How to drive 1687% more engagement than regular marketing? – Angus from parcelLab at eCommerce Expo
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How to drive 1687% more engagement than regular marketing? – Angus from parcelLab at eCommerce Expo


Good afternoon everybody and welcome to
the graveyard shift. It’s been a long day. I see a lot of weary faces, I’m gonna try
my best not to look a weary as well. I want to start with a question for all
the retailers in the room. Are there any retailers in the room? Hands…
Yeah, we got some retailers, good. Okay, the question is
when does the customer journey end? Is it when I bought my item? No.
Is it when my item has arrived with me? No one was looking particularly confident.
Maybe, when I’ve actually used it for the first time? Or even the last time? Is anyone here an amazon prime subscriber? Okay, that’s at least 15, 20 people.
Does anyone remember when they signed uo? Shout. How many years have you been a subscriber? [Nine months]. Okay, I’m on eight years.
Anyone beating eight years? [Four years]. Okay, I did something in
preparation for today that I strongly suggest you never do. I went on to the
Amazon order history and I counted up how many things I’ve bought on Amazon.
Prime was released in 2005. I signed up in 2011, it’s now 2019.
Anyone else know their number? I bought 239 things on Amazon.
Now tell me when does the customer journey end? It doesn’t end right it’s a cycle.
There’s a bit of a history details here. The first shop in the UK that still exists is roughly dating to the period of Henry the 5th.
It’s a village shop in Suffolk and we’ve had shopping malls for quite a
while as well, talking 17th-18th century. Trying to find in the first department store a little bit difficult because everyone seems to
claim to be the first department store, so we got 1707 for fourteen the Masons
or a couple of other dates there Harry Selfridge began his London store
in 1909. Does anyone remember when eCommerce started? Just think… We needed the internet. Anyone remember when the the internet started? 1991
so the first eCommercee store was kinda 91-92 but we had Amazon in 95 and since
then it’s really been a period of flux. There’s been a lot of change so we had
shops for 500 years but we’ve had online retail for 27 years. Yet, the entire
landscape is different, we’ve seen a kind of ubiquitous adoption for next day
delivery. I think that’s quite prime driven but now we expect it all the time.
Five years ago, ten years ago that wasn’t the case. We’ve got marketplaces
you can buy the same item from the the manufacturer or now from ASOS, from
Zalando, from End clothing, from Amazon, from eBay… So there are a lot of
shifts that we’re seeing and brand loyalty which was once extremely
important for consumers is is really changing brand loyalty was about
consumers being able to shop from retailers that they knew they could
trust but we live in the information age. So you got everything at your fingertips you got data on everything you can read blogs, reviews and actually this means that we’re kind of in an age when the trust gap between
big brands and challenges is really diminishing so consumers are no longer
afraid to look for alternatives. Brand loyalty has changed.
I find myself choosing over a trustworthy brand name choosing a
favorable returns policy or easy next day shipping options. Maybe I’m looking
for a different way to pay or finance my purchase. what we’re seeing is brand
loyalty becoming experienced loyalty. This shift from brand loyalty to
experience loyalty means that retailers are really fighting for the attention
and the engagements of their customers and they have to fight because today’s
customers are actually far more engaged through their smartphones, through social
media than yesterday’s consumers ever could have been. So as a retailer how do
you maximize customer experience and customer engagement in your customers
journeys? How do you actually remain competitive in what’s becoming an
experienced first landscape? If you’re a retailer you have a gap in your
customer experience, you have a gap and that gap sits squarely in the most
emotional parts of the customer journey. The stakes are high, right? A customer is
about to invest in you, they they’ve decided they’re gonna spend they’ve
entered their card details. All the barriers that did exist to prevent that
person buying from you have been eroded, this could go really, really well, right?
Because they’re not just a customer they’ve got friends and friends with
similar interests and similar buying habits. So if this goes well for them
they’re not just your customer but they’re actually going to become a brand
advocate but this could also go really, really badly because customers have
emotions and they have feelings and when things go wrong they’re capable of
tearing apart your brand within their friendship group. One terrible delivery
experience at a time. So you must all buy things online. Do you buy things
online? Nodding… No? Yeah, mostly yes? Does
anyone else buy things online that they really, really, really don’t need?
Because what I’m about to tell you is entirely true. The whole story end to end. So, I’m glad I’ve got some allies here today.
Would any of you go ice skating in the pre-christmas period? You’re feeling
rather festive and you think you know what I need to get to the next
the level is my own pair of ice skates. Nobody? Okay, just me. Right, it’s December
and it’s a Monday night. I spend a lot of time researching the skates that
I want to get and 11:30 p.m. that’s kind of when I do my
sort of danger browsing I’m armed with my laptop the internet the ability to
remember my card number without having to check. I’m about to become my own
worst enemy and I did enter a period of research by 1:00 a.m. I knew which
skates I was gonna buy. I’d done all the comparison, I’d come out with my winner
and I even chucked in the pre sharpening which is apparently very important if
you’d buy your own ice skates. I get to the checkout and I see next day
delivery I think, yeah I’ll pay extra for that
because on Wednesday though you might is 1 a.m. on Monday so next day is
Wednesday. On Wednesday I’m going ice skating with my colleagues at 7 p.m. and
what better way to show off. Well I’d also in an unrelated spending
spree bought some clothes for my girlfriend and they were also due to
arrive on Wednesday so I’ve got two packages on Wednesday but I think this
is gonna be fine I’m capable of receiving two packages on Wednesday.
We fast forward to Wednesday, today’s the day that I will hopefully be going ice
skating with my new skates. I just want to remind you that the experiences
I’ve had okay so the first one I get from this wonderful company skatehuts.
It’s actually really difficult to buy ice skates on Amazon with Next Day
Delivery, so I I ended up with these fantastic folks and I had a good buying
experience online, really enjoyed it. I got my girlfriend’s clothes from a
different company called Missy Empire and they have a different brand look and
feel okay so you can see how this stage I was thinking yeah this would be fine. How could I possibly get these two
orders confused in some sort of terrible delivery related model? Until I get my
first dispatched notification looks like this. I think yeah that’s fine, I’m happy
for yodel to deliver my parcel. I get my second one which looks like this. So as you could probably tell where this is going but it should be fine they’ve got the whole day to deliver these items.
Christmas is six days away. I don’t need my girlfriend’s Christmas
present today it’s just the ice skates Wednesday morning comes. I hear nothing,
all morning as you can tell at this stage on working very hard and not
spending all of my time on a yodel tracking page trying to work out whether
the dots are moving closer or further away from my office and the afternoon
was pretty quiet as well I start to get more and more nervous. Until at 12
minutes past 4:00 I received this your parcel is delayed. Can somebody, please
tell me which parcel is delayed? Okay, you all looking very blank I’ll
give you a clue it was impossible to find out and I know because I spent the
whole afternoon trying. There’s no tracking number in here I get to track
my order the page looks the same as the other page. I’m starting to think this is
impossible, I’m getting ice-skating in two and a
half hours… What if my skates don’t arrive? To be honest, I thought all hope was
lost, I really did, I thought it’s over until from my window seat in the office
I looked into the car park and I saw the yodel van swing into the carpark. I
thought yeah this is good, so I run downstairs and I said that my
office manager, I will sign for these parcels. I literally ran
out into the carpark, greeted the guy like it is his birthday and he was
looking a bit confused to see me. He puts the parcels in my hand I sign for it and
I looked down and I see this… Cinderella will not go to the ball… That night I did
not receive my ice skates I had to go ice skating because not already booked
and rent them, like everyone else. it was a complete disaster and when eventually
a couple of failed delivery attempt were one failed delivery attempt later they
did make their way to me. The unboxing moment just didn’t feel the same. it just
kind of tainted my experience. Now I think that story although a little bit
ridiculous probably resonates with a few people because I’m not the only consumer
who’s had a delivery experience that didn’t go quite how I hoped it would and
it’s kind of odd because today’s online shopping experiences are generally
amazing. You’ve got sophisticated personalisation and you’re
able to choose real convenience so you click and collect, different shipping options, you’ve got payment options that allow you to buy
now or even pay for it later but actually at the moment that you press
the Buy button a lot of times the retailer effectively says goodbye that
whole experience stops because retailers are taking their most valuable
set that customer contact and then they’re handing it over to your
third-party logistics providers. They’re doing this the single most emotional
part of the journey so customers are broken down all the barriers to buying
and then suddenly – goodbye. Now if that sounds like something that you see in a
lot of retailers that’s because pretty much everyone’s
doing it. We conducted a shipping analysis of 100 leading UK retailers and
we found that 89% of them by saying goodbye to their customers as soon as
they’ve purchased. We found 7% of them were saying something generic during
delivery. Maybe they were giving them a note when the parcel had actually been
successfully delivered. and only 4% of the top 100 hundred UK retailers were actually giving their customers personalised
communication during delivery. These are the UK’s leading retailers so we’ve been
comparing the kind of engagement that we see in normal marketing messaging and in
delivery messaging and the engagement that you can generate with your
customers during delivery is simply phenomenal because customers are
receiving emails that are hyper relevance. Like this one, this is about an
ikea order it’s a delivery success notification so the parcel has been delivered it and the customer gets this email it’s engaging it’s exciting but it also
has the instructions for how to actually assemble the item that you’ve purchased.
So it’s relevant now in a normal marketing email we see… I took these
stats from MailChimp so I hope they’re roughly right… We see in e-commerce an
open rate of 15.66%. I don’t know if that is in the
ballpark of what you’re experiencing but when we send
messages to consumers during delivery a time that is extremely important to them
that 15% becomes 61.76% ,so over 60% of customers are opening the emails about products they’ve actually
purchased but I think more impressive than that is the click rate and a change
in click rate. 2.08% that’s the industry standard in
marketing in e-commerce. When you are communicating with customers during
delivery we’re seeing a click rate on average of 40.75% that is unbelievable. Normal marketing emails simply cannot generate that kind of engagement because there is a really hot period while a customer is
receiving their parcel where they are hyper engaged with your business. And if
you’re wondering whether sort of clickbait number in the talk came from in the
title this is what is pretty much over 1,600% increase in engagement.
It’s really powerful so the question really is given that consumers
are so readily engaging with these touch points how do we leverage this? Why is
this happening and what do we do about it in the retail space?
Well, I think it’s important to address the why first. The first element of
this is that this is true personalization. It’s not just merging
the first name into the email we’re actually talking and referencing of
items that customers actually purchased and there’s often quite sophisticated
segmentation happening at this stage because we know exactly what they bought
say the cross-sell and upsell opportunities can be very relevant in a
way that sometimes in marketing until you get that data they simply can’t be.
The second reason why we see this engagement is because what we’re talking
about is based on real events. Events in the real world
so it sounds a bit ridiculous receiving a parcel actually takes two to tango I
don’t know if you’ve ever ordered a bed before if you have you probably had to
be in when it was being delivered. It’s a bit difficult to leave on on the
doorstep. So, we’re seeing communication about events that actually impact
customers and that is another reason why they’re extremely engaged and the third
reason is because these communications are authentic. There’s a massive trend in
consumer psychology at the moment showing that consumers are hyper alert
to being advertised to. It’s quite suspicious. They actually know more now
than ever when they’re being advertised to but there’s nothing particularly
opaque about these emails. They’re actually notifying people when real
logistic events are happening and having a real impact on the customer and
customers really like that transparency, that’s really important. I suppose, the
next part is then how can you actually leverage this? How can you use this to
improve engagement in your businesses? Well the first point to this, sounds a bit
ridiculous, but you just have to understand why it works and then do more
of that, so if it resonates with customers to get useful and actionable
information delivered to them then go above and beyond to deliver them more
useful information during their buying journey. We see we’ve click and collect
parcels, I’m quite a big click and collect customer and a lot of times I
just get a generic message that says your order is ready to collect. I can’t
remember exactly where the shop was or even necessarily when it’s going to be
open so why not push to your customers not just the name of a shop and the
address but the Google Maps integration, give them the opening hours, tell them
what the parking situation is going to be like nearby or tell them what the
weather’s going to be like. You can say great news your past is ready to collect
but bring it umbrella because it’s going to be raining. There’s a lot more that you can do in that post-checkout journey to actually engage with your customers. The second part of this
is to really leverage personalisation. It’s just so important you have a
uniquely large amount of information about your customers once they’ve
already bought from you, so if you actually listen to that and use it then
you can really stand out in it in what is a very busy landscape. A kind of
referencing the IKEA example that we saw there if you’re selling an item that
requires installation or requires assembly like a bike or a bed or a
wardrobe or even tuition like applying a particular type of makeup, why not
actually reach out to your customers with instructions with videos with
tutorials? And the third part of this that is just so important, is to utilize
your own ecosystem. So without discrediting the the stats I showed
before your customers current delivery transactional emails are probably
receiving quite a high open and click rate – they’re just not your emails. So
customers are actually going back to the carrier. If you want to be the brand that
they’re engaging with throughout this whole journey then you need to make sure
that 40% of customers that are clicking on emails end up back on your site and
that means getting the tracking information embed it in your own
ecosystem. Make sure that that’s the only resource that they actually need. You can
see in this example of what Hugo Boss are doing when customers are tracking
the emails they end up back in the webshop and they’re only a couple of
clicks away from purchasing again. I think even over the space of just the
last year we’ve seen a huge shift in mindset around this space, around the
post-purchase space. We’ve seen a lot of retailers looking to optimise this we’ve
seen it become not just a logistics problem but also a marketing issue so
more businesses are connecting between different departments to try and really
address this and I’m projecting that in probably three, four or five years the
landscape is going to look very different. In the same way that we have
this ubiquitous shift to Next Day Delivery in five years time in ten years
time I think almost every retailer will be owning that parts of the customer
journey. We’re extremely excited about what we’re doing at parcelLab to
support leading retailers in actually creating this transition in the market
and I really hope that the retailers and the brands that are here today will
actually be a big part in setting that new baseline for customer engagements.
We are on that stand just over there on the corner if you have any questions if
you want to ask a bit more detail around any of the things that you’ve
heard if you want to understand what our platform is and that’s basically what
got to say… Any questions from the audience? Questions? Don’t know
if I meant to ask about questions… Does anyone have any obvious questions for the floor Go on… [What is parcelLab?] parcelLab? What is parcelLab? Excellent! I didn’t even plant you but an
excellent question and parcelLab we’re a post-purchase communications platform.
We work with digital retailers, we have direct integrations with carriers so we
can monitor parcels in real time and understand exactly what is happening
with them and on the flip side we’re working with retailers to send white
labeled communications so the IKEA example that i showed earlier,
that actually came from us it was just entirely white labeled and effectively
sent from IKEA.com and we also own the the tracking element so that retailers
can actually have all the tracking information in their own sites. If you’ve
ever had a parcelLab experience you wouldn’t know about it because we’re
entirely white labeled we think that’s a really important part of the customer
journey we’re trying to make. I hope that answers that that’s that’s kind of
what our platform does. Any other questions? Wonderful, thank you very much.

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