Decrease Returns

eCommerce companies have to deal with industry-standard return rates of 50-60%. This means: no net turnover as well as additional expenditure for used marketing budget, handling, dispatch and return shipment, acceptance of goods, checking, re-storage or disposal. With minubo, out-of-the-box countermeasures can be taken and the return rate can easily be reduced by 2-5%. 

Possible starting points are:

• Immediate identification and elimination of return reasons through proactive alerting
• Strengthening of campaigns with low returns
• Focusing on purchasing low-return products
• Set up of restrictions for customers with a high return volume (e.g. no free returning)
• Placement of products with low returns and high margins in highly converting shop areas (e.g. automated via data feeds)
• and many more

Increase Revenue

Follow-up purchases often represent up to 70% of total sales, because existing customers generally convert about four times better than new ones. Maximizing the customer value (CLV) of existing customers and acquiring new customers with the highest possible CLV potential at the lowest possible cost must be a central goal for every retailer. Data of existing customers is available and only needs to be made usable with minubo. Therefore, even with a conservative estimate, an increase of 10-15% of the revenue is possible.

Possible starting points are:

• Increasing the existing customer rate with automated churn prevention – through proactive alerting and automated customer segmentation and emailing
• Understanding patterns in the acquisition of high-CLV customers (e.g. acquisition campaigns and products) and using them for new customer acquisition
• Individual newsletter communication (e.g. recommendations, discounts...)
• Higher customer satisfaction through operational excellence. Prevention of system cancellations through proactive alerting (e.g. missing stocks, shipping problems)
• and many more

Increase Contribution Margins

Turnover is one side - contribution margin the other. And again there are different starting points, which can be implemented with minubo directly from day 1. Assuming that you can only achieve an improvement of 2-3% in every stage of the revenue-to-margin funnel, you can significantly increase your bottom-line results by up to 10%.

• Customer conversions without lowering margins by understanding individual price sensitivity as well as dynamics in sales and price reduction rates
• Supplier negotiations with clear margin targets based on analytical facts
• Avoiding purchase of low-margin products
• Optimization of marketing campaigns by contribution margin instead of revenue
• Placement of products with high margins in high converting shop areas (possible for individual customers)
• General marketing optimization due to 100% transparency of performance and contribution margins as well as all channel costs in a central system
• and many more

Success Stories