Clavis Insight 6Ps
eCommerce
Intelligence™
A familiar, yet powerful framework to organize and
prioritize eCommerce analytics and actions that will
drive unprecedented eCommerce success
eCommerce is accessible anytime, from
anywhere, by anyone. And while that
convenience for shoppers is driving the
eCommerce revolution, it means eCommerce
‘store checks’ can also be done just as easily.
That means eCommerce managers are often
fielding many questions of issues and
opportunities that impact growth, such as
“Are we winning online?” “Why is our best
offline product not coming up in search
online?” and “What are the right KPIs?” Like a
looming iceberg, each question uncovers
layers and layers of underlying issues that
need to be resolved. This can be a tedious and
time consuming process. Fortunately, having
the right data, easily accessible and
actionable, can save time and speed
resolution.
But what data? There is no shortage of data
for eCommerce managers – in fact, it can
quickly become overwhelming. The challenge
is sourcing the right data, analyzing it to
understand what it is telling you, and using it
to prioritize, shift or even know where to
start.
At Clavis, we are passionate about making it
as easy as possible for manufacturers to
access and understand the insights and
analytics needed to maximize digital shelf
performance. We work with more than 60
manufacturers, including thousands of
brands and users globally, and many have
come to us with the challenge of data
overload. Where do we look? What are we
looking for? What do we need to know? What’s
next?
That's why we created the 6Ps eCommerce
Intelligence™ framework, a powerful
extension of the familiar Marketing 4Ps
(Product, Place, Price and Promotion) that
has been adapted to reflect the nuances of
eCommerce, thus providing manufacturers
with the clarity of how to organize and
prioritize eCommerce analytics and actions
that will drive eCommerce success.
 Clavis 6Ps eCommerce Analytics™
A familiar, yet powerful framework to guide and prioritize actions.

Here’s how it works.

Manufacturers can directly influence the first 5 Ps:

• Product — assortment and availability to purchase
• Placement — categorization and retailer hierarchy
• Price — cost of goods and competitive price monitoring
• Promotion — media, merchandising, and traffic
• Perfect Page — product detail page content, shopper generated
content

These represent the key levers available to drive business growth.

The results and impact of your efforts are measured with the 6th P:
● Performance

Let’s take a look at what each P can do you for your business.

Product
Is my product consistently in stock?
Is my assortment optimized by the online retailer?

Maintaining appropriate stock levels can be troubling for any business — digital or not.
Maintaining adequate stock levels is even more challenging for eCommerce retailers than for
their traditional counterparts. Physical stores traditionally carry between four and six weeks
of inventory at shelf, plus layers of inventory that may be in the store room or at nearby
distribution centers. In contrast, online retailers tend to be more towards ‘Just in Time’
inventory management: typically between two and three weeks of on-hand product.
Purchase methods like Subscribe and Save add even more pressure to keep items in stock.
This method auto-ships refills to shoppers, keeping them “locked” into your product.
However, an Out of Stock message can risk losing this relationship and allow another brand
to pick up one of your lifelong customers. Damage to the brand is especially acute if products
are frequently out of stock, as overall conversion rates could fall. In the vast majority of cases,
customers have the option of selecting between your product and an alternative they
perceive to be comparable. So, what to do?

• Start with your top 20 percent of revenue generating products with your key accounts,
and set aggressive targets for those.
• When you identify pervasive out of stock issues, root cause the issue – is it your own
supply chain or is the retailer not carrying enough inventory?
• Share the data with retailers and partners to drive change.
• Build on the learning and expand to other products and across the range
• Watch for anchor events such as holidays and retailer promotions and forecast
accordingly.
• Begin experience testing the processes with key products, set achievable targets early
on and dial up the intensity as you learn.

Assortment is another critical area of focus. The most common approach is to reuse the same
products that are sold in bricks and mortar, and sell them to online retailers. However, it’s
important to tailor the assortment to the retailer’s strengths. Heavy liquids may not sell well
on Pure Play online retailer sites, but will sell very well via van delivery. Further, shipping and
handling efficiencies may require pack sizes and configurations with higher dollars rings.

• Start by analyzing best sellers by online retailer, not by what sells well offline.
• Identify if packaging solutions, such is eCommerce-ready, or ‘Ships In Own Container’
will create a better proposition for the retailer and for shoppers.
• Study 3rd party sellers to see if they are creating unique bundles that are highly ranked.
• Niche items that don’t do well in brick and mortar sell very well online: unique flavors,
specialized forms, gluten free, organic, meat-free, calorie-free etc, Try launching
innovation online first, expand into new flavors and forms, or consider purchasing a
niche brand.
• Work with your Finance and Supply Chain teams to build a test and learn plan that will
scale to a multi-year, P&L model that is a win for everyone.
Placement
Where in the retailer hierarchy is my product categorized?
Can I cross list in other categories?

When shoppers enter a brick-and-mortar store, list in hand, they don’t walk down random
aisles, hoping to happen upon the products they came to purchase. These shoppers may not
know exactly which shelf has the products they seek, but they do know to look in the drinks
section for the bottled water and the household cleaners aisle to find the window cleaner. The
category placement of those products is key to their “findability” on the store shelf. Similarly,
the ability to find products in a predictable place on the digital shelf helps existing shoppers
repeat their purchases and helps convince and convert new shoppers.

While conventional wisdom is to focus on search, a non-trivial amount of users will click
through a retailer’s taxonomy to find a product. This may be category-driven, such as
browsing clothing departments and sizes, or trip mission-driven such as research and
discovery of new products due to life changes. For example, a new puppy in the home, or
discovering that a diaper brand isn’t working. Items placed higher in the taxonomy will receive
more eyeballs and thus more clicks, helping to drive sales. Even better, these shoppers may
not know your brand and may simply discover it online, no different than someone who picks
up a new item off of a store shelf. These customers can be converted into long time
purchasers, which greatly elevates the importance of product placement.

A deep understanding of website placement will also help brands optimize placement during
product launches, correctly having the item appear in multiple related categories for
shoppers to find it.

Monitor, understand and analyze optimal placements:

• Monitor your own and competitive product placements; test and learn for optimal
placements.
• Understand the overall location count and menu rank of your products, so that you can
optimize your efforts to increase consideration through menu browsing.
• Analyze category insights supporting placement strategy and close retailer
collaboration to maximize ease of navigation.
Price
What’s my price and does it vary by location?
What are my competitors’ pricing?

Your online retail pricing strategy can seek to maximize brand value, customer engagement,
and results such as basket, sales, and margin. What is different about an omnichannel
landscape is that shoppers often have visibility into pricing across brands and retailers.
Websites such as Amazon, Walmart and Tmall have third party sellers all offering products at
different price points, while Google makes it easy for shoppers to jump around and compare
prices store by store. However, success doesn’t mean a race to the bottom. Pricing strategies
must balance profitability, brand value, and consumer appeal.

One of the most important aspects to pricing optimization is regularly conducting competitive
analyses. Competitor price tracking of individual products can help you maximize your
placement on the digital shelf. But comparing prices at the category and even the brand level
is needed to understand the competitive landscape at a higher level.

Overall, review and adjust pricing:

● Analyze pricing, particularly for Priority SKUs at key retailers.
● Review how pricing fluctuates over time.
● Work with retailers on SKUs where profitability is at-risk.
● Strive for best tier pricing for online retailers (where applicable).
● Schedule email alerts for daily pricing updates (MAP violations where applicable) to
proactively and quickly address issues.
Promotion
Are my promotions active?
Are they competitive?

Media monitoring has moved beyond tracking print, radio, and television advertisements and
in-store messaging. As consumers’ eyeballs and dollars increasingly move to the digital
channel, brand managers also need to track media and share of voice compared to the
competition online, including media placements in online stores. Media monitoring at online
retailers can help brands make informed decisions that increase share of voice, as well as
market share.

In-store media has been used for decades in brick & mortar stores to interrupt a consumer’s
path to purchase. In-store media drives consideration and conversion with coupons, at the
shelf with shelf-talkers and price discounts, and at end caps and checkout with eye-catching
displays. Savvy brands are successfully using media placements to create interruption points
in online stores as well. According to Millward Brown, there is a significant correlation
between a brand’s digital share of voice relative to its market share and market share growth.
When a brand’s digital share of voice is greater than its market share, it is more likely to win
greater market share in the subsequent year.

Develop insight-driven pricing and promotional plans:

● Understand Category/Brand Pricing Strategies.
● Impact of Competitor Activity: Is the frequency and depth of competitor promotions
negatively affecting your brands (and the category)?
● Apply insights to annual promotional plans.
● Test, learn and utilize traffic driving solutions such as paid search, or Add to Cart from
owned digital properties.
Perfect Page
Is my content accurate and optimized?
Do I have a minimum number of reviews and what are shoppers saying?

Product detail page content deserves a disproportionate amount of your attention as content
will directly impact search rank, clicks and conversion. The majority of the product detail page
is comprised of the content you provide to the retailer, and by the content shoppers can leave
on page in the form of Ratings & Reviews, and Questions & Answers, where available.

With engaging and educational content, brands can showcase value in a way they never could
in-store with packaging and shelf positioning. Pages can contain videos, images, text, gifs,
charts and more that not only show the product and its packaging, but demonstrate use
cases in a relatable context. For example, a chocolate manufacturer can show children
making s’mores at a campfire, or a cook melting chocolate for their cake. Powerful content
not only helps drives Add to Basket and Sales, but will greatly impact in-store sales as well.

Prioritize product titles and primary images. Make sure that key category search terms are
present in the product title – e.g. Shampoo, Chocolate and ensure your primary image is
current and optimized for mobile. Then, understand if all of your products have secondary
images, video, additional descriptions, presence of a minimum number of bullet points, and
that all copy is devoid of typos or stray characters. Below the fold content will also aid in
search and product consideration. Once you’ve established a baseline, monitor quarter over
quarter to track improvement and constantly raise the bar to continuously improve the
quality of your content.

Ratings & Reviews and Questions & Answers are a significant lever in the online channel. In
the past, shoppers would glean information from TV or print ads. Now, shoppers trust each
other. In fact, shoppers are far more likely to trust a product review than an ad. It is
considered common practice for many in-store shoppers to pull up a product’s Amazon page
to read reviews right there in the aisle! But what many do not fully appreciate is that shopper
generated content is critical to creating the Perfect Page – items with sub-optimal review
counts or poor ratings will not rank as high in search.
Benchmark, analyze and pivot:
• Update content across key retailers. Prioritize product titles and image failures.
• Make sure that key terms are present in the product title – e.g. Shampoo, Chocolate,
Brand Name, etc.
• Evaluate where you are today: understand if all of your products have main images,
additional descriptions, presence of a minimum number of bullet points, brand
name in the title, etc.
• Benchmark and monitor quarter over quarter to track improvement
• Identify products which have low ratings or reviews.
o Work with your customer service team to reach out to consumers who left
negative reviews.
o Prioritize SKUs with high review count, but low average rating, to determine if
corrective action is necessary. There could be a packaging issue, or the
content on the page doesn’t accurately describe the product, leaving
consumers with unmet expectations.
• Review priority SKUs that have fewer than 15 reviews to determine if a review
campaign is necessary (varies by retailer, by category) and then adjust as necessary
(to higher targets).
• Schedule alerts for ratings and reviews.
Performance
Am I growing sales and share?
Am I dominating search on priority search terms?

How brands track and implement the first of the five Ps (Price, Promotion, Placement,
Product, Perfect Page) drives their online performance. The best metric for determining if you
are achieving success in optimizing the five Ps is by witnessing an improvement in retailer
search ranks. The top three results get 55 percent of organic search clicks in Google according
to Bazaarvoice.

Shopper expectations for fast, easy, and efficient searches means that unless a brand
appears in the top 10-15 search result listings, the likelihood of consideration drops. On
Amazon, for example, 80 percent of shoppers do not click past the first page of results,
according to Millward Brown. This is where the other performance indicators come into play:
they all impact online search results. Since search algorithm varies by retailer and there’s no
one size fits all approach, we will never know exactly how reviews, content, price and the
other Ps come together to place your item in search. Therefore, they must all be treated as
equally important and continuously tracked.

There are two ways to measure search results.

Search Rank: The first and most obvious is pure search rank. Among the 20% of products
driving 80% of revenue, how many are in the Top 3 search results on key search terms? Top
5? Top 10?

Share of Search: The other method is “Share of Search”, which is a measurement of all brand
products returning on page one search results based on key category and brand search
terms. The Share of Search gives eCommerce managers a view into how much of the digital
shelf they are currently winning.

Another, obvious way to measure performance is to directly track month-to-month and week-
to-week increases in point of sales data.
Finally, where category share is available, it may be useful as a benchmark vs competitors to
determine if you are driving category growth. However, keep in mind traditional share is
based on a set shelf whereas the online shelf is dynamic and ‘endless.’ As a result, category
share should rarely be your primary performance metric.

Critical steps to measuring Performance include:

• Identify category and brand keywords that shoppers use to search for your products;
often these are available directly from the retailer or via 3rd party research providers.
• Establish search rank and page one Share of Search goals; constantly raise the bar as
you achieve these goals.
• Benchmark online share of search to offline market share for the same categories.
• Set revenue goals and track against them; often you will experience hyper in the early
days of an eCommerce program so tracking vs. prior period can be more relevant and
information vs. prior period.
• Monitor your share of category units and dollars to determine if your growth is driving
or lagging category growth.
CASE STUDY: The ROI of eCommerce Analytics
To protect confidentiality, the following case study is
an aggregation of multiple customers’ actual business results

Challenge
A global CPG/FMCG company made a C-level commitment to rapidly build an eCommerce
capability to pursue greater than fair share of eCommerce growth. They deployed a global
capabilities center of excellence to work with local markets, supporting them with content,
assets, capabilities and funding to succeed online. To measure their progress, they needed a
global eCommerce analytics solution who could be a strategic partner to help them as they
built the team and capabilities.

Solution
Clavis Insight was deployed into their Top 10 global markets, including a Global KPI
Dashboard for the COE team, and an API to populate the internal Business Intelligence tool
they were building to accommodate data from multiple sources, including Clavis. A Clavis
Global Program Manager ensured a smooth deployment while local teams were trained by
Clavis eCommerce consultants on how to both use and apply the data and insights generated
by the Clavis solution. The deployment was executed on schedule with accurate data flowing
according to the agreed upon timeline.

Results
The global COE quickly established a baseline of metrics so they could measure the impact
they were having across the 6Ps. They applied best practices in each area and supported local
teams to take action and make improvements in each area. As a result, measurable
improvements were made in every area of the 6Ps, including dominating page 1 search for
their Top 20% of SKUs at key retailers, and achieving their revenue growth objectives. They
were able to prove 8.0 ROI on their Clavis investment by measuring the online revenue impact
of taking action against the insights generated by the Clavis solution. An in-store attribution
study further proved the revenue lift from in-store conversions, as a result of online shopper
interactions.
Conclusion
Understanding the details behind your brand’s daily online performance helps to identify the
actions you need to take to optimize your presence, performance, and sales in key online
retail channels. Ongoing analysis, including sales analytics, consumer engagement and
representation, are vital to drive sales growth, support brand awareness, and protect brand
equity.

The Clavis 6Ps eCommerce Intelligence™ model provides a familiar and easy, yet powerful,
means to understand eCommerce performance. Clavis Insight’s core online store analysis of
these critical eCommerce metrics delivers the most comprehensive breakdown of a brand’s
online performance, helping you to drive the best results.

Global manufacturers use Clavis’ daily eCommerce analytics to drive sales in their categories
online, optimize content for brand equity enhancement, protection and product information
compliance, and to deliver consistent, unified reporting on brand presence and omnichannel
performance. We also collaborate with technology and service providers across the
eCommerce ecosystem, enabling brands to integrate their solutions for more impactful
business intelligence, streamlined business processes, and ultimately, the ability to beat the
competition.

Contact info@clavisinsight.com to learn more about how our solution can help to optimize
your brands on the digital shelf, outsmart the competition, and win online.

About Clavis Insight

Clavis Insight is the global leader in online retailer analytics, and the leading innovator of the eCommerce analytics revolution. Based in Dublin,
with local market expertise in Boston, London, Paris and Shanghai, Clavis Insight is the strategic partner to hundreds of the world's largest
brands in the CPG/FMCG, Beverages, Consumer Healthcare, Nutrition, Electronics, Toy and B2B industries. Our solutions provide deep
eCommerce analytics and insights across desktop, mobile web and apps platforms of the leading online retailers in over 50 countries.

BOSTON + 1800 693 9591 LONDON +44 20 3318 6329 SHANGHAI +86 21-5299-3930 DUBLIN +353 1 2543440