The Master Lock Company’s eCommerce success stems from data-led decision-making. By systematically tracking the “right” data, and establishing operational metrics & KPIs that produce the desired outcome, the company’s eCommerce team can make smart decisions faster — to capitalize on opportunities that increase sales or mitigate issues that could result in lost sales.
The Master Lock Company uses a process Stacy Hanks, Director of eCommerce, calls the “Daily Huddle” to identify any trends or anomalies in their eComm data or metrics that could be cause for concern. Since implementing this process, The Master Lock Company has been able to record consistent double-digit growth.
Daily Huddle: Using data to unlock eCommerce potential
How does The Master Lock Company’s “Daily Huddle” work? The eCommerce team starts each day in a 10-15 minute meeting reviewing changes in the data & KPIs pulled from Profitero’s platform that could have an impact on their business. Meetings are framed around the customer journey — Awareness, Consideration, Purchase, Retention — with metrics adapted almost exclusively to focus on eCommerce.
“We’ve iterated on the metrics over time,” says Hanks. “We continue to remain focused on not just the larger more obvious metrics, but also some that can drive what we call micro movements, which ultimately can have large impacts on our business, especially if we move quickly.”
eCommerce metrics & KPIs tracked by The Master Lock Company
3 key metrics Master Lock keeps a close eye on
- Pricing — to spot any unusual price activity, because it usually signals required action, e.g., cracking down on unauthorized sellers, or identifying and dealing with counterfeit issues (largely related to rogue sellers). The Master Lock Company tracks daily price increases or decreases of +/- 10% or greater. While in the grand scheme of things this may seem like a small daily movement in pricing, over time it can add up to a significant increase or decrease in sales.
- Lost Buy Box — to catch any disruptive activity, which could happen if your product goes out of stock. Or in the case of Amazon, if the retailer suspends your offer by pulling an Andon Cord (which can happen when it receives customer complaints about product defects or inconsistency with your product page description). For example, The Master Lock Company noticed that Amazon had removed the Buy Box on a product that averaged $40,000 a week in sales. Turns out, the product was pulled because its weight required two people to lift it, which was unacceptable given social distancing practices in place during the pandemic. Master Lock was able to react quickly to get the listing reinstated by enrolling the product in Amazon’s drop ship program instead.
- Ratings & Reviews — to use as a leading indicator. The Master Lock Company tracks reviews daily in order to quickly catch and respond to any negative reviews. This allows the team to react to that leading indicator to identify the right course of action, and be prepared in case they receive an Andon Cord notification from Amazon.
So what? Why does it matter?
Digital retail moves at a much faster pace of change than brick & mortar. Your pricing, search position and out-of-stock rates can fluctuate in real time. New ratings & reviews get added constantly. This rapid pace environment requires regular monitoring — ideally daily — and the structure and processes in place to be able to react and adapt quickly. In other words, your team must “always be on.”
Now what? What next?
Don’t get beat by competitors with access to data & analytics to make smarter, faster decisions. Here are some steps every eCommerce team can take not just to keep pace but get ahead:
- Identify eCommerce operational metrics & KPIs to track, making sure they link back to your company’s business objectives, and specific teams and people who can take action on the data. But don’t take on more than you can handle at once (especially if your eComm resources are limited). Instead, start small with a few critical metrics that most impact your sales and build from there.
- Determine what capabilities and digital tools you need to get the job done. Select a digital toolkit and data partner to help you manage the intricacies and complexities of eCommerce.
- Define a process to regularly review data & set team action items. The Master Lock Company has found success using its Daily Huddle to identify issues and assign action items to relevant stakeholders. Whether part of your eComm team or across the broader organization, it’s important to share critical data & metrics with all decision-makers who may be responsible for taking action.
eCommerce Team Process: Review data & analytics, Identify issues, Assign actions to take
Want to learn more about how you can use Profitero data to organize your “daily huddle”? Contact your account manager today or reach out to us here.