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Yesterday, we talked about the benefits of developing an e-commerce scorecard. Today, we'll cover the first few strategies for e-commerce success!

 

Getting started: Six scorecard success strategies

Okay, so you’re ready to build out an e-commerce scorecard. But how should you get started? And what can you do to maximize its value to your e-commerce team and key stakeholders? Consider the following success strategies shared by three leading sellers—Robert Calvert, head of worldwide B2Bi strategy at Hewlett-Packard; Michelle Meyer, e-commerce sales specialist at Fastenal; and Jamie Werve, senior manager of e-commerce sales operations at Insight—during a session at Ariba LIVE 2014.

 

Strategy #1: Develop measurements that support your focus areas. Measurements that you may want to consider include:

  • Customer satisfaction levels
  • Operational efficiency—reduction in cost of sales as well as order entry, order management, and invoicing costs
  • Cash management—increase in revenue and margins, decrease in DSO
  • Capabilities—improvements in
    • Length: measure capabilities across lead to cash,
      source to settle, or procure to pay
    • Width: measure capabilities across regions and product lines
    • Depth: measure features across advanced features and complexity
  • Cross-selling or up-selling opportunities gained
  • Client growth and retention
  • Time needed to onboard a new client
  • Degree to which clients use a new solution or capability once it’s in place
  • Number of new client implementations per quarter and year
  • Website uptime and speed
  • New client implementations per month, quarter, and year
  • Distribution of orders

 

Strategy #2: Capitalize on what’s happening internally. As you develop your scorecard focus areas, consider your company’s current driving forces and priorities and use them to your advantage, wherever appropriate. “It’s important to make sure you don’t get too narrowly focused in one area,” Calvert notes, “but if there’s management excitement around a certain topic, whether it’s DSO or order entry cost or something else, take advantage of that and start using it to build out your capabilities” by incorporating those metrics in your scorecard.

 

Strategy #3: Create a graphical representation of your scorecard for at-a-glance readability. HP uses a heat map with a color-coded, build-on matrix to make it easy to track capabilities quickly. “It’s kind of hard for management to get a grasp around this; they need pictures,” Calvert says. “The visual is nice and it lets you drill down.” Besides highlighting what you’re already doing well, this helps draw attention to what requires additional improvement and investment, so you can quickly focus discussions on where you need to spend time, energy, and money.

 

Tomorrow: More getting started strategies

If you don't want to wait, go to our Supply Lines group to read the full article.