Top 5 Alternatives to Google Analytics, for Ecommerce

Say you’re running an online store. Chances are you are using or plan on using Google Analytics. It’s free, it’s popular and there are tons of info out there to help you get started and optimize your sales stream.

But there are downsides too. First one – Google already knows a lot about you and your customers. You might want to keep some things discreet, right?

Second – Google Analytics is an one-size-fits-all type of product. Sure, it has plenty of features but chances are you’re likely to get lost in some of those features. Even if you don’t get lost, you’re likely to spend a lot of time digging through somewhat useless data, while at the same time, missing out on very important bits of information.

Third – real time reporting is pretty limited, if you’re running the free version. Once you get over 10 million views you’ll have to switch to the paid version, costing you north of $150 000. But then you can also try some more advanced reporting tools.

Of course, there are plenty of traffic analytics tools out there. Some have really great interfaces and features. But as an online shop owner or manager, you have to look at what works best for your store. Have a look below:

1. Mixpanel

Mixpanel Funels
Mixpanel Funnels

Mixpanel is great choice for small and mid-sized business that sell. Whether we’re talking about an online retailer, a hotel selling reservations or an iPhone game developer selling game upgrades – it is a great tool.

Even the way Mixpanel tracks actions and charges users is a great fit for online retailers. Ecommerce sites don’t really need too much intel on page views. What really matter are actions – the number of times sometimes has clicked the “buy” button, the number of times users download a brochure or the number of Google Ad visitors that turn into customers.

Mixpanel calls these actions data points, and this is a great news for startups and mid-sized businesses.

It’s tailored around five basic functions:

  1. Segmentation – allows for better understanding of user behavior and splits user groups according to actions.
  2. Funnels – you might be familiar with funnels from GA. But once you get to know Mixpanel’s take on the funnels, it seems that something has dramatically changed. Funnels can be added on the fly and viewed retroactively, easily.
  3. Retention – it’s not just how much you sell, but also – who keeps coming back.
  4. People – unlike GA’s confusing take on users, Mixpanel builds profiles ecommerce store owners can understand. The system collects data that can be browsed individually or segmented. One great feature is the notifications option, where you can mail, send SMS or push notifications to users, based on automated or manually segmented profiles.
  5. Notifications – mentioned above, it is a great tool that improves the analytics platform, allowing you to also communicate directly to consumers.

Pricing

Pricing is free for less than 25 000 data points and it can go up to $2000 / month, for companies with more than 20 million data points.

 

2. GoSquared

The redesigned GoSquared app
The redesigned GoSquared app

GoSquared is a great piece of engineering and with its redesigned interface – easy to use. It serves over 40k businesses and it has a special area developed strictly for ecommerce owners.

When it comes to ecommerce, GoSquared packs a lot of power in a simple interface. Just like most other applications on this list, it puts a strong emphasis on the targeting users as potential customers and tracking their actions and behavior.

The Metrics work toward providing clear insights on how revenue is doing. The analytics tool provides info on social media influence on sales and data on best performing products.

One really useful set of tools is what GoSquared calls Predictive Analytics. Previously discussed on Netonomy.NET, predictive analytics can mix past and present data to determine possible outcomes in the future. It can be used to predict traffic, sales or best selling products, to name a few.

GoSquared also mentions their ability to send Differentiated Reports, based on specific team member’s needs. One for the CEO, one for the marketing team, one for the … well, you get the idea.

But if there is something that really sets GoSquared apart – this is the Developer API. Using this, developers can build truly dynamic online stores, that respond to customer behavior and profile. From info on previous purchases, location, language and others, online stores can be set to respond to specific customer needs.

Pricing

Pricing can be configured here and starts at $32 / mo for 100k pageviews and 100 transactions. It can go north of $640 / mo for more than 10 million pageviews and more than 10k transactions. You can test the application in a 14 days trial.

 

3. FoxMetrics

analytics-foxmetrics

Foxmetrics has some nifty features when it comes to ecommerce and online retail related options. It is light and easy to set up, it works on both web and the mobile and it is focused on helping you increase conversions.

Although Foxmetrics is not 100% focused on ecommerce related (they also provide support for online publishers), it does have some great features you can use:

  1. People – using this section you can understand customers and their actions and can sync this data into company CRM software;
  2. Ecommerce – Foxmetrics provides support for useful KPI’s and advanced reporting dashboards. Using customer data, it can build  product relationships, shopping cart reports and can respond with automated actions;
  3. Subscription is an useful tool for companies working with periodic purchases. The product can report user data, conversion and churn rate, as well as detailed info on separate plans;
  4. The Marketing and Triggers options allow for personalized marketing and response, based on referral and user actions.

Pricing

Although Foxmetrics does not provide a free option, it does provide a 14 day trial to test the features. Plans range from $50 to $120 per month and beyond, for enterprise users. However, as an ecommerce user, you’ll be stuck with the $120 plan.

 

4. Woopra

analytics-woopra

Woopra  is a great way to understand your customer and their history browsing your store. You’ll be able to get behavioral insights from customers, run advanced or preset analytics reports.

By tapping into Woopra’s Funnel reporting section you can discover bottlenecks in the conversion path.

The product also promises a good segmentation on best performing customer groups and even build segments based on funnels.

Pricing

The pricing starts with a free version that allows 30 000 actions (similar to Mixpanel’s data points). The small business plans range between $79.95 and $1199.95/mo.

 

5. KISSMetrics

analytics-kissmetrics

KISSmetrics follows a simple assumption: you must get to know your users … ahem … customers. That and the fact you should pay attention to their brand name.

The promise KISSmetrics makes is that all your data will be connected to real people, with real actions. Once setup, you can see where people are, what and why they buy your products and in some unfortunate cases, why they don’t.

Features include funnels, cohorts (groups with similar interests), revenue in real time and the metrics you’re familiar from GA. The things that really set the product apart is the data export feature for further analysis and its A/B testing options, both a great fit for customer profiling.

Pricing

Pricing for the KISSmetrics product starts at $150/mo for up to 500 000 events and goes up to $500/mo, when your webstore reaches more than 1 million events. Once you pass the upper threshold, just like all others, you get to negotiate your pricing.

 

Interview: Thoughts on The Future of Retail

Jochen Wiechen, Intershop CTO
Jochen Wiechen, Intershop CTO

A very select group of companies lead the way when it comes to omnichannel retail solutions. Intershop is one of these companies. Having unveiled its first online shop in 1994, it’s also one of the most experienced and innovative. Now more than 500 mid-sized and large companies benefit from its solutions. Among these you can find Hewlett-Packard, BMW, Bosch, Otto, Deutsche Telekom, and Mexx.

We’ve reached out to mr. Jochen Wiechen, Intershop’s CTO, for a few thoughts on the future of retail. Previously a VP of ERP powerhouse SAP, mr. Wiechen holds a PhD in Physics and has a very interesting view on the future of retail.

 

Netonomy.NET: What are the biggest changes in retail you have noticed in the past 5 years?

Jochen Wiechen: Clearly online is the main disruptive technology that has fundamentally reshaped the entire industry, not only retail by the way. Ubiquitous bandwidth availability, multi-media developments and mobile technologies allow for completely new business models and customer experiences.

The customer journey nowadays starts in the Internet, around the clock and everywhere. Sophisticated online marketing activities trigger more and more personalized buying processes that start with extensive research and lead to process innovations such as click and reserve or collect.

Rising online stars such as Amazon, Zalando and Alibaba grow extremely fast and challenge classical retailers who simply cannot ignore these developments and start embracing those concepts by embodying online into their cross-channel concepts. The winners in this game will be the ones who understand the changing customer profiles and associated behaviors as well as the potential of integrating online into an optimized omni-channel system instead of shying away and sticking to the old offline world.

 

N.: Which retailers do you believe are leading the change in global retail?

J.W.: Out of the blue Amazon has developed to the leading global online pure play as well as a relevant player in the retail industry. By consequently embracing the online concept into their channel strategy Walmart is currently showing an even faster growth rate of their online channel than Amazon and is a perfect example of a winner in the overall online transformation. Other relevant players in this game are Nordstrom, John Lewis or House of Fraser, for example.

 

N.:Do you expect Chinese retailers to increase their market share globally? Do you believe Alibaba Group’s expected IPO in the US is a step in that direction?

J.W.: Alibaba is projected to pass by Walmart in overall sales this year, the latter being the largest retailer worldwide. In the US alone, Alibaba is expected to grow 30% this year and although its development in Europe is still in its infancy, also here surprises will have to be expected.

 

N.:How important is technology in addressing the consumer needs now and in the future?

J.W.:As stated above, nowadays most customers start their journeys in the Internet which is a profound change compared to classical retail. Already at this stage they are able to browse for any categories and products from anywhere at any time with any device, to compare prices, select within huge collections, take advantage of intelligent recommendations and potentially use fitting engines before they buy either online or in the store where they might collect the selected product.

In order to provide large target groups with these services a highly complex, highly scalable, and highly available IT-infrastructure is a prerequisite. Viewed from the other way around, technology is simply key in the paradigm shift that is currently taking place in the retail industry.

“[…]technology is simply key in the paradigm shift that is currently taking place in the retail industry.”

 

N.:Which technologies do you believe are shaping the future of retail?

J.W.:Based on the speed of the disruptiveness that the combination of high Internet bandwidth availability and the development of multi-media capabilities on a plethora of end-user devices has caused in the retail industry it is expected that the evolution of further technologies will continue to reshape the industry.

While Big Data has already gained substantial market share in order to analyze and predict consumer behavior we also see a rapidly growing demand for indoor proximity systems in order to support omni-channel transformations. In general, we agree with analysts that the Internet of Things is the next big thing in not only this industry. Devices, gadgets and sensors of all sorts interact amongst each other as well as with human beings in order to reach a new level of communications and interactions. The winners in the upcoming retail industry battle will be the ones who take advantage of this technology development that will lead to today possibly unimaginable customer journey innovations.

 

N.:How will mobile devices impact retailers and shape consumer behavior?

J.W.:On the one hand, mobile devices allow for ubiquitous browsing and shopping which removes any local stickiness of the consumer, who can even choose the best offer while walking through a mall. Recent search engine analytics reveal astonishing portions of regional references in search requests.

On the other hand, this is an opportunity for retailers thereby taking advantage of location-based services by sending ads or promotions to consumers walking by a store, in which a sales person might then use a mobile shop assistant app in order to lure the customer into a well-educated sales pitch that is not only consisting of more or less good guesses based on gut feelings or superficial conversations that help shying away the customer.

N.:Will 3D printing technologies be used in improving tomorrow’s supply chain?

Amazon's 3D Printing Store points to new developments in retailing.
Amazon’s 3D Printing Store points to new developments in retailing.

J.W.:While the usage of the technology on the consumer side is still in its infancy, Amazon just recently already opened a shop for products coming out of 3D printers and has again proven its leading role in the industry. It is hard to say how far the technology will be able to be pushed in terms of product complexity which then will determine the extent to which it will be used in supply chains.

N.:What are the next steps in Intershop’s evolution, in terms of innovation?

J.W.:Based on a research project we have been carrying out together with local Universities we are currently rolling out a commerce simulation engine (SIMCOMMERCE) that falls into the category Predictive Analytics and that allows for outstanding optimization capabilities for commerce operators.

Apart from that, we are closely working together with our customers and partners to explore various process innovations by integrating new technologies, devices and gadgets with our platform. With our SEED initiative, with which we scan the market for commerce-relevant leading edge technologies that we can incorporate into our offering we are looking for ways to help our customers to substantially improve their traffic, conversion rates as well as sales and delivery processes. We agree with leading analysts that the Internet of Things will play a dominant role in those developments.

Top Three Most Influential Persons in Online Retail

Online retail is a fast moving sector and there are lots of outstanding business leaders out there. Among the best of the best, some really stand out. The way they’ve founded their companies and directed their investments have placed them in the higher echelon of influence in online retail.

Let’s have a look at them and their stories:

No.3 Jack Ma

Net Worth: $9.6 billion
Company: AliBaba Group

Jack Ma - founder of Alibaba.com
Jack Ma – founder of Alibaba.com

Jack Ma, a former English teacher in China, got his first taste of internet entrepreneurship in 1995, when he founded China Pages, a directory of Chinese businesses. He previously worked as a lecturer in English and International trade in the Hangzhou Dianzi University.

After founding and running China pages he briefly worked for the Chinese Ministry of Foreign Trade and Economic Cooperation, between 1998 and 1999. In 1999 he founded Alibaba, a B2B marketplace connecting Chinese manufacturers to the world.

Alibaba’s spectacular growth pushed Ma and his associates to add new companies to the group. AliBaba Group now owns Alibaba.com, Taobao Marketplace, Tmall, eTao, Alibaba Cloud Computing, Juhuasuan, 1688.com, AliExpress.com and Alipay.

The company is now only outmatched by Walmart in terms of revenue. Recent developments and an increase in online retail spending have made the Chinese market the largest online retail market in the world. The big winner: Alibaba Group. Through its subsidiaries, the AliBaba Group now handles $248 billion in transactions, 84% of the total online retail market in China.

But Jack Ma is not to be stopped. He is preparing one of the largest IPO’s in American history, after failing to reach an agreement with the Hong Kong exchange. His ambition is fueled by a sense of mission to run his company as an army conquering the world:

“I had always wished that I was born in a period of war. I could have been a general, I thought about what I could have achieved in war.” – Jack Ma, AliBaba Group

All signs point to Jack Ma building the hyper company he dreamed of. He is an effective leader, running the monopoly on online retail, in the world’s future largest economy.

No.2 Larry Ellison

Net Worth: $51.7 billion
Company: Oracle, NetSuite, Salesforce, etc.

Larry Ellison
Larry Ellison

You wouldn’t think of the fifth wealthiest man in the world as one of the most influential persons in online retail. But he is. Through it’s flagship company and different personal investments, he is in control when it comes to online retail infrastructure and software.

For once, Larry Ellison is Oracle and Oracle means, first and foremost, databases. Ellison started his career working for the Ampex Corporation in 1970, on a relational database for the CIA. His designs were based on a paper written by Edgar F. Codd, called “A Relational Model of Data for Large Shared Data Banks”. The same design was implemented by IBM, but the company didn’t have time to solidify its dominance on the market. Challengers soon began to emerge.

Database deployement - Oracle leads the pack
Database deployment – Oracle leads the pack

One of those challengers was Larry Ellison’s Software Development Laboratories (SDL), founded with two partners and later renamed Oracle, based on the database Ellison developed when he was working for the CIA database.

After a long struggle against the largest competitor, IBM (which would push its DB2 and SQL/DS products) and other challengers (Informix, Sybase, Microsoft) – Oracle eventually took lead in the database war. In 2010 the European Union approved Oracle’s acquisition of Sun Microsystems. One of the most important assets Oracle got was the wide-spread, popular MySQL database.

So for one – Oracle now dominates the database market, the underlying infrastructure of connected systems and retailers worldwide.

And that’s just the begging – Oracle is currently on a purchase streak, aiming to build a strong multichannel retail presence. It is second only to Adobe Systems, with its customers registering over $200 billion in revenue in 2013.

It’s presence is split between Social marketing, ecommerce platform software, site search, customer service, personalized content and transportation management.

To give you a glimpse on how serious Oracle is about its investments in multichannel retail – they paid $1.5 billion in 2011 for Right Now Technologies, a company providing customer service software and services to the likes of Overstock.com.

Larry Ellison is also one of the major shareholders in Netsuite and Salesforce, two companies shaping the global B2B and B2C commerce future.

1. Jeff Bezos

Net Worth: $30.1 billion
Company: Amazon

Jeff Bezos
Jeff Bezos

Jeff Bezos is the one man we all picture when we think about ecommerce. He is a Princeton graduate with a degree in Computer Science. After graduating from college he pursued a career in investment banking in Wall Street, which he left to found Amazon, after noticing the fast growth in Internet usage.

He set up his company in the proverbial garage with few employees and in 1995 launched the beta version for 300 friends. Days after the launch the book selling eshop managed to ship books across US and 45 foreign countries. Yearly sales in the first year reached $510 000, much more than Bezos envisioned. The company grew and grew, survived the dot com and went on to register $74.5 billion in 2013 revenue.

By expanding the initial book selling operations into CD’s, videos and later clothing, toys, electronics, home & garden, jewelry and even art, Amazon essentially became the “everything store”. Amazon is now the biggest online retailer and a disrupting force in retail.

Everything from the ecommerce revolution to online payments, shipping and marketing has been heavily influenced by Amazon and guided by Jeff Bezos, both a star-gazing visionary and a focused micromanager.

kindle dx
The Kindle DX

In 2007 Amazon launched the Kindle which soon became a revolutionary device that changed the way we think of books and digital content. In 2013 the company hinted at the idea of using aerial drones to enable faster shipping and in 2014 it announced that it’s now testing its 7 and 8 generation aerial vehicles.

But beyond his influence in online retail and retail at large, Bezos is a special human being. A libertarian, he invested in projects most of us would consider unreal and unattainable. He was one of the first investors in Google, financed a clock that would run 10 000 years and a company that’s working on lowering space flight costs, to allow humanity to explore the great unknown.

This short list, headed by Jeff Bezos, is prone to change. The world around can change as well, partly due to these people’s and efforts. To get a deeper glimpse on how they did it and what motivates them, have a look at Jeff Bezos’ Princeton graduation address, “What matters more than your talents”:

[youtube https://www.youtube.com/watch?v=vBmavNoChZc]

Ebay Lost 233 Million Accounts. Could It Be More Than Hackers?

In what could be the biggest security breach in history, Ebay may have lost personal data for 233 million accounts. Long story short – hackers got access to employees’ corporate network credentials, probably by phishing. They than accessed and extracted user data saved on Ebay databases, including addresses, date of birth, usernames, emails and passwords, which Ebay officials mentioned were encrypted. There is yet no report of hackers stealing credit card info from PayPal (an Ebay subsidiary).

A totally unrelated Ebay product
A totally unrelated Ebay product

Ebay was “quick”  to notify its users on the breach – it only took them three months to discover and communicate what could now be the largest cyber-attack on an American company.

Is there more to this security breach and others?

One can only notice the similarities between this breach and the one that previously put Target CEO out of job. In the previous biggest cyber-attack on an American company, Target lost personal data for more than 110 million of its customers, some of which included credit card info.

In the aftermath the company was heavily investigated by law enforcement as well as the secret service. The company hired a new CIO following the security breach, Bob DeRhodes, a former security analyst for the US Department of Homeland Security, US Department of Justice and the US Secretary of Defense.

The fact that Target customers’ credit card info later showed up on Russian underground forums, as well as involvement from national security specialists, points to something closer to cyber warfare than your everyday phishing.

There will be others

The shady practices employed by the NSA to gather intel have probably left the Internet a less secure place. If it weren’t for Heartbleed, a vulnerability the agency has allegedly kept secret, or other backdoors, tracked and harnessed in the interest of “national security” – probably Ebay wouldn’t report losing more than 200 million accounts today.

Now I’m not saying that some groups left american tech companies with heavy security gaps. And I’m not saying that some former agent / analyst of theirs is halfway across the globe in a country known for its history of espionage and overall unfriendliness toward US. But probably someone should say it.

 

Tweet to Buy From Amazon. #AmazonCart – a Partnership Between Amazon and Twitter.

amazon-twitter-cartTwitter keeps getting closer to social commerce. The social network just announced a partnership with Amazon where users can add products to their Amazon cart with a tweet.

The process is fairly simple. Amazon customers who are also Twitter users can add products by following three simple steps:

  1. Connect their Amazon and Twitter account
  2. Watch for tweets containing an Amazon link
  3. Reply to above mentioned tweets and adding “#AmazonCart”

After users follow through these steps products are automatically added to their Amazon Cart and they can buy later. If Twitter users didn’t connect the accounts or the service is not yet available in their area, they get an automated message from @MyAmazon guiding them to a specific Amazon web page describing the service:

amazon-twitter-cart-not-working

Most avid users – the Amazon affiliates

tweets-amazoncartAfter quickly connecting my accounts I was expecting to see a public stream of Amazon shoppers announcing their purchases.

Not even close. Right now most of those tweeting the hashtag are Amazon Affiliates asking their followers to reply to tweets containing  their affiliate links.

Apparently this is somewhat of a feature, as Julie Law, Amazon spokeswoman states: We have a significant number of customers who use Twitter, and a significant number of affiliates who use Twitter, too.

Twitter is serious about eCommerce

The #AmazonCart partnership is probably just a first step for the two companies. Amazon is interested in social commerce and as Facebook is probably harder to steer, Twitter seems the right choice.

Twitter on the other hand, showed interest in developing ecommerce abilities by hiring ex Ticketmaster CEO Nathan Hubbard. Moreover, this year information was leaked about a potential partnership with Fancy.com and mobile payments company Stripe, involving a three way solution allowing Twitter to leverage potential customers.

Top 7 Live Chat Software Vendors for Ecommerce

While customer support is one of the most important aspects of running your ecommerce business, it is also one of the most expensive and hard to manage.

When you’re talking customer support, you probably picture people with headsets in a huge open space, taking phone calls and answering questions. Maybe you picture something a tad relaxed, somewhere along the lines of a Zappos call center. Either way call center involve human resources, technology to set up, management and others. If you think that gets expensive – you are right. Fortunately, there is a growing alternative to this.

Enter the Live Chat Software.

bold-chatIn a recent study by BoldChat customers worldwide responded to the question “Have You Ever Engaged in a Live Chat?”. Results showed that more than half the respondents did engage in live chat, with more 65% respondents in the US saying yes.

prefered-form-communicationAlthough email is still the leading form of communication throughout the world (see left), live chat is catching up really fast , especially in the United States, Canada and Mexico.

One of the most prominent companies to use live chat is UK based  Virgin  Atlantic Airways Ltd. The company reports a 23% conversion rate for customers using its live chat feature. That is approximately 3.5 times higher than the conversion rate for users not engaging in live chat.

Virgin also reports that live chat also tends to increase average orders value, with customers spending 15% when chatting with an operator. Not only is live chat useful when trying to increase sales but it can also boost productivity, with one live chat operator doing the work of 15 email operators.

Who are the top live chat vendors?

If you’ve ever happened to look for live chat support software, you’ve probably stumbled across dozens to hundreds of different solutions. Some of them free, some open source, some paid. To help you get through the noise, I’ve put together a list of 7 of the most reliable live chat software solutions, from the easiest to implement to full-blown enterprise software suites.

The list is based on the clients size and profile, data regarding cost of implementation and solution reliability. Let’s start with number 7:

7. Zopim

zopim

Zopim is probably the youngest company on this list and a very promising one, for that matter. Its live chat application is easy to setup, light and very customizable. It offers a wide array of options and reporting information and can be used to integrate fully with sales operator teams.

The company, based in Singapore, has recently been acquired by Zendesk, a leading customer service solutions provider.

Features

Among its many features, Zopim lists:

  • Visitor visualization
  • Real time visitor info
  • Email chat transcript
  • Multi-device support
  • Visitor webpath tracking
  • Customizable greetings
  • Developer ready API

Pricing

Pricing ranges from free (demo account, one chat agent only) to $20 / agent (unlimited chats, departments, widget customization etc.)

 

6. Website Alive

website-alive

Website Alive features live chat, mobile chat and click to call solutions to retailers. One additional service that stands out is the “Concierge” service that includes the live chat software but also dedicated operators by Website Alive, for retailers willing to outsource customer care.

The Live Chat app is feature packed and allows integration with the “click-to-call” option, allowing customers to ask for support on the phone. Retailers can customize their widget look and feel, aligning it with the store’s branding.

Features

  • Chat transcripts
  • Visitor tracking
  • Invitation Pop-ups
  • Chat collaboration
  • Communication records
  • Call Routing
  • Multiple chat lines
  • Call transfers

Pricing

Pricing starts with the basic pack of $29.95/month, with 2 operators included, and goes up to $97.95/mo for the full pack.

 

5. BoldChat

bold-chat-img

 

BoldChat, a product of Bold Software, features the usual live chat support systems as well as some other, more advanced tools. Among them – multiple customer support interactions, click-to-call services, co-browsing and SMS communication.

In 2012 the company was acquired by LogMeIn, a company focused on providing online support for computer, smartphone and tablet owners. Price tag: $16.5 million.

BoldChat invests heavily in research, some of its resources being available online. The company is focused on midsize to larger online retailers, making it one of the more reliable tools out there.

Features

Among others, Boldchat lists some features targeted at larger online retailers, such as:

  • Cross-domain implementations
  • Passive browsing sharing
  • SMS, Email and Twitter management
  • iPhone app
  • Mobile-aware windows
  • Post-chat survey
  • Salesforce integration

Pricing

Pricing starts at $599 / year / agent.

 

4. Moxie Software Live Chat

moxie

Moxie Software is a provider of integrated customer support systems. It’s enterprise products are integrated and used by companies such as Dell, 3M, Epson, Crocs and others. Its Live Chat system allows text dialogues, co-browsing, reactive chat and proactive chat.

The company extended its products to handle social media requests, mobile browsing, click to call features and others. One very important aspect of Moxie Software is its Knowledge Base support center and self-service applications.

Integrations

The live chat solution can be integrated with company CRM solutions such as Microsoft Dynamics, Salesforce.com or Nuance.

Pricing

Pricing varies by project

 

3. Right Now Technologies (Oracle RightNow)

oracle-right-nowIn 2011 Oracle acquired Right Now Technologies, for $1.5 Billion. At the time Right Now Technologies was handling over customer relationship management systems, as well as call center software, for over 2000 SMB’s. After being acquired, the company was integrated to Oracle and rebranded as Oracle Rightnow Cloud Service.

The division handles live chat, among others for some well known multichannel and online retailers, such as Overstock.com, BeachBody.com and others.

Features

Oracle Rightnow handles many critical aspects of customer service, among which larger companies can find:

  • Live Chat
  • Web Self Service
  • Mobile Live Chat
  • Email management
  • Contact Center integration and software

Pricing

Varies by project

 

2. LivePerson

livepersonLivePerson is one of the leading companies providing online customer care solutions. Its LiveEngage platform integrates live chat, social media, voice, content applications, mobile customer support, CRM software as well as advertising and marketing.

The company boasts more than 1.8 billion web visits observed each month. To handle this kind of traffic, the company also launched LP Insights, monitoring a complex set of customer analytics, such as behavior, sentiments and buying patterns.

Its live chat interactions allow contextual customization, so visitors can have meaningful interactions with operators.

The company handles communication needs for some of the largest online retailing brands, such as The Home Depot, IBM or Virgin.

Features

  • Conversion improvement
  • Cross-channel communication
  • Personalized experience
  • Agent productivity tracking
  • Automated customer offers

Pricing

Pricing ranges from $500 / mo for small and mid-size companies to $5000 – $15000 / mo for enterprise users.

 

1. Oracle Live Help on Demand

Oracle-logoOracle made heavy investments in the ecommerce area. Before Oracle acquired no. 3 on our list, it had already bought ATG (Art Technology Group) for $1 billion in 2010. Recent moves show Oracle Live Help on Demand moves toward integration with Oracle Rightnow. Until that happens, Oracle’s Live Help technology still powers some really big retail brands such as Costco, The Home Depot and Procter & Gamble.

Oracle Live Help features live chat, voice and email integration, providing tools for multichannel integration.

The Live Help solution tracks customers, analyzing data left behind, thus improving chat support by personalizing the experience.

As you can see, whether it is the Live Help solution or the Rightnow environment, Oracle is leading the way in online retail live chat and customer support systems. The others, however, are moving fast, are flexible and companies such as Liveperson are soon to challenge the big red.

 

 

 

PayPal to Process More Offline Payments

Ebay subsidiary PayPal is dead serious about taking on a $10 trillion market: the Multichannel Payments Market. To do so it will have to prove its worthiness against older companies, especially in offline commerce.

Multichannel Payments

A steady increase in Ebay's Revenue. Biggest cash cow - PayPal, 41% of total revenue.
A steady increase in Ebay’s revenue. Biggest cash cow – PayPal, 41% of total revenue.

With more than 140 million registered users already, PayPal has the sweetest spot in the online payments today. Its acquisition of global payments company Braintree secured an additional 35 million registered users. As President David Marcus puts it – this is a part of an effort to redefine money and payments into what he calls “Money 3.0” – a new way of looking at payments and how customers use them.

PayPal owner-company Ebay is at the front of what some would call a commerce revolution led by technology. Its three main branches (The Marketplaces, Ebay Enterprise and PayPal) all work together in this changing landscape.

The Marketplaces (including Ebay.com, Shopping.com and Rent.com) enable C2C Commerce, while Ebay Enterprise caters end-to-end multichannel commerce technology. Ebay Enterprise is the tech, operational management and marketing vendor for the likes of Toys’R’Us, Radioshack, Sony ant many others.

Between these two, the payment processing subsidiary PayPal leads the way in online payments. The company is Ebay’s most promising subsidiary, growing at 20% in 2013. As of 2011, it decided to go offline, allowing customers to handle their money, cards and PayPal wallets in one place.

POS solutions

paypalofflineTo increase offline usage, PayPal now offers point-of-sale solutions, mostly targeted at the new tablet-based counters. Store owners can easily implement its apps and start charging right away.

In an effort to increase adoption, PayPal started integration with third-party store management solutions such as ShopKeep POS, Booker, or Leapset.

Among its benefits for store-owners, Paypal lists security, quick implementation and an all-in-one approach to accepting payments, scanning barcodes, tracking inventory and sending invoices.

Customers willing to take their PayPal Wallet to an offline store account can pay by swiping their PayPal paycard, using their account or by paying online and picking up in store. Having a larger pool of companies accepting PayPal payments allows the company to securely handle all transactions, allow customers to receive loyalty points and handle all personal information.

Ebay and PayPal will stick together

paypal-growthSince Ebay purchased PayPal, both companies listed a successful increase in revenue. Ebay powered PayPal’s adoption to its marketplace users and in turn PayPal grew up to become one of Ebay’s most profitable subsidiaries, amounting to 41% of total revenue in 2013.

With the help from Ebay, PayPal grew from $600 million in mobile payments to $27 billion in just three years. The figures are posted on the 2014 annual shareholder meeting website, in response to Carl Icahn’s demand to spin PayPal off into a separate company.

Carl Icahn, one of the most notorious corporate raiders in the tech industry, demanded PayPal to be split into a separate company and become listed on its on. The board of directors fought his demands showing that even though the company is open to changes in the future, right now the two are working better together.

Luck would have it that shareholders reached an agreement to keep the companies together and handle the incoming commerce revolution as a whole.

“[…] we have moved aggressively to leverage PayPal’s integration with eBay to expand PayPal’s reach to millions of online retailers and to offline transactions. PayPal remains one of the fastest growing elements of the company – which helps explain why others are targeting the payments business but are far behind PayPal.”

John Donahue, Ebay CEO. Source.

 

Is Mass Customization the Future of Ecommerce?

Henry Ford said “People can have the Model T in any color – as long as it’s black”, in the early 20th century. That’s when Ford’s innovation, the assembly line, vastly improved productivity thus reducing production costs. Lower costs meant companies could manufacture cheaper products and still be profitable.

The assembly line made possible the mass production of goods. Things that were previously custom-made and unique soon became available to the now emerging middle class. Clothing, food, even cars and houses became accessible to the mass market.

More than 100 years after Ford launched the "one color" Model T, Ford buyers can customize their cars online
More than 100 years after Ford launched the “one color” Model T, Ford buyers can customize their cars online

Industries were built around product manufacturing. The customer was no longer the center of the universe. Companies focused on the product. Products were manufactured in large quantities, distributed and sold, with a lot of help from advertising companies. Even though advertising was around, it wasn’t the type of organized industry we now know until the television set became a part of consumers’ daily lives. By borrowing some concepts used in WWII propaganda, experimenting a lot and innovating, advertising quickly evolved in a mature tool to push mass – manufactured products to the market, globally.

Mass manufacturing becomes the standard

After 1970 two trends started to emerge. First one – the mass-manufactured product becomes the norm. Faster assembly lines, improved productivity with better management and companies going global – it all lead to bigger manufacturing facilities and more money poured into advertising. In the western world people were spending earned and borrowed money faster than ever before to buy mass-market products.

The second trend was improving production with help from computers and networks. It all started small and kept growing. Innovation in the IT industry allowed companies to improve manufacturing productivity further. Soon cars stopped being built by people and robots took over. They were faster, better, less prone to error and cheaper in the long run. They also learned new things a lot better. With automated assembly lines, the mass produced goods could be reprogrammed to build new products fast.

The product development cycle was shortened. The fact that now BMW or Mercedes are able to launch a new model every month is possible because of advancements in management and IT. These companies can now target customer groups. Ford’s Model T was a “One Size Fits All” product but now everything’s changed. The auto companies can split their customers and they can build products for increasingly smaller niches.

Mass customization becomes a reality

The internet changed everything. When Michael Dell decided he would create a special PC for anyone willing to pay for it, he probably had no idea what his actions meant. Now Dell is a global company and one of the largest online retailers. When the company decided it was going to offer mass market customization features, it seemed like a really risky move. At that time, computer manufacturers were already engaged in a price war to market accessible computers.  It didn’t seem like a good idea to turn a mass produced, mass marketed product in a customizable one.

Dell offered their customers what they wanted: the ability to choose between different options in terms of design, software and hardware. The order, assembly and shipment processes were streamlined using software designed to minimize human input and error. Today’s devices (be it desktop computers, laptops, tablets or smartphones) are available in many formats. Most of them are a hybrid between mass produced and customized products.

The future of mass customization is already here and the company that helped most with making it a reality is the largest online retailer in the world: Amazon.

Amazon lead the way in mass customization with Print-On-Demand

amazon logoFirst off, Amazon made possible a type of personalized experience for customers by providing personal recommendations and notifications based on purchase history. Its second biggest innovation was print on demand. With Amazon, books were no longer published en-masse for long-tail items. Rather, for a small amount of extra cost, they were made available as items printed on demand.

This innovation spawned a new breed of self-published authors, leveling the field for publishing. In turn, readers were now able to read books otherwise unavailable and writers could skip pitching to publishing houses. The effect was so dramatic that some large book retailers had to close their brick and mortar stores.

Top ecommerce companies selling mass customized merchandise

From shoes to t-shirts to art-prints it seems like anything is game when it comes to online-powered mass-customization. Many companies jumped the customization wagon, but few stand out. Have a look below at these companies:

zazzle

 

Zazzle.com

One of the most popular platforms in the world for Built-To-Order, customized products is Zazzle. Its mission: “To Enable Every Custom, On-Demand Product in the World On Our Platform.” It is a mix between self-curated product designs that can be customized by customers, and a wide variety of products submitted by designers and entrepreneurs in the marketplace.

The company partnered with large brands to provide customizable products for companies such as Disney, Hallmark, DC Comics or even Google. It is growing fast, outpacing its competitors and bringing mass customization for the wide market.

Zazzle’s success is based on two main factors. The first is its ability to customize products that are manufactured separately and customized at the end, with input from the end consumer. This allows for a minimum slowdown in manufacturing capabilities.

The second factor helping Zazzle tackle its competitors is a patented color print technology that allows it to manufacture multicolored items, without signifiant increase in costs and manufacturing time.

It does also help that Klein Perkins Caufield & Byers, a well known Silicon Valley VC firm, backed Zazzle with $48 million. The VC’s have also backed up a couple of companies you might have heard of, such as Google, Amazon, AOL or Electronic Arts.

chikoshoes

Chiko Shoes

Ladies – ever felt like you could be the world’s best shoe designer? Felt like you’ve hadn’t had the chance to show what you’ve capable of? It turns out you are not alone. Founders Rumbert Kolkman and Judy Chin believed they could make shoe design a mass-customizable market. In 1999 they’ve built a B2B company that would allow shoe retailers and designers to access a rich supply chain with ease.

In 2013 they’ve opened this option to the public, unleashing the power of mass-customization to end buyers world wide. Prices are ranging from $230 to $1200 and Chiko Shoes allows customers to chose between 1300 material swatches.

The shop goes against luxury heavyweights dealing with customization, such as Louis Vuitton Mon Monogram or Prada’s Lettering Project.

shapeways

Shapeways

We’ve previously listed 3D printing as one of the technologies that are disrupting online retail. Among many other companies providing 3D printing technology, Shapeways stands out as a potential market leader for 3D printed custom items.

The company was founded in 2007 in the Netherlands. It moved to NY, where it received a $5million founding from VC’s including Andressen Horowitz. It now runs a fully operational marketplace where designers can sell their 3D designs and customers can create their own.

As of June 2012 is sold over 1 million user-created objects. Production was provided by its Queens, NY 3D Printing factory that uses  50 industrial printers to manufacture millions of user designed custom projects.

threadless

Threadless

Threadless started as a marketplace for t-shirt designers and quickly evolved into providing other customized merchandise. Users can purchase clothing items (such as t-shirts, hoodies or tank tops), art prints or phone cases.

Although Threadless does not allow mass customization per se it does allow users to submit designs. These designs can be featured and sold to consumers afterwards. What makes Threadless different is the fact that not all designs are accepted and marketed yet those who do are chosen by the community.

ethreads

Ethreads

Ethreads allows customers to create their very own bags, starting with a blank model and adding options using the online design tool. The shop also offers options to see what others have designed and the ability to buy directly on Amazon.

fab.com

Fab.com

Fab started as a flash sales online store. Its approach proved very lucrative for a while. The company decided to take another path by providing customized design options for furniture and home deco buyers. Although the change affected only its european operations, it seems the company is heavily interested in developing its customization options. It completely stopped marketing its products and flash sales options in the EU and is fully engaged in providing customized furniture.

A preview of furniture designed on Fab.com
A preview of furniture designed on Fab.com

The furniture is made-to-measure according to users’ needs. It allows customers to design their own products in 5 main categories: shelving systems, tables, sofas, beds and wall shelves. A complex yet easy to use configuration system allows potential customers-turned-designers to create the perfect match for the home. Inputs allow customization of size, materials, colors, finishing and others. A 3D visualization engine allows customers to view their newly created product before ordering.

This new pivot in the company was made possible after Fab purchased Massivkonzept, a company founders declared was already profitable and growing. It seems Germany is a great place to look for companies focused on customized furniture design. Woonio, a german ecommerce startup, offers customized furniture like tables, beds, lounge stairs.

The future of retail is mass customization

Examples above show any industry can allow mass customization and is prone to change. Individuals need to feel empowered when purchasing and technology has made this possible. Whether is next year or 10 years from now, mass customization will become massively popular.

 

 

AliBaba decides to take its IPO to the US. Is it taking on Amazon and Ebay? Not just yet.

In terms of global Ecommerce, this was a very interesting day. The Chinese wonder, Alibaba Group Holding, has decided to take its IPO to the States. The company, founded by ex-english teacher Jack Ma in 1999, is now on track to extend its influence outside China.

Jack Ma - founder of Alibaba.com
Jack Ma – founder of Alibaba.com

The company started as a way to connect Chinese manufacturers to the western buyers. It than evolved a B2C and C2C approach, an online payment solution (AliPay) and even an investment fund, Yu’e Bao.

The company’s growth has been mostly fueled by its B2B division, one very important gateway to China’s manufacturers, and its connection to Yahoo. The american company, although not in its best year, was lucky (wise?) to invest in AliBaba, when it was just starting. Although the group has been buying back Yahoo’s stocks, it is still largely (24%) owned by Yahoo.

Given AliBaba’s growth, Yahoo’s stocks have been bumped up. Some analysts suggest that 21$ out of Yahoo’s 37$ stock price come from AliBaba. The future looks great for both Yahoo’s stocks and AliBaba. In the IPO the Chinese company is expected to raise $15 billion, at a valuation north of $140 billion.

Is AliBaba ready to take on Amazon and Ebay?

The answer is … probably not. This might not be its target. As mentioned in an announcement on the corporate blog, AliBaba initially intended to be listed on the Hong Kong exchange. Its management structure, however, would not have the same influence in the case of a Hong Kong listing. Senior management, owners of 10% of the company are not willing to bend to Hong Kong’s rules and have thus decided to switch markets.

“We wish to thank those in Hong Kong who have supported Alibaba Group.  We respect the viewpoints and policies of Hong Kong and will continue to pay close attention to and support the process of innovation and development of Hong Kong.” – Source

Even though the company says it wants a global approach and a more transparent communication to the market, its senior executives still want the full control.

AliBaba needs two things right now: cash and popularity. It needs cash to keep up with its historic growth, as China’s economic growth is slowing down. It is still based in China, its main assets are Chinese manufacturers and it is China where AliBaba controls 80% of ecommerce. But Jack Ma was wise enough to share its company’s growth with Yahoo, which was a bless in terms of global reach and brand awareness. The company now needs to go a little further. The global media has its eyes on the New York stock exchange and AliBaba needs to show it is more than just another Chinese company.

It doesn’t matter that the company is already listing a tenfold increase in B2B transactions or the fact that the Chinese ecommerce market will reach$655 billion by 2020 . The spotlight is somewhere else. And AliBaba needs to be there.

The P2P (Peer to Peer) Banking Revolution. Can The Big Online Retailers Take on Banks?

Banks are one of those things people take for granted, whether they understand them or not . Their systems and inner workings are unknown to most of their customers. Their influence has, to some extent,  shaped the modern world. Strength, rigidity and, until recently, stability have been the common attributes for banks.

Change rarely, if ever, happens in the banking sector. When it does, it’s usually for the worse. Recently, however, something seems to have been shaking its very foundation: the evolution of electronic markets and peer to peer cooperation.

Commerce has been liberalized by the likes of eBay, Amazon and AliBaba. These companies are responsible for shortening the supply chain from manufacturer to the end consumers. As recent developments show, the banking sector is next. Who knows, maybe the companies that changed retail will also be those able to change banking.

Lending for the People: Top Peer to Peer Banks

Although just recently launched, some new companies have been taking the banking world by storm. These companies match lenders and borrowers, through a common marketplace platform, usually using auctions.

225px-Zopo-logoZopa, UK’s leading P2P lending company, offers a 5% return to lenders and charges 5,6% on personal loans. Apparently it works great as overall acceptance has been steadily rising. In the past 6 months alone the company has lend 100 million pounds, 25% of the total lend since it was founded in 2005.

Among the things responsible for a growth in P2P lending acceptance was the fact that traditional banks’ risk aversion that slowed lending to a halt. Savers have also been ignored by banks so they had no other choice but to turn to new methods of growing their savings. “UK savers seem to have been forgotten by the banking establishment, so it is not surprising more people are giving Zopa a try”, says Giles Andrews, CEO of Zopa.

isepankur-logoIt’s not just the UK or the western world that seems to have an appetite for P2P lending. IsePankur, an Estonian based P2P banking startup, has just added lending options to investors outside Estonia. The company was accepted quickly as an reliable financial player and now it lends money to 60 000 people. Although it tackled the  acceptance issue, it still has to deal with higher risks than UK-based Zopa. It manages this issue with the help of a high return on investments (aprox. 22%) that seems to be enough for everyone willing to lend against a default rate of 3%.

Source: Wiseclerk
Source: Wiseclerk

lending-club-logoGoogle itself is pretty interested in the P2P area as it purchased a share of Lending Club, valuating it at $1.55 billion. The company, based in San Francisco, is boastful about providing loans in 43 states and earning its investors more than $300 mil so far.

Lending Club was founded in 2007, 2 years after Zopa, by Renaud Laplanche and it has lend more than $2 billions in 2013.

lending club
Usual destinations for loans contracted on Lending Club

Deposits are also being disrupted. AliBabab.com shows a growth rate of 1211%

AliBaba.com, China’s main digital company, the biggest online retailer in the world has joined the banking digital revolution. It has recently launched the Yu’e Bao (“Remnant treasure”) fund , that allows its customers to capitalize on AliPay’s growth by depositing money in this fund.

Customers will use money parked in their accounts. Their funds can thus increase with the company’s development. Although it is taking on some of the largest and richest banks in the world, it shows an outlandish growth rate. “Yu’E Bao fund reached 4.24 billion yuan (USD 693 million) in Q2 2013, growing by 1211.33% in Q3” it is reported.