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Timothy Lorenz

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CUSTOMERS
DELIVERING TO THE
OMNICHANNEL
CONSUMER
Timothy M. Lorenz
Vice President of Operations
PetFlow.com
WHAT DO CUSTOMERS WANT?
SERVICE
SERVICE
CUSTOMER SERVICE
STANDARDS
•
Thorough vetting of outsourced call center; current
call center selected by President of Company.
•
Rigorous Training Process for agents with less than
50% Acceptance Rate; sign-off by PetFlow; Tone is
important!
•
Aggressive Service Level Agreement—85% of all calls
answered within 45 seconds.
•
No more than 5% abandonment rate.
CUSTOMER SERVICE
Churn Prevention Case Study
• What the Customer Sees:
•
Self-service tools allow
customer to see program
contents and schedule.
•
Attempted cancellations
prompt conversation with
our CS team.
Clicking ‘Cancel’
provides
customer with
special 800
number which
goes to the front
of our queue.
CUSTOMER SERVICE
Churn Prevention Case Study (Part 2)
• What We See:
•
PetFlow staff instantaneously have access
to calculated profit data at the transaction
level.
•
In addition to the basic service we provide
(help estimating & calculating food needs),
front-line reps are authorized to offer
customers repeating discounts.
•
Discounts are calculated in our Data
Warehouse. Accommodate shipping,
fulfillment, packaging, and most recent
Financial COGS.
• The Results:
•
20-30% of attempted cancellations result
in a save.
•
Reps can both process the discount and
send confirmations to the customer
seamlessly from our back-end platform.
CUSTOMER SERVICE
PROCESS ENHANCEMENTS
•
Weekly “Fireside Chat” with Agents and Executive
Management.
•
Technology key player in developing Consumer
Experience on Web Site.
•
Several enhancements to reduce wait time for
customers and decrease Average Handle Times.
•
Integrated return label creation process for agents to
better serve the customer and reduce wait times.
CUSTOMER SERVICE
“Our agents act as the face, eyes, ears and voice of the
company. It's incredibly important that we in turn
listen to everything and anything they have to say. Our
agents have a huge impact on how we shape our
website and our services. I'm not sure this is a
common practice by all companies, and the ones that
don't use their agents as a mine for data and feedback
need to start doing it.”
Cody Flaherty
Director of Customer Experience
PetFlow.com
WAREHOUSE OPs
STANDARDS
•
Primarily Temp Work Staff allows for flexibility to
increase order volume based on customer demand.
•
Increased Productivity by almost 20% through both
system and process enhancements. Shifted more
difficult orders to Day Shift. Allowed more success
for both shifts.
•
Improved corrugated stock and dunnage along with
additional packing accessories to reduce damages.
WAREHOUSE OPs
How a Marketing Strategy Paid Big Dividends in the Warehouse
% of Customers 1 Yr Break Even
% of Customers <$-10 CLTV
100%
Once Bad, Always Bad
90%
• Nearly Zero Break-Even
Customers Below $20
• Disproportionate Amount of
Losing Transactions
• Major Drain on Resources
60%
80%
70%
50%
40%
30%
20%
10%
0-5
5-10
10-15
15-20
20-25
25-30
30-35
35-40
40-45
45-50
50-55
55-60
60-65
65-70
70-75
75-80
80-85
85-90
90-95
95-100
100-105
105-110
110-115
115-120
120-125
125-130
130-135
135-140
140-145
145-150
0%
$ Value of First Order Including Shipping
WAREHOUSE OPs
Checkout Minimum: PetFlow’s Velvet Rope
$17: Magic Number
• Too Small to Make Money
• Fulfillment Costs
• Non-Recurring
• Paid Shipping
• How About Customers?
• Do Good Customers
Place Bad Orders?
• NO!
WAREHOUSE OPs
Maximizing Revenue
Revenue Went Up
• Checkout Conversion Down
44%
• Basket Size Up 1.6X
• Subscription Baskets Up to
20% of Baskets (from <5%)
• Aggregate Revenue per Visit
Improved by 20%
Order and Revenue Distribution
100%
80%
50% of
Orders >$25
60%
31% of revenue on
orders over $55
40%
20%
0%
$17-$25
$25-$35
$35-$45
$45-$55
$55-$65
% of Orders
$65-$75
$75-$85
% of Revenue
$85-$95 $17-$25
>$105
WAREHOUSE OPs
Enhancements
•
Additional Packaging Supplies to ensure that
customer’s treats don’t get separated or broken.
•
Increased Productivity has allowed us to release
orders to floor until 5pm and ship same day.
•
Improved attention to Inventory and Not Holding
customer orders for backorders more than 24 hours
has increased on-time shipping.
SHIPPING
Standards
•
All shipments are sent FEDEX @Home Delivery
Service.
•
All Orders over $49 ship free.
•
Shipping from East and West Coasts and Zone Skip to
Midwest gives all customers fast delivery.
•
Continuing to look at ways to increase the number of
same day shipments by targeted truck loading to sort
facilities (mini zone skip).
SHIPPING
SELECTION
• Over 10,000 SKUs
• Over 300 Brands
• Most sought after Premium
Quality Brands
Value
• Free Shipping on Orders Over
$49.
• $5.95 flat rate shipping for all
order under $49.
• Delivered to Your Door.
• Competitive Pricing.
WHAT DO CUSTOMERS WANT?
SERVICE
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