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Recommendation for our clients in current situation

Change of customer needs

Shift toward online customer base

New customers via online sources

Monitoring of competition

Scope of cooperation

Ensuring continuity of supplies

Negotiating better prices with suppliers

Product portfolio optimization

Alternative business plan scenarios and cash flow monitoring

State support

New business models

Labour cost savings

Looking for other savings

Informing customers about the current situation

Focus on brand and customer care

Social selling

Shift of employees to other positions

Investments optimization

Focus on profitable products and categories

The speed of change as a key success factor

Open and transparent communication

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Market

Customers presence online is increasing. How can you take advantage of this and what can you do?

How are your customers' needs changing in the current crisis? How is this reflected in your product and services?
How can you let your offline customers know you're working online?

If you have stores in places where people walk, let them know that you are available online (i.e. display a discount code)
Use CRM / loyalty program data to identify these customers. Segment them and prepare promotional materials to bring them to the online store.

A lot of people start shopping online for products that they weren't used to before pandemic.

How will you help them?
What are these new segments?
How will you bring them to your online store?
How can you enable new buying habits?
Check out opportunities in specific product segments people are showing interest.

What opportunities can you see on the market?

Keep an eye on your competition. If their marketing budgets decrease or collapse, this is an opportunity for you to get a market-share.

If you run PPC campaigns, you can consider starting to advertise competitors’ brands (however, we advise you to consult your ad provider around legal considerations)
You can find some online stores to buy on Webtrh or Eshopista.

The crisis brings opportunities for cooperation at different levels

With companies within your supply chain
With companies offering complementary services or products
With the competition (ie. if you do not duplicate the product offer, suitable if you have a unique assortment / supplier within the generic category - eg atypical toys, fashion, etc.). The possibility of bundling products to expand the offer.

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Suppliers & Products

Questions that can help

What is the best way for both of our companies to get the best out of the current situation, including measures to help us avoid financial problems?
What can we as a client do to help you stabilize your supply chain?
What can you do as a supplier to make our products more competitive in a shrinking market?
What can we do together to get out of the crisis as winners?

Ensure continuity of supplies

Reduce risk points in your supply chain
Simplify your product portfolio - focus on products / categories that bring real profit. Consider discarding or discontinuing with products that aren’t in demand.

Negotiate better prices with suppliers

If you are in a segment where there is no excess demand over supply, use the situation to negotiate more favorable terms.

Strengthen relationships with key suppliers

The current situation affects not only you but also suppliers. Collaborate on strategies or solutions that will benefit you both.

Optimize stock levels

Too many products in stock can cost you money in the form of storage costs.
At the same time, the money you have invested in stock represents money that you might need elsewhere in the company.

We can help with analyzing the profitability of products and categories

Lukas Fibiger

Data analytic & CRO specialist

lukas.fibiger@shopsys.com

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Finances

We offer a free consultation with our CFO

Do you have your own CFO or do you need consulting?

Juraj Butora

CFO

juraj.butora@shopsys.com

www.linkedin.com/in/jurajbutora

Alternative business plan scenarios

What will you do if your revenue falls by 20, 40, 70%?
Cash flow is the killer of many eshops, even if there is no crisis. Monitor it on a daily basis.
Keep in mind that the cuts may not be reflected in cash flow for several months (i.e. layoffs).

State support

Monitor the measures the government wants to help affected businesses. If you were directly affected (i.e. having to close branches) the likelihood of reimbursement is quite high.

Increasing revenue

Marketing
New business models

Costs reduction

Salaries
Other costs

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Cost savings

Labour costs

If you have free human resources (in logistics, customer care, employees of closed branches):

Offer them temporarily to other market players that have a shortage of staff.
How can you use them for your online activities? Sales assistants have a lot of know-how about customers, their problems and needs, and they are already familiar with your services and offers. They can create content on a blog or social network, help with the selection of goods to customers in the eshop, or engage in social selling.

If you need to reduce your labor costs, consider lowering your workload and wages to 70%, rather than firing 30% of employees. People have lower living costs these days, and maintaining valuable employees ensures you will be ready for further growth after the crisis.
When you have to lay off, pay attention to notice periods.

Other savings

HR marketing spendings
Non profitable teams or branches
Office rent
Food / coffee / cleaning and other office or branch costs
Marketers working on currently unimportant areas such as event marketing
Software licenses that you don't use - review all invoices for the last month to make sure you don't pay unnecessarily.

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Try new business models

Sales through the marketplace

With non-unique products (or segments with a low return rate), you can try targeting marketplaces. You can use the largest eshops in the Czech Republic, such as Alza or Mall. If you want to sell on Amazon, you can use Expando services.

Sale of unpacked or slightly damaged goods

Some customers will become more price sensitive in the context of the coming crisis. Unpacked, used, or slightly damaged goods can be sold at Aukro. Don’t forget to exercise ethical standards of sanitation and maintain the safety of your employees.

Own Amazon Prime

Consider starting your own premium program.

B2B / B2C / ..

Do you normally only sell to B2C customers? Try to offer your products or services to different companies. You may not be able to compete in price, but you may be more flexible in responding to their requirements or have another competitive advantage.

Rental of products

For some products, it may be more convenient for customers to just rent them. In addition, it is more environmentally friendly. However, do not forget the necessary disinfection of the rented products.�

Subscription model

Which of your products do customers consume repeatedly? How can you get them to subscribe? This model can help you balance your revenues.

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Marketing

Don't stop building your brand

People will be cautious in times of crisis and will be reluctant to send money to an unverified brand.�

Show that you are not indifferent to the current situation

Some fashion eshops that sell face masks will send 1 or 2 items to hospitals for each item they sell. Fruitisimo prepared a crowdfunding campaign at HitHit to deliver fresh juices to hospital staff.
Be creative and try to figure out what makes sense in the context of your product range.
Take advantage of the current situation and change of customer behaviour, but do not abuse it.

Start with social selling

The vast majority of your employees are on social networks, use them as brand ambassadors in their social networks.
Employees from closed branches have a great knowledge of your products and can be great ambassadors.

Inform about the current situation

Create a section in your online store where you will inform about your current situation (if/when you’re open, how you’re doing business, etc.). Make it sure it is always up to date.
Share the same information in your social media.
Highlight security. Demonstrate how you protect your employees with protective equipment so customers know that your shipment will be safe. Underline contactless delivery.

Take care of your customers actively

If you have the capacity to do so, keep in touch with your customers and take care of them.
If you are not able to ship, communicate it openly to customers. People will understand, but they need information. If you are no longer able to communicate 1-1, at least inform them through the online store or social media.

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Performance marketing

What to look for price comparison sites

Do not upload or bid products that are not profitable.
Finding new opportunities - we can help you finding what's selling well in your business.
Advertise effectively, bid for profit, not turnover

Effective emailing can have a good return

If you already do email marketing, it can serve you very well. It has a good return compared to other marketing channels.
Keep in mind that at this time almost everyone sends newsletters, so it is necessary to differentiate, bring relevant messages, and segment or personalize your newsletters.

If possible, do not reduce your marketing investments

If you turn off ads, you are losing market-share. And it may not happen immediately.

Channels influence each other. If you turn off PPC, you may notice in a month that you have started to lose direct and organic traffic.

People are at home spending more time on social networks →

advertising campaigns are now relatively cheaper and more effective given an increased audience.

Savings of your competition can also reduce your cost for search campaigns.

Go for profitable products and segments

Research what products really bring you money.
It is not enough to take into account merely the selling price and the purchase price, but in particular marketing costs, transport costs, refunds and other indirect costs. You will then know which products to promote and which to avoid.

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Management and leadership

Get ready for quick changes

Crisis periods are characterized by great turbulence. If you are able to make rapid changes, chances are you’ll make the most out of a difficult situation (eg. Fruitisimo launched an eshop over the weekend, Alza and Mall began selling instant food, Rohlík started delivering instant food throughout the country.)

Communicate with employees as openly as possible

For employees the current period is also full of uncertainty. Look after them by always keeping them informed about how you are and what you're planning.

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