Absolute Online Brand Control
eTailers have developed into powerful marketing organizations that drive traffic to their website to purchase your brand. Many utilize "product-to-product" technologies that take an online consumer from a specific product view at the brand website to the same product view at the eTailer website. The dilemma is that these same eTailers offer competitive products that are compared side-by-side in an environment that does not reflect your brand and ultimately commoditize your products. Keeping consumers at the brand website assures this does not happen. Retailers can be chosen by the consumer to receive credit for the sale.
Acquisition of Valuable Cross-Channel Consumers
Cross-channel consumers buy substantially more than single channel shoppers. By adding online purchasing to the traditional bricks and mortar channel, brands attract and win the loyalty of these cross-channel consumers. Multi-channel shoppers spend more than single channel shoppers. Time Magazine reported that the average single channel shopper spent $591, the multi-channel shopper spent $995. This translates into additional sales for you, both online and off.
Advertising Cost Reduction
A direct relationship between brands, partners and end consumers allows brands and retailers to spend fewer marketing dollars on immeasurable mass advertising, and favor less expensive, more personalized, cogent, and effective promotions to consumers who are more likely to buy.
A Fraction of Build Cost
Reshare has invested over 11 years and millions of dollars into the development of patented C3 business methodologies, software and systems. Replication of our system is not practical for single usage. Ongoing research, development and upgrades continually occur. We leverage over 20 years of channel, commerce and software experience across 32 industries to deliver a reliable, robust and secure solution tailored to your specific needs. All of this is included in a single non-recurring implementation fee.
Automatic Order Renewal
Imagine if consumers received a monthly shipment, automatically renewing their original order on a monthly basis, in tandem with the size of packaging for normal use and resulting in a one month supply. Instead of always logging back in to order every month, your consumer can sign up to receive this order on a monthly basis (autoship). C3 allows for this functionality and manages this auto ordering and auto shipping functionality that ultimately results in a recurring monthly revenue stream.
Building Sales and Brand Loyalty Through Recommenders
C3 can be configured to include "recommenders" and "influencers" as part of your sales channel. People who influence the decision of potential buyers can be financially rewarded for their recommendation. This strategy represents a significant opportunity to build loyalty with these influencers and those they influence.
Building The Distribution Channel
C3 effectively expands product reach to the entire marketplace, nationally and internationally. partners and consumers are able to instantly acquire product even if there are no distributors in their area. Using C3 to build sales in a given area can be used as a tool to attract new partners to existing and non-covered markets.
Business to Business Results
There are new and compelling metrics that show how much money you are losing by not selling online. A 2008 study reveals metrics about selling to Dealers. These, coupled with data from Forrester Research and Gartner Group include:
- 93% use the internet to order products
- 56% use the internet to place orders at least once a week
- 54% spend more with manufacturers who offer online ordering systems
- 34% of log-ins occur after normal business hours
- Order size increases by as much as 30%, with an average of 13%!
- The cost of order processing is reduced by as much as 72%
Capturing the Sale NOW!
Capturing the sale online for offline fulfillment is a proven strategy that consumers desire. Best Buy Corporation reports over 32% of all online sales are picked up at a physical store. Once a sale is made, the consumer is no longer shopping for that item but can be up-sold and cross-sold additional products and services at a physical store. The sale and brand relationship are secure, even though the consumer is likely to be exposed to competitive products once they are at a physical store.
C3 provides incentives for all parties in the channel to work towards collaboration so they can sell more products. Knowing they will be paid for an online sale, each Partner is motivated to refer consumers to the brand's website for any product, style, or color that the Partner may not stock. This increases and enhances relationships across the entire channel and creates a better brand experience for the end consumer. This promotes partners to share consumer data to allow you to improve marketing, which results in more revenue for everyone.
Complete Product Line Availability
Channel partners generally cannot stock, display or effectively represent your entire product line to all buyers and consumers all of the time. However, you can provide access to your entire product line through your website. By doing so, you instantaneously create a world where every one of your partners "virtually stocks" every one of your products. Even though all your products may not be showcased by your partners, consumers can be driven to enquire about the entire line through signage, computer kiosks or the like. Searchable digital catalog and product configuration engine will dramatically increase the ease of defining and selling your product. Orders can be placed in-store online by the consumer or sales associate in real time. This same digital catalog also becomes available to the end consumer 24/7/365.
Creating Partner Incentives
Building business through online sales on behalf of channel partners enables brands to create different financial incentives for different levels of Partner participation. These incentives are often tied to inventory, consumer service levels, and product exposure and should be used to increase product line coverage by partners.
Cross Selling & Up Selling
The brand website represents the only pure opportunity to cross-sell and up-sell consumers the full selection of branded products and accessories without the introduction to other brands. Not only does this represent a vast opportunity for increased revenue, but also mitigates the risks of consumer defection to other brands.
Easy Implementation - Limited Resource Requirements
Reshare's solution is typically installed in less than 21 days and entails less than 10 hours for us to establish distribution strategy, online business rules, marketing and launch plans. Like any eCommerce solution, we require price lists, product database and pictures which typically already exist in ERP or print catalog production files. We also require a list of the brand's channel partners, which typically already exist inside online partner locator or accounting software. Compiling, adapting and sending these lists and files typically take less than 6 hours. Lastly, design decisions and review of a regular shopping cart typically requires less than 14 hour. Our project managers are expert at minimizing the impact on time and resources of our clients and can be tasked to assist in any matter.
Expanding Geographic Market Reach
Channel partners may not effectively cover all metropolitan and rural areas where consumers are. Reaching consumers via the internet will not only serve to increase the brand's geographic reach but also that of their partners. In associating sales with partners, brands provide yet another benefit that serves as a strategic competitive advantage. Brand internet sales statistics can also be used to attract new partners in existing and non-covered markets.
Extended Season and Gifting Ability
Channel partners put a lot of effort into planning their floor and shelf space by season. They are not able to keep products displayed year round. However, consumers want the ability to purchase products that are out of season either to prepare for the next season or to purchase as gifts. C3 allows for all products to be purchased all the time, 24/7/365. This allows brands and their partners to meet consumer demands and offer all products year round.
Gender Specific Marketing
Many companies find a sector of their target market and have difficulty accessing them due to a focus on the opposite gender. As an example women have broadened their interests in outdoor activities allowing a different way to market the same products. Innovative outdoor product manufacturers are capturing this market share by recognizing and servicing these consumers. C3 enables manufacturers to reach all consumers through effective use of their branded website. Researching and shopping from the comfort and privacy of one's own home permits all consumers access to all of a brand's products all of the time. Market research shows that identifying who benefits from products are most likely the same consumers that will buy those products.
Improving ERP and CRM Functionality
Incumbent with the development of eCommerce and order-entry technology that coincides with the implementation of C3, is a highly simplified, robust and intuitive set of web-based interface tools that may be used to improve the ergonomics and usability of ERP and/or CRM applications while still leveraging the power behind those systems. All order entry can easily migrate to web based tools outside of an ERP system.
Increased Sales & Profitability
Forrester Research estimates that about 8% of all retail purchases are occurring online. Gartner Group estimates that about 33% of online purchases are new incremental sales that would not otherwise be realized by the brand through any channel.
Increasing Efficiency Across Distribution Channel
The ability for partners and consumers to electronically automate all of their purchasing activities substantially reduces order-processing costs across the entire channel. Industries have seen cost reductions of as much as 72% and order error reductions by as much as 18% as a result. Moreover, the use of online ordering greatly reduces order-taking time for buyers and salespeople. This frees up salespeople and the brand and partner level to focus more on value-added consumer service and prospecting, merchandising, sales and marketing.
Increasing Product Display Space and Partner Support
C3 enhances the relationships brands have with their partners and creates a collaborative environment where all parties are interested in displaying more brand products more of the time. This places brands in a good position to ask for more floor/shelf/display space and partners can be given financial incentives and rewards through C3 that directly relate to the amount of floor space they give the brand.
Increasing Stock Levels
C3 reporting gives brands the ability to identify SKUs sold in a particular geographic area. This vital information can be distributed to the brands sales force to share with their channel partners during their sales calls. Partners are more apt to stock items they know they will sell and are encouraged to increase stock levels to satisfy demand in their area.
Insight on End Consumer
eCommerce offers a connection with partners and consumers as well as an unparalleled measurability of consumer data and marketing effectiveness. The direct connection brands have with end users through use of C3, and the visibility this provides into purchasing patterns, style preferences, trend analysis, geo-demographic and psychological information, provides brands with strategic intelligence for valuable improvements in marketing, product development, consumer service and feedback. With this information, in advance of investments in design, tooling, inventory, marketing and sales, brands can achieve significant measurable results.
New Product Introduction & Test Marketing
Online sales offers the fastest way for a brand to introduce new products directly to the consumer. Putting new product on the brand website allows brands to move faster than through traditional current channels. Brands can market new products and new accessories directly to past consumers who have shown an affinity for the brand and then utilize that information to help retail partners make their merchandising decisions.
Online Education, Enrollment and Testing
One source of revenue that is difficult to manage are fees for education of brand and products, enrollment to seminars and testing. C3 gives brands the ability to have these items as a choice in their online catalog. During checkout all pertinent information is received as well as payment. Brands can capture revenue to share with partners and develop data on consumers to use for future programs.
Online Only Services
Selling from the brand website creates an opportunity to offer services that partners may be unable or unwilling to provide such as extended warranties, financing, frequent-purchaser rewards, and incentives and promotions. This makes it easier for consumers to purchase products, create and reward brand loyalty, and increase sales for everyone. It also provides partners with powerful selling tools that they can all utilize by driving the consumer to the brand website, either at their home, or an in-store kiosk to help close a potential sale.
Parallel Opportunities for all Partners
Powerful brick and mortar distributors and retailers have seen erosion of market share by strong eTailers who do not provide the same type of service or support that these distributors and retailers do. C3 provides a parallel opportunity for all partners regardless of their technological capabilities. C3 also drives partners to perform services incumbent with their role in the distribution channel, the most important of which is building relationships between consumers and the brand.
Preventing Brand Degradation
When brands are offered for sale on non-brand websites, the branded experience becomes that of the partner, who cannot effectively represent any single brand experience when multiple brands are available. Nevertheless, it is in the best interest of both the brand and their partners that the brand message is well communicated. Sophisticated partners do this better by creating stores within their websites but branded products can be greatly degraded with a corresponding decrease in perceived value by partners without sufficient capital and sophistication to do so Selling online with C3 assures brands are upheld while partners maintains their relationship with consumers.
Preventing Brand Substitution
Partners cannot effectively carry every product a brand offers any more than brands can effectively serve all of a partner's consumers. However, the most compelling research surrounding product loyalty shows that partners who try to convert brand-loyal consumers to alternative brands are at high risk of losing the loyalty of the consumer. In one of many examples, Ralph Lauren consumers take great issue with retailers who try to offer competitive brands when size or colors are unavailable and often defect from retailers that do not carry sufficient depth of the brand. So, while partners are compelled to try to get consumers to purchase anything in their existing inventory, the better solution is to serve the consumer by offering them the product they want. This can be easily achieved when brands offer their entire catalog to consumers through C3 eCommerce. Now, consumers not finding what they want at a partner location can be directed or assisted to order precisely what they want from the brand website while still at the partner location, with the partner having full knowledge they will profit from the transaction and deliver superior customer service while doing so. In 2008, Federated Department Stores reported over 54% of consumers leaving their store without buying what they came for because the product was not available.
Counterfeit products sold through distribution channels and unauthorized outlets are devastating to brand revenue, perceived value and long-term reputation. By selling products at the branded website, consumers are assured product authenticity.
Preventing Consumer Defection
The most intuitive place consumers look for branded products is "yourbrandname.com". Research shows that over 58% of buyers look to the brand website before making a purchase decision. By offering your products at the brand website, brands serve the needs of all types of partners and consumers, who are less likely to use search engines to find competitive products and are never exposed to competitive products they will find on partner websites. The cost of a lost sale is astronomical when it means the defection of a long-term consumer. A Harvard Business School analysis of over 100 companies in twenty-four industries showed that a 5% reduction in defections translates to a minimum increase in profits of 25%, with some companies seeing close to a 100% profit increase.
Preventing Product Diversion
By offering product at the brand website, consumers are assured of product quality, performance, reliability, authenticity, service, support and warranty. Ironically, product diversion usually begins in response to consumer demand. Diverters look for the opportunity to serve the market in a way that is currently not being served. This initially begins by offering product through underutilized channels, however, as diversion increases, price competition does also, resulting in lower prices. Diverters then seek even lower cost of goods through salvage, liquidations and counterfeit product.
Preventing Retailer Retaliation
In a letter to over 5000 of their vendors, Home Depot wrote "You can sell through whatever channels you like, but we have the right to be selective too. We might hesitate to do business with our competitors". Similarly, Michael Gould, CEO of Bloomindales said "I'm concerned whenever there's an erosion of brand. Once an upscale brand goes into mass-discount distribution, it's over". Macy's and JC Penney planned on terminating Levis when they began selling online. In the end, Levis ended up being sold online exclusively through Macy's and JC Penney to the detriment of their other retailers. By including retailers in profits from online sales, brands mitigate the risk of retaliation against that occurs when selling around them.
Reduces Loss, Theft, Damages and Warehousing Demands
Products shipped through multiple tiers within a distribution channel are subject to loss, theft and damage. Warehouse space, security, climate control, management and insurance costs apply to every item. Utilizing C3 results in a significant decrease of these liabilities when reducing the number of tiers handling a product or shipping products directly to the end user.
Reducing Non-Performing Inventory
The reduction of non-performing inventory and overstock ("NPI") can be a significant challenge. Liquidation of NPI erodes brand value for all products. C3 provides brands with a vehicle to market and sell NPI to the entire marketplace, at both wholesale and retail levels, in a manner that does not harm the brand or diminish the perceived values of the rest of branded products. NPI sold at the brand website will command more dollars in conjunction with regularly priced products than through other means.
Return on Investment
A strong return on investment for brands and their partners can be realized through many quantitative and qualitative factors. First and foremost, ROI is delivered through additional sales captured by new consumers, increased sales conversion and increased order size. ROI is further enhanced by ordering efficiencies realized through electronic processes. Lastly, maintaining or improving brand equity, preventing consumer defection and expanding product breadth, depth and geographic reach all have a positive effect on the ROI.
Special Order System
Special orders are costly and time consuming within the retailer/dealer environment. The purpose of special orders is to get the consumer what they want, however special ordered products create more handling, paperwork and errors resulting in complaints, complications and lower profits. Utilizing Reshare C3 capability enhances, streamlines and simplifies special ordering. The order is placed at the brand website, shipped directly to the consumer's desired location, and credited to the partner. Partners, through the brand website, has access to the latest products, product info and in-stock information. Gander Mountain reports that the human costs associated with an average special order exceeds $72! Reshare's process changes special orders from potential consumer dissatisfaction to a competitive advantage and source of superior consumer service.