Tag: automotive ecommerce

  • Ecommerce Automation – What Is It, Benefits, Tools, Case Studies and More

    Ecommerce automation is creating a lot of buzzes. But, does your company actually need it? Let’s find out.

    The main purpose of any eCommerce marketing campaign is to boost sales. This might include sending marketing emails, managing orders, dealing with customer service, and a lot more.

    These tasks may not look like a big deal when seen individually but can give you a headache when they start to pile up, wasting ample time out of your busy day. Also, apart from these, there are a lot of insignificant tasks that require your time and energy.

    As per Deloitte, such tasks are a waste of time, and shifting your attention can cause fundamental improvement in your operations. This is where automation comes into the picture.

    “The eCommerce industry is a force that no investor can afford to ignore” – Cushla Sherlock

    What Is Ecommerce Automation?
    Benefits of Ecommerce Automation
    Tasks to Automate in Your Ecommerce Business
    Top Tools to Automate Your Ecommerce Store
    Case Studies of Ecommerce Automation

    What Is Ecommerce Automation?

    As per the report published by NASA, 60% to 80% of businesses fail due to human errors. These errors can be easily avoided by using automation.

    Like the automation of any other industry, the purpose of eCommerce automation is to simplify your work and streamline the workflow. If you are running a growing company, you understand how often the work gets overwhelming when you feel like you need more workforce or more leaders or managers in your company.

    Automation can actually help you to overcome these issues by saving a lot of your time and energy. Moreover, with a machine taking care of your tasks, the chances of error are reduced to a minimum and your employees can focus on their actual work instead of worrying about something insignificant.

    Benefits of Ecommerce Automation

    As per Statista, the global retail automation market size which was around 11.3 billion U.S. dollars is expected to grow up to 33 billion dollars in 2030.

    This data clearly indicates that automation is helping businesses to grow which is why more and more businesses are relying on it.

    Let us explain in detail how eCommerce automation can actually help your growing business.

    Time Efficiency

    Getting rid of the repetitive tasks that have to be done every day can save a lot of your time. This increases the focus as well as productivity. Moreover, it gives you extra time to review your plans or start off the pending projects.

    Also, automation gives you the advantage of scheduling your tasks. For example, announcing the release of your new product, applying discounts, providing rewards, adjusting prices, etc.

    Streamlined Workflow & Increased Worker Engagement

    These trivial tasks have become a part of the routine workflow of your employees. Most employees complain that miscellaneous works disturb their actual work due to which they are unable to perform up to their potential.

    Using automation allows your employees to focus on more business-oriented work resulting in higher productivity and enhanced employee satisfaction.

    Boost Customer Satisfaction

    As a growing business, the number of your customers also keeps increasing making it difficult to keep them all satisfied. As most of the customers judge your services by the response time you can certainly improve customer satisfaction through automation.

    The eCommerce automation tools facilitate online shopping engagement giving your customers a great shopping experience. These happy customers mostly turn into repeat customers.

    Cost Reduction

    With automation, the cost of working also reduces considerably. The main reason for this is that the mundane tasks are taken care of by the tool so your employees can focus on their work without disturbance.

    This reduces the need for overtime work or increased manpower, ultimately reducing the expenditure.

    Better Communication With Suppliers

    The automation software gives before-time notification whether a product is about to go out of stock or inventory is below a certain level. These can also send triggers to the suppliers asking them to send in the required products.

    Moreover, with timely information, you also get time to look into the supplies rates or other better contracts that may be available from different suppliers. Thus, it helps you grab better deals.

    Tasks to Automate in Your Ecommerce Business

    Up till now, we have given you enough statistics and reasons to know that automating your eCommerce business is in your favor and can help you run faster towards your success.

    Now, let us take a look at the tasks that you can automate now to make your business grow faster.

    Customer Service

    Your employees may not be working after 5 but your customers might visit your website to buy a product even after the working hours are over, and they need assistance. So, how can you manage that?

    The answer is simple, automation. The ability of these tools to provide real-time feedback as well as their ability to instantly answer the queries leads to satisfied customers. Owing to the pleasant experience there is a high probability of these customers coming back to you.

    There are a lot of AI-based tools designed for this purpose. These work as chatbots or virtual assistants and respond to your customers based on the previously formulated rules and fed commands.

    Chatbot Example
    Chatbot Example

    Business Management Automation

    Whether you are about to add a new collection of products or have a weekly sale to offer, automation can help you with all your tedious jobs.

    The tool helps you to schedule your sales with regular posts on social media to attract the attention of customers or set a countdown to keep the hype alive in the customers, and much more.

    A number of heatmap tools are available that help you figure out where to post your ads while launching a new product. They also further help you identify the channels that are working well so you can pay more attention to them.

    Heatmap Example
    Heatmap Example

    Order & Inventory Management

    Managing the inventory is one of the most important yet boring tasks. You obviously need to keep track of your stock to inform the suppliers and order fresh products but doing this manually can be really tedious.

    You can use certain inventory management tools for these purposes that are easy to use and work like wonder. These tools can actually save you from losing revenue owing to poorly managed inventory.

    Automation tools are designed to prepare and send a purchase order to the relevant supplier whenever an item goes out of stock. You can also enable out-of-stock or low-stock notifications in these tools to keep you updated.

    Email Marketing

    Writing and sending emails to your customers manually can be really tedious and boring. Moreover, it is practically impossible to track the activity of each and every customer and send the emails accordingly.

    This is why automation tools are available for help. Whether you have to send the welcome emails, cart abandonment emails, order confirmation emails, or post-purchase engagement emails, these tools keep track of every customer without missing the details.

    Fraud Prevention

    As per a survey, fraudsters take away around $12 billion each year from the eCommerce industry. They use new and sophisticated techniques every time to deceive the customers and business owners.

    There are automation tools that can help you save a large amount of money going into the wrong hands. These tools help you verify each order by checking the IP address or carrying out other verification processes, thus saving you from fraud.

    Accounting

    From funds to invoices, or to keeping track of the payments made to suppliers, accounting can be difficult. Also, if you are new to the business keeping an accountant can be expensive.

    Automating your accounts can save your day. You can use tools that will help you through all your accounting needs without taking a toll on your budget.

    Website Building

    If you are just starting your website to set up your online business without a big budget, the automation tools can be a big help, especially if you are not a technical person.

    These tools can help you with most of your small problems like choosing a template for your website, changing themes, or adding pop-up banners. So you actually spend your money only when you are in real need.


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    Top Tools to Automate Your Ecommerce Store

    Choosing the best automation tool for your website can be complicated. Below, we have listed 6 top automation tools to help you with your eCommerce business. They are:

    MailChimp

    This tool is best known for creating intuitive email campaigns depending on the type of business.

    HubSpot

    This is a very popular tool that mainly focuses on inbound marketing. It pays attention to the sales marketing activities and offers services for support, sales, and marketing.

    Zendesk

    This is an application available as a cloud-based Software as a Service (SaaS). It is popularly used for customer service.

    Verloop.io

    This tool is used for customer care to automate conversational support. The insightful data help you keep the customers engaged.

    Sendgrid

    This tool focuses on 1:1 email communication. Moreover, it directly sends customer-centric SMS-based notifications in real-time.

    Jumplead

    This tool helps you generate leads for your eCommerce store. You can also respond to customers, manage leads, and handle customer accounts through this.

    Case Studies of Ecommerce Automation

    For your reference, we are adding a few case studies to help you understand how eCommerce automation has helped several companies grow their online business.

    Truwood

    This Company manufactures bamboo and wood-made watches. They utilized cart abandonment emails and messages. They target the audience based on the value of the cart, giving preference to high-value carts.

    They send messages and emails to the cart owners with the picture of their selected product offering some discounts and creating a sense of urgency through a limited-time offer.

    This strategy has worked really well for the company increasing their return on investment by around 35 times.

    Draper James

    The brand organizes a weekly sale, every year, in mid-march, for celebrating the birthday of its founder, Reese Witherspoon. They utilize the science of retention for their marketing strategy.

    So, instead of the bulk emails, they only send customized emails to the users who have purchased or visited the site in the last 90 days. They nurture their leads by only sending relevant content to the target audience.

    This strategy has led to a 15.4% increase in their year-over-year revenue, even when they have been sending 48.7% lesser emails.

    Premier

    This eCommerce store sells accessories and apparel. They focused on improving the customer experience by sending them price drop emails for the product they have shown interest in their previous budget.

    The automation tools for sending customized emails have worked really well for the brand and resulted in a huge increase in open and click rates.

    Blush and Bar

    This brand sells sustainable and affordable jewellery. As they noticed that the maximum traffic for their site came through social media ads, they utilized these leads to reach their target audience.

    They generated pop-up ads for mobile devices that do not require much information to be filled in but allowed the user to subscribe in a few taps.

    This simple but effective marketing strategy has led to an increase of $39,000 in their sales within the first month of implementation.

    Embla

    This brand sells home goods online. They used a holistic SMS marketing strategy for improved customer experience and trust-building.

    Instead of asking every visitor to subscribe to their website they only triggered this to the customers who were in the final stages of buying their product. Through this, they began a friendly re-engagement campaign for their customers.

    This strategy has really helped them to win back inactive customers and resulted in a 60% increase in their conversion rates.


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    Conclusion

    Ecommerce automation in all its capacity is helping businesses to grow online. The different services are offered as per the business requirements. They help in better utilization of time, money, and resources as well as help in improving customer satisfaction.

    These tools are designed to streamline the workflow and increase work engagement. Overall, the Ecommerce automation tools are worth your money, time, and efforts.

    FAQs

    Why do companies use eCommerce automation?

    Many companies use eCommerce automation to streamline workflow, save time, boost efficiency, and also help boost customer satisfaction.

    What is workflow automation in eCommerce?

    Workflow automation is when repetitive tasks are done with the help of automation tools instead of humans.

  • The Revival of Royal Enfield From the Brink of Bankruptcy (Case Study)

    Royal Enfield is easily one of the biggest brands from India founded by and has broken records in selling its motorcycle in India and abroad. But this wasn’t the case 20 or so years back, as Royal Enfield then was sitting on brink of bankruptcy. The automotive company has achieved its best-ever sales with over a million bikes that are sold worldwide. The company’s sales have also increased to about 27%.

    Imagine if you brought a Royal Enfield motorcycle in 2001 you would now only have an old rugged bike. But if you would have invested the same amount in shares of Eicher Motors, the company that makes Enfield bikes your investment will be worth Rs 3.53 crore now. Despite operating in a niche segment, Royal Enfield remains one of the most admired motorcycle brands in India.

    Company Name Royal Enfield
    Headquarters Chennai
    Founded On 1955 (as Enfield)
    CEO Vinod K. Dasari
    Parent Eicher Motors
    Annual Revenue ₹8,965.00 crores (US$1.3 billion) (2018)

    A Brief About Royal Enfield
    History of Royal Enfield
    The Man Behind The Success of Royal Enfield
    Buying Out Royal Enfield
    The Revival of Royal Enfield
    Increase in Sales
    Future of Royal Enfield

    A Brief About Royal Enfield

    Royal Enfield is one of the flagship companies of the US 1.1 Billion Eicher Motors. It is an Indian motorcycle company with factories in Chennai, India. The company makes the Royal Enfield Bullet and other single-cylinder motorcycles. The company was established in 1955 and is one of the oldest motorcycles companies.

    It first started out as a brand of the Enfield Cycle Company, a British manufacturing firm, then went out to produce the 500 cc bullets. It is a leading manufacturing company that manufactures bullets across the globe, was looking to upgrade its IT infrastructure using industry-leading solutions.

    It has manufacturing plants in Thiruvottiyur, Chennai, Oragadam Chennai, Sipcot Industrial plant, Chennai and Campana, Argentina. The tagline of Royal Enfield is “Jab Bullet Chale Toh Duniya Raasta De” which sums it all quite beautiful as it is definitely a motorcycle that enjoys an overpowering presence as people have had to make way for it.

    History of Royal Enfield

    The Enfield Manufacturing Company Ltd was set up in England to manufacture bicycles. The company manufactured its products under the Royal Enfield Brand.

    Not being satisfied with a limited product line of just bicycles, Enfield Manufacturing soon decided to focus on building other types of vehicles. In the year 1899, it started manufacturing a quadricycle called the Royal Enfield Quadricycle which was powered by a rear-mounted engine.

    Royal Enfield Quadricycle
    Royal Enfield Quadricycle

    In 1901 Enfield manufacturing launched its first motorcycle fitted with a 239 cc engine. As a part of the global expansion strategy, Enfield started selling motorcycles in the Indian market in the year 1949.

    In 1955, the Indian government placed an order for eight hundred 350cc Royal Enfield motorcycles for use by its police and armed forces. The Royal Enfield motorcycles were considered an ideal choice for the Indian army for patrolling the country border.

    In 1990 Royal Enfield collaborated with the Eicher group an automotive company in India and merged with it in 1994.

    In 2000 the company’s sales hit a low of 2000 units per month because it was suffering from problems like poor quality of its products, outdated design, change in taste and preference of customers and the entry of Japanese two-wheeler manufacturers in the Indian market.

    Despite having a cult following among its fans many prospective customers saw Royal Enfield Brand as a relic from the past.


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    The Man Behind The Success of Royal Enfield

    The man who is responsible for the tables to turn for Royal Enfield is none other than Siddhartha Lal is the man who is singularly responsible for Royal Enfield. Mr Lal has been credited with being able to make Royal Enfield a bike that is sold worldwide because of his dedication to the company. It was 2004 when Lal had taken over as COO of the Eicher group.

    Siddhartha Lal - Former CEO of Royal Enfield
    Siddhartha Lal – Former CEO of Royal Enfield

    The group had a diverse spread of about 15 businesses including tractors, trucks, motorcycles, components, footwear and garments but none among them were a market leader. Lal decided to divest 13 businesses and put all money and focus behind Royal Enfield and trucks, two businesses where he believed the group had a genuine shot at leadership.

    Lal decided to put his full force behind Royal Enfield and the trucks business. Immediately after taking over as CEO, Siddhartha analyzed the strengths and weaknesses of Royal Enfield and started to come up with a strategy to put the brand on its path to revival.

    Buying Out Royal Enfield

    The brand was surviving well in India until Japanese motorcycles began to enter the Indian market. This is when Mr Lal’s father who owned a tractor manufacturing company and was familiar with the way parts from Royal Enfield worked, swooped in to save the brand. Enfield was one of the biggest companies in South India, especially in the 60s and 70s.

    Mr. Lal describes that “It was a bit of a tricky moment, and the firm was going bankrupt that’s when we bought it. My father got to know the people who were running the business because he was buying auto parts from Enfield for his tractor company. But we kept only one tiny portion which was the bullet factory and did not change the design because we liked the shape and the classic looks. We kept the character of the motorcycle, we kept the looks of the motorcycle, but we upgraded it to be relevant to people today.”

    Royal Enfield Bullet
    Royal Enfield Bullet

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    The Revival of Royal Enfield

    In order to pull the brand back from the edge of bankruptcy, the team decided to return to the brand’s roots to look for solutions that could help it soar once again. It is the only automobile Indian company that dint have a Japanese collaboration.

    Speaking about this time, Mr Lal said, “They consulted many countries like US, Germany, Italy Austria and the UK to develop an engine or motorcycle, and felt that the UK understood us better.”

    We found that engineering support that we could get in the Midlands was second to nowhere else in the world. In the Midlands, the team created the signature Royal Enfield Twin inceptor, which is what gave the bikes an additional boost of power that made them ideal for riding on the highway. This was a huge deal for the brand.

    They had tapped into a huge consumer need that was not very vocalized. This allowed the brand to reinvent itself and become a lifestyle product that completely fit into the vibe of travelling and getting out in the world. This has made Royal Enfield quite popular with bike enthusiasts, making it the go-to bike for people who love to travel.

    Increase in Sales

    In 2005, the company was selling only about 25,000 bikes every year and needed a manufacturing scale and a fixed cost had to be spread around 100,000 bikes. Siddhartha Lal engineered and improved Enfield bikes by riding hundreds of kilometres himself and also initiated a motorcycling culture in the team. Under Lal, as quality improved, sales grew too.

    By 2010, the company was selling 50,000 bikes, but on three platforms. That was when Lal decided to build all Enfield bikes on a single platform to maximize economies of scale. The Enfield Classic, launched from this single platform, caught the fancy of customers. Sales shot up six times in half a decade from 50,000 units in CY10 to 589,293 in CY14.

    At this point, the sales were just enough to help the company break even. But soon, the tech economy in India began to boom in 2010, which brought about a turning point for the brand. Now, Eicher Motors earns over Rs 8,738 crore in revenues and makes a net profit of Rs 702 crore (FY14). Royal Enfield brings in about 80% of these profits.

    Royal Enfield Bikes Sales Volume
    Royal Enfield Bikes Sales Volume

    Future of Royal Enfield

    The prices of Royal Enfield were higher than that of the low powered Japanese motorcycle brands sold in India, but they were cheaper than the major global brands. And in order to keep the motorcycles affordable in the price-conscious Indian market, the company did not revise its prices even after the prospects of the brand started to improve in terms of sales.

    Royal Enfield Model Ex-Showroom Price
    Royal Enfield Classic 350 ₹1.52 lakhs – ₹2.18 lakhs
    Royal Enfield Bullet 350 ₹1.24 lakhs – ₹1.6 lakhs
    Royal Enfield Thunderbird 350X ₹1.55 lakhs – ₹1.58 lakhs
    Royal Enfield Himalayan ₹1.66 lakhs – ₹2.23 lakhs
    Royal Enfield Interceptor 650 ₹2.77 lakhs – ₹3.1 lakhs

    The strong pricing power of the Royal Enfield brand and the improved operating margins rapidly increased the valuation of the company. In 2014, Royal Enfield recorded sales of 302,592 units.

    The sales for the year were higher than even the worldwide sales of Harley Davidson for the first time in the brand history. By the year 2015, Eicher Motors had become one of the most expensive automobile stocks in India.

    Eicher Motors Stock Price
    Eicher Motors Stock Price

    As of Feb 2022, the stock price of Eicher Motors is ₹2,615.10.


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    FAQs

    Is Royal Enfield an Indian company

    Royal Enfield is an Indian motorcycle manufacturing company headquartered in Chennai, Tamil Nadu, India.

    Who is the founder of Royal Enfield?

    Robert Walker Smith and Albert Eadie founded Royal Enfield in 1955.

    Who makes Royal Enfield motorcycles?

    Eicher Motors Limited is the parent company of Royal Enfield that makes Royal Enfield motorcycles.

    What is so special about Royal Enfield?

    It provides a sense of strength and also a rustic charm. The brand has built itself from being an army bike to a cult classic. These bikes have a huge fan following and also there are several biking clubs exclusive to Royal Enfield motorcycles.