Virginia Gordon
Hi everyone. We're just going to be starting in one minute, give some other people time to jump on and we'll kick off at 10:01.
Virginia Gordon
All right. Let's get started. Thanks for joining us today for this webinar, where we will share some learnings on how to win and increase customer lifetime value on Virginia Gordon, the Alliance and growth manager at StoreConnect and I'm your host. So today we'd love your questions and I'd just like to direct you to the Q and a section. So there's the chat button and then there's the Q and a one. If you could pop any questions you have into the Q and a, and we'll answer those at the end, we have three great speakers joining us today, and I'll just introduce you to them briefly. So we have Chris horn, regional vice president of ISP sells itself fools Chris leads, best Salesforce app exchange business for APAC, a commercially astute technology seven business later with 17 years of experience across a range of marketing product sales channel, and general management roles.
Virginia Gordon
Thanks for being here, Chris, Mikel Lindsaar, CEO and founder of StoreConnect. Mikel has a passion to bring e-commerce 3.0 to the market and help small to medium businesses everywhere achieved their expansion goals. And finally, Alex Colvin, CEO and founder Pendula as CEO, Alex creates and manages both the vision and mission of the business. Alex believes that pendulum is prom to be a benchmark platform. And the business's focus on customer retention has been transformative for many of the company's clients. So without any further ado we'll kick off and I will hand over to Chris horn to kick off today's webinar. Welcome Chris.
Chris Horn
All right. Thanks, Virginia. And yeah, thanks for pumping up my tires with that very generous introduction, much appreciated, but so that just a couple of really brief comments really before Virginia, Alex and Mikel dig into some, some really great content for you all. And first off, just want to give a bit of context to the app exchange partner program for StoreConnect and Pendula are a really key part of, so I expect probably many on the call are aware that the Salesforce app exchange look it's basically the world's biggest B2B app store. And I think sometimes the best comparison is with your iPhone, you know, and so I think we all know the iPhone itself is great technology, but of course it's really the app store and the apps on there that really bring the magic to your iPhone. And it's exactly the same with the app exchange.
Chris Horn
So Salesforce customers of course do a lot with our products directly, but they really come to the app exchange to find solutions which can further extend on Salesforce with really specific and very exciting capabilities. So I think it's great that we've got two very aligned partners like StoreConnect and Pendula collaborating as for you as the customer or potential customer. You can utilise apps that are built ultimately on the same platform that have all the security credentials of Salesforce, they integrate fantastically well. And of course there's thousands of other apps. You can also access to build out your own ecosystem for your business. So that's a quick bit of context there on the app exchange. Secondly, I just want to say that the theme of today's webinar is a topic that we're very passionate about at Salesforce. Of course, given our focus on customer success.
Chris Horn
And we actually see some really interesting data points around retention and customer lifetime value in some of the studies and research that we've done. And just to share one or two of those, for example, the likelihood of a brand new lead converting to a customer, plenty of hard work is usually five to 20%. Whereas the likelihood of an existing customer converting into a repeat customer is more like 60 to 70%. And of course there's a range of significant cost benefits that come with that as well. So I think it's a really important theme that the teams are focusing on today. And finally, I just want to say that we're seeing Pendula and StoreConnect to do amazing things in the Salesforce ecosystem. We hear great feedback from their customers - they're fantastic partners. So I feel I have some great expertise to share with you in the session tonight as well, so looking forward to that. So that's all for me, I'll hand back to you Virginia, to move us into the next section.
Virginia Gordon
Right? And now I would like to introduce Mikel Lindsaar, who is going to share some information about StoreConnect
Mikel Lindsaar
Right. Thank you very much, Virginia. And thank you, Chris, for that introduction, definitely working with Salesforce and building StoreConnect on top of Salesforce has created a situation where we can partner with other ISV in the marketplace to really generate a one plus one equals three type of solution. The ability for us to integrate with these other platforms and services directly via Salesforce, without any complex API integrations and constant things that you need to monitor and maintain and keep up to date, really leverages the ability of our clients to help their customers. And at the end of the day, that's really what we're all trying to do. Obviously we're in business - we are trying to sell something. But the reason that we're all trying to sell something is we want to give something to our customers that's of value. They're going to exchange money back to us or support in some way to then everyone wins, right? You don't want a situation and no one's in business for not having that reason. You know, we want to help our customers. We want to help everyone grow and expand. And really StoreConnect came out of this idea. About five years ago, we were looking at the marketplace and we're in this situation of really e-commerce 2.0 and the very complex mess of what is the existing scene of 2.0. So next slide. The existing scene, if you look at what commerce 2.0 is right now, and when I say 2.0, I mean, there's basically three versions of e-commerce at the moment. So e-commerce 1 was everyone just proving we could get online that was Amazon and eBay and all those sorts of things starting. And then e-commerce 2 is where we've been for the last 20 odd years, 15 years, and an explosion of tooling has come out of that, which has been great in terms of getting a lot of people online.
Mikel Lindsaar
And a lot of people active and everyone being able to sell a t-shirt and do what they need to do, but it comes at a cost where a lot of your time as a business owner or a partner who helps businesses do this sort of thing, a lot of your time is spent convincing computers that they should talk to other computers. And that's not a valuable use of a person's time. You know, I, we spoke to one customer who was spending $10,000 a month on Zapier, just trying to keep all their systems, talking to each other in a complex mix. So this situation that we find ourselves in right now needs to change. There needs to be a bit of a unifying structure around how do we communicate between all of our systems and how does a customer come in at one point on this map and exit another point on this map in a seamless manner with a single source of truth and an ability for you as a business owner, to be able to help that customer through that journey.
Mikel LindsaarI know that everyone on this call would have experienced a situation. And I mean, Alex, you probably have too, where you've got a, you call a call centre and you're talking to someone there and they don't know that you just bought something or they can't find your record, or they don't know that you just spent an hour and a half on the phone with another support agent because the systems weren't talking to each other, you know, they're not looking in the right system. You're spoken speaking to the support desk or in the support system and the call centre and the call centre system. And nothing's integrated. So that's a, that's a real challenge.
Mikel Lindsaar
How do we fix this? Well, what we do is we move into the next phase of e-commerce and that's e-commerce 3.0 and that is a greatly simplified structure. And if we go to the next slide, e-commerce 3.0 is all about unifying that data into one platform. Well, there's two, two key points on e-commerce three point, unifying it all into one platform and that you own your own data. So as a business owner, as the marketing manager, as the person in charge of sales, as a partner who is helping a company achieve those things, e-commerce 3.0 gives you that capability of just having everything in one platform, all of that truth in one point where you can go in and look at a customer, and you can understand that they've bought these five products, that they're on this subscription, that they've had three support cases in the last two months, or maybe you're looking at some of the positives like this customer has now spent more than $5,000 with you in the last year, and that should put them on a higher status level with your organization or any other combination of these things. You really want a system that ingests all this data and has it in one spot. And that's what StoreConnect plus Salesforce lets you do. It allows you to pull in that information into one location and just view it as what it is.
Mikel Lindsaar
So before I go into how we can work that with Pendula, I just want to give you a bit of a brief understanding of what StoreConnect itself is, so that you can see how we supply e-commerce 3.0 on top of Salesforce. So let's go into the next slide where we talk about the one system. So StoreConnect is a complete e-commerce content management point of sale system, supports multiple storefronts, shipping and inventory, subscription management, appointments and bookings and multiple currencies. And all of that is contained in and on the Salesforce platform. So when you're running your StoreConnect environment, you've only have to log into Salesforce.
Mikel Lindsaar
And then within Salesforce, you've got everything you need to make it happen. And with Pendula, Pendula plugged right into that as well. So not only are you able to handle your e-commerce environment, but you can run your website, you can run multiple storefronts, you can run your point of sale. Forward-looking statement, the point of sales coming within this year, but it will be a free upgrade for all customers, but all of that can be managed from that one environment. And when, I mean managed, I mean that you don't then have go and buy a Shopify store or WordPress site or Magento. You can turn all of that off. And all you end up with is just one screen to manage your whole business. And this is one of the reasons why StoreConnect and Pendula have actually gotten together on this journey. Alex, I mean, with Pendula viewpoint on being able to manage all this data, you guys actually, I think reached out to us initially talking about how this could actually benefit some of your customers, cause you're running into the problem of that multi API issue. Was that something that you guys were doing?
Alex Colvin
Absolutely. Mike and you know, the, the key thing here is we look at these webinars and what we're trying to share them with everyone. First up Salesforce backing this, and really, you know, priming us not only as a business, but also, you know, getting our word out. You know what we're seeing this environment now where there's these excellent solutions that are coming out that are solving real world problems. This isn't a problem that's existed in the past. This is things that are, that are coming up as the, the world is evolving. We saw StoreConnect as, as something that was really primed to really disrupt the retail industry and particularly addressing some of the key challenges that people in the retail world have just gotten used to. And what we're hearing stories that, you know, from some of the clients that StoreConnect has, and that Pendula has where people have just become so accustomed to incredibly slow changes to a store front on the web, to very inherently manual and disconnected inventory management and fulfilment processes.
Alex Colvin
This is a isn't even getting to the layer of how you can then take what you've built and all the IP that you've established from understanding all the interactions with your customers, and then actually leveraging it to do something better. But before we even get to that, just the challenge of, of running the business in an efficient and effective manner. Now that's what StoreConnect is just nailed from day dot here. And, you know, if we think about what's the main prime that we're looking to solve here, you know, we're not making outlandish claims that we're trying to change the world and make it a better place, where we're just taking away some of those really basic pains that, you know, in an individual silo basis really don't account for a lot. But when you scale it across a massive business that has multiple e-commerce platforms and multiple geographies, product lines, whatever it would be becomes a huge cost to a business. I've been able to then leverage technology to make that better. You know, you're priming yourself for a lot of success. And honestly, with very minimal investment, you're effectively gaining a competitive edge over your, you know, you competitors in a fairly fodder ecosystem.
Mikel Lindsaar
Yeah, that's right. And I think, you know, that is a key point where you mentioned before. StoreConnect on top of Salesforce, isn't a 35% or 30% better platform than Shopify, just from a single shop point of view, right. It's not like we've reinvented e-commerce, that's really not what we're trying to do. What we're trying to do is allow you as a customer, when you spend time on your e-commerce, you can do it once. You don't have to do it in Shopify and then in WordPress and then a support system, and then in marketing system, and then on all of these other platforms and try and pull it all together. We're focused on our customer's time, right? And if we can improve the amount of time or reduce the amount of time that our customers spend managing their e-commerce environments - and some of our customers have incredibly complex e-commerce environments, I'm actually going to show one in just a minute, one of our favorite. But if we can reduce the amount of time that they need to spend on managing all of this, then they can re-target their focus on how do we generate more of it.
Mikel Lindsaar
You know, we had one customer we'll speaking to just last week or the week before that just signed up. And she was in a situation where she was spending almost all of her day, just trying to keep the pricing up to date across her point of sale website and internal sales system. They have 25,000 skews and it kept changing and different discounts for different customers. And her basic full-time job was just trying to keep the pricing up to date. And she couldn't even get to that because it was just too complex. And when we showed her how she could do StoreConnect to do it in one spot within Salesforce, and then everything's just up to date, she almost fell off her chair. You know, it's, it is this assumed, well, we're going to have to spend all this time making the computers, do what we want, as opposed to getting the computers, to do what we want, you know, from a fundamental point of view.
Mikel Lindsaar
So let me show you this idea of, of a single customer view. And this is one of our favourite clients. He actually was on the call, so he just dropped off - oh there he is. So we Playbill. If we go to the next slide, Playbill actually have a case study on our website, but they do merchandising across lots and lots of different brands. And if you've been to Hamilton or Harry Potter or Frozen, or Moulin Rouge, or Six on Broadway or Mary Poppins; it's happening down at the State Theatre right now, and you purchase something from the event, you are Playbill - the merchandisers of that, they supply that merchandise. And what StoreConnects’ provided for them is they have these multiple storefronts and you can see the case study on our website. If you do want it, contact us; we'll send you the link. But they have all these different websites, but they can get a single view of the customer. So they, as a merchandiser can understand that this person who's writing in a complaint for some reason on Hamilton, where they, they might've received the wrong item, or it's late, or there's a shipping delay due to COVID or whatever's happening, right? The customer support person can see that actually this customer has bought something from every musical in the last nine months. Like, they're a key customer for us, let's not lose them. They're creating lots of revenue for us and helping us and working with us and really being part of our journey as a business. And they can provide the appropriate levels of support to that customer and really say, ‘Hey, thanks for being a long term customer. Really appreciate it. Look, we've handled it. This is what's happening’, blah, blah, blah. And from a customer point of view, they get the validation that they know that the support team knows that they are an important customer. You know, sometimes as a customer, you don't necessarily expect or want, you know, crazy freebies or whatever. You just want to be acknowledged that you'd spend a lot of time and your resources and your hard earned dollars with this company. And give me some acknowledgement around that. And that for example is a moment of truth, right?
Mikel Lindsaar
So we've got these points and Alex is going to talk about moments of truth with Pendula and how that can work together. But this point of a support call, well, that's a bit of data and you can act on that. If a customer has called him with a complaint, it's probably not the best time to send them a 10% off offer for a new promotion campaign, right? So you want to be able to time these things and coordinate these things with moments of truth, and that's where Pendula comes into it. And that's how we can use things like Pendula with our single customer view. Next slide.
Mikel Lindsaar
So as Alex pointed out, it is all about time, well spent. We want our customers to be the person pushing the ball, not trying to put their full effort into moving that big square of systems along. We really are after making sure that our customers can just get in there, get what they need, get it done, produce the reports they need, have all that data in one spot. And, you know, we're working in and constantly improving the platform and we'd love to get your feedback and examples. But we figure that if we can make or make a system that allows you as a customer to spend your time, well, you're going to then be able to have a lot more time to expand your business and grow as opposed to sitting up at 5:00 AM wondering why one of your APIs is not talking to another one of your API APIs. So next slide. I think the key thing before I hand over to Alex here is StoreConnect is about creating one source of truth. And it does that by being on top of the Salesforce platform. So the Salesforce platform allows you to do all of your inside sales, your online, StoreConnect sales via the StoreConnect website, plus very soon, your point of sale retail sales, all within that one platform and have that single source of truth of every customer. So when someone eventually buys something from your website, then calls up your sales team to ask about that purchase. And your sales team realise that they're a high value customer and convert them into a business account. They can then sign back into your StoreConnect website and have their own business pricing, which has been approved through a workflow in Salesforce, where the manager is approved. This person gets this level of discount, that's all then available within Salesforce, so there's no confusion about what process person's paying when that person walks into your retail store and the cup, the agent pulls up their name on their point of sale terminal, they can see that same pricing for that customer at their discount pricing, or maybe it's different discount pricing for the retail store. But on top of all of that, every interaction that comes into Salesforce from that customer - be it a store sale, be it a online phone call sale with a sales rep via a website purchase. All of that data is funnelling back into Salesforce and creating a single source of truth, which then leads us to moments of truth. And to explain what moments of truth are, I'll hand over to Alex and we'll go through his slides.
Alex Colvin
Beautiful. Thank you, Mikel. Very much appreciated. And again, thanks for all the audience for joining today. Let's just take a step back here and let's just kind of visualise where we're all at on, on this journey. Now I'm appreciating that, that some of us may be in the process of considering to use Salesforce and or StoreConnect there, you know, e-commerce platform, but it's, it's a broad assumption here that everyone here today in some way, or form it is, is already using some kind of e-commerce platform. Now what let's find ourselves in a, in a state of Nirvana here where we've, we've figured out all of our sources of truth. We've got all of our data in one place, and now we know what's happening, and this is a really powerful place to be. Now, of course, we need to maintain it, and we need to ensure that the systems can stay on track, but really what we've then done as, as a business, as a, you know, as an e-commerce retailer, we've found ourselves in a situation where we have been able to consolidate our view of the world to make effectively data informed decisions, to affect things within our customer life cycle.
Alex Colvin
Right now, if we look at today and if we just go to the next slide there, if we really think about what a moment of truth is, a moment of truth is something that you only will ever know about if you have all of the information that backs it up. So StoreConnect gives us that information. Now that we have, that we find ourselves in a very unique situation. And that is where we can engage with customers to affect one ultimate goal here that is to increase the revenue and overall profitability of our businesses. Now, we are going to talk about this later today, and that's specifically around one ratio that is important across every single industry. It doesn't matter if you are an e-commerce retailer, if you're a telecommunications provider of your energy utility, if you are a bank - it doesn't matter. All of the same goals that you're driving lead to one ratio that that is by far the best measure of business performance, and that is customer lifetime value.
Alex Colvin
Now, if we think about that in its broadest sense, what are we really trying to do here? We're trying to increase the value of our customers. Now simply put, how do you increase the value of our customers? And this isn't going to be new to anyone here. It's all about value realisation. So a great example of an ancillary ecosystem business that's using similar tools, such as Pendula are telcos like amaysim. Now, great thing that they view, how do they increase their customer lifetime value? It's put really simply, they wait until the right moment - really a moment of truth here. And they engage with their customers and the channels that matter; things like SMS, things like email, things like push notifications, WhatsApp. It doesn't really matter what wherever the customer is, and they offer them things.
Alex Colvin
So we've just bought a, I've just bought a product and I started using it. And the next thing that I realise is, well, I've had a really great experience now, how does that telco double down? Well, they basically make an offer and you'll see this, they'll say, you know, next month, ‘we're gonna give you one gigabyte free’. Now, in order to ensure that customer sticks around and spends more, that telco was offering them something to provide a positive experience. And then they're going to reinforce that they're never going to let them forget. And this is what I want everyone here to take away from today. So if we look at this new customer experience and how we build upon this, or I would just go to the next slide there, what we're really changing is our view and how people are interacting with ourselves.
Alex Colvin
This isn't about just the e-commerce website. This is about all the digital communications, every point of touch that happens from a call centre to an email, to the portals that they're engaging us with, to their text messages, whatever it would be. And it comes down to one key thing, and this is all those moments of truth. And just go to the next slide there on which is every single opportunity that we now know, because we have all of our data in this source of truth for us to exploit this. So when someone purchases a product, what do we want to do there? Well they've probably had a really good experience. They've probably seen the value in the product, and it is the perfect opportunity to go and engage with them and ask them, would they like to buy a cross sell or an upsell product that sits on that?
Alex Colvin
So let's use a life example here. I've, I've just gone on to, I've just gone to the Hamilton play, believe it's down in Melbourne. Now I've gone on to Playbill's website for the Hamilton e-commerce store. And I've put in my purchase myself a mug. Now I've just gone to click the bill and I've gone, just before it's been dispatched and I've received a text message. And it's saying, let's just pretend I'm Mike. I'm a big fan of Hamilton here. And that text message is then asking me, ‘Mikel, we had a great time. We had a great time with you at the show. We see you've just bought a little bit of merchandise from us. Would you also like to add the CD?’ or the - CD is very old school now - it's called the, the digital, there's probably an NFT or something like that that could be associated to this.
Alex Colvin
And it could be done via a communication that's sitting on a phone with via text message or WhatsApp, whatever it would be. Now, what are we doing there? We're doing something that's unique. We've left the website. We've now gone into a conversation that's sitting on a text message. And then ultimately if that person's accepted, we've been added that to the bill and then pushed it through. So we've seen that opportunity - there's a moment of truth to that. We can go on and add on an upsell in some way or form. And these exists throughout your customer life cycle. This could be from when the item is about to be delivered, to once it's been received, to a cart abandonment through a Google review that's been received, to a problem with the product and a warranty claim - whatever it would be, all of these things combine to create an opportunity at every single point in your customer life cycle. to add this on.
Mikel Lindsaar
Alex, I think there's an interesting point on that, which might be under appreciated is one of the challenges that a lot of people have when they look at a slide like this, in my experience in talking to a lot of customers around StoreConnect, I mean, I've, I've done, I don't know many hundreds of demos on StoreConnect and one of the things that keeps coming up is yeah, but how does that data get in there in the first place, right? It's all well, and good to say, I'm going to send an email off or a SMS or WhatsApp off to someone when an order comes in, but how do I get my Shopify store to get that data into our Salesforce or so that it can then get the data to Pendula? So the Pendula can then send the thing and then when they purchase it, how does that even come back? How does it update Shopify after we update the order in Salesforce and how does that two way synchronisation happen and what if they go and update something else in the meantime, on their order in Shopify. Are we going to overwrite that, like, how's that all going to work? And this is where the whole idea of StoreConnect, Pendula and Salesforce, all being that one platform really comes into its own because you, as a customer then only need to integrate into Salesforce. So if there's a Google review, do a web hook that notifies Salesforce - single source of truth. The order that comes in is already in Salesforce, because it's on StoreConnect. If you edit that order, when the customer signs in to look at that order page, it will be done. Like it's the same object. This really builds into it.
Alex Colvin
Yeah. You know, the key thing here is, you know, this is going to be an ever evolving activity within your business, right? Will you have every single moment of truth? Every single opportunity documented, and that data collected from day dot. You may not. Now there's so many data sources that can come from. The great thing, though. When you have a platform right now from day one, you're going to find yourself in a situation where you might only have all of your ordering and stock management and your fulfilment, that's through that. You haven't yet added in your case management or your call centre operations. But the excellent thing here is the second we add in some more information, I'm just lost the video feed. They're just trying to get that back there. The second way we, we add in the ability for us to see that new information, we can then act upon that. Now the key thing here is if we look at each one of these moments of truth, all of these are going to be defined by you. And this is where a tool a pendulum allows you to do it, right? This gives you the ability for us to be able to communicate in a way where you are defining these journeys, you’re defining each one of these interaction points and building the interactions yourself and backing that up with workflow.
Alex Colvin
Now, obviously the devil's in the detail here, how do you actually do that? We're not actually going to do any demos today. And the reason for that is we didn't want to kind of show product. We wanted to talk about the high level concepts. So conceptually, if I just play this back to everyone, we found ourselves in a situation where we have all of our data in one place, and now we have the ability to explode all those operations that exists within that. And ultimately, what's this going to affect? And this is really the key thing here. And, you know, Mikel, it doesn't matter what business we're in, right? It all comes down to this one ratio, your customer lifetime value. Chris said it before as well. We've spent all this time acquiring these customers. We've advertised on social media, we've advertised out of home. It doesn't, you know, all this huge cost that has gone through to find this customer. And now we have them. This is the opportunity. If we just go to the next slide there, this is where we start talking about customer lifetime value - really simple ratio. Everyone will know this one, pretty simply, it's our average customer revenue divided by our average customer lifetime, right? Put really simply, how do we make this better? Well, the easiest way to do it is to raise your prices. Now there's a problem with that. If we raise our prices too much, the elasticity will begin to diminish fairly quickly, and we may lose a bunch of customers. And this will be a constant battle that everyone in the room here will be talking about constantly, which is how do we affect our pricing models? Can we bring in new commercial models to establish this things like subscription models, all of that stuff, but ultimately pricing is going to be your own domain.
Alex Colvin
And StoreConnect going to enable that to change quickly for you to be able to find ways to experiment, to try offers, whatever it would be. Now on top of that, what can we do? Well at the very top there - really simply, you know, let's try and keep our customers spending for as long as possible. So this is constantly about updating your product catalogue, changing that. And again, StoreConnects’ really enabling the agile approach to constantly evolving. If we see customers seeking new products, like how easy is it to go and add a new product? I'm assuming we can do this in minutes, right? And it's already on.
Mikel Lindsaar
No, that's right. And not only can you do it in minutes, it's done both internally and externally and all the pricing's up to date and consistent across all platforms. I think there's another interesting thing about keeping customers spending for as long as possible. We were doing some research, you know, as you do, because we have to increase our customer lifetime value as well. And one of the datums that we found while we were researching was that increasing customer retention by 5% can boost your revenues by up to 25%. And when you think about that, at first glance, it looks a bit maybe incorrect, but when you look at it, the other way, the marketing spend you need for existing customers is usually a lot less than what you need for an existing, like a brand new customer. So these sorts of things, that customer is much more used to buying from you, can purchase from you and doing these upsells. And that sort of thing is where you're really generating more revenue and profits out of your existing customers.
Alex Colvin
Hmm. Really interesting view on all these little gems that sits through there. And if we talk about all those moments of truth, you know, these are all opportunities for us to upsell and cross sell our products. Now one little gem that we've learnt from the teleco and utility world, which is completely transferable - and it does work within the retail world, and this is the concept of asking for feedback and then providing an offer. Now, if you do that, if - let's use an example here, let's just say again, Mike's gone to the Hamilton concert down in Melbourne, he's gone and purchased his t-shirt, whatever it would be. And as a result on that, it's been shipped - we could then text him and say, you know, ‘How was the show? We're so excited that we're sending you this t-shirt. Is there anything else that you know, that you'd like to see?’ You know ‘Are you looking for a new mug?’, you're looking for, you know, an offer potentially to go and see Frozen, whatever it would be and cross selling to another event. Now, in that circumstance, if you ask Mike that non-threatening question, you don't just offer him something, you ask him, ‘How was it?’ how ‘Are you looking forward to receiving your product?’ And then based on his response, you then offer him something. Your conversion rates going to go from about 9% on these customer upsells, which is already pretty good, to up to about 22%. Now that impact significant, right? Where we're talking, no revenue uplifts on your, you know, your CLT ratios of anywhere from 3 to 5%, this is a gimme, right? All you gotta do is ask someone a question and you and your revenue goes up 5%, you know, sign me up. How do I do that? It's a, it's a really simple concept. Now, the interesting thing is back in the retail world, this is what our shop assistants were doing, right? If I walked into a clothes store, people were saying, know, ‘Hey, those pencil great on you.’ You know, ‘Have you got a belt?’ That's the question that we're priming people with. And we're trying to understand this information and that can be a little bit lost, right? You know, Mikel, we look at the e-commerce push it with such a technical shift to enable that - we lost some of those soft skills.
Mikel Lindsaar
Yeah, and a lot of the current scene, people are very transactional on their e-commerce environment. You know, they've already researched the product that they're buying online and they're just coming in and just making that one transaction. Now that's all well and good, but if you stand out from the crowd as a e-commerce provider or retail provider, or in any business that really you're doing, and you take that extra step of, ‘Hey, thanks for shopping with us. We really appreciate it. By the way, do you want this one?’ or ‘Do you want that?’ or ‘Here's a link for a friend.’ If you want someone else to buy it, if you stand out and try and generate some of that personalization, it's really noticed. And I think one of the interesting things about this is one, the lazy way to do this, which it’s not - lazy is the wrong word, right? One way to do this personalization is mass emails, mass marketing on, ‘Hey, you're a customer. Here's 20% off this new product. Thank you very much’, right?
Alex Colvin
It’s not targeted though, right?
Mikel Lindsaar
It's not targeted, it's just broad.
And people are being forced into this, because again, this problem, all these APIs and all these systems, they just don't have these moments of truth. If you can flip that around by using something like Pendula where they've made their third purchase in five months, you know, come up with some thing like that and then send them a message saying, ‘Hey, thanks very much for being one of the customers that's done, blah, blah, blah’. Or they've spent more than a thousand dollars in a three month window or whatever it is. Maybe they've bought four out of the five things in a product set and send them a message saying, ‘Hey, we've noticed you've bought four out of these five possible toys. Do you want to complete the set? Here's 10% off.’ You know, there's a whole heap of things that you can drive around this, where if you've got that knowledge, you can actually target moments of truth with the source of truth. That's in Salesforce and StoreConnect.
Alex Colvin
But it's not to be diluted though, right? If we look at the feedback, I always love to use the analogy of, you know, trying to just using data in isolation without the actual feedback loops. A lot of us have kids here, right? If you sat in the corner of your room and you looked at your children and you said, you know, ‘What are they thinking?’ Do they want, you know, ‘What do they want to do?’, ‘Why are they upset?’ Whatever it would be, and you just looked at their behaviour and tried to figure it out, you'd never get the answer. Whereas if you've gone an ask them, you said, you know, ‘Son or daughter, what's bothering you?’ they'll tell you straight away. Yes. And you could have spent hours trying to analyse that problem. Now this is the secret source, and it's something that everyone used to do when we were face to face. Now that we're in the digital world, we don't seem to do it anymore. So we ask people for feedback, ‘What do you want?’, ‘How can we help you?’ And, and ultimately how we're normally helping them probably drives more revenue for us, gives us better formed data. We then blend that into all these customer data points that we have within StoreConnect and Salesforce, and then ultimately make better offers. So what's that going to lead us to? Well, it's going to lead us to a greater average customer revenue, right? So happy days, we've increased that average customer revenue. Now what about a customer lifetime value? Right? So we still need to worry about average customer lifetime here. So we look at that, how do we affect that? And we just go to the next slide there. You know, really customer lifetime average view is on two things.
Alex Colvin
Well, one it's to stop people from churning. Churning is an interesting thing in the retail world. What churn actually is - it's not someone leaving you because it's more or less transactional, how we're buying things. It's someone going to your competitor, right? This is someone who is now no longer buying their t-shirts from you. They're buying them from someone else, someone else's e-commerce store. So how do we do that? Really simply it's value realisation. Never forget that we gave them a discount. Don't let them ever forget. Don't let them ever forget that when we sent them their t-shirt, that it arrived on time. Don't let them ever forget that when they had a problem, that we fixed it and we gave them something to make them feel better about themselves. Those little things translate into really a raft of other metrics that's going to result in lower cost of acquisitions and higher repeat purchases, and ultimately you're going to have customers for longer spending more in a repeatable manner. And that's really the second side of it here, which is creating an ongoing commercial relationship. And this is where powerful tools like StoreConnect give you the product catalogue flexibility, to go and create multiple upsell products, multiple cross sell products, link them. You know, it's, you've just bought, as Mikel just said, you bought four out of the five set. You know, let them know that they’re a set. Let's make sure that there's an ongoing relationship. Makes sure that there's the next purchase in that product, that journey that sits through there. And ultimately, what are we doing here?
Alex Colvin
And we're going to pause here and we're going to go to Q&A - I'm sure that there's plenty of questions that have come through this, but ultimately what we've done here is we've built all that data in one place. We've created feedback loops and we've targeted all of our consumers and customers at points in the journey that are positive to promote them. And whenever they're negative, we're going to effectively negate them. If we can do all that, what are we going to do? We're going to affect our bottom line by effectively increasing our customer lifetime value ratio. And everyone here is going to be looking at this and saying, you know, if I can increase my customer lifetime value, I'm going to be seen as successful within my role or within my business.
Alex Colvin
So with all of that, and you know, we've spoken a lot, but maybe we just hand back to Virginia here. I'm sure we've got a few quick questions that have come through on the Q&A and chat as we've gone through that. If you haven't yet raised a question on that place for them through - we did have a few people send through a few questions prior to the session. Virginia, maybe we just had a view for just a quick run through, of an offer we have today, and then we can just do the Q&A give people an opportunity to go and ask some questions there.
Virginia Gordon
Fantastic. So if we can go to the next slide with our offer. So now we're going to show you a live example of Pendula and StoreConnect working together. So on your screen is a QR code and there's also a promo code ‘DEMO-MERCH’. So if you click on that QR code, it's going to take you through to the StoreConnect website, where you can get some free much. It's a vacuum water bottle. Now you enter the code. So do your QR code, it takes it to the StoreConnect page. Use that promo code to get a hundred percent discount on the water bottle. And while you're filling out -
Mikel Lindsaar
We’re not going to charge you for the water bottle.
Virginia Gordon
That's right. Yeah. That's why we've got the promo code, enter in your details. We ship that water bottle out to you, and then after your order processes watch out for the upsell SMS. That's going to come into your phone, offering you an upsell product, which will be a free t-shirt. So you can see that process of buying something and then getting that SMS followup with the upsell and the SMS is driven by Pendula. And that's going to show you that experience of StoreConnect and Pendula working together. So while you're doing that, I'll just say some of the questions that have come in and we'll get those answered, and that will give you that time to go through that QR process. So I will put forward the first question. So ‘How does customer lifetime value work in the not-for-profit side?’ That's our first question,
Mikel Lindsaar
Alex is on mute so I’ll dive in.
Alex Colvin
You want to talk to the <inaudible> and, you know, being able to sell a things to, to help those in need.
Mikel Lindsaar
Yeah, totally. So StoreConnect actually works very well with not-for-profit and we actually work quite closely with salesforce.org there, and then not-for-profit success pack and ensure that our product works with that platform. And it works very well. And one of the benefits that you get out of StoreConnect on top of that is, we can take one off donations, we can take merchandise sales for the not-for-profit, but we can also manage and maintain all the subscriptions, so monthly or all recurring giving and that sort of solution. So where this comes in is obviously if you have someone who is donating to your cause, they're way more likely to donate again in the future than trying to find a brand new person. And one of the challenges that not-for-profits have is massive challenges time, they generally are under resourced to provide the same services that a for-profit company would be providing. So utilising these sorts of tooling and being able to use something like Pendula to notify them, to tell them about some event that's coming up and offer them the ability to go and put $10 down on the campaign or the pledge, or have those moments of truth, where maybe they donated to some cause. And there's some good news around that - good. Let's engage them via Pendula and get that communication happening.
Alex Colvin
It’s all about value Mikel, you know, you see that a great example, a few customers of ours. So Cancer Council, their major donation activities are on a small number of days per year. Why we have challenges that exist within that and that, you know, you're driving 80% of your donation revenue on one day of the year, but the problem is how do you reinforce that value throughout that? Cause, you know, we'll all be charitable we'll dip into our pocket and pull out that donation, you know, in one day, and then you won't do it for another 364 days. How do we get that value realisation? And it's all about that engagement, but you've also got to know the customer. When did they donate? How did they do it? What did they care about? Was there an event that happened at that point in time? Was there something in the news? What, you know, what, what could we correlate to their value? And then how do we then reinforce it and not let them forget their generous donation then resulted in something that was, you know, valued and gave them the emotional response that they were seeking through that.
Mikel Lindsaar
Yeah, we've got some orders coming in, which is great. So be sure to click that code and fill out the text and put your demo merchant thing at the top as a promo code, if you did click next on your shipping information and forgot to put the premiere code in, you can actually scroll down later and flip that premiere code in. If you've been presented with a credit card form, if you want to pay us for the drink bottle, that's totally fine. But honestly, you don't have to it's completely. Okay. So Virginia was there another question?
Virginia GordonAnd then there's another question here. What is the setup like?
Mikel Lindsaar
So there's two, two broad functions and I'll let Alex talk to the pendulum side, but fundamentally first you get StoreConnect installed. We have a, a 13 minute video. You can watch the, the basics of getting StoreConnect set up in an afternoon in your Salesforce, or obviously there's a lot more work in terms of producing a fully commerce environment, but almost all of that is data entry and configuration of data. So it's, it's quite straightforward. Some of our clients, in fact, one of our clients has, has built a test store from his iPhone on the way to on the way home from a dinner, obviously his wife was driving, but there you go. It is possible once you've got all that set up, you then work with Pendula and Alex, how would you go about doing that? Because I think it's more about how would you go about identifying those moments of truth or, and then how does that actually get set up in Pendula? What do you do then?
Alex Colvin
That's a really good question. And the days of long fermentations that are just done, right? You know, it's all about configuration. This is all declarative, you know, the concept of system integrations and complex it worker just row for an, if you're finding yourself, looking at solutions that made that you probably looking at the wrong solution. So put aside the technical challenges, it's plug and play, right? How do you make StoreConnect Salesforce Pendula work together. We log in and you're done. So your systems now integrated. Now the question is, is, well, great. I've got all this capability. What do I actually do with it? And how do I identify these things? Now, the first thing we do is we help you with kind of pre-baked templates. So we have libraries of hundreds of, of what we call flows, which are basically customer experiences targeting each one of these moments of truth.
Alex Colvin
But ultimately you're going to be able to create your own. There's going to be the low hanging fruit. It's always the 80 20 rule, right? You set up three or four of these campaigns on upselling and cross selling your customers, getting those feedback loops through, and you'll see the significant amount of impact very quickly, tweaking and iterating over time becomes just a normal part of the job. Just like you manage your eCommerce website and you manage the customer experience. And again, as, as Mikel said, we're talking here hours and days, not, not weeks and months to, to get these things stood up. So time to value is very rapid and actually gives you the ability to experiment and trial, you know, new campaigns and new activities very, very easily.
Mikel Lindsaar
And then the flow, like the actual setup within Pendula is it's a visual flow. You can see the
Alex Colvin
All built by a business user. You don't need a degree in software engineering or, or even, or even be an it specialist to make this work. We, we have plenty of, of very, you know, limited technology, experienced users using the platform with, with no problems at all.
Mikel Lindsaar
Awesome. We've got another couple of orders coming through, which is good. So keep those orders actually, that's, that's an interesting thing. So I'm actually looking at my Salesforce org right now and seeing these orders come in in real time and then getting passed off on Angela. So it's a, this is an example of how StoreConnect works, right? You've got this real time communication coming in. I'm able to see the orders land. I can see their status being changed. Does our delivery. Now sales team are marking them as you know, received and filled and that's kicking off Pendula communications, which are then contacting those people and sending them SMS. And all of this data is available to me within Salesforce. It's it's quite good to see actually I'm quite enjoying it. Was there another question in Virginia?
Virginia Gordon
Actually there was, but you both have answered it in your last,
Virginia Gordon
What you just said, that's it. And we're where we're over time. So we will wrap up. So if you can just go to the next slide, this is our, so thank you very much to Chris, Mikel and Alex. That was great. And I'm a consumer and I love getting SMSs from the companies like absolutely love it. So just on the screen, there is some ways to contact us and we will just leave that up on the screen, just so that you can make note of that. Thank you very much for attending and send us through any queries to still connect and Pendula and thank you very much. And we'll make this webinar available for on demand replay afterwards.
Mikel Lindsaar
And you very much, everyone. Thank you very much, Virginia, Alex and Chris, it's been a pleasure and thank you to all the attendees. It's been great talking to you and great questions.
.webp)
.svg)
