E-commerce as a service: why launch your offer?

The service aspect of commerce is increasingly expected by consumers. Whether for assembly, adjustment, maintenance or repair, consumers want to have access to a service offer when they buy products, and sometimes this even conditions the act of purchase. At the same time, we see that repairability and durability are important issues of increasing concern to consumers. The “servicization” of commerce is not just about brick and mortar, it extends to e-commerce and presents many opportunities.

How to move from product seller to solution and experience seller? How to rethink your customer value proposition around a differentiated service offering? What are the challenges of this change? What KPIs should be observed?

To answer these questions, we welcomed in a webinar: Pauline Gouache, Key Account Manager and Mickael Braconnier, CEO and Co-founder of Dealt, service solution for retail, Olivier de Montlivault, CEO of SOS Accessory, leading self-repair and sale of spare parts for household appliances and Maxime Chapsal, Head of Business Project of Rue du Commerce.

Suggest a service offer: the response in a tense context?

In an inflationary context, with an increase in the cost of energy and raw materials and facing a standardization of supply and prices, how can e-merchants distinguish themselves? Integrating a service offering allows brands to strengthen their historical product sales business model while adapting to changing consumption patterns that tend to go beyond durability and repairability.

3 types of e-commerce as a service offered:
  • Post-purchase services (advice, delivery, installation, etc.) that increase the product conversion rate.
  • Repeated services (training, maintenance, repairs) that form a lever for customer satisfaction and loyalty.
  • Subscriptions (e.g. the Darty Max subscription that offers repair and life extension of household appliances) that allow for recurring revenue.

Be in tune with new consumer expectations:

Second-hand and second-hand markets are growing and are part of the long-term evolution of consumption patterns. Between environmental and budget concerns, the arrangement is a particular response for consumers who want to consume more responsibly while controlling their costs.

  • 67% of consumers consider the shopping experience more important than price when choosing a brand. [1]
  • 81% of consumers consider the possibility of choosing personalized services as a real purchase criterion. [2]
  • 64% of consumers want to be able to book a product installation service after purchase. [3]
  • 74% of the French opt for the repair of their household appliances, 45% of them call a professional. [4]

What are the benefits of launching an e-commerce service offering?

  • Adapt its offer and its business model to the evolution of consumption
  • Improve customer satisfaction and loyalty
  • Strengthen brand positioning and commitment to well-being
  • Respond to a current request for support in the installation, configuration and repair of products
Some issues and challenges:
  • Target specific needs to create a tailored service catalog
  • Implement the customer journey offer to make it accessible
  • Collect and process diagnostics as part of a repair offer
  • Work on marketing the offer
The main steps in integrating an e-commerce service offer:
  1. Define value added services
  2. Model the customer journey
  3. Determine the predicted ROI
  4. Build a website offer
  5. Set up follow-up processes
  6. Launch the offer
3 key performance indicators to monitor :
  • The average margin of the sale of services
  • The conversion rate
  • The turnover in products eligible for services

To find out more and continue on the topic, find:

Replay of the webinar with feedback from SOS Accessory and Rue du Commerce

Sorry, this content is for members only.

If you are a member, you can access it by simply logging into your MyFEVAD account. If you are not a member and would like information on joining FEVAD, feel free to contact us at contact@fevad.com.

The PDF shown by Dealt during the webinar

Sorry, this content is for members only.

If you are a member, you can access it by simply logging into your MyFEVAD account. If you are not a member and would like information on joining FEVAD, feel free to contact us at contact@fevad.com.

Sources:

[1] Gartner 2020

[2] Digital LBI 2021

[3] Octopia-IPSOS 2022

[4] YUGOVA 2021

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