Electronic Retailer - October 2012 - 32

With comprehensive services, an experienced fulfillment partner to put it all together, a low, fixed cost and a defined mission – to get the product and campaign tested – marketers have a powerful tool to improve their success.
put it all together, a low, fixed cost and a defined mission – to get the product and campaign tested – marketers have a powerful tool to improve their success. The promotional start-up packages are usually limited in time and in scope. For example, the program lasts for 60 to 90 days. That gives the marketer ample time to test, retest and fine tune the campaign before full-scale ramp up. The menu of services is defined and quantified. For example, the package will include a certain number of orders to be fulfilled, customer service calls answered and product storage allowances will be defined. Only if the campaign test exceeds the allowances will extra charges be incurred. For example, if the program was budgeted for 1,000 orders and the actual order log was 2,000, the marketer would pay additional fees. These elements and allowances per element are calculated to give the marketer a program in which nearly all normal back-end costs will be covered. The marketer now has an element of certainty that makes budgeting a snap and reduces the risk of the test by defining the costs so tightly. Each “starter package” has its own mix of elements and allowances. Generally, they cover the same items with variations in allowances. The marketer can evaluate the packages easily and make the determination of what works best for their test needs. Let’s review a sampling of elements. • Fulfillment. Product must be shipped to, received by and stored at the fulfillment center. Allowances relate to the amount of product covered for each activity. Then, as the campaign runs, orders need to be shipped and, inevitably, returns must be processed. Allowances relate to the number and complexity of the orders. • Order Management. This is the brain of the back-end. External partners must be integrated, orders processed, continuity managed, and payments processed and settled. Data from this system will help the marketer understand its test results, which is paramount to improving the performance of the campaign. This system is also the platform for all customer service activities. • Customer Service. Agents must be trained on the products and offers and be ready to field questions from the end consumer with speed and accuracy in a professional manner that will reflect positively on the marketer. Customer service is also the last line of defense when it comes to curbing returns and saving revenue. Allowances based on phone minutes/ calls are provided. The net result is that the fulfillment center has adequate time to prepare for the campaign test or launch – and that leads to better overall outcomes for all. All of the above also applies to other companies beyond start-up testing. An established company outsourcing backend functions also can take advantage of the low cost and simple start-up. Finally, and best of all, after the campaign testing phase concludes and the campaign is ready to roll out, the entire structure of the program, with all the set-ups and integrations is ready to continue at the fulfillment provider’s standard pricing model. Convenience and flexibility remain with the marketer. Ayal Latz is president of a2b Fulfillment, Inc. in Greensboro, Ga. Contact him at (866) 843-3837 or ayal@a2bf.com.
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electronicRETAILER | October 2012

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Electronic Retailer - October 2012

Table of Contents for the Digital Edition of Electronic Retailer - October 2012
