31 March 2017

How to work with loyalty in order to make every 3rd customer a regular one. Case of Pink Beauty

Maximilian Vali is a head of online store "". He has told what problems he faced in scaling and how they were solved by means of automation. Bonus: at the end of the case you are waited by author’s method of salary calculation from Maximilian.
The online store "" sells goods for nail service. It cooperates with retail and wholesale customers. There are delivery points where you can pick up order by yourself and also to look at goods. The most popular goods are sets of shellac and gel-varnishes. Average order value is 2500 rubles.

Initially, the project worked on the basis of website designer "Nethouse". When sales volume had increased, it became difficult to process orders. There weren’t enough statuses, it wasn’t always clear what happened with this or that order. Besides, there were a lot of manual labor and unnecessary operations. There was no control of managers. It was necessary to change something.

For further scaling, the online store was moved to 1C-Bitrix and connected to retailCRM. Other well-known variants were also considered for the role of CRM, but retailCRM is specifically created for e-commerce, so we had to work out less.

The first thing that we did in retailCRM is a creation of accounts with different access rights for managers and warehouse employees. Each department has its own area of responsibility. For example, a signal to action for a warehouse is statuses "Confirmed" and "Payment received". Employees print invoice from order card in one click, complete and package. Then there comes responsibility area of a manager who ships orders. The offline store has a separate account too. All this makes the work of the project transparent — in a controversial situation you can quickly find out whose is guilty.

Logic of transition from status to status had been determined even before using retailCRM, therefore the matrix of statuses was set up quickly. In the process of working, the matrix was optimized in order to avoid its clash with some triggers. Thus, possible errors or attempts to deceive from the side of employees are excluded in the online store.
Adjusted time limit for being in the status stimulates the staff. For example, order cannot be in the status "New" longer than 15 minutes. This reduces percent of refusals and stimulates employees.

It should be noted that the most part of managers` work occurs in one window — in order card. Calls are made in CRM. This not only increases the speed of orders processing, but also gives an opportunity to understand a conflict situation quickly.
When talking with customer, manager tries to raise an order value. It is important to note that it is not just "pushing". The main idea is to make a purchase more useful. The manager knows which goods the customer looked through on the website and can offer goods also purchased with that item to this order.
Pink-beauty has its couriers on delivery across Moscow. For convenience they are in CRM. In addition to it, integration with Russian Post, Checkout and DDelivery was set up. Directly during the conversation, manager sees delivery terms, its cost, cost price and can immediately tell all conditions to the customer.

Customers that buy goods more than once, have a "Vip" marker. It gives them privileges: gifts and lowered threshold for free delivery. Besides, there is a discount loyalty program — when the sum of purchases reaches a certain threshold, the percent of a discount increases. It positively influences the repeated addresses.
A number of triggers were set up in retailCRM. Operational triggers send letters and SMS with information on order to customers. For example, when making an order or paying for it. Such triggers increase quality of service and reduce percent of refusal. In addition, burden on managers is reduced — customers do not need to call and ask at what stage their order is.
Some triggers increase repeated sales, offering discounts on the next purchases.
Or notify customers that parcel has arrived at a delivery point. Customer receives the letter and SMS and responsible manager is automatically tasked to call to the customer. If the customer does not pick up his order, then after a while he receives notifications again. This is possible due to integration with the Russian Post. The scenario has increased repayment percent by 10-15%.
Now the time of order processing has been reduced in Pink-beauty, that is why the online store processes more orders. Besides, repeated sales have been increased by 30% and average order value has been raised from 2200 to 2500 rubles.

As a head, Maximilian looks at key indicators in analytics every week and every month. First of all, he pays attention to the dynamic of sales, repeated sales, average order value and the number of paid orders.

"Analytics" section helps to calculate salary to employees. Calculation is based on five indicators:

  • Percent of orders transition from new to completed ones. For this percent was developed a scale that brings the difference between good and bad indicators.
  • Upsell. Binding to upsell and not to the total amount of order value was made in order to process smaller orders by employees as qualitatively as large ones.
  • Average time of a conversation. There were situations when managers communicated with a customer for a very long time, because they could not answer questions quickly and tell about goods. They constantly extended calls. Therefore, this indicator is under control.
  • Percent of completed tasks. Tasks are actively used in this online store, so overdue or uncompleted tasks negatively affect manager`s salary.
  • Percent of processed orders by a particular employee from the total number of orders. It helps to reveal interesting patterns. For example, one employee processed 35% of orders. But above-mentioned indicators were much lower. He did not cope with the amount and did not complete deals, that is why he received in two times smaller salary than the manager, who processed only 15−20% of orders, but completed 90% of them.
Maximilian Wali
Руководитель интернет-магазина
We are planning to automate processes of our employees even more so that they would be engaged only in their own task. Sales manager should only sell, logistician should control only deliveries and statuses. Chaos happens not only in CRM, but in minds, if you do not know goals and objectives. How is it possible to demand a task accomplishment from a person, if he does not even know what he should do? Hence, this is a complex question, it is difficult to solve it, but it is necessary in order to realize our ambitions.