THE IMPACT OF ECOMMERCE GROWTH ON THE INSIGHT
FUNCTION IN CPG BRANDS
IIEX JUNE 18TH, 2014
DANNY SILVERMAN, VP BUSINESS CONSULTING SERVICES
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ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
FMCG ECOMMERCE IS TIPPING
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ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
ECOMMERCE IS THE FASTEST GROWING CHANNEL
Channel
$2,465
Source: Kantar Retail Analysis, KantarRetailiQ.com
2,400
$145
$204
$1,978
2,000
Sales in Billions ($)
$1,713
1,600
$100
$113
$355
1,200
800
$50
$101
$52
$151
$239
400
$120
$83
Apparel
3.5%
4.3%
Clubs
5.4%
6.8%
Category Specialist
1.6%
3.3%
$118
$147
$453
Convenience
2.2%
4.1%
$385
$68
$93
$110
Department
-1.8%
0.11%
$55
$92
$76
$172
$217
Discounter
8.2%
7.6%
Drug
2.6%
4.8%
$282
$104
Supercenter
3.4%
3.0%
$108
$145
$250
Mass
-2.2%
-0.6%
Non Store Retail
12.0%
11.4%
2.5%
4.4%
2.9%
4.5%
$350
$396
2008
2013E
$328
$492
-
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CAGR
CAGR
'08-'13E '13E-'18E
2018E
Supermarket
KR Channel Totals
ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
CHANGING THE NATURE OF FMCG BUSINESS
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
Online
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Brick & Mortar
ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
90% OF AMAZON VISITORS CONVERT ELSEWHERE!
Amazon.com visitors who purchase on
Amazon.com**
10%
Amazon.com visitors who
purchase elsewhere ****
Key Insight:
90%
WINNING OFFLINE STARTS
WITH WINNING ONLINE!!
* Forrester, 2012
** Etailing Solutions
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ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
So what oes it all mean?
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Great! But How Do I Measure It?
ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
NUMEROUS KPI’S EXIST; FEW ARE UNIVERSAL
Awareness & Consideration
Evaluation
Trial & Conversion
Loyalty
Advocacy
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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
ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
INSPECTION / AUDIT OF PHYSICAL STORES IS STANDARD PRACTICE
Promotions
Availability
Shelf
Placement
Price
Pack Info
Assortment
CPG Top Brands Spend on Average 0.4% of Revenue on Retail Measurement
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ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
CAN WE ADAPT THAT APPROACH TO ECOMMERCE?
YES!
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Demand
Research
Evaluate
Purchase
Fulfilment
Feedback
Promotions
Search Rank
Portfolio
Content
Availability
Reviews
ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
THE SALES IMPACT IS MEASURABLE
Portfolio
Better ranging (Power SKUs) to achieve 2-5%
increase in average “share of basket”
Content
Improve content compliance to deliver 3-5%
Increase in conversion rates (add to basket rates)
Placement
Achieve higher search rank for 10%-30% increase
in product page views (via search)
Availability
Optimize distribution for 50 - 75% Reduction in
online “orders not available for shipping”
Media Tracking
Rating &
Reviews
15%-30% increase
in annual online
sales revenue
(excluding industry
average growth)
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
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ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
ECOMMERCE MATURITY MODEL
Digital
Presence
Management
Portfolio
Content
Digital
Performance
Insights
Availability
Placement
Reviews
Predictive
Analytics
eCommerce
Program Test
& Optimize
Media
Watch-Lists
Presence
Performance
?
Increasing Manufacturer Maturity, Online Store Sophistication
Deeper Analysis & More Actionable Insights
©
ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
©
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
Global Food Company
Global Conglomerate
eCommerce COE
Global Paper Company
USE CASES: CPGS ADAPTING TO CHANGING MARKETS
ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
Aim: grow sales &
protect its brands
7 key online
stores in the US,
UK and China.
Quickly identify
wins for Search,
content quality &
Availability
@danny_silverman
@clavisinsight #IIEX
CLAVIS AUDITS ONLINE STORES
Portfolio
Content
Clavis Insights
Availability
Placement
Rating & Reviews
Media Tracking
Price
Visit Online Stores
©
Audit & Analyze
Deliver Actionable Results
ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
GLOBAL STORE COVERAGE
CA
UK
CN
NL
JP
US
FR
TR
BR
ES
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ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
AU
@danny_silverman
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@clavisinsight #IIEX
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
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ECOMMERCE INTELLIGENCE FOR A CHANGING MARKET
@danny_silverman
@clavisinsight #IIEX
FOR MORE INFORMATION ABOUT CLAVIS INSIGHT:
Danny Silverman
VP, Business Consulting Services
(734) 276-3282
[email protected]
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