Dentsu Commerce
Introduction to Commerce Principles Introduction Commerce is changing
DENTSU AEGIS NETWORK This is where we used to look for growth Commerce is changing PRODUCT SEARCHES ARE MOVING TO MARKETPLACES FIRST CHANNEL USED WHEN TOP 5 WAYS AMAZON HAS RESEARCHING PRODUCTS DIGITALLY INFLUENCED SHOPPING BEHAVIOUR GROWTH IS SHIFTING TO ECOMMERCE Check prices on Amazon SHARE OF TOTAL GLOBAL RETAIL PROJECTED FOR 2018-2021 41% Brand.com 16% Start product search on Amazon 36%
17.5% Amazon 15.5% Read reviews on Amazon 33% Search Engines 13.7% 55% 28% 11.9% Shop less often at retail stores 27% 10.2%
Shopping behaviour not influenced 20% 2017 2018 2019 2020 2021 by shopping with Amazon
GLOBAL EC MARKETS RISING (US$B) VARIED PLATFORMS LEAD TO VARIED BEHAVIOR
Canada UK Russia $30 $99 Germany $30 FIRST-TIME PURCHASES REPEAT PURCHASES $73
France S Korea $37 US $43 $340 China Japan 19% $79 Brand.com 20% $672 50% Brand.com 34% Offline Retail Marketplaces
Brazil 31% $19 Marketplaces 47% Offline Retail
DENTSU AEGIS NETWORK Brick & Mortar Reborn Machine Learning + AI Voice
Visual Augmented Reality Content is Commerce
Amazon / Alibaba / Artisans Evolved Fulfillment EC Packaging Shopping Everywhere
DENTSU AEGIS NETWORK Creating a Need to Adapt to New Behaviours
Convenience Relevance Value
Trust
That Must Be Applied Across All Touchpoints
Marketplaces Social Brand.com Retail
Identifying unique and Cross channel Managing conflict overlapping audiences measurement and For and to deliver optimal and optimization cannibalization experiences
DENTSU AEGIS NETWORK Commerce in APAC Leading the way
DENTSU AEGIS NETWORK Growth in Commerce is Coming from Asia
AVERAGE TOTAL AMOUNT SPENT ON E-COMMERCE PURCHASES BY EACH E-COMMERCE USER IN USD
ABOVE GLOBAL BELOW GLOBAL AVERAGE AVERAGE GLOBAL AVERAGE
CHINA: $710 INDONESIA: $228 SINGAPORE: $1,022 THAILAND: $212 JAPAN: $921 INDIA: $118 HONG KONG: $821 $733 MALAYSIA: $64 AUSTRALIA: $815 VIETNAM: $55 PHILIPPINES: $33
SOURCES: GLOBALWEBINDEX. 2016. BASED ON A SURVEY OF INTERNET USERS AGED 16-64.
DENTSU AEGIS NETWORK SEA Internet Economy Report
SEA GMV - $B 200 153 150 150M Average Order 49M 100 Value
50 38 $15 - $20 2015 2019 5 0 2015 2019 2025 Groceries, personal care eCommerce Active Users and beauty products are eCommerce becoming standard items in Southeast Asians’ online e-Commerce blazes through $38 shopping baskets. billion, turbocharged by shopping festivals Source: e-Conomy SEA 2019 - Google, Temasek, Bain & Company
DENTSU AEGIS NETWORK Marketplaces in APAC --
DENTSU AEGIS NETWORK Top 10 most visited E-commerce In Southeast Asia, Q2 2019 – Total Monthly Average visits on Desktop and Mobile Web
DENTSU AEGIS NETWORK eCommerce Shopping Apps in Southeast Asia With the most Monthly Active Users – iPhone and Android Phone Combined
DENTSU AEGIS NETWORK Study Coverage
Markets Tier 1 Marketplaces Singapore Lazada Qoo10 Shopee Malaysia Shopee Lazada Lelong/Ebay Indonesia Tokopedia Shopee Lazada/Blibli Vietnam Shopee Tiki Lazada Philippines Lazada Shopee Ebay
DENTSU AEGIS NETWORK Commerce Dentsu Commerce Framework
DENTSU AEGIS NETWORK The Commerce Success Framework
AVAILABILITY
REPEATABILITY
BUYABILITY FINDABILITY Prioritising and succeeding anywhere in commerce
Availability Findability Buyability Repeatability
Where and when Are you easy to Are you better than Is the experience consumers are find and relevant? the competition? engaging? looking?
Position Content Audience Insight Purchase Experience Optimisation Effectiveness
Plan presence and Optimise visibility Optimise product Audit & monitor availability priorities where your audiences listings for purchase reviews and by audience & demand are and ensure you conversion (and sentiment. React can be found organic position) quickly to opportunities Commerce Offering Dentsu Omnichannel Proposition
DENTSU AEGIS NETWORK Omnichannel Proposition
Digital third- Brick-and- Digital Owned Parties Point Mortar Point Properties of Sales of Sales
Ex: brand.com Ex: Lazada Ex: Owned stores, malls
DENTSU AEGIS NETWORK The Product Matrix
Digital Owned Digital 3rd Party Brick-and-mortar Properties POS POS
Availability
Findability
Buyability
Repeatability
DENTSU AEGIS NETWORK Commerce Offering Dentsu Omnichannel Proposition
DENTSU AEGIS NETWORK Building Capabilities
AVAILABILITY Availability
Digital Owned Digital 3rd Party Brick-and-mortar Properties POS POS
eCommerce built: Magento, Prestashop, OScommerce
Marketplaces Management
Inventory Management
DENTSU AEGIS NETWORK How to reach out to consumers
FINDABILITY Findability
Digital Owned Digital 3rd Party Brick-and-mortar Properties POS POS
Paid Media
SEO
Marketplaces Optimisation
DENTSU AEGIS NETWORK How do you stand against competition
BUYABILITY Buyability
Digital Owned Digital 3rd Party Brick-and-mortar Properties POS POS
CRO
Data Feed Management
Propensity retargeting
DENTSU AEGIS NETWORK Repeat & grow
REPEATABILITY Repeatability
Digital Owned Digital 3rd Party Brick-and-mortar Properties POS POS
Email marketing
Marketplaces Marketing
CRM Integration
DENTSU AEGIS NETWORK Measurement Across your lines of business
DENTSU AEGIS NETWORK Measurement across your Point Of Sales
Digital Owned Digital 3rd Party Brick-and-mortar Properties POS POS Web Analytics GA360 Adobe Tag Management
Marketplaces Intelligence
In-store analytics
O2o Intelligence
DENTSU AEGIS NETWORK The Measurement Matrix: Understand what is valuable to your business growth
Strategic Lifetime Value
Incremental % of sales Per Visit Cost Value ARPU Revenue w/ Tests influenced by Media
Assisted Inbound Clicks Conversions Conversion Rate Repeat Purchases Conversions
Recency CTR Page Value Revenue Frequency
Viewability Bounce Rate Path Length Share of Voice
Tactical Impressions Visits
Real Time Weekly Monthly Quarterly 6-Monthly
DENTSU AEGIS NETWORK Case Studies Driving Success in Commerce
DENTSU AEGIS NETWORK Case Study: Nestle Build & Implement a multiband marketplace
The Challenge Approach
Nestlé was looking to implement a multi- Isobar Commerce integrated local brand marketplace website for its Japan payment methods including credit card, market. pay at convenience store, and cash on delivery for the Japan market.
WMS, Reporting, and CRM was also integrated with Nestlé Japan internal systems.
Isobar Commerce implemented complex subscription modules to create convenient shopping experiences.
DENTSU AEGIS NETWORK Case Study: Foot Locker Activating Foot Locker in APAC and planning for long term growth
The Results
The Challenge The Approach % Foot Locker were preparing to enter Our first step was to educate and inform: the APAC market with a combined moving Foot Locker away from their EU 217 physical/e-commerce launch. They business model with detailed Increase in ROAS for HK faced a problem typical of global insights/research around the APAC consumer brands encroaching on Asia for the first landscape. time: a lack of customer data and We then prepared a bespoke launch understanding of market nuance. framework for an initial 3 deployment across % Singapore, Malaysia and Hong Kong. % As such, they required a strategic 24 535 partner with deep expertise across the Ensuring supply met demand was crucial ROI uplift performance spectrum and the scale (especially with Foot Locker’s crowded Increase in MY ROAS on branded 15% impressions terms required to accommodate simultaneous calendar of in-store events and exclusive releases). With this (and APAC’s equally busy In one week market launches. PH schedule) in mind, we strategized a data feed management system for real-time product/model updates – whilst building a digital calendar mapped out to align with physical events whilst full e-commerce capability was being readied.
DENTSU AEGIS NETWORK Case Study: Converse Converse x Lazada Super Brand Day campaign
The Challenge Approach The Results
Converse offers trendy and vibrant As there are 30% commitment targets to hit, sports apparel for both men and channels and creative formats that we women however, Converse products proposed do not incur high CPC/CPM. are easily cannibalized by its popular parent brand, Nike. We launched teaser phase to drive awareness prior to the actual D-day. Creatives were 30% Create anticipation for Converse’s grouped into teaser count down, actual day, Super Brand Day in collaboration and promo discount ads to build excitement to Above target with Lazada, complementing the the consumers and encourage them to add work that will be done through their wishlist to cart for the D-Day. Ad copies performance marketing in 2 weeks were tailored to the creatives and product feeds across 4 markets. to ensure alignment. Achieved Overall GMV target by All traffic are to drive to Lazada MCP CPAS were implemented with Multiple product 30%. Outstanding performance page. feeds created to prevent ads being paused due from Philippines markets, achieved to no inventory. more than double of the GMV target
Quick turnaround during the D-day was important to bring this campaign to a success.
DENTSU AEGIS NETWORK Case Study: Shiseido Dentsu Online to Offline Business Solution
The Challenge The Big Idea The Results
Shiseido needed to understand the Dentsu combined the paid media Smart decision impact form their online buying to data with the Shiseido business their offline business. More than data (CRM, POS numbers, makings 90% of sales were still contributed website, footfalls). by traditional brick & mortar. Media channels, creatives, By leveraging the power of our distribution channels Does online media have an influence platform to match data together, on consumers purchasing journey? we were able analyse, track and Are consumers purchasing after optimize the user journey from seeing Shiseido advertising ? online to offline and attribute back ROAS on both footfalls and ROAS uplift sales to each channel, audiences, creatives. x17
DENTSU AEGIS NETWORK Case Study: Conversion Rate Optimisation Optimise on-site Content to Boost Conversions
The Challenge The Big Idea The Results
Lotte Hotels saw that although it was expanding and To better understand Lotte Hotel’s customers’ paths maximizing site visits, revenue was not meeting to purchase, iProspect created a four-step % expectations. optimisation strategy to ensure effective time % management and performance testing: % Lotte had used iProspect previously to boost SEO and SEM to maximise channel performance, but the 1. Find the point of user drop-off by using Analytics 49 0.9 site visits were not generating conversions – so they 360 data, such as Goal Flow and Shopping wanted to understand what barriers were preventing Behaviour reports. people from making bookings. Increase in Increase in 2. Analyse the page and benchmark competitors to find the cause of the deviation. Booking Rates Total
3. Run A/B tests with Optimize, Google’s integrated conversions CRO tool.
4. Apply the best-performing learnings to the Lotte Hotel site.
Employing this strategy, Lotte Hotel and iProspect tested different site changes which drew the biggest results across four key variables – relocating menu items, changing the booking button colour, and call- to-action, using promo pop-up windows and displaying special fee-less messaging.
DENTSU AEGIS NETWORK