Case Study: Building Materials Store
As an eCommerce operations consultant for a brick-and-mortar retail store in the DFW area, I was hired to analyze the challenges of their eCommerce and online marketing department and provide solutions and digital transformation management. In a nutshell: I leveraged a hosted SaaS e-commerce site builder and marketplace apps, created advanced digital content like hi-res, multi-angle images and how-to videos, and reimagined fulfillment solutions to align online customer expectations with the company's goals.
When we began, 6% of the store revenue came from online sales, with the website acting more or less as a catalog for the local store. However, they wanted to grow their online channel, and therefore my expertise was sought to lay the foundation of online success. At completion, the online store made up 14% of total sales, we increased web traffic by 23% and overall conversion rate improved from 0.4% to 2.3% from 2015 to 2017, increasing top line sales revenue by 150%.
STEP 1: Evaluate Current Systems and Solutions Against Current and Future Goals
eCommerce Platform and APIs needed
Do we need to update the website and evaluate a hosted CMS platform switch? This was identified as an immediate goal due to several factors. Access to a design and build team, poor SEO, available plug-ins, and user-friendly back-end systems all factored into this decision.
Final Solution: We switched hosted platforms to BigCommerce in October 2015.
Managing Fulfillment
We cannot get real-time freight quotes on the website for customers, they needed to call for a quote which took 3+ days and the result was always sticker shock: $200+ to ship 3 pallets of tile across the country.
Final Solution: We used a BigCommerce plug-in called ShipperHQ to build a matrix of packaging and standardize pallets so a 3PL API could be used for real-time shipping. We were over/under by less than $7 on average, and it balanced out so we were never in the red on shipping costs, even making enough to cover unexpected product returns some months.
Our limited POS/MRP system is not working well for us, there is no way to connect it directly via API so real-time inventory could be managed. Can we find an affordable ERP (Enterprise Resource Planning) to help us manage distribution, inventory, accounts, supply chain, HR, etc? We weren't working with a large budget so this decision was easy: not yet. Meanwhile, I created workflows using simple software solutions that did not break the bank.
Final Solution: Make use of APIs and existing POS system while evaluating an ERP/POS system that would work for our needs.
Marketing Channel Evaluation
Do we need a marketing automation program to help me engage with my audience in a scalable way as we grow our opted-in contact base via landing page sign-up forms? This was a definite YES. We went with Klaviyo to develop our own email automation and database in-house rather than let an external team handle it.
Are there social and sales channels we are not using that fit our business model? Are there any not suited to our business that we continue to waste energy on now? We were not effectively leveraging Pinterest, a social community for all things house renovation buzz-related. After we fixed that, a profile on Houzz, a sales platform specific to home goods and renovations, was identified and launched. However, our competitive edge was “discount”, and with the 25% markup for Houzz’ cut of the sale, we could not keep our pricing competitively low. Also, the limited platform-based communication was frustrating to the customers and staff. Management made the call to discontinue any major product push to the channel until improvements were made to make it a better choice for us.
Final Solution: We opted to expand Facebook ads into new formats as showcase for local customers, launched Pinterest ads and tested the Houzz platform.
STEP 2: Evaluate Current Policies and Find Working Solutions
Shipping and Returns
Should we roll shipping costs into operational costs and determine shipping to be FREE to increase online sales? What are the pros and cons to that model? This aforementioned pain point was obvious in the funnel data: we didn't convert 98% of carts due to shipping costs. Safe to say “free shipping” would have taken us to the next level in sales, however, much of the merchandise is extremely heavy and must ship LTL. The nuance here is tricky–you need to sell much more merchandise online in order to justify free shipping and you must make up some of the costs with larger margins than you see in store; however, the online store is a catalog for walk-in buyers to see what we had in stock. We decided that losing our competitive edge without nationwide warehouse operations to lower costs instead was not a good plan.
Final Solution: We set up a robust LTL Freight real-time shipping rates engine on our eCommerce website with ShipperHQ. This eliminated the need to call for a shipping quote and increased the number of sales by 10%.
Customer Service and Reviews
How do we conduct ourselves when our customers experience frustration and how is that reflected in our online reviews? There was a big disconnect between how the management team perceived their handling of customer complaints and the story their online reviews and scores told. We had to move past this idea of the “irrational customer” and focus on the very real issue of customers not feeling heard or properly informed and therefore taking to the review sites with anger. Will retailers and installers sometimes be taken advantage of? Yes. How far you want it to hurt the future of your business is in your hands, however.
Final Solution: New policies for front-end sales and new rules for how to handle customer complaints were put into place. This resulted in an uptick of 1.75 stars across Google and Yelp review sites and an overall downturn in major customer complaints.
Loyalty Programs And RETENTION
Do we have a way to recognize repeat customers and reward them and win their business for next time? Can we supply a homeowner with incentives to use our store for their next project, be it months or years from now? Can we capture reviews before they become online complaints? There was not anything in place to capture in-store customer data and use it to recapture buyer attention or promote public reviews.
Final Solution: We partnered with SignPost and rolled out SMS and email-based promotions and review gathering services. This system also helps get solid reviews from previously unreachable brick and mortar customers and catch complaints at the very beginning of the issue.
How about you? What are your pain points? Where do you need to calibrate and improve your business processes and systems to achieve your goals?
Does the idea of automation fill you with dread, rather than happiness that you basically hired a robot to clone yourself for a few hundred a month? I speak your language and that robot's, too, and I'd be happy to set up a relationship that works for your business. Have you explored email automation and web content beyond just transactional? I can help brainstorm your content gaps so you are not missing opportunities for online sales.
Many eCommerce platforms, email and lead generation marketing solutions pay for themselves in a few months. Once in place, they tend to pay you back in conversions, repeat business, happier humans, less frustration, and lower turnover.
I can set up customer winback, cart and page abandonment, and nurture campaigns through conversion and marketing automation platforms like JustUno, Hubspot, Klaviyo or Mail Chimp to improve your site’s KPIs and ultimately improve your brand and your sales figures.
We can work to get content where it is needed on your site to reduce friction, aid and abet SEO efforts, and improve conversion.
We can take a look at your data sources, both qualitative like feedback, reviews, NPS, on-page recordings as well as quantitative like metrics from Google Analytics, revenue, AOV, inventory and subscription churn.
Then you can knock out the other fifty to-do items on your list today, free from the hassle of subpar solutions and workflows.