The benefits & pitfalls of Scottish companies selling online

As a specialist digital consultant, I speak with a lot of Scottish businesses of all sizes about the opportunities that eCommerce can bring. Most agree that using the Internet to open up new markets and sell a greater amount of products is of commercial interest to them – who wouldn't want more customers and more revenue?

However a lot of businesses have still to venture into eCommerce and time after time the same key reasons for not doing so keep cropping up:

• Concerns about the cost of setting up and running an online business
• Concerns that “you need to be technical” 
• Concerns about online payments and security
• Concerns about distance selling and the appropriate regulations
• Concerns about delivery, returns, etc.
• Concerns about getting & keeping customers

However, help is on-hand from Scottish Enterprise for those organisations who want to learn more about how to go about setting up an online store and grow their business via electronic means. Courses, workshops and dedicated digital and eCommerce expertise via specialist consultants are all available.

Plus it is important to remember is not just about selling to the home Scottish market, eCommerce opportunities also lie abroad. In fact, back in 2013 a report on Scotland’s Digital Future stated that more than 90% of eCommerce in Scotland was already being conducted with other UK or overseas customers. It is therefore unsurprising that in the last few years a Scottish Enterprise workshop on the topic of International eCommerce has been run in many locations across the country. I sometimes help take this popular workshop and it covers topics such as: researching new markets, translating content, global payment methods and international digital marketing techniques.

So what are you waiting for?

Understanding the Third Moment of Truth

Last week I posted my thoughts on whether there was an extra  'Moment of Truth' in the online & multi-channel purchasing cycle. One where users get the product home and only then decide to return some or all of them.
This Third Moment of Truth is key to an eCommerce site's revenue and stock management, as returned inventory can significantly affect a product line's profitability and add a lot of effort to the entire back-end process.

In the diagram above I have also tried to tie together this Third Moment of Truth (TMOT) with the other moments and then to align them with my previously-used model of influence & action... AIDA.

Hopefully now, regardless of which model is used, there should now be some alignment of these different pivotal moments.

The Third Moment of Truth

In my earlier post this week, I explained what was meant by the traditional marketing model of the First and Second Moments of Truth (FMOT & SMOT). I then went on to cover the more recent concept of the ZMOT or Zero Moment of Truth and how it aligns to older models of: AIDA (Awareness, Influence, Desire and Action). 

In the offline world, the FMOT is typically when the shopper reaches for the product and buys it. This aligns nicely to the online (or Multi-Channel) world, where the user does virtually the same thing by clicking on the product they want, adding it to their digital basket and proceeds through the checkout process. The SMOT is then relatively the same for both channels, with the shopper either taking the item home to experience themselves, of getting it delivered / collected. 

However, I think we also need to consider that (primarily for the online shopper) we should add an additional stage, the Third Moment of Truth… or the TMOT if I’m allowed to continue the series (and not to be confused with ‘The Ministry of Truth’ or ‘The Magic of Television”).  

Consider the situation that is now quite a common problem for eCommerce retailers…

1.  A shopper visits a website, selects a product to purchase (typically one that they wear or needs to fit them in some way) and adds it to their online basket.
2. Because they are not too sure about the exact sizing of the product, or because they are not sure about their own physical dimensions, they order another one in a different size or two.
3. They may also order different colours of the product or other variant in some way… all in an effort to find a single product that is the ‘right’ version or fit.
   Note: It’s also my assumption here that sites who offer ‘free delivery’ and especially ‘free returns’ will suffer from this effect more.
4. After the user has completed their transaction (FMOT) they then await delivery, or in a ‘Click & Collect’ situation they go and get it themselves.
5. The goods arrive at their home and the shopper unwraps or un-boxes their purchases (SMOT).
6. However, they are now left with more than one product, when all they wanted was one thing. So after viewing or trying on these products, what do they do?
   
   They decide which items they are going to return.

It is this moment, when a choice about what gets sent back is made, that I think needs greater consideration and becomes the TMOT, the Third Moment of Truth.

Trust Me On This …   Doh!