Enhancing Access and Convenience: Unveiling an Affiliate Store Partnership Initiative for Expanding Pickup Locations
I'm delighted to recount a story from my time as the Head of Product in an e-commerce organisation. The story's outcome represents a remarkable success, and I take great pride in it.
Objective
As Australia's leading online computer retail company with a successful history of offering both 'Click and Collect' service and 'Delivery' service, it was observed a resurgence in demand for 'Click and Collect' as the COVID lockdowns have eased. Given the limited number of physical stores in certain states, the CEO was keen to reintroduce the Affiliate Partnership Program, which invites other computer stores to participate as order collection locations within suburban areas, fostering convenience for our customers and providing an opportunity for partner stores to earn commissions from shared profits. Partner stores have the opportunity to advertise their computer services, such as computer repairs, to customers who visit to pick up their orders. This program creates a mutually beneficial scenario for both companies.
Product Discovery
Customer Insights via Qualitative Surveys
Through the NPS survey conducted by Retently, we discovered customers have a tendency to visit a physical store for their computer goods, valuing the more personalised shopping experience and the option to seek staff advice if necessary. Ordering online has become a habit, but they often prefer to collect their orders in-store due to various reasons. Furthermore, the ‘Click and Collect' option not only aligns with this customers’ preference but also reduces the risk of packages being lost during transit.
Nevertheless, the company consistently faces the challenge of maintaining an adequate number of physical stores throughout Australia and ensuring they are strategically located for the convenience of customers. Geographically, catering to everyone's needs, particularly buyers from regional areas, proves to be a complex task.
Data-Driven Analysis of Sales Reports
The company's founder initiated the Click n Collect business by establishing 6 physical stores in Queensland. Notably, their expansion was somewhat limited in New South Wales, with just 1 physical store, and no presence in other states. Observations from the monthly delivery orders report revealed a clear correlation between the quantity of delivery orders and the population of each state. With the surge in demand for computer resources, particularly in the post-COVID era, there is a substantial opportunity to drive business growth by strategically expanding order collection locations into other states, venturing into untapped markets and potentially boosting revenue significantly.
Nonetheless, opening new physical stores in states such as New South Wales or Victoria poses a financial risk, given the associated operational costs and additional labour requirements. This Affiliate Partnership Program does not only minimises financial exposure but also strengthen our brand awareness and gain market share in other regions, enabling us to effectively compete with other large scale computer retail businesses across Australia.
Risk Assessment
Incorporating a Risk Assessment Plan into the PRD is critical for proactively managing and minimising uncertainties that could disrupt the product's development or impact its success in the market. It helps ensure that the team is well-prepared to address challenges and maintain project stability throughout its lifecycle.
The table below outlines various risks, indicating their likelihood of occurrence and the extent of their impact on the business, rated on a scale from 1 (low) to 5 (high).
Risks
Occurance / Severity
Risk Mitigation Plan
1
The company's strategy misalignment with partner stores leads to operational conflicts.
2
3
Review agreement with partner stores annually to ensure the terms and conditions are up to date.
Conduct monthly meetings with partner stores’ owners to ensure strategic alignment.
2
Partner stores deviate from the company's guidelines for addressing different customer scenarios, leading to confusion and inconsistent customer responses.
3
4
Develop a comprehensive store operations handbook that explicitly outlines procedures for addressing customer scenarios, and include adherence to these procedures in the contractual terms with partner stores.
Conduct monthly meetings with partner stores' owners to gather feedback, share experiences, and collaborate on continuous improvement efforts.
3
Poor customer service interactions that impact the company's reputation.
3
5
Examine partner stores thoroughly via customer reviews before inviting them to the program. Avoiding those with negative customer reviews.
Conduct regular qualitative research through user surveys and evaluate store performance
4
Intense business competition among nearby partner stores or retail stores.
4
2
To ensure partner store’s satisfaction, the company can establish an exclusivity clause in the agreement, ensuring that the partner store has sole coverage of the region within a 15km radius from their location. We commit not to have any partner stores or retail stores in close proximity during the first year of the agreement, extending to a 12km radius in the second year.
Deliverables
Defining deliverables in the discovery process establishes clear objectives and expectations. It ensures that the entire team understands the scope, goals, and outcomes of the project. This clarity helps in efficient resource allocation, streamlining tasks, and maintaining a shared focus on achieving the desired product.
Deliverables
Description
Partner store’s operation portal
A web-based bespoke ERP portal developed for partner stores, ensuring all essential operations (Order pick up, Customer return faulty item) are readily accessible. It's important to note that this portal permits partner stores' staffs to access specific information related to orders for pickup, while withholding access to the entire ERP database.
Portal handbook
A comprehensive store operations handbook which
Instruct partner stores’ staffs on how to conduct essential operations via the ERP portal.
Outlines procedures for addressing various customer scenarios, and include adherence to these procedures in the contractual terms with partner stores.
Partnership agreement
A partner store agreement necessitates signatures from the company CEO and the partner stores' owners. Specific clauses within the agreement may be subject to customisation depending on negotiations with the partner stores' owners. This agreement must undergo review and obtain approval from legal professionals.
Express store’s performance report
An online statistical report showcasing:
Sales generated through orders picked up from the partner stores, utilised for commission computation.
Customer reviews collected from external review platforms, such as Google Reviews.
eCommerce website UI updates
Highlight the newly added partner store's location and the core computer services it provides to potential customers on the company website.
Product drafts
Presented here are a few draft and design deliverables for pre-implementation review. It's important to note that the final product is deployed, but access is limited exclusively to company employees.
Express store operation portal mockup
The wireframe portal mockup built in Balsamiq wireframe. This wireframe was developed prior to the portal's implementation, presented to the C-suite, and received their approval.
Portal handbook
The portal handbook instructs partner stores' staffs on how to operate the order pick up business via the bespoke ERP portal. The video below presents a preview of the handbook, which was drafted in the final stage of the partner portal implementations.
Partnership agreement (Template)
This agreement was drafted and reviewed by legal professionals.
Outcome
This project achieved remarkable success for the company, yielding the following positive results;
🌟 Accomplished the recruitment of 5 computer stores into the Affiliate Partnership Program.
🌟 Expanded the number of order colllection locations in Sydney and Perth, resulting in an increase of 15% in sales across these two states on a monthly basis on average.
🌟 Received favorable feedback from new business partners regarding the functionality of the operational portal and their satisfaction with the Product Manager's work ethics, including their proactive approach to process follow-up and receptiveness to feedback for continuous improvement.
🌟 Attracted more than 10 expressions of interest to join the Affiliate Partnership Program.