Detail: The current main B2B issue is the high time consumption and manual work required from consumers at the start of the subscription. This is because individuals who start a website on their own unlike businesses do not have a team to delegate and split tasks to simplify work. This option is an option to be considered by Shopify. As this will allow Shopify to improve their market sensing for this particular small business consumer niche mention in previous parts of the report (reference). The reason for this suggested option is validated to the fact that the new team by Shopify will be able to understand that particular consumer group through an emotive level of the struggles or issues faced by the small business niche in creating a new e-commerce storefront. Furthermore this will further differentiate Shopify from it’s competitors and improve its customer value. Therefore improving customer satisfaction rate and Net promoter score of the company. Lastly, there will be an increase in customer retention rate and a reduction of customer acquisition cost due the improve in service. Strategy and options for issue 2 1) Affiliate program 2) Promotions for newly joined customers 3) Greater Support For Entrepreneur Revenue Stream
The second B2B issue is the reduction of joining rate in the second quarter of 2018. Joining rate is a KPI used by Shopify to measure on average the change in percentage of new customer joining over a given period of time. This was brought up in the SWOT analysis of the report and it plays a threat to the company. This means that if no action is taken, there will be economical consequences face by the company. Particularly affecting the KPI of monthly recurring revenue which is a key cash flow stream for Shopify. One of the options include conducting an affiliate program for Shopify. This means a referral based program which incentives old members to recruit new subscribers for rewards and benefits. Secondly, promotions for newly joined customers is another way to attract new consumers to the software. As customers are more inclined to call to action strategies such as Join now and receive 1 month free or subscribe for 6 months and get 2 months free (reference). This will be gone in further detail in the tactical plan of the report. Shopify's revenue pyramid identifies low-level subscribers as the largest segment for revenue generation. Shopify gives additional support to these entrepreneurs by offering additional merchant solutions such as Shopify Payments, a platform which allows merchants to process credit card payment. (VICE ARTICLE) Then there’s Shopify Capital, a subsidiary registered in the state of Virginia, which offers cash advances to subscribers using the Shopify platform to buy inventory.
- One '17
- Marketing, Shopify