The More the Better!
Recent member study shows e-commerce retailers have different needs than their peers.
After the very trying period of the first lockdown, retail sales have rebounded in our sector. Important learnings of the last 18 months are about changes in consumer behaviour. We are witnessing a staggering increase of ecommerce: according to eMarketer retail ecommerce grew by 75% in 2020. And while Canadians’ lives begin to return to normal thanks to the vaccine, we suspect that continued eCommerce growth will result as a continuation of this pandemic customer favourite.
Mega Group is at the forefront of your digital transformation in three specific ways: building an electronic store-front (e-com website); driving traffic to your website (marketing) and; further integration with store operations and systems (merchandising, inventory and financials).
As such, Mega Group conducted in June a Needs Assessment study to identify and evaluate members’ priorities.
Money Is Not the Only Thing on Your Mind
Upon review, the data reveals members do not all have the same priorities and needs.
We tested 16 Needs Statements through a series of questions, pitting them against one another. Participating retailers clearly focused their attention on financial benefits (early payment discount, #1 and funded consumer incentives, #3). Effective, expert advice from Mega was also in the top 3 (understands and ability to resolve matters, #2)
| Top 7 Needs (All Respondents) | |
| 1 | Competitive early payment discount. (9.29) |
| 2 | An assigned Mega representative who understands my problems and has the ability to resolve matters. (8.46) |
| 3 | Vendor funded consumer incentives I otherwise could not obtain on my own. (8.31) |
| 4 | Personalized service to help me manage and update my website. (7.93) |
| 5 | A dynamic website where item pricing and national promotions are managed for me. (7.91) |
| 6 | Access to products I otherwise could not obtain on my own. (7.65) |
| 7 | A transactional website, with pricing and inventory integrated to store operations. (7.40) |
In the second tier, we noticed a strong appeal for aspects linked with digital initiatives and transformation. We ventured into understanding if digitally oriented initiatives are second tier for all members or if they are very important for some members and less so for others.
Half of the Sample are Users of Mega’s website Solution
As it turns out, over 55% of respondents were subscribers of Mega’s website solution, namely the Alta website by AVB Marketing. 40% of these members (23% overall) had active ecommerce carts on their website.
Digital Solutions Accessible to All
Alta is popular with independent retailers of all sizes, across the country. Half of the users had a central billing profile of less than 1.2M CAN$, and they were well distributed in all regions.
Full E-Commerce Solution as Source of Happiness
Those retailers who have activated their shopping carts show greater satisfaction and are more likely to recommend Mega Group.
*: The Net Promoter Score is an index obtained by subtracting the % of promoters (a rating of 9 or 10) minus the % of detractors (a rating of 0 to 6) on a likelihood of “recommending Mega Group to other retailers”.
Mega Group Priorities as Ranked by Members
When members are asked what Mega should focus on over the next year, “Building a best-in-class, transactional website” tops the list. Members who do not currently subscribe to our digital programs consider “Combining purchases centrally” and “Increasing number of central billing vendors” as equally important top priorities.
Mega members who have embraced e-commerce with Alta are looking for further support; “Services that meet advanced needs of members” is their number two priority.
| The ONE most important component that Mega should prioritize? | Alta & ECom | Alta & no ECom | No website Mega Group | Total |
| Build a best-in-class, transactional website that is integrated with my store operations | (1) 47% | (1) 38% | (1) 28% | |
| Combine purchases centrally to leverage cost of product and backend financials | (3) 13% | (2) 29% | (1) 28% | (2) 25% |
| Increase the number of central billing vendors who also propose merchandising programs | (1) 28% | (3) 15% | ||
| Help with the broader issue of digital transformation, beyond the website | (3) 19% | (3) 14% | (4) 14% | |
| Develop fee-based services that meet the advanced needs of members | (2) 20% | (5) 12% | ||
| Provide business succession planning support. | (6) 6% |
Your voices have been heard.
The 2021 Member Needs Assessment study conducted in June reveals two areas to address in the 2022 Gamebook, which will be released in November:
- Keep on shepherding digital transformation and grow the footprint of our full Website and Ecom solution with Alta. If you haven’t started your digital transformation, discuss it your BDM, as your peers who have adopted Alta E-Commerce solutions are more likely to recommend Mega Group.
- Develop Central Purchasing to increase buying power resulting in more competitive cost of products. This initiative is inline with the needs for better margins and backends. It also enables the provisions of a wider range of product lines that members may not access on their own, and a better integration of promotional and marketing programs.