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you
before I start I want to tell you that
the presentation is in German but I
understand that so many english-speaking
people are here so my question out to
the audience is who understands German
please raise your hands very many who of
you only understand English
it’s a few one or two so yeah I hope I
do it like this because it’s only two
people who say it’s in English I’m happy
to explain it to you right after oh no
we do it the other way the presentation
is in German anyway so you can read it
and I do it in English alright okay
thank you okay so I know it’s a very
long title that we have here so what it
says is I want to show you how online
shops can increase their return on
investment for over forty five percent
by Google Shopping et al of Facebook etc
only through Product data optimisation
through performance steering and through
dynamic pricing I have only two slides
about what we do because that’s a little
bit important for you to understand
where I have the basis from why I can’t
tell you about these things so if you
have an online shop and you use channel
pilot or any other similar solution you
can go with us on over 2,000 sales
channels globally and at the moment
channel pilot already brings over 3,000
online shops to over 2,000 sales
channels globally
among these are really the biggest
e-commerce players in Central Europe we
have customers like about you bounty
auto cyberport many more
we have also great brands we have like
Olivia a Nespresso etc so very a lot of
a lot of customers a lot of big
customers as well
the product modules that we have and
that’s the last slide on us it’s what we
do is within channel pilot we have five
modules the first is the connection to
yes it’s called a feed engine the
connection to Google Shopping ideale
etc the second module is a marketplace
integration where you can also have the
complete order management etc then
there’s a market price analysis that we
have and based on the market price
analysis you can have a dynamic pricing
module and that all is based on product
data optimization so but that’s really
all about us and now I would like to
tell you what my topic is today and
whatever what LUN wanted to tell you so
first before I made this presentation I
asked a lot of our customers can I get
numbers from you can I share my numbers
because the audience want to wants to
see real numbers and they said Ralph we
like love your tool we are happy
customers since many years we’re happy
to give you references verbally but they
all didn’t want to give me numbers so
what we came what I came up with then is
to say okay we do the following we have
three thousand online shops as customers
we take the 100 of them that are using
our tool in the most intensive in the
best way and among these one top 100
there are a lot of the really big ones
the very experienced ones that have big
teams to work on the ecommerce under
marketing online marketing so now what
I’m showing you today is the five
measurements that these customers do and
what kind of return on investment
increase they could achieve an average
with these single measurements that I’m
showing you by the way
all of the five measurements in average
have increased their return on
investment by over 46 percent and only
to get a picture it’s not companies just
that just started like you know when
they used our platform it was big
companies they have been really really
professional before so that’s only for
you to to judge these results all right
first measurement what was the first
thing that the people do and what did
this result into the first measurement
is about product data optimization so
for you many of you it’s probably
nothing new but if you want to predict
present your products on Amazon on
Google or on Facebook you can do it in
the right way giving the right
information or you can do it in the
not-so-good way and here I have two
examples I’m not sure whether you can
see it but I will tell you anyway this
one example shows it’s not such a good
example on how you would like to present
your product on Google Shopping for
example what they what is not could not
done good here is the brand is is named
twice they are filling words integrated
that there is no no sighs that is
announced or revealed there is no color
or not the right colour that is that is
yeah said and it’s not the right wording
for the gender so in this case it says
men are and what’s what would be the
correct version for Google is to say
heaven so coming to the right side they
used they of course have named the brand
they have have no filling words that
doesn’t help the algorithm for from
Google Shopping they have done the size
they have informed about the size and
they have put down the right color and
they have done the right correct
well gender
the identification which is horrendous
in this context
alright and with this measurement the
first out of five that I’m going to
present alone these hundreds top
customers have increased their return on
investment by seven point seven percent
next one we call this performance
steering so what is it all about the
basis to steer your performance and
that’s nothing new for you is you have
to have a nice and right perform
performance tracking so you have to
track your clicks and your sales by the
way including the cross sales that you
have so what our customers usually do is
they they put all their products on all
channels that they think would be
interesting and after a while they
generated enough clicks and with these
clicks and these sales information that
they have they decide whether they want
to stay on these channels with these
products or not and like this you can
optimize it so let me give you a very
easy example and I really hope you can
all read this so let’s assume it’s a
very simple example but let’s assume you
have an online shop and you place if
your products on Google and you place
your products on ideale
then after one month in this example you
have clicks you have the click costs you
have the revenue from the click for
example if you take the the adidas shoe
you know it has generated over 5,000
clicks over 1,700 click costs and it
generated five thousand three hundred
year of revenue and two thousand one
hundred euro of margin so and this is
why I put the double plus that means
that you have on the first purchase or
the first in this view in the first
month you have already a higher margin
then
click costs so obviously this product
runs really well
so you want to keep it in fourth from
amongst the second example this drilling
machine has 2741 clicks almost 1/4 a
ninth 1,000 year of click cause the
revenue is good the margin is 906 euros
so the margin is a little bit less than
the click costs in average or typically
you would still leave this product on
the channel because very often you
cannot expect to have there yeah well
margin on the first on the first
purchase already so you would also I put
it a plus over there so you know it’s
it’s it’s a good product it’s going to
behave really well in the future as well
so with this kids car it has 329 clicks
150 no of click costs no revenue no
margin so you want to maybe take it out
in the next month and then you have
something which I will also come back to
you later you have some products very
little clicks very little click costs no
sales no margin so you basically don’t
know what to do with it
so this is why I put the question mark
and again I will come to that later so
what happens after one month so if we go
to the second month now you can see that
in this example we the tool has with
some rules and algorithm it has taken
out those products the car the drilling
machine on ideale
and what was it here the t-shirt and
there and the the camera on on ideale so
if you take these products out of course
you get less clicks you have much less
click costs
your hands of help of course also less
revenue but at the end if you compare
these numbers click costs three thousand
four hundred something margin three
thousand seven hundred something the
margin in this second month is better
than the click costs so this is how you
can optimize your business and of course
it’s a very easy example and with this
measurement our top 100 customers could
make a return on investment increase of
over 13% third measurement I wanted to
explain to you it’s the market price
analysis so what our customers have is
they have a clear overview on exactly
what are the prices of the comp their
competitive products on channels like
Google Shopping like ideale like Amazon
like eBay billi Guri and many more so
they can see what exactly is the price
of my competitor for how much do they
offer and this information can of course
be used for to change your price to do
dynamic pricing but that’s the next
measurement I’m going to show you this
information alone even if you say as an
online shop I don’t want to reprise all
the time I don’t want to you know I
don’t want to adapt my prices in the
morning in the evening or the next day I
want to keep my prices I want to be fair
or whatever this means in online and
online sales but even then if you know
that your product is maybe 30% more
expensive than the competitor maybe you
don’t want to list it anymore
because you don’t want the customer to
see that you an expensive online shop so
maybe you can put up rules where you say
I only present those products on those
channels where I really know that it’s
working for at the time that I’m having
that I have a competitive price
so to not be perceived as expensive so
this measurement alone helped our
customers to increase their return on
investment by four point one percent and
now I’m coming to the next one to the
dynamic pricing dynamic pricing means
and I have in this example I’ve put a
very very easy example this example that
I show you basically it has the rule
behind it just be one euro cheaper than
your competition and I will come to a
little bit more sophisticated rules
later but just to show you this easy
example and to make sure that we all
know what we’re talking about
so in this example the glasses of the
dealer one dealer to dealer three are
all more expensive than their own price
in the second row the the ragga of the
balance I think the balance is my own
price is twenty eight so I have the
highest price of this row and with the
chair I am my price is forty nine and
the rest are more expensive so now if I
do what the reprice apply the repricing
rule of I want to be one euro cheaper
than the rest what I what I what we end
up with is we have ninety nine euro here
and remember it was ninety five Yoruba
four that’s one very important point a
lot of our customers tell us how a Ralph
when we do dynamic pricing isn’t it
going to go only down down down no it’s
not it’s it’s not because other
customers are also putting prices up
because of low stock because they need
to improve their margin for many reasons
and then you also don’t want to have a
price of ninety five euro for the chip
for the glasses if you can get ninety
nine and you still the cheapest yeah in
my second example with the balance yes
we had to decrease the price quite
readily
and in this sari and the third one the
49 stays added was before so that was a
very easy role but as I said there of
course you can put any rule into into a
dynamic pricing that you want very
sophisticated one I just make some more
examples so again you could for example
say that we just saw I always want to be
one euro to eat cheaper then there than
everyone else
you could also say for example I want to
be $0.50 cheaper then my two main
competitors so I don’t even care about
the others I will just want to have a
price that is $0.50 cheaper than my
toughest competitors or you could say I
always want to be long my product should
always belong to the three D cheapest
where I know that the devala the the
products are really on stock that is
also something that we can generate this
is information that we can generate for
you this is information that you don’t
very often get from from the partners
officially but we have ways to get that
these information so that’s something
really important and we’re very nice and
you can also say an example see that
it’s not only you want to be one or to
belong to the three cheapest where your
product belongs to the two or where the
competitors are available or the
products are available you can also say
I only want to compete with them if
their shop has very good the Ottoman
kind somebody helped me on that good
ratings right thank you exactly or you
can say I always want to belong to the
five cheapest but never cheaper than
ninety seven euro ten because that’s the
price you have to pay for the product so
you cannot go cheaper and if you put
that you can put additionally you can
say okay if if ninety-seven year
10 is the cheapest I can do and I have
to do it to be among the 5 cheapest I
have several options first I could say I
want to be I want to still list with 97
euro 10 accepting that I’m not among the
5 best and cheapest or I can say I take
the product out because I don’t want to
be perceived as expensive so very
important for me is as I what I said at
the beginning dynamic pricing does not
mean it’s only going down you also know
it at your at your petrol station or
your gas station the price is going up
and down it’s not only going down so
it’s the same in e-commerce and the
second oil in the next and last
information on this one I wanted to give
you is what we see is of course
depending on the channel but to show you
how important it is to be on the top
price-wise is the first the first listed
gets 40 to 75 percent of the clicks the
second list it gets 20 to 45 percent of
the clicks the third one gets 10 to 25%
of the clicks and the everybody else
shares 20 to 30% of the clicks so you
can easily from place 10 to place 1 we
have seen that the sales the revenue has
been increased by 10 from our customers
and this measurement this dynamic
pricing measurement made in our return
on investment increase of our top 100
customers of 11.6 percent
all right now I’m coming to the to the
final and the fifth measurement so what
happened we come back to the example
what happened to this has foul football
trick oh yeah some of you will say yet
we’ll never get clicks it will never be
so especially here in Berlin you will
probably think who wants to buy a house
for t-shirt so basically the question is
you don’t know what to do with it
because in order to know what to do with
it you have to have some historical
information you have to have some click
information and you have to have some
information about the revenue in this
case two little clicks no revenue so
what do you do do you still list the
product or do you take it out in the
next month and with our module that is
called performance strategies you can
for example take the information from
from another channel so in this case
this has found Treecko football Rico has
been had many clicks on a Diallo it has
had also not over 900 euro of click
costs so and then it was sold but only
196 euro revenue only 45 euro of margin
so not very exciting so based on that
information you would probably leave it
out you would probably not put it on to
any external channel but you can also do
other things you can say alright if I
don’t have enough clicks on my football
trick oh where can I get valuable
information from and the other valuable
information is you can say ok what kind
of products could I look at that I have
in my stock for longer where I could
imagine that the the behavior would be
the same so in this example we put a lot
of soccer football soccer trick
socket Rico’s in the air of the first
and second league and we looked at it
and said wow these have nine thousand
clicks three thousand one hundred euro
of clickers and they made eighteen
thousand euro of revenue and forth over
four thousand euro of margin so if you
group the information and you take this
group information and say why shouldn’t
this has whole t-shirt at one point of
time maybe if they’re if their team wins
again or if it goes back to first league
whatever why shouldn’t it sell as the
others and then with this information
you would basically take the decision as
an online marketing manager to keep it
on Google Shopping and then to keep it
on ideale and on of course on many other
channels but this is only one example
how to group you can also group him
because we’re looking with the tool you
can look on each article if you don’t
have enough information and let’s say on
a white t-shirt then you can say okay
let’s look and in a certain size then
you can say okay I will have a look at
all sizes maybe I have enough click
information in say its information then
if that doesn’t help it’s still not
enough click and say its information the
next thing you can do is you can say
okay I’ll look at all colors not only
white but all five or six colors that
I’m offering I take that as a group if I
say oh wow that’s still not good enough
I can say okay what brand is it from so
I maybe take other kind of t-shirts from
the same brand into account and this is
something that you can put in as rules
individual individually into a tool and
you only have to set it at once and
after that the tool will do everything
for you automatically they will always
do the deal in the delisting but you can
also add certain rules and I don’t want
to go into the complexity of that but
you can add certain rules where you say
okay I take the product out because it
doesn’t work but I can I I let the tool
put the product automatically back in if
the price decrease is maybe less or
there’s more than ten percent because
the assumption is if it’s ten percent
cheaper
I will probably sell it
you know so this is I think I don’t oh
yeah that’s that’s one last thing I
wanted to mention what you also can do
with these performance red Jesus you can
black and white list the black listing
means you can you say the the the
products that don’t work you just leave
them and the products that work well you
take them out and the products that work
well the white listing you take but you
can also do exceptions you can say I for
example I got a bad because in sushi oh
so you got I got some extra money from
the brands you know to list all of their
products on all channels and then you
can whitelist them and say although they
usually don’t work within my kpi’s I can
still say list please list all products
of this certain brand and with this
measurements this v measurements our
customers made a return on investment
increase of 10.1%
so thank you very much for listening and
the interests
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