Multi-Brand Portal Executive

Status Meeting
 Agenda
• 2:00pm – Introduction
• 2:05pm – Summary of Steps
• 2:15pm – Work Stream – Front End
• 2:30pm – Work Stream – Promotion
• 2:45pm – Work Stream – Fulfillment
• 3:00pm – Work Stream – Telephonic Service
• 3:15pm – Work Stream – Financials
• 3:30pm – Work Stream – Cross Brand Rules
• 3:45pm – Conclusion
 Work Streams Formulated
Christopher Barca
Patty Gormley
Nancy Hamlin
Daniel Kaiser
Front End Website Experience Tom Russell Steven Cohn
Jennifer Peterson
Ram Ganesan
Pradip Patel
Denise Meine-Graham
Patty Volpe
Leslie Leifer
Promotions Wayne Manges Bill Pozdoll
Ann Bromley
Rich Minns
Alan Petrik
Bruce McGregor
Fulfillment / Shipping Wayne Manges Kevin Rooney
David French
Kate Hanson
Angel Rivera
Maria Davis
Telephonic Order Capture & Barb Guttman
Julie Kaufman / Wes Powell Kate Hanson
Customer Service Mark McKenna
Steven Cohn
Rich Minns
Scott Archila
Barbara Noll
Tom Russell
Financials Bill Pozdoll Mark Minarcik
Denny Hicks
Lee Fennell
Denise Meine-Graham
Patty Gormley
Patty Volpe
Cross Brand Business Rules Nancy Hamlin Tom Russell
Lisa Hendrikson
Lisa Matznick
 Summary of Findings - Promotions
• All brands must be made able to support a consistent, common set of
promotions
• Wish list of new promotion capabilities has been defined (based on out-
of-the-box capabilities of Commerce)
• New promotion repository maintenance will be created to feed all systems
promotion detail.
• New Promotions are primarily item level (category level) promotions
• Requirements include ability to have promotion be for brand or site wide
(all tabs)
• Other wish list items include adding Commerce out-of-the-box parameters
to all promotions
• One not out-of-the-box promotion included in requirements is to have a
brand parameter added to promotions (buy from X or more brands and
get XX% off)
 Open Issues - Promotions
• Brand vs. Site vs. Tab promotions.
• GFGB Requirements include ability to indicate
promotion is for a brand and site. (Brand =all items
for a brand regardless of the tab it is merchandised
on.)
• Need has been identified for a promotion to be for a
tab (all items merchandised in that tab regardless of
the brand of the item.)
• This will be included in a future release of MBP.
(Considered needed for 18F.)
 Risks - Promotions
• Orders broken into the backend systems will not have visibility
to other portions of the order for maintenance. Customer will
receive the benefit of the doubt without spending the time to
put the order back together manually.
• Challenge to present to the customer clearly the requirements
of a promotion (brand vs. site) especially when minimum
order total is part of the promotion parameter.
• Accounting for promotions – will be prorated by participating
item retails.
• Free gift accounting will need to be manually allocated upon
analysis of the promotion.
Summary of Findings – Shipping/Fulfillment
• All brands will use a common shipping grid including
expedited charges.
• Brands have agreed to a common definition of
recipient (for calculations)
• Brands have agreed to all support free APO shipping.
• Cut off times will be set by brand / item.
• Shipping times need to be calculated from shipping
location of item.
• Gift message will be unique size by brand due to
backend and label requirements.
 Open Issues – Shipping / Fulfillment
• Final grid values not approved by GFGB.
• Last grid step is $ for 18F/18B (Atlas). Last step is %
of GFGB brands.
• Calendar / $ presentation not finalized for site. This
could change shipping/grid behavior
• Showing shipping $ at product level does not fit the
FM model (pick and pack operation) vs other brands
where each item ships separately
• Along with that, need to resolve upcharges by item
vs recipient (pick pack model vs. by item model
issue)
 Risks – Shipping / Fulfillment
• Resolution of shipping presentation
• Gift message customer experience may
appear inconsistent (different brands will have
different message size / capabilities)
• Consideration of standardization on Arroweye
capabilities across brands for greeting card
fulfillment
Summary of Findings – Customer Service and TOC High-Level Scope
Scope Statement:
Identify a call center model that supports a multi-branded portal (MBP) concept
for GFGB that will launch in the April – May time frame with 5% of all GFGB orders
flowing through the new portal. Provide telephonic support for the small order
volumes in order to learn more about the customer behavior to then allow a larger
migration of orders through the portal and to scale the call center telephony and
staffing model to support peak season volumes
Considerations:
Consideration for initial launch was three models: 1) One Call One Agent; 2) No
Change from current technology or agent modeling; and 3) Addition of
IVR/WISMO.
Key Learning's:
After multiple work stream sessions, we identified the call flows for Sales and
Service for single and MBP options. In reviewing the options and the risks to
Customers, Financial, Operational and Agent impacts, we determined that Option
3 Addition of IVR/WISMO would result in the best option for launch.
Disclaimer:
All costs included in this analysis are high level estimates and do not to reflect final
costs.
Costs do not include Nexus adjustments in staffing.
Option 1: One Call One Agent

Assumptions:
• All core agents are cross-trained in all three brands
• All peak agents are trained in all three brands
• Training is 120 hours of classroom plus 48 hours of nesting
• 50% of labor must be carried an additional two weeks
• No technology changes included in this model
• Agents will still be working in three separate brand system sets
• Does not include 18F/18B
• Does not include costs for staffing adjustments due to Nexus.
• Estimated annual recurring costs is $1.1MM
• Incremental over current state is: $881K
Option 2: No IVR/WISMO
Assumptions:
• Transfer Model: Agent will assist in one brand then transfer to second and then
transfer to third brand
• No change to IVR
• Calls sent from agent to agent by the TNT model
• 47 additional FTE for two brand orders
• 105 additional FTE for three brand orders
• Does not include 18F/18B Transfer - Queuing – AHT

$127,537 Production Workload Transfer – Queuing - AHT

$19,131 Support @ 15%
$88,061 Production Training @ 40-hrs sales/svc + 10-hrs nesting
$25,876 Support Training (=45 heads)
$8,505 Telco transport charge ($0.02/mn)
$818 TNT Charge ($0.02/mn)
$63,769 50% of production carry
$33,370 10% contingency exp
$367,067
Option 3: IVR/WISMO Enhancement
Assumptions:
• 50% of the WISMO calls will be abated along with the supporting production/telco
costs will be abated due to fewer transfers and agents
• Customers will adopt the IVR functionality

NOTE: No IVR costs included in this savings

$29,019 $65,383 Abatement (50% of prod.)

$39,332 $88,205 $63,768.66 Production Workload
$9,565.30 Support @ 15%
$44,030.74 Production Training @ 40-hrs sales/svc + 10-hrs nesting
$12,938.14 Support Training (=45 heads)
$4,252.50 Telco transport charge ($0.02/mn)
$408.89 TNT Charge ($0.02/mn)
$31,884.33 50% of production carry
$16,684.86 10% contingency exp
$183,533.42
Net Abatement(50% WISMO) $62,592.00
Net Cost $120,941.42
Savings from Option 2 (no IVR) to Option 3 (w/IVR WISMO) $246,125.42
Risks – Customer Service/TOC
Option 1: One Call Option 2: No changes Option 3: IVR/WISMO
One Agent Customer: Customer:
• CSAT: Lower scores due to experience • Multiple requests for customer
Customer:
•Multiple Transfers information for multiple systems
• Orders placed in multiple
• Multiple requests for customer • IVR not customer friendly
systems require long call times
information for multiple systems
•Multiple requests for customer
• Mis-transferred to incorrect brand agents Financial:
information for multiple systems
• Long wait times during transfers • Loss of high performing agents to
• Orders placed in multiple systems with support lowers AOV and Wrap-ups
Financial:
multiple messaging from brand • Cost of IVR technology not in
• High annual recurring costs
• One agent cannot support the customer project plan
• Loss of high performing agents
• Cost of implementation of
to support lowers AOV and Wrap-
Financial: WISMO/IVR
ups
• Loss of high performing agents to • Abatement estimations may not be
support lowers AOV and Wrap-ups actualized
Operational:
• Costs may be higher than estimates due • IT resources or outsource
• Carry of agents
to unknown AHT variance
• No universal entry system or
Operational:
desktop
Operational: • Customer may choose to speak to
• Core agents used to support new
• CSAT: Will not be able to coach specific agent
agents requiring more hiring
agent as will not know what agent the • System identification of MBP orders
customer is referring is critical to this process.
Agent:
• IT resources
• Attrition: Overwhelming
Agent: • Time to implement
knowledge push in short period
• Frustration due to transfers
• Attrition: Burn Out
• Cannot make incentives as before due to Agent:
being support • Frustration due to transfers
• Cannot make incentives as before
due to being support
CSAT Risk

Assumptions
• Source Data: Knowledge Wave International
• Assumes 5% of orders will have negative CSAT result on option 2
• Assumes that CSAT scores will be 4 or less for the selected agent driven questions drives NPS to detractor
status.
• Base scores currently reside at 9+.
• Based on the above, detractor net revenue loss at 1.5 purchases a year at $55/purchase results in negative
revenue of approx $200K

Average of CSAT
Questions Affecting CSAT are: Score Call Type
– The agent had the authority to help with my request
Company Sales Service
– The agent answered my question quickly Cheryl & Co 8.87 6.98
Fannie May
– The agent processed my order efficiently Chocolates 9.45 7.19
The Popcorn
– The agent solved my problem Factory 9.53 6.63

– The agent answered my question efficiently Grand Total 9.37 6.74

Conclusions and Questions - Customer Service/ TOC

Conclusions:
• Call Technology: In order to mitigate a poor customer experience and loss of customers as a result
of poor CSAT and NPS scores, IVR Self-Help (including WISMO) with Natural Voice Technology
should be integrated into the process
• Combined Front-End/CSI Agent System and Integrated Desktop: In order to process orders for
our high value customers, transferring calls or having them wait as we enter name/addresses/credit
card information repeatedly is a poor customer experience. If an agent in a single call can take a
single order for all brands and transact the service issue, no transfers or , the customer will have to
be transferred during peak into the skill groups for each brand OR anticipate long waits for and in
the MBP group.
• “Customer relationship management (CRM) is a widely-implemented strategy for managing a
company’s interactions with customers, clients and sales prospects. It involves using technology to
organize, automate, and synchronize business processes—principally sales activities, but also
those for marketing, customer service, and technical support. The overall goals are to find, attract,
and win new clients, nurture and retain those the company already has, entice former clients back
into the fold, and reduce the costs of marketing and client service. Customer relationship
management describes a company-wide business strategy including customer-interface
departments as well as other departments”
Questions:
• Will the additional technology be implemented?
• Does bringing 1-800-Flowers/1-800-Baskets onto the portal change these
answers?
 Summary of Findings - Financials
• Need to add PayPal as a payment method for
food brands
• No new Nexus will be created for the
individual brands due to the MBP itself
• Credit card processing will remain as it is
today except for multiple brand purchases. For
these, a card verification will be performed on
the site and authorizations will occur in the
back end systems
 Open Issues - Financials
• Will the Bill Me Later option be retained for 1-
800-Flowers and if so will it be added for the
food brands?
• If consistent billing methodology is desired
across all brands, then the Fannie May back
end system will need to be modified to bill at
time of order.
• There is no simple solution available to allow
for single brand promotional cards to be
redeemed within the MBP.
 Risks - Financials
• If the service center agents take calls for all
brands then Nexus will be established and
extended to additional brands
• Customers will experience multiple
authorizations and billings to their credit card
when placing a cross-brand order
• Marketing initiatives may be limited as it
relates to serial # promotional cards
Summary of Findings – Cross Brand Business
Rules
• Customer Ownership is multi-faceted
– The Individual Brands own the customers who buy from their website
(shopping cart checkout)
– The Enterprise owns ALL customers across all brands
• The recommendation is to create a Cross-Brand Marketing/Promotion
Team that meets regularly to review, analyze and create the appropriate
marketing strategies and promotions based on customer purchase
behavior for multi-branded customers. Additionally, we recommend a
portion of this team’s LDG's and Sharing In Success structure be based on
all GFGB brands and not one single brand.
• The goal is to maximize customer value, order frequency and total share of
wallet at both the Individual Brand and Enterprise Levels based on
customer product purchase behavior
 Summary of Findings – Cross Brand
Business Rules

• Cross-Brand Merchandise Opportunities will be approached in

a similar fashion – Individual Brands own the merchandising
strategies of their product portfolios AND the sales of their
products on ANY website
• A Cross-Brand Merchandise Team will meet quarterly to
review, analyze and create cross-merchandise product
opportunities to encourage customers to buy products across
websites and product categories
Open Issues - Cross Brand Business Rules

• Ensure all customer data (includes behavior and purchase

history) is correctly captured and flagged. This is needed to
facilitate thorough and ongoing analysis of customer value.
• This work stream will continue to work with Steve Druckman
to drive the MDM data capture requirements and marketing
execution of key functionality.
 Risks - Cross Brand Business Rules

• Using robust customer information to analyze customer

purchase and website behavior is the key to gaining increased
customer sales, frequency and cross-product purchases
through strategic marketing plans
– Do our plans cover all of the data elements and customer information we
need in order to understand what is happening across the businesses?
– Do we have the appropriate tools to mine the data from the MDM, DDS and
individual brand data marts?
– Do we have the right customer intelligence analytical resources and expertise
to ensure ongoing robust and crucial data analysis for the Cross Brand
Marketing and Merchandising Teams?
Conclusion and Questions - Cross Brand
Business Rules
•Creating increased customer value is a function of
information capture and analysis within an individual brand
and across multiple brands

•If we currently do not have the appropriate tools, we need

to acquire the appropriate data mining tools, methods and
modeling methodology to give the Cross Brand Marketing
and Merchandising Teams the right information to create
appropriate strategies to maximize customer value

•The success of this business model is all about data – are

we ready?