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How Ancillary Sales Can Drive Revenues and Optimize Customer ExperienceSam K.Research Analyst
Confidential
Why Me?
Quantitative and Qualitative Expert
Expert in Integrating E-Commerce with Businesses
Passion is helping you convert challenges to opportunities!
Confidential
Research & Business Objectives
•Does optimizing ancillary sales drive revenues and enhance customer experiences (CX)?
•Highlight challenges in the data
•Recommend how to convert the challenges to opportunities
Confidential
How?What: The project fielded a survey on 159 companies and a100% were completed
Who: CEOs and managers in different industries with responsibility for ancillaries
How: The survey asked about vital signs of ancillary sales and how this affects revenues
and CX.
Confidential
Executive Summary
Ancillary sales are here to stay!
Businesses need to better integrate e-commerce in their websites to customize ancillaries
Businesses need to better understand drivers of CX
Confidential
Key Performance Indicators
Ancillary sales are a priority
Ancillary sales perform well
Businesses need to better understand the drivers of CX
Detailed FindingsAncillary P&S are a Priority!
Critical Priority14%
High Priority49%
Moderate Priority29%
Low Priority8%
How Much a Priority is it to Grow Revenues From Cross-Sell of Ancillary P&S?
Confidential
77% of respondents offer ancillaries through their online channels.
Performance Indicators81% are on or above target!
Well Below Target3%
Somewhat Below Target16%
On Target37%
Somewhat Above Target37%
Well Above Target7%
How Has the Sales Revenue of your Ancillary Products Performed Against Targets outset for this Program Overall?
Confidential
Reven
ue
Margins
Custom
er ex
perie
nce
Innov
ation
Custom
ized o
fferin
gs
Relatio
nship
with
custo
mer
New pr
oduc
t dev
elopm
ent
Compe
titive
diffe
rentia
tion
Other
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
7% 9% 5% 3% 6% 7% 3% 3% 5%
29% 21% 26% 32% 27% 22% 29%22% 19%
46%
39% 41%38% 44% 50% 42%
43% 47%
16%
28% 25% 25%22% 19% 25%
28%27%
Significant positive impact
Moderate positive impact
Neutral
Moderate negative impact
What Impact have your Ancillary P&S Sales had on the Following Areas?
Confidential
Focus
on th
e sale
of an
cillar
y prod
ucts
Broade
n or s
hift o
ur tar
get m
arket
Conve
rting a
high
er pe
rcenta
ge of
web
traffic
Proacti
vely
cross
-sell p
roduc
ts po
st-pu
rchas
e
83%
67%
50% 50%
What Strategies Will your Company Employ to Respond to Decreasing Margins in your Digital Channels?
Confidential
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.450.422764227642277
0.268292682926829 0.260162601626016
0.219512195121952
0.0650406504065041
Companies Test Their Ancillary P&S to Great Results!
What Testing Methods, if any, Do You Use for Ancillary P&S?
Confidential
But… Challenges Exist…
Technology and Other Logistics are Not Easy to Implement
Timing of Ancillaries in Customer Journey
More Engagement Necessary with CX
Confidential
Technology does not allow customization of ancillaries
Getting execu-tive buy-in
No relevant product options
Not enough people who can focus on
this
Lack of budget No challenges No technical resources available
37%35%
22% 21%
18%
11%
7%
What Are your Biggest Challenges in Selling Ancillary P&S?
Confidential
0.472222222222222
0.1944444444444450.1944444444444450.1944444444444450.1388888888888890.138888888888889
0.111111111111111
Why Do You Not Sell Ancillary P&S on your Website?
Confidential
On a de
dicate
d anc
illary
produ
ct pa
ge
In the
shop
ping c
art
On the
side
bar
In po
st-pu
rchas
e com
munica
tions
In ba
nner
ads
Via int
erstiti
al pa
ges o
r pop
-ups
50%
36%33% 32% 31%
26%
Where on your Website Do you Suggest Ancillary P&S?
Confidential
Again… Summary
Ancillary sales are here to stay!
Businesses need to integrate technology to customize ancillaries in the right time and place
Businesses need to better understand the drivers of CX
Confidential
Next Steps…
The CEO or Middle Managers won’t know the CX more than the customers themselves!
Integrate online ancillaries in customer journey more directly.
Companies need to more closely engage with CX.
Confidential