How Magento’s Multi-Store Capabilities Will Help You Grow

Your BusinessSeptember, 2012

Introduction• Derek Jacobson – Vice President of Ecommerce Solutions

at Levementum• Levementum – 2011 Magento Emerging Partner of the

Year Award Winner– Levementum is a leading implementer of Magento

Enterprise Edition and the leading implementer of Open Source and Cloud Based Applications

– We specialize in solutions that feature • Cloud based technology• Multiple Store Fronts• Call Center, Inside Sales, Customer Service Solutions• System Integration to CRM, ERP, Telephony and Order

Management Solutions • B2B solutions including reseller, distribution and channel support

systems

With Me Today From Magento

• Tony Guerrero – Territory Sales Manager, Southeast United States– tony.guerrero@magento.com,

424.258.3280

About Magento Enterprise• The Product

– A robust, enterprise class E-Commerce Solution that is easy to implement and get your online store up and ready for business

• Ultimate flexibility and control– Magento is an Open Source platform that allows control over store operations,

database configuration, marketing messaging, integration and fulfillment– Magento is the fastest growing and evolving platform available

• Security– Magento Adheres to industry standards and PCI (CC processing) compliance

regulations• Scalability

– Magento grows with your business allowing you to expand your catalog, customer base and order volume

• Reliable – Backed (and owned) by Ebay, Magento is an application that will be supported

and invested in for years to come– Magento is at the center of Ebay’s X.commerce initiative

The Magento Top 10Once you have installed Magento, you will have access to a host of features, such as:1.Dynamic Merchandising, Multi Store Front Support2.Customer Group Pricing Models and Discount Rules Engine3.Multiple Checkout Options4.Reports and Analytics 5.SEO6.Marketing / Newsletter / Loyalty Program7.Gift Certificates / Customer Store Credits8.Private Sales9.Layered Navigation and Smart Search10.Dynamic Content Management 11.The largest, most complete, fastest growing community of solutions you will find12.A strong, stable integration framework that allows Magento to fit into your overall organization13.Many, many more…

Why Levementum Chose Magento Enterprise, Why You

Should Too• Ecommerce is no longer a luxury, it’s expected by your customers• Ecommerce has changed – consider the impact of social media• Capital funding is too precious to waste

– Stop spending $ to build what should be present from the beginning• We wanted a mature platform that would be enhanced intelligently• We wanted to find a partner that let us focus on our business• We wanted the same things as you

– Predictability– Quality– Features– A roadmap that was real– A stable, but expanding architecture – Value for the investment and a sensible way to grow our business

With Us From Peer 1, Our Premier Hosting Partner

• Craig Hendrickson – Ecommerce Solutions Consultant– chendrickson@peer1.com, 866.244.4026 – Peer 1 is a global, Enterprise class hosting and

infrastructure provider that can support customers of all sizes

– Peer 1 provides fully managed services including server, firewall, intrusion detection / prevention, PCI compliance, and pre-configured / pre-tuned Magento systems

– Levementum exclusively recommends Peer 1 based on its superior delivery capabilities, industry best support and SLA models, with competitive pricing in every scenario

With Us From Listrak

• Derek Neff – Channel and Sales Manager– dneff@listrak.com, 717.625.7877– Listrak is the leading value added industry partner

that allows you to expand both top line revenue growth and margin per customer

– Listrak is a key partner of both Magento and Levementum and is our #1 recommendation for customers who are concerned about how to reduce shopping cart abandonment and increase overall conversion rates

– This is a unique solution that can provide clear, quantitative ROI for your Ecommerce instance

About Listrak• Cart abandonment

remarketing to registered and guest shoppers

• Email newsletter synchronization

• Post purchase messaging

• Repurchase prompting

• Conversion tracking

• Order history analysis

• Catalog synchronization

Listrak: Email Evolved• Acquire More New Customers

– Shopping Cart Abandonment – Sweepstakes & Modal Acquisition– Welcome Series

• Sell More to Existing Customers

– Post Purchase– Win-Back– Loyalty Programs– Bundle Analysis / Cross-Sell

Agenda

• Why leverage multiple store fronts?• Discuss key areas to plan around to

support multiple store fronts• Magento’s solutions to areas that cause

operational overhead and increased costs

• Additional reference material and case studies for future use

Why Should You Create Multiple Store Fronts?

• Market and brand your company to different demographic groups

• Highlight subsets of your catalog in sites that cater to niche markets

• Provide multiple price points to different groups without eroding your core margin

• Set up cobranded or partner affiliated sites• Enable different levels of customer service

and support programs to different audiences (B2B)

What are the Risks?

• Operational impacts– Multiple locations for inventory management– Branding, marketing, and content management

activities can increase faster than sales– Customer service and support may have to learn

and manage multiple tools or sites• Traditionally, time to setup, brand and

configure each store front takes as long as the original base store– Total setup costs exceeded expected value from

each additional store

What Drives Operational Overhead?

• Catalog management

• User Interface (theme, skin, layout)

• Managing order intake and integration to your order management system

• Customer service and customer management for support, sales, and responding to inquiries

Catalog Management

• Challenges: – Maintaining the

addition of products in multiple sites

– Keeping inventory and pricing up to date in each site

– Managing images, attributes, and other marketing content by manually coding changes on each site’s pages

• Solution: Magento’s virtual catalog model– Establish one base catalog

and ‘inherit’ all or portions to each site you setup

– Overrides are available site by site

– Changes to the base can replicate automatically

– Inventory can be synced and maintained from your back office tools for all sites at once

Catalog Management

User Interface and Design

• Challenge– How to take a base

design and modify it to create a new site with a new look and feel without going through the entire process from scratch?

• Solution: Magento’s theme model – Allows you to extract the user

interface and

– Apply to each additional site like a ‘plug-in’

– Within each site you can then change color, font, logos, banner adds, etc.

• Magento’s CMS tool allows you to add and manage content in all or select sites without writing code

2 Sites, 2 Brands, 1 eCommerce Instance

Order Management and Integration

• Challenge– If you’ve managed

multiple stores on Volusion, Yahoo Carts or other platforms, you appreciate the challenge of getting orders into your Order Management System

• Solution: Magento provides out of the box integration APIs (along with many prebuilt extensions) to take order activity from all your sites and sync with your ERP or Order Management Solution– You can also integrate and

automate shipping notifications from ERP to Magento

A Note on Infrastructure• Magento’s architecture provides a platform

approach to scale multiple store fronts functionally• Peer 1’s infrastructure approach and model lets

you scale effectively, and in a cost effective manner without having to dedicate and hire full time system administration tasks

• We have instances of customers running 15 sites, for high volumes of activity on each site, off of one and two server footprints– Peer 1’s model provides stability not just for visitor

traffic, but for the processes and workflows (integration) which add over head to your system

Process Standardization and Control• Challenge

– Multiple tools means multiple training requirements for customer service

– Multiple cycles of maintenance, upgrades and revisions

– Adding new functionality means programmatic changes to each tool or site separately

– Creating promotional campaigns requires repeated steps and intense manual effort

• Solution: One Application Base in Magento Enterprise– By default, your sites will act and

behave the same

– Logic and integration changes are made available to all sites

– Customer Service manages return inquiries and support requests in one place for all sites

– Customer notifications for shipments, change orders, and inventory notifications are all triggered automatically and in a consistent method

Sample Return Request Screen

About Promotional Activities and Cart Abandonment

• Process Control is most critical when it comes to price management, promotions and customer interaction– The more successful you are here, the more you want to do– The more stratified your store fronts are, the more effort you

have to spend to keep these campaigns in sync– Customer relationship management and retention activities

can completely overwhelm a small marketing team supporting multiple store fronts

• This is a key area where the automated, controlled and targeted activities of Listrak make a difference– Revenue is increased– Customer retention is increased– Operational impact stays flat (or decreases in some cases)

What Can You Expect?

• We have seen secondary sites ‘go live’ in as little as 7days following the release of the primary site– Magento is about reuse and standardization– Magento provides you a greater set of tools to be

self sufficient and reduce programming requirements

• Designing your primary site with the expectation of potential reuse is a key factor to achieving great results

• We are all here to help

Additional Resources• Be sure to visit our site:http://www.levementum.com/technology/magento

http://www.levementum.com/customer-success/magento-portfolio

• Here you’ll find– Solution summaries– Packaged offerings– White papers – More

• We’ll be sending you a full copy of this presentation to keep as well as materials from each of our partners

• You can contact us at 480-320-2500 or sales @levementum.com at anytime to discuss your site(s) and needs or to see a live demonstration of a multi-store front Magento instance

• Be sure to visit our blog for discussions on many ecommerce, sales and marketing topics: http://opensource-pragmatist.com/