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you

before I start I want to tell you that

the presentation is in German but I

understand that so many english-speaking

people are here so my question out to

the audience is who understands German

please raise your hands very many who of

you only understand English

it’s a few one or two so yeah I hope I

do it like this because it’s only two

people who say it’s in English I’m happy

to explain it to you right after oh no

we do it the other way the presentation

is in German anyway so you can read it

and I do it in English alright okay

thank you okay so I know it’s a very

long title that we have here so what it

says is I want to show you how online

shops can increase their return on

investment for over forty five percent

by Google Shopping et al of Facebook etc

only through Product data optimisation

through performance steering and through

dynamic pricing I have only two slides

about what we do because that’s a little

bit important for you to understand

where I have the basis from why I can’t

tell you about these things so if you

have an online shop and you use channel

pilot or any other similar solution you

can go with us on over 2,000 sales

channels globally and at the moment

channel pilot already brings over 3,000

online shops to over 2,000 sales

channels globally

among these are really the biggest

e-commerce players in Central Europe we

have customers like about you bounty

auto cyberport many more

we have also great brands we have like

Olivia a Nespresso etc so very a lot of

a lot of customers a lot of big

customers as well

the product modules that we have and

that’s the last slide on us it’s what we

do is within channel pilot we have five

modules the first is the connection to

yes it’s called a feed engine the

connection to Google Shopping ideale

etc the second module is a marketplace

integration where you can also have the

complete order management etc then

there’s a market price analysis that we

have and based on the market price

analysis you can have a dynamic pricing

module and that all is based on product

data optimization so but that’s really

all about us and now I would like to

tell you what my topic is today and

whatever what LUN wanted to tell you so

first before I made this presentation I

asked a lot of our customers can I get

numbers from you can I share my numbers

because the audience want to wants to

see real numbers and they said Ralph we

like love your tool we are happy

customers since many years we’re happy

to give you references verbally but they

all didn’t want to give me numbers so

what we came what I came up with then is

to say okay we do the following we have

three thousand online shops as customers

we take the 100 of them that are using

our tool in the most intensive in the

best way and among these one top 100

there are a lot of the really big ones

the very experienced ones that have big

teams to work on the ecommerce under

marketing online marketing so now what

I’m showing you today is the five

measurements that these customers do and

what kind of return on investment

increase they could achieve an average

with these single measurements that I’m

showing you by the way

all of the five measurements in average

have increased their return on

investment by over 46 percent and only

to get a picture it’s not companies just

that just started like you know when

they used our platform it was big

companies they have been really really

professional before so that’s only for

you to to judge these results all right

first measurement what was the first

thing that the people do and what did

this result into the first measurement

is about product data optimization so

for you many of you it’s probably

nothing new but if you want to predict

present your products on Amazon on

Google or on Facebook you can do it in

the right way giving the right

information or you can do it in the

not-so-good way and here I have two

examples I’m not sure whether you can

see it but I will tell you anyway this

one example shows it’s not such a good

example on how you would like to present

your product on Google Shopping for

example what they what is not could not

done good here is the brand is is named

twice they are filling words integrated

that there is no no sighs that is

announced or revealed there is no color

or not the right colour that is that is

yeah said and it’s not the right wording

for the gender so in this case it says

men are and what’s what would be the

correct version for Google is to say

heaven so coming to the right side they

used they of course have named the brand

they have have no filling words that

doesn’t help the algorithm for from

Google Shopping they have done the size

they have informed about the size and

they have put down the right color and

they have done the right correct

well gender

the identification which is horrendous

in this context

alright and with this measurement the

first out of five that I’m going to

present alone these hundreds top

customers have increased their return on

investment by seven point seven percent

next one we call this performance

steering so what is it all about the

basis to steer your performance and

that’s nothing new for you is you have

to have a nice and right perform

performance tracking so you have to

track your clicks and your sales by the

way including the cross sales that you

have so what our customers usually do is

they they put all their products on all

channels that they think would be

interesting and after a while they

generated enough clicks and with these

clicks and these sales information that

they have they decide whether they want

to stay on these channels with these

products or not and like this you can

optimize it so let me give you a very

easy example and I really hope you can

all read this so let’s assume it’s a

very simple example but let’s assume you

have an online shop and you place if

your products on Google and you place

your products on ideale

then after one month in this example you

have clicks you have the click costs you

have the revenue from the click for

example if you take the the adidas shoe

you know it has generated over 5,000

clicks over 1,700 click costs and it

generated five thousand three hundred

year of revenue and two thousand one

hundred euro of margin so and this is

why I put the double plus that means

that you have on the first purchase or

the first in this view in the first

month you have already a higher margin

then

click costs so obviously this product

runs really well

so you want to keep it in fourth from

amongst the second example this drilling

machine has 2741 clicks almost 1/4 a

ninth 1,000 year of click cause the

revenue is good the margin is 906 euros

so the margin is a little bit less than

the click costs in average or typically

you would still leave this product on

the channel because very often you

cannot expect to have there yeah well

margin on the first on the first

purchase already so you would also I put

it a plus over there so you know it’s

it’s it’s a good product it’s going to

behave really well in the future as well

so with this kids car it has 329 clicks

150 no of click costs no revenue no

margin so you want to maybe take it out

in the next month and then you have

something which I will also come back to

you later you have some products very

little clicks very little click costs no

sales no margin so you basically don’t

know what to do with it

so this is why I put the question mark

and again I will come to that later so

what happens after one month so if we go

to the second month now you can see that

in this example we the tool has with

some rules and algorithm it has taken

out those products the car the drilling

machine on ideale

and what was it here the t-shirt and

there and the the camera on on ideale so

if you take these products out of course

you get less clicks you have much less

click costs

your hands of help of course also less

revenue but at the end if you compare

these numbers click costs three thousand

four hundred something margin three

thousand seven hundred something the

margin in this second month is better

than the click costs so this is how you

can optimize your business and of course

it’s a very easy example and with this

measurement our top 100 customers could

make a return on investment increase of

over 13% third measurement I wanted to

explain to you it’s the market price

analysis so what our customers have is

they have a clear overview on exactly

what are the prices of the comp their

competitive products on channels like

Google Shopping like ideale like Amazon

like eBay billi Guri and many more so

they can see what exactly is the price

of my competitor for how much do they

offer and this information can of course

be used for to change your price to do

dynamic pricing but that’s the next

measurement I’m going to show you this

information alone even if you say as an

online shop I don’t want to reprise all

the time I don’t want to you know I

don’t want to adapt my prices in the

morning in the evening or the next day I

want to keep my prices I want to be fair

or whatever this means in online and

online sales but even then if you know

that your product is maybe 30% more

expensive than the competitor maybe you

don’t want to list it anymore

because you don’t want the customer to

see that you an expensive online shop so

maybe you can put up rules where you say

I only present those products on those

channels where I really know that it’s

working for at the time that I’m having

that I have a competitive price

so to not be perceived as expensive so

this measurement alone helped our

customers to increase their return on

investment by four point one percent and

now I’m coming to the next one to the

dynamic pricing dynamic pricing means

and I have in this example I’ve put a

very very easy example this example that

I show you basically it has the rule

behind it just be one euro cheaper than

your competition and I will come to a

little bit more sophisticated rules

later but just to show you this easy

example and to make sure that we all

know what we’re talking about

so in this example the glasses of the

dealer one dealer to dealer three are

all more expensive than their own price

in the second row the the ragga of the

balance I think the balance is my own

price is twenty eight so I have the

highest price of this row and with the

chair I am my price is forty nine and

the rest are more expensive so now if I

do what the reprice apply the repricing

rule of I want to be one euro cheaper

than the rest what I what I what we end

up with is we have ninety nine euro here

and remember it was ninety five Yoruba

four that’s one very important point a

lot of our customers tell us how a Ralph

when we do dynamic pricing isn’t it

going to go only down down down no it’s

not it’s it’s not because other

customers are also putting prices up

because of low stock because they need

to improve their margin for many reasons

and then you also don’t want to have a

price of ninety five euro for the chip

for the glasses if you can get ninety

nine and you still the cheapest yeah in

my second example with the balance yes

we had to decrease the price quite

readily

and in this sari and the third one the

49 stays added was before so that was a

very easy role but as I said there of

course you can put any rule into into a

dynamic pricing that you want very

sophisticated one I just make some more

examples so again you could for example

say that we just saw I always want to be

one euro to eat cheaper then there than

everyone else

you could also say for example I want to

be $0.50 cheaper then my two main

competitors so I don’t even care about

the others I will just want to have a

price that is $0.50 cheaper than my

toughest competitors or you could say I

always want to be long my product should

always belong to the three D cheapest

where I know that the devala the the

products are really on stock that is

also something that we can generate this

is information that we can generate for

you this is information that you don’t

very often get from from the partners

officially but we have ways to get that

these information so that’s something

really important and we’re very nice and

you can also say an example see that

it’s not only you want to be one or to

belong to the three cheapest where your

product belongs to the two or where the

competitors are available or the

products are available you can also say

I only want to compete with them if

their shop has very good the Ottoman

kind somebody helped me on that good

ratings right thank you exactly or you

can say I always want to belong to the

five cheapest but never cheaper than

ninety seven euro ten because that’s the

price you have to pay for the product so

you cannot go cheaper and if you put

that you can put additionally you can

say okay if if ninety-seven year

10 is the cheapest I can do and I have

to do it to be among the 5 cheapest I

have several options first I could say I

want to be I want to still list with 97

euro 10 accepting that I’m not among the

5 best and cheapest or I can say I take

the product out because I don’t want to

be perceived as expensive so very

important for me is as I what I said at

the beginning dynamic pricing does not

mean it’s only going down you also know

it at your at your petrol station or

your gas station the price is going up

and down it’s not only going down so

it’s the same in e-commerce and the

second oil in the next and last

information on this one I wanted to give

you is what we see is of course

depending on the channel but to show you

how important it is to be on the top

price-wise is the first the first listed

gets 40 to 75 percent of the clicks the

second list it gets 20 to 45 percent of

the clicks the third one gets 10 to 25%

of the clicks and the everybody else

shares 20 to 30% of the clicks so you

can easily from place 10 to place 1 we

have seen that the sales the revenue has

been increased by 10 from our customers

and this measurement this dynamic

pricing measurement made in our return

on investment increase of our top 100

customers of 11.6 percent

all right now I’m coming to the to the

final and the fifth measurement so what

happened we come back to the example

what happened to this has foul football

trick oh yeah some of you will say yet

we’ll never get clicks it will never be

so especially here in Berlin you will

probably think who wants to buy a house

for t-shirt so basically the question is

you don’t know what to do with it

because in order to know what to do with

it you have to have some historical

information you have to have some click

information and you have to have some

information about the revenue in this

case two little clicks no revenue so

what do you do do you still list the

product or do you take it out in the

next month and with our module that is

called performance strategies you can

for example take the information from

from another channel so in this case

this has found Treecko football Rico has

been had many clicks on a Diallo it has

had also not over 900 euro of click

costs so and then it was sold but only

196 euro revenue only 45 euro of margin

so not very exciting so based on that

information you would probably leave it

out you would probably not put it on to

any external channel but you can also do

other things you can say alright if I

don’t have enough clicks on my football

trick oh where can I get valuable

information from and the other valuable

information is you can say ok what kind

of products could I look at that I have

in my stock for longer where I could

imagine that the the behavior would be

the same so in this example we put a lot

of soccer football soccer trick

socket Rico’s in the air of the first

and second league and we looked at it

and said wow these have nine thousand

clicks three thousand one hundred euro

of clickers and they made eighteen

thousand euro of revenue and forth over

four thousand euro of margin so if you

group the information and you take this

group information and say why shouldn’t

this has whole t-shirt at one point of

time maybe if they’re if their team wins

again or if it goes back to first league

whatever why shouldn’t it sell as the

others and then with this information

you would basically take the decision as

an online marketing manager to keep it

on Google Shopping and then to keep it

on ideale and on of course on many other

channels but this is only one example

how to group you can also group him

because we’re looking with the tool you

can look on each article if you don’t

have enough information and let’s say on

a white t-shirt then you can say okay

let’s look and in a certain size then

you can say okay I will have a look at

all sizes maybe I have enough click

information in say its information then

if that doesn’t help it’s still not

enough click and say its information the

next thing you can do is you can say

okay I’ll look at all colors not only

white but all five or six colors that

I’m offering I take that as a group if I

say oh wow that’s still not good enough

I can say okay what brand is it from so

I maybe take other kind of t-shirts from

the same brand into account and this is

something that you can put in as rules

individual individually into a tool and

you only have to set it at once and

after that the tool will do everything

for you automatically they will always

do the deal in the delisting but you can

also add certain rules and I don’t want

to go into the complexity of that but

you can add certain rules where you say

okay I take the product out because it

doesn’t work but I can I I let the tool

put the product automatically back in if

the price decrease is maybe less or

there’s more than ten percent because

the assumption is if it’s ten percent

cheaper

I will probably sell it

you know so this is I think I don’t oh

yeah that’s that’s one last thing I

wanted to mention what you also can do

with these performance red Jesus you can

black and white list the black listing

means you can you say the the the

products that don’t work you just leave

them and the products that work well you

take them out and the products that work

well the white listing you take but you

can also do exceptions you can say I for

example I got a bad because in sushi oh

so you got I got some extra money from

the brands you know to list all of their

products on all channels and then you

can whitelist them and say although they

usually don’t work within my kpi’s I can

still say list please list all products

of this certain brand and with this

measurements this v measurements our

customers made a return on investment

increase of 10.1%

so thank you very much for listening and

the interests

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