Flevy Management Insights Case Study

Ecommerce Strategic Revamp for Specialty Packaging Firm

     David Tang    |    Ecommerce


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Ecommerce to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A specialty packaging firm faced declining online sales conversion rates and customer satisfaction due to an outdated Ecommerce platform and inefficient operations. Post-implementation, the firm achieved a 15% increase in online sales conversion, a 20% reduction in operational costs, and a 25% rise in customer satisfaction, highlighting the importance of a robust Ecommerce strategy and effective Change Management.

Reading time: 7 minutes

Consider this scenario: A specialty packaging firm in the competitive North American market is struggling with its Ecommerce platform, which has become outdated and inefficient.

The organization's online sales conversion rates are declining, and customer satisfaction scores are lower than industry benchmarks. In addition, the organization is facing increased costs due to manual order processing and a lack of integration between their Ecommerce platform and back-end systems. The organization needs to revamp its Ecommerce strategy to improve customer experience, streamline operations, and increase online sales.



Upon reviewing the situation, it appears that the organization's challenges may stem from an outdated Ecommerce platform that has not kept pace with industry standards and consumer expectations. Another hypothesis could be that the lack of integration between the Ecommerce system and existing back-end processes is leading to inefficiencies and a suboptimal customer experience. Lastly, the organization's digital marketing strategy may not be effectively driving traffic to the Ecommerce site nor converting visitors into customers.

Strategic Analysis and Execution Methodology

A proven five-phase methodology will guide the Ecommerce revamp. This process ensures a comprehensive analysis of the current state, strategic planning, and meticulous execution, leading to enhanced operational efficiency and customer satisfaction. Consulting firms often employ such a structured approach to tackle complex Ecommerce challenges.

  1. Current State Assessment: Evaluate the existing Ecommerce platform, customer journey mapping, and operational workflows. Identify pain points and bottlenecks. Key questions include: What is the conversion rate? Where are customers dropping off? What are the integration issues?
  2. Strategic Planning: Define the Ecommerce vision and objectives. Develop a roadmap for platform enhancement or replacement, process reengineering, and digital marketing strategies. Deliverables at this stage include a Strategic Ecommerce Plan and a Digital Marketing Strategy.
  3. Technical and Process Redesign: Focus on selecting the right Ecommerce platform and redesigning processes for better integration and automation. This phase involves vendor evaluation, system architecture design, and change management planning.
  4. Implementation: Execute the Ecommerce platform rollout, process reimplementation, and digital marketing campaigns. This phase is critical for managing risks and ensuring that the transition is smooth for both employees and customers.
  5. Performance Monitoring and Optimization: Post-implementation, monitor key metrics closely to ensure the new system and processes are performing as expected. Continuous improvement efforts will be necessary to refine the Ecommerce strategy based on real-world feedback and data analytics.

For effective implementation, take a look at these Ecommerce best practices:

E-Commerce Value Chain (33-slide PowerPoint deck)
E-commerce Business Plan (13-page Word document)
Ecommerce Financial Model (Excel workbook)
Online Payments Platform – 5 Year Financial Model (Excel workbook)
AARRR Growth Funnel (27-slide PowerPoint deck)
View additional Ecommerce best practices

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Ecommerce Implementation Challenges & Considerations

Ensuring alignment between the new Ecommerce strategy and the organization's overall business goals is essential for securing executive buy-in. A common challenge is resistance to change, which can be mitigated through effective communication and involvement of stakeholders throughout the process. Additionally, the new Ecommerce platform must be scalable to support future growth without significant additional investment.

After full implementation, the organization can expect to see improved online sales conversion rates, reduced operational costs due to increased automation, and higher customer satisfaction scores. These outcomes should translate to a stronger competitive position in the market and a healthier bottom line.

Potential implementation challenges include data migration issues, system integration complexities, and the need for upskilling employees to adapt to new technologies and processes.

Ecommerce KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


Efficiency is doing better what is already being done.
     – Peter Drucker

  • Online Sales Conversion Rate: to measure the effectiveness of the Ecommerce platform in converting visitors to customers.
  • Customer Satisfaction Score: to gauge customer experience improvements.
  • Operational Cost Reduction: to track efficiency gains from process automation.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the implementation, a key insight was the importance of aligning the Ecommerce platform's capabilities with the organization's unique value proposition. According to McKinsey, companies that tightly align their Ecommerce capabilities with their strategic goals can see a 25% increase in overall efficiency. This alignment ensures that the platform not only supports current operations but also enables future growth and innovation.

Another insight is the critical role of data analytics in driving Ecommerce success. Real-time data can inform decisions on product offerings, pricing strategies, and customer engagement tactics, leading to a more dynamic and responsive Ecommerce environment.

Ecommerce Deliverables

  • Ecommerce Strategy Report (PPT)
  • Digital Marketing Plan (PPT)
  • System Architecture Design Document (PDF)
  • Change Management Framework (MS Word)
  • Operational Performance Dashboard (Excel)

Explore more Ecommerce deliverables

Ecommerce Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Ecommerce. These resources below were developed by management consulting firms and Ecommerce subject matter experts.

Aligning Ecommerce Strategy with Business Goals

It is imperative that the Ecommerce strategy is not developed in isolation but is intrinsically linked to the broader business objectives. The Ecommerce platform should serve as an extension of the organization's value proposition, seamlessly integrating with other channels to provide a unified customer experience. Bain & Company reports that companies with well-aligned strategies can see profit margins improve by 10-20%.

For this alignment to be effective, it is necessary to establish clear communication channels between the Ecommerce project team and the C-suite to ensure that strategic objectives trickle down into Ecommerce operations. Regular alignment sessions and strategy updates can help maintain this connection, allowing for agile responses to changing business landscapes or customer needs.

Customer Experience and Personalization

Enhancing the customer experience is not just about a user-friendly interface; it involves a deep understanding of customer behaviors and preferences. Personalization is key. According to Accenture, 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations. The Ecommerce platform must have the capability to leverage customer data to offer personalized experiences.

Investment in advanced analytics is essential for understanding customer journeys and tailoring the online experience. This includes personalized recommendations, targeted promotions, and content that resonates with individual customers. The organization should also consider the integration of AI and machine learning technologies to continuously improve the personalization engine.

Scalability and Future-Proofing the Ecommerce Platform

Scalability is a critical factor in selecting an Ecommerce platform. As the business grows, the platform must be able to handle increased traffic and transaction volumes without compromising performance. Gartner emphasizes the importance of choosing a platform with a modular architecture that allows for easy expansion and integration of new features.

Future-proofing involves anticipating market trends and customer expectations. This could mean ensuring the platform supports emerging payment methods, adheres to evolving security standards, and integrates with upcoming technologies like augmented reality or voice commerce. By planning for the future, the organization can avoid costly overhauls down the line and maintain a competitive edge.

Change Management and Stakeholder Engagement

Change management is often underestimated in its importance to the success of an Ecommerce strategy. A study by Prosci found that projects with excellent change management were six times more likely to meet their objectives. The organization must invest in training and support to ensure employees are equipped to manage the new Ecommerce platform and processes.

Stakeholder engagement is equally important. The project must have champions at all levels of the organization, from the C-suite to front-line employees. Regular updates, open feedback channels, and visible leadership support can help build a positive perception of the change and drive adoption across the company.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Increased online sales conversion rate by 15% post-implementation, surpassing industry benchmarks and driving revenue growth.
  • Reduced operational costs by 20% through process automation and efficiency gains, improving bottom-line profitability.
  • Elevated customer satisfaction scores by 25%, reflecting a significant enhancement in the overall customer experience.
  • Improved data-driven decision-making through real-time analytics, enabling personalized customer interactions and targeted promotions.

The initiative has yielded substantial positive outcomes, including notable improvements in online sales conversion rates, operational cost reductions, and customer satisfaction scores. The implementation successfully addressed the challenges of an outdated Ecommerce platform and lack of integration, leading to tangible business benefits. However, while the results are commendable, there were unexpected complexities in data migration and system integration, causing minor delays and initial performance disruptions. To further enhance outcomes, a more comprehensive change management plan and stakeholder engagement strategy could have mitigated resistance to change and accelerated adoption. Additionally, a more robust scalability assessment during platform selection could have better future-proofed the Ecommerce system.

Moving forward, it is recommended to conduct a thorough review of the Ecommerce platform's scalability to ensure it can accommodate future growth and emerging technologies. Furthermore, refining the change management approach and fostering deeper stakeholder engagement will be crucial for sustaining and maximizing the benefits of the Ecommerce initiative. Continuous monitoring of KPIs and customer feedback will provide insights for ongoing optimization and refinement of the Ecommerce strategy.


 
David Tang, New York

Strategy & Operations, Digital Transformation, Management Consulting

The development of this case study was overseen by David Tang. David is the CEO and Founder of Flevy. Prior to Flevy, David worked as a management consultant for 8 years, where he served clients in North America, EMEA, and APAC. He graduated from Cornell with a BS in Electrical Engineering and MEng in Management.

To cite this article, please use:

Source: E-Commerce Strategy for Cosmetic Brand in Competitive Market, Flevy Management Insights, David Tang, 2025


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