Practitioner’s Guide to...An “Intelligent” Customer Experience Key to Engagement 85% Customer interactions managed without a human by 2020 Move beyond the basics and invest in

Page | 2© 2018 Magento, Inc.

Practitioner’s Guide to

Accelerating Growth

with

Magento Commerce


Chris Hedge

Senior Director Product Management

@ChrisHedge4

Craig Peasley

Senior Director Product Marketing

@craigpeas


• In 2017

2018 Shaping Up to the Be The “Best Year

Ever” in Asia Pacific

31% E-Commerce

Growth

76%M-Commerce

Share

$1.3TRetail E-

Commerce

Sales


A New Year Brings New Possibilities

Ecommerce Continues Fast-Pace Growth

Conversion Rate Optimization Top Priority

Mobile Shopping Will Pick Up Pace

Multichannel Shopping Less Friction

© 2018 Magento, Inc. Page | 6

An “Intelligent” Customer Experience Key to

Engagement

85%Customer

interactions

managed without

a human by 2020

Move beyond the basics and

invest in AI & Personalization

• Individualized

• Cross-Channel

• Multi-form

• Automation / Bots

• Prescriptive / Predictive

• Real-time

73%of consumers

prefer to do

business with

brands that

personalize the

experience

Omnichannel Delivery Key to Differentiation

Single view of product inventory

Ship-to-store

Click & Collect

Support across any device

89%Digital professionals said

to invest in omnichannel

experience 13%Customers that find digital

and physical channels are

well aligned

IDC Futurescape, 2017.

Accelerating Your Growth


• Do you know your site’s

performance?

– Quantitative/ qualitative analysis

• Do you have a roadmap for where

you want to go?

– Start with real problems (e.g. conversion

too low)

– Analyze > Hypothesize > Design > A/B

Test

– Discipline and focus

Planning Your Growth Strategy


Finding Opportunity in the Growth Funnel

Ensure each “layer” of your store is doing it’s specific job optimally

AWARENESS

CONSIDERATION

CONVERSION

LIFETIME VALUE

Are consumers finding you

Are they finding the right product

Are customers returning to buy

Is purchasing simple and easy

Growth Opportunity:

Awareness


• New customer acquisition drives long-

term sales growth

• Finding new customers is difficult

• Competing in a global market

• Price is no longer differentiating

• You need to be there when and where a

consumer is looking to find what you

have to sell

Awareness: Why this is important

AWARENESS


Top Tactics

• Not just the domain of “marketing”

– SEO tuning

– Targeted landing pages

• Why can’t your ecommerce team play

“off-site”?

– Social channels

– Sales channels (aka “marketplaces”)

Active Users:

Amazon: 300m

eBay: 167m

Tmall (Alibaba): 400m

Rakuten: 105m


Bringing Marketplace ManagementReal-time Dashboards and Amazon Revenue Reporting Advanced Re-Pricing Tools

Full Order Management Oversight of Amazon Channel

Mobile and Performance


• Mobile is the single most important e-commerce platform today

• Performance is critical to customer experience, conversion rates,

and your sales revenue

• The faster the speed of your store, the happier your visitors will be

• If your store takes longer than three seconds to load, you could be

losing nearly half of your visitors

• Imperative you optimize for mobile

Performance and Mobile: Why this is

important


Consumers abandon long, slow-loading content

Source: 2018 Adobe Consumer Content Survey

https://www.slideshare.net/adobe/2018-adobe-consumer-content-survey


Top Tactics – Moving to Progressive Web


Progressive Web Apps (PWA) in Action


Potential Results You Could Expect

2Xincrease in

conversion

4Xincrease in

engagement

“The flexibility…integration with

existing systems, adaptability and

intuitive CMS made Magento

Commerce the perfect fit.”

-ELOISE NISBETT, E-commerce Manager

Business Challenge:

• Mobile and site experience not aligned to brand

• Commerce and content experience needed to

match their loyalists expectations across channels

• Performance and reliability to withstand key

promotional periods and expected traffic

Mobile Experiences & Captivating Content

Australian designer

label at the forefront of

women’s fashion

Results:

• Mobile conversion rate improved by 85 percent

• 10x increase in handing of traffic with an even

faster server response time

• 180% increase in time spent on site

• 59% increase in revenues


Video Content Is a Great Way to Connect

with Audiences

Viewers watch a billion hours of video daily

Lorem IpsumLorem ipsum dolor sit amet 50%

82% of Twitter’s audience view videos daily

Users consume over 8 billion videos daily

Social media “stories” are highly popular – including offerings

from Snapchat, Instagram and YouTube

Growth Opportunity:

Consideration


• This is where the sales will be won or lost

• Make it easy for a customer to find

precisely the products they are looking for

• Are you providing content tools to make

discovery easy

• Customer experience matters

Consideration: Why this is important

CONSIDERATION


Top Tactics

• Optimize “wayfinding” for easy ROI

• Content + Commerce = Your unique narrative

• Targeted Content (No, not “Hello, Chris”)

• Advisors & Configurators are great differentiators

– “True Fit” by SPEQS Limited

– “Cable Builder” by Classy Llama

– ”Visual Designer” by Perficient Digital

Users with

correct “first

clicks” complete

their task 87% of

the time

Users with

incorrect “first

clicks” complete

their task 46% of

the time

How important is site “wayfinding”?

http://webusability.com/firstclick-usability-testing/




Top Tactics

Users with

correct “first

clicks” complete

their task 87% of

the time

Users with

incorrect “first

clicks” complete

their task 46% of

the time

How important is site “wayfinding”?


• Optimize “wayfinding” for easy ROI

• Content + Commerce = Your unique narrative

• Targeted Content (No, not “Hello, Chris”)

• Advisors & Configurators are great differentiators

– “True Fit” by SPEQS Limited

– “Cable Builder” by Classy Llama

– ”Visual Designer” by Perficient Digital



TrueFit at SPEQS Unlimited


Cable “Configurator” at ShowMeCables

Since starting on Magento we’ve

grown tenfold.

-Kate Morris, CEO

Business Challenge:

• Deliver the highest level of personalized shopping

• Present tens of thousands of beauty options in a

way that was simple yet comprehensive

• Test innovative approaches to drive business

metrics

Empowering Customer Experience

Adore Beauty is

Australia’s longest-

running online beauty

store

Results:

• 3X sales revenues in 2 years

• 9% percent increase in conversions overall

• 2X increase in mobile conversion



Merchandising Tasks

Content Page

Promotion

Site Updates

Saving Time and Increasing Higher Value

Outcomes

Frequency

One per quarter

Six per year

One per week

Reduced Time

20 hours

20 hours

2 hours

Hours Saved

80 hours

120 hours

104 hours

304 hours

Time saved can be used to drive new sales activity

Benefit in using Magento’s fully integrated content and publishing platform

Growth Opportunity:

Conversion


• Conversion rate is the #1 metric to

track to optimize your business for

more sales

• A good conversion rate to strive for is

better than the one you have right now

• Customization creates ownership

• Free shipping is #1 criteria for making

a purchase

Conversion: Why this is important

CONVERSION


60%of shoppers

have used

Click & Collect

55% of shoppers have

abandoned due to

shipping fees

Top Tactics

• Streamline…

– Reduce checkout fields (less than 23.5 please)

– Streamline the steps involved

– Or skip checkout altogether!

• …But don’t remove flexibility

– Delivery choices

– Payment options

• And don’t give up on abandoned carts!



60%of shoppers

have used

Click & Collect

55% of shoppers have

abandoned due to

shipping fees

Top Tactics

• Streamline…

– Reduce checkout fields (less than 23.5 please)

– Streamline the steps involved

– Or skip checkout altogether!

• …But don’t remove flexibility

– Delivery choices

– Payment options

• And don’t give up on abandoned carts!


Potential Results You Could Expect

+10%increase in

conversion

20%decline in cart

abandonment

Growth Opportunity:

Loyalty & Customer Value


• The most profitable customers are

your current ones

• Customer acquisition is expensive

• When retailers find the right balance

between retention and acquisition,

they can maximize customer

engagement and improve ROI

Loyalty and Customer Value: Why this is

important

LOYALTY


Top Tactics

• Average order value

– You want fries with that?

– Solve problems, don’t sell products

• Retention & Advocacy

– The sale doesn’t end at conversion

– Customer anticipation for the win!

• Give them good reasons to come back


Market Basket Analysis with MBI


Top Tactics

• Average order value

– You want fries with that?

– Solve problems, don’t sell products

• Retention & Advocacy

– The sale doesn’t end at conversion

– Customer anticipation for the win!

• Give them good reasons to come back


Key Takeaways


Key Takeaways

1. Look to Social and Marketplaces

2. Invest in compelling content

3. Shipping & Payments can differentiate

4. Customer experiences does not end

with Purchase

Thank you!

Documents

Practitioner’s Guide to...An “Intelligent” Customer Experience Key to Engagement 85% Customer interactions managed without a human by 2020 Move beyond the basics and invest in