly.

Executive Summary


08

Executive Summary

• Brazilian e-commerce registered R$ 28.8 billion in sales in 2013, which

represents a 28% nominal growth compared to 2012. The initial forecast was that

the industry would have a 25% nominal growth.

• The number of orders made through the internet, in 2013, reached 88.3

million, 32% higher compared to the previous year.

• The best-selling category was "Fashion & Accessories", but "Cosmetics and

Perfumery/personal care/health" and "Appliances" also remained as top

categories in 2013.

• Throughout the year, 9.1 million people made their first online purchase, with

this, the number of one-time consumers, i.e. consumer who have already made

at least one purchase on the internet, reached 51.3 million.

• In January 2013, transactions completed through mobile devices corresponded

to 2.5% of all online sales. In December, that number was already nearly double:

4.8%.

• For 2014, the sector´s nominal growth is estimated at 20% , in relation to 2013,

with R$ 34.6 Billion in sales.

• Most consumers have already thought about returning or Exchanging some

product. According to E-bit's research, 40% of the respondents have already

considered a product exchange and 36% already wanted to return a purchased

item.

• The product exchange and return processes in Brazil must advance. Out of


facing di�culties. This number is even smaller in regards to product returns. Out

of every ten respondents, only two managed to return a without facing

problems.

• The di�culty to exchange or return a product, made half the respondents stop

purchasing from a certain shop and they also began purchasing less through the

internet.

• Although the NPS has a reduction tendency when the delivery deadline is

greater, what most impacts the index negatively are the delivery delays.

• By analyzing the sales channels, online and o�ine, it became clear that the

price between them is one of the most delicate and discussed issues for

omnichannel strategies. Two-thirds of the physical stores did not accept

negotiating prices to reach the Internet levels, without, however, presenting

arguments for such negative response.

• Considering a period of 12 months, from January 2013 to January 2014, the

FIPE /Buscapé Index, a monthly report that analyzes electronic commerce prices


• From the ten product groups analyzed by the FIPE /Buscapé Index during

2013, six presented price reductions and four recorded increases. The group with

the greatest reduction was "Fashion & Accessories" (-7.70%), followed by




09

Report Structure

2013 BalanceSheet and

Expectations

Chapter 1

ProductExchangesand returns

Chapter 2

Net PromoterScore (NPS)

Chapter 3

Theomnichannel

Consumerin Brazil

Chapter 4

FIPE/Buscapé

Index

Chapter 5


10

1Chapter

Chapter 1

Balance Sheet

Despite the high inflation, near the upper limit of the target, and low economic

growth, 2013 was positive for Brazilian e-commerce. The sector registered R$

28.8 billion in sales throughout the year, which corresponds to 28% nominal

growth compared to 2012. The result exceeded expectations since, initially,

the expecation was that the sector would have a 25% growth.

Black Friday is one of the explanations for this result. The event which ocurred

on November 29th, generated R$ 770 million for the sector, breaking all of the

sales records in a single day. Another justification is the popularization of

mobile broadband. The o�er for the simplest models of smartphones

connected people from the C and D socio-economic classes, which did not

have access to the internet, transforming them into Internet users and, in

many cases, online consumers. With all of this, the number of orders made

through the internet reached 88.3 million, which is 32% higher compared to

the previous year. However, the average ticket had a slight reduction of -4.4

worth R$ 327, reflecting the economic scenario.

Source: E-bit Information (www.ebitempresa.com.br)

Sponsors:Copyright E-bit - All rights reserved

12

Most-sold Categories

The "Fashion & Accessories" category kept the lead during the year, although

categories such as "Cosmetics and Perfumery/Personal care/Health" and

"Appliances" continued at the top sales categories. It was also possible to

notice an increase in the demand for smartphones and TVs during the second

semester.

Chapter 1


13

E-consumers

Throughout the year, 9.1 million people made their first online purchase, thus,

the number of one-time consumers, i.e. who have already made at least one

purchase over the internet, reached 51.3 million. But from this total, 8 million

did not use e-commerce in 2013. Last year, there were 43.2 million active

consumers. Each one made an average of two purchases.

Chapter 1


14

Mobile Commerce

Mobile commerce has been growing quickly. In January 2013, transactions

completed through mobile devices corresponded to 2.5% of all online sales. In

December, that number was already nearly double: 4.8%. These results

demonstrate the strength of the segment, which will probably be consolidated

in the coming years. Currently, few online stores are prepared for the

navigation peculiarities generated by tablets and smartphones. In 2014, that

should begin to change. The tendency is that many retailers will begin to

direct e�orts for adapting to mobility.

Chapter 1


15

Shipping

Free delivery is an important factor for e-consumer purchasing decisions.

Despite this, throughout the year, there was a reduction in free shipping o�ers,

which went from 58% in December 2012, to 50%, in December 2013.

This reduction should continue in 2014, due to companies ' search for

profitability. However, consumers should find more delivery options. With

shorter delivery deadlines transport costs will be more expensive, a�er all,

convenience and practicality generate costs.

Chapter 1


16

Net Promoter Score

The Net Promoter Score, or NPS, is an indicator that measures the satisfaction

and loyalty of customers. In 2013, the general NPS for Brazilian e-commerce

was good. The year started with a 45.94% rate , reaching 59.29% in October.

However, in December, there was a considerable indicator reduction, and the

registered NPS was 46.93% . This happened because some delay problems

ocurred with the delivery of the purchases made during Black Friday, due to

the number of orders, which were much higher than expected.

Even though, when comparing the December 2013 (46.93%) NPS with

December 2012 (40.96%), we noticed a significant indicator improvement, a

sign that retailers have invested more and prepared better for the year-end

sales heated period.

Chapter 1


17

Expectations for 2014

Brazilian e-commerce will continue to grow in 2014, but the growth rates

should be a bit smaller. The sector´s nominal growth expectation is 20% in

relation to 2013, with R$ 34.6 billion in sales. Several factors should influence

the results, from the economy to the calendar, since this year, Carnival begins

late and the amount of long holidays is greater and we still have a World Cup

ahead of us as well as elections during the second semester.

Chapter 1


18


• Economic Scenario

In 2014, unemployment rates should remain low, which is good. However, the

possibilities for salary increases are small, due to inflation. The economy

incentives must also decrease. Although the IPI for White Goods has not

increased at the beginning of the year, there were increases for other

products, such as those in the "Furniture & Decoration" category, which has

been an e-commerce highlight. The flexible installments and free shipping,

two of the main attractions in digital retail, should reduce gradually. All these

factors should contribute to making consumers more cautious when

purchasing.

• The World Cup

The World Cup will positively influence e-commerce sales. The games should

increase the demand for large and thin screen televisions. Sports goods,

soccer team t-shirts and products related to the competition should also be

among the top items for e-consumers.

• Trends

Mobility is one of the strongest trends for 2014, contributing not only to

mobile commerce, but to the growth of the show rooming phonmenon. Even

though a consumer is at a physical store, he has the possibility of finding prices

and information in other shops, through his mobile device. Thus, the purchase

decision relies on the convenience factor. The store itself, ends up operating as

a showroom, where the client can have contact with the product before

purchasing it.

Chapter 1

• Consumers

By the end of the year, over 9 million people should start buying on the

internet, increasing the total number of one-time users to 60 million. Mobile

broadband growth should contribute to this result.

• More numbers

In 2014, the number of orders made through the internet is expected to grow

26%, compared to 2013, reaching 111.54 million. The average ticket should be

R$ 310, which represents a -5% reduction, if compared to the previous year.


19


• Economic Scenario

In 2014, unemployment rates should remain low, which is good. However, the

possibilities for salary increases are small, due to inflation. The economy

incentives must also decrease. Although the IPI for White Goods has not

increased at the beginning of the year, there were increases for other

products, such as those in the "Furniture & Decoration" category, which has

been an e-commerce highlight. The flexible installments and free shipping,

two of the main attractions in digital retail, should reduce gradually. All these

factors should contribute to making consumers more cautious when

purchasing.

• The World Cup

The World Cup will positively influence e-commerce sales. The games should

increase the demand for large and thin screen televisions. Sports goods,

soccer team t-shirts and products related to the competition should also be

among the top items for e-consumers.

• Trends

Mobility is one of the strongest trends for 2014, contributing not only to

mobile commerce, but to the growth of the show rooming phonmenon. Even

though a consumer is at a physical store, he has the possibility of finding prices

and information in other shops, through his mobile device. Thus, the purchase

decision relies on the convenience factor. The store itself, ends up operating as

a showroom, where the client can have contact with the product before

purchasing it.

Chapter 1

• Consumers

By the end of the year, over 9 million people should start buying on the

internet, increasing the total number of one-time users to 60 million. Mobile

broadband growth should contribute to this result.

• More numbers

In 2014, the number of orders made through the internet is expected to grow

26%, compared to 2013, reaching 111.54 million. The average ticket should be

R$ 310, which represents a -5% reduction, if compared to the previous year.


20

2Chapter

Methodology

When purchasing, the consumer feels more secure and confident when he

knows he can exchange or return the product if there are any problems. In

e-commerce, the availability of these services and how easy it is to use them

is important, especially since contact between customers and the store is not

personal.

For this WebShoppers edition, E-bit prepared a study on the topic, in order to

identify consumer behavior on these situations and present a panorama of

these services in Brazilian e-commerce.

The data was collected between December 12th , 2013 and January 6th , 2014,

through online research, using a structured questionnaire, including one

answer questions and multiple answer questions. 2.501 people who have

purchased on the internet during the last 12 months, collaborated.

Chapter 2


22

Exchange and Return Intention

A significant portion of respondents claimed to have already thought about

exchanging or returning some product purchased on the internet:

- 36% have already wanted to return some good.

- 40% have already considered exchanging a product.

Chapter 2


23

Categories with the greatest exchange and return intentions

The Top Five categories with the highest Exchange intention are similar to the

greatest return intention categories. Both include "Fashion & Accessories",

"Electronics", "Mobile Phones/Telephony", "Appliances" and "Informatics".

These categories are also part of the ranking of the electronic commerce

top-sales ranking (Chapter I).

Chapter 2


24

E�ciency of the exchange and return services

The product Exchange and return processes in Brazil must advance. Out of


facing di�culties. This number is even smaller in regards to product returns.

Out of every ten respondents, only two managed to return a without facing

problems.

From the respondents, 33% thought about exchanging a product, but did not

try to. This number is higher in relation to returns: 39% already wanted to

return an item and did not search for a way to do so.

Chapter 2


25

Why don´t consumers try to exchange or return a product?

The reasons that lead consumers to give up on attempts to Exchange or return

a product are the same. In both situations, the bureaucracy of the processes is

the factor that most contributes to this kind of behavior.

Chapter 2


26

Negative Impact

The di�culties faced by consumers during the Exchange and return processes

has a negative impact for companies and e-commerce as a whole. Nearly half

of respondents stated that they stopped purchasing at stores where they had

problems. The same amount of people stated that due to the di�culties with

Exchanges/returns, they began purchasing less on the internet.

Chapter 2


27

Clarity in the exchange and return policies

Despite the di�culties faced during the Exchange and return processes, more

than half of the respondents agree, even if partially, that the stores are

transparent when communicating policies. Another important aspect is that

nine out of every ten respondents, understand that the transport costs in

these situations should be the retailer´s responsibility.

Chapter 2


28

Are shops ready for exchange and return processes?

Nearly half of the respondents believe, even if partially, that online stores are

prepared for the product Exchange and return processes, however, seven out

of every ten, agree partially or entirely that there are stores that are more

prepared than others.

Chapter 2

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29

Online Commerce X Traditional Commerce

Consumers have the perception that it is easier to Exchange or return products

purchased through traditional commerce. Out of every ten respondents, six

agree, even if partially, that these processes are more complicated in

e-commerce.

It was also clear that, in the case of shops that sell online, but also have

physical units, buyers expect there to not be barriers between both types

Exchange or return products. Eight out of ten, agree that the Exchange/return

should be made in the physical store and the online store, regardless of how

the purchase was performed.

Chapter 2


30

3

Sponsors:

Chapter


How NPS® works

Loyal customers return o�en to purchase, buy additional products and

services, recommend the company to friends, and provide useful feedback and

these customers cost less for the company. Searching for a simple and

powerful tool to measure customer loyalty, Bain & Company created the Net

Promoter Score®. This metric is calculated by answering a single question:

On a scale of 0-10, how likely are you to recommend our company (or this

product / service / brand) to a friend or colleague?

Thanks to the simplicity of the scale 0-10, companies can quickly and

e�ectively capture feelings and attitudes of their customers. When applying

this methodology, a second question is required to further understand what

motivates the likelihood to recommend:

What is the most important reason for the score you gave?

By answering these questions, customers fall into three well-defined groups:

Chapter 332


• Promoters: People who give grades 9 and 10, who are loyal enthusiasts who

keep buying from a company.

• Passives: People who give grades 7 and 8, which are passively satisfied

customers.

• Detractors: People who give grades 6 or less, that are dissatisfied,

disappointed customers and that criticize the company to friends and

colleagues.

Chapter 333

®Net Promoter, Net Promoter system and NPS are registered trademarks of Bain & Company, Inc.,Satmetrix Systems, Inc. and Fred Reichheld


NPS® summarizes these concepts in one single metric: the di�erence between

the percentage of "promoters" and percentage of “detractors".

Chapter 334


About E-bit’s NPS® research

Since 2010, E-bit included in its online survey the NPS® question ("How likely

are you to recommend this store to a friend or relative?").

Currently, E-bit’s research is performed in two stages, to fully assess the

purchase and post sale experience: first, the web shopper answers a

questionnaire immediately a�er the purchase, and second, a�er the

scheduled delivery date (questionnaire is sent one day a�er the expected date

of delivery). The NPS® question is inserted in the second questionnaire.

It is Important to emphasize that this type of research, shortly a�er the

purchase, is the best way to receive feedback from the customer with

“freshness” (proximity of feedback with the moment of the experience) and is

the ideal form to guide processes of continuous improvement for the

company.

For this chapter, we are analyzing the results from surveys completed

between November 15th and December 31st, 2013. Therefore, the findings

described here, reflect the period of Christmas shopping and Black Friday. In

this period, approximately 90 000 responses were collected.

Chapter 335

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Brazilian E-commerce NPS®

The general NPS® of E-commerce in Brazil, in the period assessed, is 50 % - 67

% of the WebShoppers are promoters of the experience, while 17 % are

detractors and 16 % are passive. Looking at the data we notice that the NPS®

increases as the average purchase frequency of the consumer increases.

WebShoppers that have purchased more than 4 times in the last 6 months

have a lower percentage of detraction and this fact suggests that, as the

customers acquire expertise, their level of satisfaction increases, probably due

to a higher familiarity with online shopping that turns the choice of the store,

products and payment options easier.

As expected, customers loyal to a single store rate that store with a higher

NPS®: more than 65% to loyal customer (frequent buyers).

Chapter 336


In the period assessed, the category leader in purchasing volume was Fashion,

however this category showed the lowest NPS® among all categories. As the

second largest in volume of transactions, Cosmetics & Health surpassed all

categories in terms of loyalty and had the highest NPS®, 60%, with 72% of

promoters and only 12% of detractors.

Fashion and Decoration had a higher percentage of detractors and lower NPS®

when compared to the other categories. Lower standardization and high

di�culty to make the product tangible through internet add a challenge to

these categories.

Chapter 337


Finally, NPS® was measured under di�erent delivery times and delivery status.

Although NPS® has a tendency to reduce as the speed of delivery decreases,

especially when the promised time exceeds 4 weeks, no factor is more

impactful to reduce NPS® as delay in delivery.

Deliveries scheduled up to two weeks maintain NPS® higher than 50%, up to 3

weeks, there is a small reduction in the percentage of promoters and increase

in the percentage of detractors, but above 4 weeks dissatisfaction is clearer -

the percentage of promoters drops to 51% and detractors rises to 35% of the

transactions.

Accomplishing the promised deadline of delivery has a strong influence on

customer loyalty: when purchases arrived punctually, customers NPS® is 71%,

with less than 6% of consumers detractors, but in cases in which the deadline

is not met, there are 69 % of detractors, resulting in a negative NPS® of -52%.

Chapter 338


Reasons to promote or detract

One important step that follows the NPS® methodology is the analysis of the

motivator for the score given, that aims to identify the root causes of

promotion and detraction and thereby draw plans for improvements of the

customer experience.

In this research, the root-cause was analyzed trough the consumer

satisfaction in 12 criteria - 6, in the first survey, related to the moment of

purchase, and other 6, the second survey related to the post sales and delivery

of the product.

The worst evaluated criteria for detractors follow this order: "On-time

delivery", "Service quality” and "Delivery Monitoring". When the product

doesn’t arrive on time, the client probably search for delivery monitoring tools

and contact the selling company for guidance.

For promoters, the criteria

for post sales were better

perceived than criteria for

purchase, although in the

first group there are

important criteria for

promotion such as price,

payment options, etc.

Gap de satisfação entre promotores e detratores é muito

maior em critérios relacionados à entrega do produto.

Chapter 339


The value of a promoter customer

NPS® is a tool that has clear link with the value generated for the company.

Promoters generate greater value for the company because consume more

and recommend more to new customers. There are several indicators that

show this di�erentiation in behavior of promoters, passives and detractors, for

example, frequency of purchase, average ticket per transaction, share of

wallet and number of recommendations.

In this research, we identified some of these indicators, that we call drivers of

value.

On the frequency of purchase, promoters are more assiduous than detractors.

Regarding the average ticket per transaction, promoters also generate more

value: spend more each purchase than passives and detractors. Finally,

promoters have a very high probability of repurchase, 96 %, while only 33% of

detractors said they would repurchase.

Chapter 340


By combining these three main drivers, that express the current purchase

frequency, the average spending per transaction and the tendency for future

behavior, we are able to estimate the revenue that each type of client is likely

to generate per year for the company. In the case of E-commerce in Brazil, a

promoter client generates 4x more revenue than a detractor client, even

without accounting for the e�ect of recommendations that can bring more

customers to the company, fact amplified today due to the impact of social

media in the web.

Thus, ensure a great customer experience that generates many promoters

and reduces detractors strongly contributes to the generation of value in the

E-commerce business.

Chapter 341

4Chapter

The Omnichannel Consumer

The omnichannel consumer wants to use all available shopping channels

(some at the same time), whether they are: smartphones, tablets, computers,

television, radio, direct mail, telesales and catalogues.

Retailers are looking for new ways to deal with this consumer, whether

through the reformulation of their pricing policies between channels,

investments in technology and processes or by building new logistic

structures.

The "Omnichannel Consumer in Brazil" study sought to answer the following

question: Are the sales teams in physical stores in Brazil prepared to receive

omnichannel consumers? A team of interviewers disguised as "Mystery

Shoppers" visited 60 shops in the city of São Paulo. A desk research was

performed to gather some data at the companies´virtual stores.

Studied Companies: Lojas Americanas, Casas Bahia, Livraria Cultura, Droga

Raia, Extra, Fast Shop, Fnac, Hering, Magazine Luiza, Marisa, Onofre, Ponto

Frio, Saraiva, Sephora and Walmart. The question script followed a

methodology and questionnaire developed by ABComm, Brazil Panels and

E-bit.

Collection Period: January 6th to 17th, 2014.

Products researched: Philco and Samsung Galaxy Tablet, Black Ferrari

Perfume , Flat LG Led TV, Tablet, Consul and Eletrolux Refrigerators, Philco 3D

and LG Smart 42’' TVs, Female Shirts, Male Shirts, Tempo e o Vento Book (Box)

and Letrozol 2,5 medication.

Chapter 4


43

Connected Sales Teams

In the case of a lack of products in the store´s stock, the misterious customers

wanted to know if the sales person would use the Internet in order to not lose

a sale. With this purpose, they evaluated if the professionals would check

product availability at the online store and, if so, whether they would

encourage the consumer to buy it through the digital channel.

When questioned by the clients about the Internet, two-thirds of the sales

people checked the availability of the product at the online shop. At this point

we didn't want to evaluate spontaneity, but instead the attitude of the

professionals and if they would have access to the Internet. Although all of the

researched companies had a virtual shop, less than half suggested that the

purchase be made through the internet.

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44

Indiference with the Chanel

When it comes to comparing prices between channels, some sales people

demonstrated aggressiveness (10%), when they realized that the client was

comparing prices through his smartphone. But indi�erence was predominate.

Almost half of them reacted this way. Refrigerator sales people were the ones

who showed greatest indi�erence with the price comparison between

channels (58.3%) while the TV sales people were the ones that were most

friendly (42.9%). When encouraged to comment about the Internet,

one-quarter mentioned the channel in a negative way.

Chapter 4


45

Price and Delivery Deadline Negociation

The pricing policy between channels is one of the most delicate and discussed

issues in the omnichannel strategies. Two-thirds of the sales people did not

accept to negotiate prices in order to reach the Internet levels, without,

however, presenting arguments for such negative response.

In regards to the deadline for receiving the purchase, immediate delivery is

the biggest advantage of the physical store, followed by the ability to "touch,

feel the product". However, 30% of the traditional stores would take more than

two days to deliver the products to the mysterious clients. According to E-bit,

the average e-commerce delivery deadline, in São Paulo-Capital, at the date

when this researchwas performed, is 7.6 days (period: January 6th, 2014 to

January 17th , 2014).

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46

Integrated Chanels: the connected stores

When analyzed regarding some of the omnichannel capacities,

Americanas.com, Saraiva, Extra and Magazine Luiza are the most prepared.

From the studied stores, Marisa and Saraiva are the only ones that o�er wi-fi

for customers, while Magazine Luiza, Fast Shop, Americanas and Saraiva are

the ones that o�er a totem so consumers can buy at the online store, from

within the physical store.

Chapter 4


47

Conclusions

There's a long path towards channel integration. Companies must prepare not

only for comercial policies, strategies, technology and processes, but also, and

primarily, in relation to training and communication with their sales force.

Questions such as: "pay or not pay commissions to sales people and malls for

sales generated through totems", are still omnichannel entrance barriers. The

truth is that the Brazilian consumer is increasingly present in more than one

channel at the same time.

Chapter 4


48

Chapter 5

Sponsors:

FIPE/Buscapé Index

Considering a 12 month period, from January 2013 to January 2014, the FIPE

/Buscapé Index, a monthly report which analyzes electronic commerce pricing


Chapter 5


50


In January 2014, a series of 36 months of the FIPE /Buscapé Index was

completed. During this period, it was possible to observe a price drop during

78% of the months. There was a price increase during eight months only, and

five of them, were in 2013, which reflects the impact of the Brazilian real

devaluation for imported products.

Chapter 5


51


From the ten product groups analyzed by the indicator during 2013, six

presented a price reduction and four registered increases. The group with the

greatest price reduction was "Fashion & Accessories" (-7.70%), followed by



Chapter 5


52


FIPE/Buscapé Index comparison with oficial inflation rates

The -1.78% reduction of the FIPE /Buscapé Index , from January 2013 to

January 2014, contrasts with the increases in the general consumer price

indexes, such as the IPCA-IBGE and the IPC-FIPE, which had an annual 5.9%

and 3.66 percent increase, accordingly , during the same period. A significant

portion of these di�erences can be explained by the following factors:- the

FIPE/Buscapé index monitors a package of products which is di�erent from

what was evaluated by the general price indexes, i.e. only the items that are

commercialized in a more significant form through the internet; -The weight

of the products that are part of the FIPE/Buscapé Index are di�erent in regards

to the same products in the generic indexes;

-The distribution channel, monitored by the FIPE/Buscapé index is exclusively

e-commerce, while the other indexes monitor physical and traditional

channels.

Chapter 5


53


The Value of Price Researching in Brazilian E-Commerce

In 2013, B2C e-commerce in Brazil generated R$28,8 billion in sales and

reached a 28% nominal growth rate. During the same period, the FIPE

/Buscapé Index had an average -3.8% reduction. By analyzing this data, it is

possible to identify a real growth of 33% in e-commerce sales, much higher

than the 2.3% GDP, according to the IBGE, and traditional retail. Some factors

can explain the sector´s success, such as the increase in the number of homes

that have computers, the di�usion of broadband access, the maturing and

consolidation of online retail and operations´ security, from payment forms to

delivery reliability.

Other elements, that are intrinsic to e-commerce, should influence a

significant long term growth. One of them is long tail, which allows the sector

to o�er more niche-oriented products, generating a larger amount of virtual

commerce sales, if compared to physical sales. Consequently, there is the

dissemination of small shops, that are more specialized, which, for consumers,

translates into greater choice possibilities.

However, variety really gains value if it is added to search engines and price

comparison sites, which make it possible to find the desired item easily,

optimizing time and providing pricing transparency, which results in saving

money and generates greater competition among retailers. When considering

that the operating costs for e-commerce are smaller, it is possible to estimate

that the prices of online stores are lower, when compared to traditional retail.

Chapter 5


54

Preliminary research done in the United States, France and India, has

identified that online retail prices in these countries are, on average, 10%

lower in relation to physical commerce options. Although there is no survey

like this in Brazil, if we consider that online prices are also 10% smaller and

consider a R$ 28.8 billion revenue, Brazilian consumers who bought on the

Internet in 2013 would have saved R$3,2 billion.

Chapter 5


55

The Economic Research Foundation Institute(FIPE), represented by Prof.

Sergio Crispim, is responsible for the calculation methodology of the FIPE

Buscapé price index.

Contact: (+55 11) 3767-1700 / 3767-1701 / 3813-1444

Chapter 5


56

Main Clients


57

Credits /About Fecomercio SP

The Commerce Federation for Goods, Services and Tourism of the State of São

Paulo (FecomercioSP) is the main trade union entity in São Paulo for the

Commerce and Service sectors. The Entity which is Responsible for

administering, within the State, the Social Service for Commerce (Sesc) and

the National Commercial Education Service (Senac), represents a segment of

the economy that generates more than 1.8 million various size business

activities , and unites 154 employers´ associations which account for 11% of

the GDP in São Paulo – about 4% of the Brazilian GDP – generating nearly five

million jobs.

Copyright E-bit - Todos os Direitos Reservados

58

Sponsors:

Credits /About Câmara-e.net

The Brazilian Chamber of Electronic Commerce (Camara-e.net), founded in

May 7th , 2001, is the leading multi-sector entity for Digital economy in Brazil

and Latin America, focused on electronic business as a strategic factor of

sustainable economic development in the 21st century. Câmara-e.net has the

mission of training individuals and organizations for the safe practice of

electronic business, through the generation and dissemination of leading

knowledge, as well as defending consensus positions between the main

national and international public and private agents, that promote information

and communication technologies. One of Camara-e.net´s main priorities is

preparing and proposing public, regulatory and market policies, that

encourage the production and universalization of the benefits of information

and communication technologies. The entity's partners represent leading

companies from the main sectors of the Brazilian and worldwide economy.

Access www.camara-e.net.


59

Sponsors:

Credits /About Bain & Company, Inc.

Bain & Company, a global leader in business consulting, advises clients about

strategies, operations, technology, establishing companies, mergers and

acquisitions, developing practices that ensure transparency to clients, during

change and decision making processes. The consulting group establishes

synergy-based work with clients, and their fees are charging according to

results. Bain's clients ' performance surpassed the stock market by 4 to 1. Bain,

founded in 1973 in Boston, has 50 o�ces in 32 countries, and has worked with

more than 4.600 companies among multinationals, private and public

companies throughout all sectors of the economy.


60

Sponsors:

Credits / About the BrazilianE-commerce Association (ABComm)

The Brazilian Electronic Commerce Association (ABComm) emerged with the

purpose of boosting the e-commerce sector with relevant information, as well

as contributing with its growth in the country. The Association brings together

representatives of virtual stores and service providers in the information

technology, media and payment form areas, performing with Government

institutions, in order to support the sector´s evolution. With over 3.500

associates, the nonprofit organization has specific boards created to boost the

entire sector, including: New Business, Logistics and Operations, Government

relations, Research, International Relations, Payment Forms, Training,

Technological Development, Entrepreneurship and Startups, Legal, Metrics

and Market intelligence, Electronic Crimes and Marketing.


61

Sponsors:

Credits /About Brazil Panels

Brazil Panels (http://www.brazilpanels.com.br) operates in the online and

o�ine research and data collection market, with extensive experience and a

variety of methodologies and advanced technologies.

We conduct research with the highest quality, speed and precision, adding on

value based on the expectations of our customers, helping decision-making

through various techniques associated with a series of quantitative and

qualitative study solutions.

We have complete solutions for online and o�ine research and one of the

greatest B2C and B2B panels in Brazil with more than 700.000 registered

members.


62

Sponsors:

Press Information

Disclosure of E-bit Data

E-bit requests to be referred to as a source of information in any academic

study, press release, article, editorial or news article stating data that was

collected in studies about the Brazilian e-commerce market, and especially

the WebShoppers report.

We reinforce that the data is E-bit´s propriety, and therefore, those who use it

must always inform the source, in order to enhance the credibility of the

information and avoid that data disclosed by the company is attributed to

other sources.


63

Pedro Guasti

VP of Institutional Relations at the Buscapé Company

Executive Director of E-bit

[email protected]

+55 11 3848-8730


64

webshoppers 29th edition - english version

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