Building a new business in the context of the current consumer reality
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1 Building a new business in the context of the current consumer reality
2 Luuk Reijnders - MBA FMCG background Douwe-Egberts, Senseo, Sanex, Kiwi, Duc d O, Beez Senior business consultant & partner at Beez & owner SeventyOne Google Adwords, Google Shopping and Google Analytics certified Love to play football (Not a professional speaker)
3
4 The current business revolution is NOT a digital revolution. 4
5
6 Old reality : the dictature of the brands on the consumer
7 Old reality : Sell to people
8 Sell to people Old reality Acquire client New reality
9 How we used these theoretical models to build a new business in the context of current consumer reality
10 Retro inspired lifestyle clothing and accessories
11 SeventyOne business structure
12 How we used these theoretical models to build a new business in the context of current consumer reality
13 Brand & Proposition Facebook Instagram campaigns Repertoire Appraisal Purchase Assessment, Loyalty & prescribers Web-shop Google adwords Google shopping Flagship Boutique Service levels Loyalty system Gift & Packing
14 Repertoire
15 Secure brand and proposition clarity & consistency in all touch points Webshop homepage SeventyOne Facebook homepage SeventyOne Google search results SeventyOne Boutique SeventyOne
16 SeventyOne brand continues to grow and is searched more and more in Google over time Source : Google trends
17 Appraisal
18 Source: MineWhat.com November 2014
19 Display your product or services in online environment
20 Reach out to your target group to influence in appraisal phase
21
22 Exceptional target group identification opportunities via Facebook Step 1 - Region
23 Exceptional target group identification opportunities via Facebook Step 2 Age, gender and languages
24 Exceptional target group identification opportunities via Facebook Step 3 Interests
25 Exceptional target group identification opportunities via Facebook
26 Show target group relevant creative
27 This can work for ALL categories example tea
28 This can work for ALL categories example pasta
29 Learnings & tips Facebook drives sales - directly and very cost effectively Exceptional detailed and segmented targeting opportunities Use Facebook for the appraisal phase (not only in the repertoire phase)
30
31 Reach out to your target group to influence in appraisal phase Google Adwords
32 Reach out to your target group to influence in appraisal phase Google shopping
33 Purchase
34 Purchase happens many in the flagship boutiques 100% Web-shop vs boutique 90% 19% 80% 70% 60% 50% 40% 81% 30% 20% 10% 0% Boutique sales Web-shop sales
35 Online orientation drives purchases in flagship stores 100% Clothing market share Belgium per sales channel sales 100% Actual sales share per channel SeventyOne 100% Shopper type in brick store SeventyOne 90% 90% 90% 80% 80% 80% 70% 60% 50% 86% 70% 60% 50% 81% 70% 60% 50% 80% 40% 40% 40% 30% 30% 30% 20% 10% 0% Online sales 14% Share of market Brick Shop sales 20% 10% 0% 19% Sales share per channel Web shop Brick shop Based on analyse at customer SeventyOne clothing, Antwerp. Source: Be commerce market report March 2016, Magento sales system SeventyOne, Facebook SeventyOne, Google analytics SeventyOne, Google AdWords SeventyOne, Google shopping SeventyOne Brick shop SeventyOne. 20% 10% 0% 20% Sales share per shopper type Online orientation before visitng shop NO Online orientation before visitng shop
36 Leverage the flagship boutique as purchase point Google location tools and google mybusiness tools implemented Google 360 virtual tour implemented
37 Leverage the flagship boutique as purchase point Google location tools implemented Third party location tools implemented
38 Leverage the flagship boutique as purchase point Invite to visit boutique in FB posts Invite to visit boutique in campaigns
39 Leverage the web-shop as purchase point and optimize the conversion path with learnings from Hotjar Optimize customer experience continuously Hotjar heatmap Hotjar funnel tool Hotjar customer videa tool
40 Enhance the shopper experience to drive online purchases Optimize customer experience continuously Clear photography Easy size selection and availability check Complete product description Fabric description Fitting tips and washing tips Size guide Include many and nicest pictures
41 Learnings & tips Do not think online vs offline. Think : Repertoire & Assessment to drive purchases Create seamless transition from repertoire and assessment phase to purchase All tools are there and most of them for free Measure ROI on total business
42 Assessment, Loyalty & prescribers
43 Get your assessment right get your service package in shape
44 Get your assessment right Loyalty systems & capture shopper data
45 Huge flagship boutiques with super large assortments
46 Win the hearts of your customer and create prescribers
47 Win the hearts of your customer and create prescribers
48 Satisfied shopper become loyal customers & prescribers Source : Facebook SeventyOne
49 Satisfied shopper become loyal customers & prescribers Source : Facebook SeventyOne
50 Satisfied shopper become prescribers and loyal customers Source : Facebook SeventyOne
51 Satisfied shopper become prescribers and loyal customers Source : Facebook SeventyOne
52 Satisfied shopper become prescribers and loyal customers Source : twitter SeventyOne
53 Learnings & tips The service basics have evolved enormously due to big ecommerce players (also in the BtoB environment) Build a plan to win in the assessment phase Actively manage the creation of prescribers in your business this can be done in any business.
54 Results
55 What else is happening in the customer-centricity area
56 Companies sell their customers to other companies
57
58 Go where your consumer is going!
59 Classic FMCG companies seek direct access to customers (DTC model)
60 Who connects with the consumer win s in the market place.
61 Who connects with the consumer win s in the market place.
62 If you offer consumer insights based solutions you win in the market place
63 Consumer-centricity model Beez
64 Consumer-Centricity Model A method and guide to build a Consumer- Centric eco-system business-model for your company A diagnosis tool to define how consumercentric is your company or business project 64
65 Learnings & tips How to win the consumer-centricity battle? Who is eating the cheese from your plate and how can I beat them? What are your options in alternative business models / route to markets? Which commercial platforms are relevant for me?
66 Thank you
67 Backup
68
69
70
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