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Tools to increase conversion, by Nadezhda Romanova (PickPoint)
1. Tools to increase customers’
conversion
Nadezhda Romanova,
CEO PickPoint
2. 2
Delivery infrastructure across Russia
- 1 -
In Russia the number of online consumers is
more than 20 mln. people, that reaches
71% of active online audience;
About 90% internet users that shop online
have high income (20-50 ths. RUR);
The most active e-consumers men/women
aged 25-34 years.
Federal District Number of e-shoppers
CFD 18,8 mln.
PFD 12,6 mln.
SFD-NCFD 10,1 mln.
NFD 9,1 mln.
NWFD 6,9 mln.
UFD 6 mln.
Far Eastern FD 2,8 mln.
Statistics:
Online shoppers regional
presence
If online store has other regional structure
of distribution of flows it means that some
regions poorly covered.
3. 3
Delivery infrastructure across Russia
- 1 -
4 deliver channels:
Each has its own audience
MailCourier Postamats
Values for e-shoppers in delivery
channels selection
1 2 Pickup3 4
Delivery to
working address
Delivery to post
office near
home address
Delivery to convenient address on
the way between work and home
4. 4
Statistics of selecting delivery channels in B2C
- 1 -
Redistribution the choice of delivery
channels towards self pick-up.
What delivery channels used
customers in online shopsMethods of delivery of the last
purchase in the online store
* According to Yandex and GFK research, August-September 2014
2%
2%
15%
23%
24%
33%
0% 10% 20% 30% 40%
Other
Express delivery
hand2hand
Pick-up point
(postamat)
Pickup
Normal courier
delivery…
Delivery to
Russian Post…
38%
19%
17%
27%
23%
15%
17%
38%
43%
38%
34%
59%
51%
45%
49%
48%
52%
0% 20% 40% 60% 80% 100%
The most convenient delivery
Used in the last 12 months. at least one time
2014
2013
2013
2013
2013
2014
2014
2014
Courier
delivery
Russian
Post
Pickup
Postamats
5. 5
Rules of "delivery“ section and basket interface
- 1 -
1
2
Good example
The lack of affordable discription of delivery
methods, indicating the cost and timing
The sequence of data input in the basket:
The sequence of filling delivery steps:
a) Choose city
b) Choose delivery channel
c) Depending on delivery channel:
print address or choose pick-up point on
the map
3 Figure the return conditions
6. 6
Rules of "delivery“ section and basket interface
- 1 -
Great fails in Russian reality in the shopping cart:
First you need to input address before
choosing the delivery channel
What address e-shop wants me to
enter?!?!?!
In case of courier delivery
I want working address
In case of Post delivery
I need to input home address
In case of pickup (Postamats delivery)
I need to choose convinient point on the
map without printing any address
1
7. 7
Rules of "delivery“ section and basket interface
- 1 -
Why I can’t choose the point on the map during
the order?!?!?!
The chosen delivery
channel is not clear
After order the extra mail is sent to choose the
point of the delivery.
This mail complicates the process and confuses
the customers.
2
Great fails in Russian reality in the shopping cart:
8. 8
Rules of "delivery“ section and basket interface
- 1 -
How it must be:
1
Customer chooses the
delivery method2
In case of choosing pickup or postamats the
customer selects the convenient point of the
delivery on the map (already created widget ready
to be integrated on the web-site)
NO EXTRA STEPS (or e-mails)!
3
Customer chooses the city of the
delivery
To filter the delivery channels
9. Logistics mistakes
The consumer perceives the delivery service as
a service of online store
The lack of transparent conditions for goods return
Delivery terms:
Not only terms that provide logistics companies
+ period of order completing,
+ stock status (not available in the warehouse)
+ other internal online store processes
Limitation of delivery channels:
Online store can lose till 14% of orders providing unsatisfactory for the
customers delivery conditions
Trust
If copies of customer’s personal documents are required, the form for
their collection must be maximum simple, ergonomic and trusted
9
10. Logistics KPI
For customers:
Keep the declared delivery
terms (the best on the market:
98%)
Delivery services, additional
options
Term of return of goods -
reverse logistics (the best on the
market: 3 working days)
Period of repayment in case COD
(the best on the market: stable 3
banking days)
% of unclaimed items (the best
on the market: 8%)
For retailers:
We count up their
satisfaction and loyalty ...
10
11. Logistics KPI
- 1 -
Для ритейлеров
NPS PickPoint = 76%
NPS Index (Net Promoter Score) – KPI
of delivery service
1 purchase 74%
2 purchases 14% 26% repeat
orders with
PickPoint delivery
for 3 months
3 purchases 5%
4 purchases 3%
> 5 purchases 4%
4% of customers chose PickPoint
Postamats delivery option
more 5 times again during 3
months
Short-term – for 3 months 2015
Conversion of repeat orders with
PickPoint delivery
Internal statistics delivery throug
postamats*:
*Statistics is taken within delivery through PickPoint postamats, 2015
Market participants believe that the
average NPS of online retail market 15%.
100 Perfect
85-99 Spectacular
70-84 Excellent
55-69 Very good
40-54 Good
25-39 Average
0-24 Mediocre
-25 -1 Poor
-50 -26 Terrible
-100 -51 Abysmal
The standard scale for NPS:
11
12. PickPoint in numbers
1212
м
CLIENT RETURNS
Collection of return goods
previously received through other
delivery channels (courier, Russian
Post, pick-up points, postamats) in
PickPoint postamats.
The largest
network in Russia
PROJECT WITH QIWI:
+1000 postamats in
PickPoint net
based on QIWI
payment terminals
PICK-UP POINTS CONSOLIDATOR
Strategic Partnership:
2010
year of foundation
5 years on the
market
1200
Postamats & pick-
up points
>12 000
Zip codes
All regional
centers + 150
cities
All market leaders
> 1 800 000
recipients
26% stable
customer base
>1 500
E-shops
Sorting center
2 000 sq. m.
> 2 500 000
Delivered parcels
7,4% unclaimed
parcels
98%
parcels
are delivered on
time
Federal and local pick-up
points nets in PickPoint
delivery network