Value Innovate to Stay Ahead of Competition

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E-Commerce Driven Renaissance

Riding the tidal wave of change, logistics providers, parcel providers, courier & express providers and other connected industries catering to e-commerce businesses are flourishing. As e-commerce grows worldwide, posts are delivering more parcels than ever before. IPC Global Postal Industry Report 2018 notes that parcels & logistics are driving the industry growth.

Intensifying Market Competition

A diverse range of players old and new are shaking up the parcels market. Global integrators like UPS are complementing traditional B2B express services with new B2C models. E-retail giants such as JD.com are investing in logistics and flexing their digital muscle. And tech-driven, asset-light start-ups like Deliv are crowdsourcing the last mile. Meanwhile, posts continue to leverage their vast physical presence and dense networks as they innovate, improve and expand their B2C services.

Key Growth Engine

Fuelled by emerging markets and convergence of consumer and market trends, cross-border e-commerce will be a key growth engine for the global e-commerce industry. Multiple reports predict cross-border e-commerce growth of roughly 25% CAGR. As growth of cross-border items outperforms growth of domestic items shipped, knowing local market and country consumer preferences and value perceptions becomes an imperative.

Value Innovation Imperative

Facing intensified competition and rising customers delivery expectations, e-commerce logistics providers must continually value innovate. Value Innovation is the simultaneous pursuit of differentiation and low cost, creating a leap in value for both buyers and the company. Unlike product innovation, which doesn't necessarily have customers in mind, value innovation starts with customers and their value perceptions.

Value Innovate to Stay Ahead of Competition

Value Innovation starts with customer perspective and looks at the Buyer Utility (Map) and how to increase elements of it. Obviously, to value innovate, one must know what customers perceive as valuable. Average customers expectations which shape the value perceptions across countries and drive e-retailers' needs when it comes to logistics and parcel solutions are of outmost importance and the right place to start value innovating.

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SO DIGITAL GLOBAL E-COMMERCE OPERATIONS EXCELLENCE PLATFORM is a management tool that helps e-commerce logistics and parcel solutions providers formulate, evaluate, and improve their e-commerce client value propositions by providing a systematic assessment of competitive performance of post-purchase and delivery performance of leading e-commerce market players across markets.

Who is it for?

Business development strategists and all those who are in charge of growing the e-commerce client business through creation of attractive and profitable value propositions will benefit from our market level research. Heads of operations who are in charge of designing, maintaining and improving high performance business processes will have a 'best in class' industry research to benchmark themselves to.

Having the ability to uncover competitors and market leaders' success strategies by identifying across across which elements they over and under invest gives you a strategic competitive advantage. Moreover, you are able to leapfrog innovation and learning costs by simply replicating relevant elements.

Why is it needed?

Intensifying competition places downward pressures on pricing while rising performance expectations create upward cost pressures. This creates an unenviable position where you need to continuously deliver more with less. This is only achievable through value innovation, which rests on value perception of customer's customers as an input to simultaneous pursuit of differentiation and low cost.

As cross-border e-commerce growth outpaces the local demand, parcel logistics providers revenue will increasingly be attached to this type of business. Consumers' e-commerce post-purchase performance expectations are a cornerstone for tailoring winning client service operations to meet & exceed those.

How is it done?

Trained researches in target countries perform actual purchase of products from target e-commerce market players, recording their every step, while answering standardised scale based scorecard with average 200+ data points to provide insight into comparative performance on market competition defining elements of post-purchase experience : tracking, delivery, packaging (out-of-box), returns & refunds.

With yearly subscription, clients get access to benchmarked country data sets, while also being able to create reports on the platform itself to drive focused learning insights. Reporting module enables comparison of markets, retailers, data points and across completed benchmarks to discover trends.

How do you benefit?

Market by market insight into average customers' expectations from e-commerce post-purchase experience provides you with clear and measurable performance benchmark for creating client value propositions that will meet & exceed those. This will help you tailor winning value propositions to of e-commerce client segment, while also provide you with an opportunity to close any performance gaps.

Competitive industry level performance overview will give you a direction where and how much you need to improve your operations to achieve minimum acceptable service levels within a single market. Knowing across which dimensions market competes, give you an opportunity for growth through differentiation strategies definition & implementation.

How long does it take?

Depending on the number of countries researched and whether it is a standardized or individual client tailored benchmark research average duration of the project lasts up to 3 months. During this time client is able to actively participate and track research progress in the platform. In case markets of your interest have been benchmarked within last 6-12 months you can gain access to this right away.

Once you gain access to the platform through subscription packages, you can use it during the period of one calendar year, after which your subscription and access to the refreshed dataset will have to be renewed. During this period client designated users have an unlimited access to the data and are able to continuously create reports of their choosing.

How much does it cost?

Standard benchmarking contains research results of 20+ leading e-commerce players from a single market. Cross-industry sample usually contains all e-commerce models (marketplaces, pure-players, brands, e-retailers, omni-channel). Access to the standard country research that details into delivery, tracking, packaging, returns & refunds with omni-channel reporting starts at 5000 EUR / year.

In case a client wants to tailor the research so it is more focused on his particular industry and contain additional question sets, standard pricing will be augmented depending on the size and the scope of changes and markets that are researched just for this client. On average tailoring of research criteria (scorecard or industry) entails +30% per each segment.

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Buyer Utility (Map)

The Buyer Utility Map, developed by W. Chan Kim and Renée Mauborgne, helps to get managers thinking from a demand-side perspective. It outlines all the levers companies can pull to deliver exceptional utility to buyers as well as the various experiences buyers can have with a product or service

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eCommerce Logistics Providers' Value Innovation Imperative

07.08.2019

To stay ahead of the competitors, e-commerce logistics and parcel providers, as well as connected industries must continually provide value innovation

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