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What are the financial benefits of using a CRM with E-commerce and turnkey solutions?
Thank you for your question enquiring about case studies of e-commerce or turnkey solutions using companies that use CRM. My most useful sources were CRM giant Salesforce and their customer descriptions, and Owler for revenue. The short version is I was able to find four companies that meet your criteria, including Lazada, AVG, and Just Eat.
ASSUMPTIONS AND METHODOLOGY
-To find enough case studies, I've been a bit flexible with the idea of e-commerce: one thinks of companies like Amazon, but technically any company selling a product over the Internet would be an e-commerce company.
-All of the companies fit your range of $100 million - $750 million in annual revenue.
-I found the companies through Sales Force, the CRM giant, and filtered their website to find those case studies where the companies have used their CRM products: Sales cloud, or Salesforce IQ CRM. Unfortunately, there were no other case studies fitting your criteria available – including after extensive searching and consulting sites like CRM Daily, but I have researched each company and their CRM experience separately to the Salesforce case studies. I also searched other CRM companies, such as Agile – but they only serviced startups and SMBs who are out of your revenue range.
-As we found in our previous research, there is little information on how using CRM has directly impacted revenue growth (I even searched for quotes from each company CEO on CRM and revenue), though there is information on the concrete ways that it has benefited the company, which I have provided.
CASE STUDIES
LAZADA
Lazada is one of Southeast Asia's most popular e-commerce platforms, selling retail products in 13 categories in Indonesia, Malaysia, Philipines, Singapore, Thailand, and Vietnam. Owler says the company's estimated revenue is 117 million. Datafox claims it is closer to $600 million.
Lazada is using Sales Cloud, a product that uses AI to “make the sales process faster at every step, including predictive lead scoring, and recommended best steps to close a deal faster. It is for sales force automation and CRM.
However the main way that Lazada is using the CRM program is to expand its product range by making its vendor registration process more efficient.
Prior to using the CRM software, Lazada had been managing new vendors using Google Docs,, and the process of signing up a new vendor took an average of 30 days, with another month to then get products online and available for sale. Sales cloud migrated this data over, and made the un-boarding process more automatic. Lazada is also using the software to provide vendors with support, marketing info, and “best-in-class” analytics. Overall, they have reduced vendor sign up time to 10 days (a third of what it was), The impact for the company has been increased product range, and, according to Sales Force, a 1,000% increase in the number of vendors on-boarded per month. The variety available has no doubt increased the number of customers, and therefore revenue.
Lazada is also using Zendesk, which helps it handle over 280,000 tickets per week, increasing customer satisfaction by 31% (according to Zendesk). Zendesk can be integrated with CRM, including with Sales force or with Agile CRM.
Since implementing the software, Lazada has acquired Singapore's online grocer, Redmart, and reported a new sales record in November last year (2 million items sold in 24 hours)
JUST EAT
Just Eat provides online restaurant food delivery services in the UK. Owler estimates its revenue to be $243.8 million.
Using CRM, Giorgio Ponticelli, Director for Group Business Development at JUST EAT said the company had increased efficiency, made reporting automatic, saving managers' time.
Especially interesting, Just Eat has given staff access to Sales Cloud via their tablet and mobile devices, meaning they don't have to go to a computer to on-board a customer (vendor restaurant). So, like the above case study, Just Eat has halved the time it takes to bring a restaurant online. They have also used Salesforce to get “better visibility” of the most popular restaurants for their customers
The company is using its CRM platform to build on its high number of mobile and app orders, by improving messaging and targeting.
Rachel Pollard, head of digital and CRM at Just Eat, said in an interview that the company was “very very socially engaged” with a “lovely brand” and that these were basic elements of CRM. She said that the company was willing to take risks, test things,
In 2016 Just Eat saw a 52% rise in veneue to £375m ($456 million) and its EBITDA increased by 93%.
ROSSIGNOL
Rossignol is a French ski equipment company, selling stuff online (making it e-commerce) as well as through retailers and speciality stores globally. According to Hoovers, its annual sales are $246 million.
Rossignol is standing out by creating a social profile of their customers, and making that “the basis of everything”. They are using Sales Force to better connect winter sports enthusiasts to the company, and, they say, to each other. They are connecting customers through social media bragging rights- that is, a Ski Pursuitapp that tracks daily and season performance, with metrics like speed, distance and descent-perfect. Users can share the deets on Facebook or Twitter.
Rossignol is using CRM software Sales Cloud, but unfortunately the company didn't go into any more detail.
Rossignol's CEO Bruno Cer, said that using the social profiles they have created through Sales Cloud and Sales Force, they can what out what their customers like and want, “We can use this information in a thousand ways”, thereby converting it into business. Based on the app and performance analysis, they can also suggest equipment modifications, purchases, and training regimes. Finally, by creating a positive experience, they hope customers will stay with their brand.
An Econocom article (2016) explained that Rossignol is using “ultra-personalised data” in its CRM software, which it then converts “into business”.
AVG
While not what we normally think of for e-commerce, AVG develops anti virus software, that can be bought online. It's revenue is estimated by Owler to be $428 million
AVG wants to change its customer relationship, away from just selling a product, to providing a service, with more customer engagement. They have used Salesforce to implement new CRM and ICT strategies and a new customer engagement platform in 2016. They wanted to transform customer engagement on a huge scale, which then required integrating at each stage of the journey, “from capturing leads and closing sales to distributing marketing content and providing support.”
CONCLUSION
In the current climate, it makes sense that e-commerce companies especially take advantage of CRM to maximise their social engagement with their customers, tailoring their recommendations and increasing customer loyalty. Thanks for using Wonder! Let us know if we can help with anything else.