Operations in an e-commerce company: how your operations affect your service level
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The document discusses key operations considerations for an ecommerce company. It outlines that 80% of daily operations involve supporting customers, inventory control, delivery, and order fulfillment. An effective system is needed to track orders from purchase to delivery. Maintaining a high level of service quality across merchandise, delivery, and customer support is important for long-term success. Key performance indicators should be monitored, including sales metrics like conversion rates as well as service metrics like response times. Customer happiness should also be directly measured through surveys to calculate a "Customer Happy Index" that aims for a score of 100%.
Operations in an e-commerce company: how your operations affect your service level
- 1. ì Operations in an ecommerce company How opera)ons affect your service quality? Huynh Ngoc Hung Current: Managing Director of Nava.vn (a child company of NCT Corp) Past: Managing Director of Vinabook.com, 2011 E-‐commerce Director of PNC Corp, 2010 C.I.O of Muaban.net, 2008 CEO of EPI Vietnam, 2005 (sold) linkedin.com/in/hunghn July 2012 – Ho Chi Minh City, Vietnam
- 2. What can you find in this slide? Essen)als of Maintain KPIs that Measure ecommerce your service you must your happy company level have customers
- 3. So you think opening an ecommerce (B2C) company is all about crea)ng a website that sells stuffs ? Think again!
- 4. Define of ecommerce Don’t forget e-‐commerce consist of electronic and Electronic Commerce commerce! 80% of daily opera)on of Merchandise an ecommerce company Website is about support Inventory customers, inventory Marke)ng control, delivery, order Logis)cs fulfillment… Online channel Order fulfillment
- 5. Essentials of an ecommerce company These are what you are going to face on daily basis. Website Marke)n Merchan g dise B2C Logis)cs E-‐commerce Catalog company Customer Inventory support Order fulfillmen t
- 6. System that works Your system should be able to answer on simple customer’s ques)on: Logis)cs “Where is my order now ?” Your system should be included: Wareho use 1. Storefront (Point of sales) 2. Customer rela)onship Website management (POS, CRM) 3. Warehouse management 4. Logis)cs management 5. Others: Accoun)ng, marke)ng tools, HRM…
- 7. Your order fulfillment process • Confirm order “How long does it take from Receive • Collect payment placing order to receiving the order • Post-‐process order package ?” • Item in stock Time consump)on Prepare • Collect item from package suppliers • Packaging • Delivery team • 3rd logis)c Delivery supplier • Cash on delivery • Refund order Ager-‐sales • Return item support • Warranty
- 8. Service level in ecommerce Opening an ecommerce is easy. Increase and maintain your service Delivery level is extremely hard and always maintain in Customer the long-‐run. Merchandise support Service level
- 9. “Maintaining service level should be your strategy in the long-‐run and that’s the way you keep the company opera)ons staying in high efficiency”
- 10. Maintain your service level • Does your merchandise have sufficient descrip)on ? • Is your merchandise ready in stock ready when Merchandise customer need it? • Does your merchandise meet market demand? • Is your package delivered on )me ? Delivery • Does your package remain intact when arrive? • How suppor)ve is your delivery team ? Customer • Does your self-‐help support system useful ? • How fast, accurate and friendly is your CS agent? service • How is your return and refund policy?
- 11. KPIs in ecommerce Some KPIs that an ecommerce company must have: Sales Service KPIs Sales KPIs KPIs 1. Visitors per day 2. Sales conversion rate Custom 3. Average order value KPIs Service KPIs 1. Average response )me per )cket 2. Average delivery )me per order 3. Rate of return/refund order Control your business via KPIs Custom KPIs KPIs depending on your business
- 12. “If you know the percentage of sa)sfied customers, your opera)on management is good. No majer what it is low or high. ” “If KPIs are about how your operate the company, CHI is about how happy customers are”
- 13. Customer Happy Index (CHI) Introducing Customer Happy Index (CHI) – represents for percentages Call random of customers who are happy about customers your service Maintain Service level is keep the Ask in Send email CHI as close to 100% as possible every self-‐ ager order help page comple)on Ask simple & easy to answer CHI ques)on. For example: measurement Ask in Survey ager How do you feel about our service ? every placing email order footer Survey on first page Happy Acceptable Unhappy
- 14. Thank you for your ajen)on! Are you happy with the presenta)on? Very Happy Happy S)ll Happy