Omni-Channel and Why It’s Important for Global Brand in Ecommerce Business

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Usually, a global brand who wants to enter ecommerce market has already tens to hundreds physical stores in strategic spot around regions, cities, countries.  But in this discussion, let’s focus on a brand in a country, which is Indonesia. Let’s say the brand with name XOLA is a medium class fashion store for youth girl with a range of 20 to 30 years old. XOLA has around 20 stores throughout Indonesia, mostly in Java, Sumatra, Bali and sort of Kalimantan.  XOLA has settled their CRM and currently run loyal program with XOLA member card.  As goal to be great fashion brand player, XOLA extends their visibility by entering ecommerce market, in website platform, social media and mobile application.  XOLA aims every customer can have user friendly and seamless experience when their customer buy their products via ecommerce and physical store. XOLA aims to integrate shopping experience both in ecommerce and physical stores.

From the case of XOLA, they need multichannel management and omni-channel feature in their store operation.  Why?  Keep reading then.

XOLA has multiple stores and aimed to exist in ecommerce as well as social media and mobile application.  That means XOLA must make sure they run store management smooth with right inventory, stocks, and price. When these needs are what XOLA aimed, they need multichannel management.  But XOLA wants more. They wants their customer’s satisfaction also become most priority issue on this stage.  Customer can have integrated shopping experience across all channels.

For instance, customer may redeem their point on their membership when they buy online via ecommerce website.  And when the customer has really short time to do shopping in XOLA store which let say located in Taman Anggrek Mall, customer just purchase first the products of XOLA by online, and when they arrive at Taman Anggrek Mall, they just pick the orders up.  Customer also can have store assistance when they visit XOLA store online, which represented by online agents.  They can ask certain things till small detail thing like can I get this product on Taman Anggrek?

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What is Omni Channel

Omni channel is defined as a customer oriented approach in term of advance multichannel sales utilizing by providing integrated seamless shopping experience.  Through omni channel feature, customer can do shopping both online or offline which all inventory, stock, price, promotion, product information are integrated.

Even though, there are difference meaning among omni channel user experience and a multi channel user experience.   All omni channel experiences will use multiple channels, but not all multi channel experience are omni channel.  XOLA can have amazing mobile marketing, engaging social media campaigns, and well-designed website.  But if they don’t work together, it’s not omni channel.

Customers now and then only see XOLA as one brand. They don’t have enough mindset to deal with XOLA in website is different from XOLA in Taman Anggrek store. But unfortunately, that’s what most complicated to do for global brand like XOLA. Like other business, XOLA has a website, blog, Facebook, and Twitter. They use each of these platforms to engage and connect with customers. However, in most cases, customer still lacks a seamless experience and consistent messaging across each of these channels. That’s multi channel not omni channel.

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What Must Set First for Omni Channel Initiatives

Every company must develop its own unique omni-channel infrastructure, and work closely with several departments to develop this strong strategy. While building your own program, engage person in charge in IT, Marketing, Customer Service and sales agent or representative that involved in the experience. Set the goal and initiative together.

After that, make sure your ecommerce is scalable using omni channel platform.  It’s really important to collaborate with ecommerce enabler that understand this multi channel and omni channel needs. Once you get the wrong one, you will have to pay more expense, time, and complexities. And we know it’s not good for your business.

 

written by Afril Wibisono

This is Why Retailer Brands Need Scalable Logistic & Delivery Ecommerce Services in Indonesia Market

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We all appreciate the future growth prospects of Indonesia ecommerce market and how this industry is becoming center of attraction for some global brand retailers to expand their market channel. As CLSA 2015 reported Indonesia ecommerce sales in 2016; expected to have US$ 25 billion.

In the other hand, the needs to have seamless and fast process in the behind ecommerce store in order to reach online customers’ satisfaction, is what most challenging issue at the same time.  Consequently the supply chain and logistics for keeping the ecommerce business process well is getting redefined, since the pattern and landscape is totally different from the B2B logistics (traditional logistics – most supply chain Indonesia company focus now). With these facts, ecommerce industry has thrown new challenges in logistics and supply chain areas.

The following table I show you the difference pattern among B2B logistics and ecommerce logistics:

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Different from B2B logistics, in ecommerce, customers need faster deliveries. Not to mention, there are multiple lead time requirements based on the customers’ requirements. These complexities include moving the ordered product from pallet to piece pick at all levels of the supply chain. In complexity of deliveries – there are numerous customer address which is just getting more various than B2B logistics which only have fewer address. Complexity of orders which also push ecommerce logistics proceed details check per order piece to deliver right products is higher than B2B logistics, and this is include returned good rate which increase until 30% compare to B2B logistic have. It is interesting fact as well to know and understand how ecommerce distribution aims to keep on well managed its last mile delivery which consisting of huge number of customers; which every order has own size and volume. Ecommerce orders surely are changing the B2C delivery landscape.

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Through that issue, it is been priority thing for global brand retailers who want to seriously enter and develop their ecommerce business to collaborate with the right business partner that can simply manage and integrate both ecommerce logistics and last mile delivery. Why this action needs to be taken, these are the following reasons:

1. Integration, with seamless process. When you assign with one ecommerce enabler and fulfillment company that has expertise handling Indonesia coverage, they used to have technology in ecommerce system that integrate all process including logistics to last mile delivery. Actually this ecommerce system has been applied from the beginning when ecommerce site built, which sustainably real time will monitor all activities in online until when the order settled. It connects with order management system include inventory stock report which links to omni-channels so there is no incorrect stock balance across the channels. This is important for global brand retailers, since usually they do not only exist in one channel, which in the other hand, they want to see simple interface real time report for inventory stock. This integration technology in ecommerce system you won’t get when you outsource ecommerce logistic separately with parcel delivery, or you take care ecommerce logistics by yourself and outsource parcel delivery company. It means you will still be forced to manage details order from logistics to last mile delivery.

2. Lower cost and faster delivery. Indonesia is one largest archipelagos country in the world. It records more than one thousand islands with so many rural areas that create more challenging issue in distribution networks. Some of them are cost efficiency and delivery time.
In other case that shown by CLSA Report 2015, there are 66% non-Java online shoppers expend more US$20 than Java shoppers. As Indonesia is archipelagos country, it has extremely low offline retail penetration (physical stores), which creates a large opportunity for the online retail sector to fill. That means there is bigger expectation for ecommerce business from people outside Java island.
Through these issues, the presence of fulfillment center in main islands, include non-Java islands, with supported by ecommerce system technology that synergized all logistics and distribution process as well, will be considered so much helpful to cut some supply chain process becomes more efficient and faster. A scalable ecommerce enabler and fulfillment company used to have more than one fulfillment center in one region. Knowing your ecommerce enabler partner’s asset, fulfillment presence and experience handling Indonesia logistics coverage is believed might be strategic reason before deciding the collaboration. You must make sure the partnership will strongly succeed bring the most efficient ecommerce logistics that will both effect for lower cost and faster in delivery time.

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3. Professional ecommerce logistics and order management. Different with B2B logistics, ecommerce logistic has B2C logistic and delivery landscape that reformed the process paths becomes more speed, more accurate and more complex.  It needs high experience skill people with supported assets, infrastructure, standard of quality and technology that cover all these needs. If you need to focus on how to scale up your ecommerce business in terms of branding and marketing, outsource to 3rd party that can handle ecommerce logistic and order management is a wise strategic step.  I believe there is still win-win offering for having reliable ecommerce enabler partner in Indonesia to do professional ecommerce logistic and order management that doesn’t inquire huge investment at the front.

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9 Ways To Have Less Cost in Online Advertising

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There are many ways to engage customers via online marketing. But only few of them succeed attracting viewers visit their website and then just simply become customers or just voluntary share to their networking. In the order side, there’s not too little budget allocation spend for online marketing. And it became dilemma since online marketing is quite new than traditional one which makes decision makers tend to choose traditional due to it’s used to be habit spend.

Anyway, we are not talking about how much you spend for online marketing to reach your goal, but more to maximize your creativity and strategic way to lighten up the way winning customer’s attention so you can manage online ads budget more efficient in 2016.

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1. Try to Make Insightful or Meaningful Videos!

It is video era! All of your customers need more entertainment. And entertainment mostly comes from videos, so everyone no need to think and focus. Just simply view or listen, and when your video is so creative that makes them laugh, cry, or touched, they will remember you to the last of their life, or even they will share to their friends. So, make creative content video now on your own or hire an video maker outsource, and you don’t need much ads budget to go viral.

2. Focus to Visualize Your Product More

According to a study by visual commerce platform in USA, there is the fact that strong visuals are prerequisite to driving meaningful engagement online. Some pictures with unique lay out and title, will remain longer than 5 to 10 paragraphs with tons of words explaining your product. Infographic and Meme are familiar models for this.

3. The Mobile Era and Group Chat is Now!

Wearesocial claimed there are 66 million Indonesian people use mobile phone and actively consuming internet via their phones, in 2015. So, this means we can emphasize our ads effort not too narrow to desktop viewing only, but also focus on mobile viewing. And it’s not only shared by facebook or twitter or other social media platforms, but also chatting platforms that connect us to group of people that potentially interest to our product/services.

4. Insightful Content in Article or Presentation

For B2B business, which requires more data and details for their customer, still need to be creative to present what most useful for customer. Forget about hard selling method, because you can only attract your customer attention if you manage your way in what type of content, how and when. I recommend you don’t stop building your data, because this is how you can create an insightful content in good writing article or presentation. Play pictures and videos on those things (you can simply apply embed code) so you can increase engagement among readers. Don’t forget to play with hyperlinks and mention your name and your company as source. For creating insightful content, you can hire outsource that can publish killer content marketing for your brand.

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5. Using the Celebrities

In certain thought, using celebrities or other social influencers is needed for promoting brands or products. It’s been believed that go through one influencer that has clear followers is simpler and less efficient than go massively to established online media with large audience.

6. Collaboration

You cannot work all alone. You need same level brand or media or set of skilled outsource people to promote your brand or product. For instance, to make well search on organic, you need established trusted media to publish your product. You need set of blogger to do the viral of your product campaign. Or you need bank as same level brand partner to do strategic cross promotion so your ads budget will go more efficient.

7. Dynamic Remarketing

We don’t want burn money away without any winning impact for the campaign. That’s why knowing customers who is interested more to our brands or those who just bounce out for second is most matter to have right online advertisement. With dynamic remarketing we can maximize as well as effective target to display set of offering only to those who interest to our brand/products. For dynamic remarketing there are tens of reliable platform that has high sales conversion.

8. Use CRM Platform for Sales Acquisition

There has historically been a pretty clear top-of-funnel line drawn between marketing and sales efforts, but new tools and new ways of thinking mean that marketing teams are now generating customized emails for clients via a CRM instead of mass newsletter tools. A data-driven approach to optimization will encourage marketers to work their magic throughout the entire sales funnel. Emphasizing sales enablement activities in 2016 will bring marketing efficiency to complex sales cycles and ensure that sales teams are prepped with customer data.

9. Relationship Marketing

Don’t sweat with old customer, since they have power to influence others telling out about your products. Relationship marketing is what most important now, especially in internet era, to get along well with your customer and future customers. So my advice, better you give them more when they start to feel uncomfortable with your brand, so they can virally tell your brand in better way rather than attacking your brand in unpleasant words.

Written by: Afril Wibisono

The Challenges of Last Mile Delivery for Indonesia Ecommerce Players

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So many retailers that go online don’t expect there will be huge complexities in the back online front store. As ecommerce in Indonesia grow, last 2014 reached US $1.12 billion for B2C online sales, no doubt there’s big potential online customer growth that will easily jump into online stores and order simply as their fingertips pointed. When payment is settled, most people don’t imagine what happens after that, until customer got what their wants. Right expected product with right expected delivery time.

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When we talk about global brand retailer that has thousand SKUs of products, tens of branch stores, and huge loyal customers, there are tons to do simultaneously in store operational and last mile delivery back in the online store. Last mile delivery is the final leg of the supply chain. It is the moment when customer finally receives their order. And as generally, it’s the most expensive, least efficient and most problematic part of the overall delivery process.

In Indonesia, last mile deliveries have unique set of challenges. Since we have thousand islands here, with so many rural area, not to mention about unclear addresses and location setting, mostly retailers come down to cost issues, and retailer’s desire to control the final moment with brand interaction.

There are a few main categories for last mile deliveries. In parcel delivery we have 3 to 5 well-known delivery companies that focusing in this area. The companies are delivering thousands and thousands of packages daily from retailers around Indonesia to customer’s front doors and offices. The shipping rates have gone up recently and delivery companies provide little control over the last mile for retailers.

An alternative to solve these challenges is engaging right outsource that understand ecommerce logistic to provide great last mile delivery specifically, in Indonesia. Most time, they’re called as ecommerce enabler and fulfillment, that is not only focusing on ecommerce site development but also do the back operational include last mile delivery. Different from delivery company, ecommerce enabler and fulfillment also manage correctly the order management that connect to store operational and control last mile delivery. At one integration, they manage the pick-pack-deliver which will go efficiently and on time, as well as providing real time status both for customer and the internal store. The cost is relatively less efficient since the effort of all ship in one full system integration for order submission.

Written by: Afril Wibisono

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