Matas - From E-Commerce to Digital Store

From Webshop to Digital Store Introducing new E-Commerce Strategy

Team 11 Digital Concept Development Semester 2 Project 2, Group 5 Date of Delivery: 27-11-2015

Team Members Natalia

Amir

Amna

Graduated multimedia design from KEA. Working as a sales assistant at clothing boutique and running my own small clothing business. My interest lies in project management and research.

With a degree in marketing, projectmanagement is my strongest skill.

I have an indepth knowledge within digital development and concept creation.

I am a Media student at Robert Gordon University, Scotland. Currently on exchange at KEA, Digital Concept Development. I am keen on Media, Marketing and Advertising.

Email: amna_abbas86@yahoo.com Phone number: 31734442

LinkedIn: https://dk.linkedin.com/in/ amir-karimabad-41497736

E-mail: nataliazaucha@yahoo.com LinkedIn: https://uk.linkedin.com/in/natalia-zaucha-23ab1082

Ola

Laura

Mathias

Interested in Webdesign, UI-design, I am an ERASMUS public relations User Experience, Branding, Business student, from the Robert Gordon development and Entrepreneurship. University, Scotland. Currently, I work for a personal training company, controlling and creating content for Email: mathiasfroelundthomsen@ social media and their website. gmail.com Phone number: 29 80 29 87 Phone number: +4591925012 LinkedIn: https://www.linkedin.com/ pub/laura-irwin/95/38a/40b

Previously studied economics and entrepreneurship. Interested in UX research and innovation.

Email: ola.fadebi@gmail.com phone: 71443716

Table of Contents

Insight............................................................................... 1 Introduction................................................................ 1

Competitors Analysis................................................... 2

Client Goals..................................................................3

Problem Area............................................................... 3

Problem Formulation................................................... 4 Hypothesis...................................................................4 Constraints.................................................................. 5 Analysis....................................................................... 5

Matas Business Model Canvas................................5 User Journey......................................................... 7

4 Sight Model.........................................................8

Research Findings - Eye Tracking Test...................10 Conclusions..................................................................11 Solution..............................................................................12

Home Page and Product Page...................................... 12

Online Chat Communication......................................... 12

Click and Collect.......................................................... 12

Gamification................................................................ 13

Video Content.............................................................. 13 Conclusions........................................................................14 Project Management Breakdown........................................14 Reference List.................................................................... 15 Appendix 1.........................................................................16 Appendix 2......................................................................... 17 Appendix 3......................................................................... 18 Appendix 4......................................................................... 19 Appendix 5......................................................................... 20

Insight Introduction Matas is a retailer in the beauty and health sector, and is engaged in medicine industry. It was founded in 1949. Matas has a distinctive one-stop shop concept, where their product portfolio consists of products in beauty, personal care, health, and pharmaceutical. They believe that they stand for quality at reasonable prices and works by the Motto: “Good advice makes the difference”1 and Mission: “ We want to help our customers feel good, look good and be in a good mood- at prices they can afford”2 Who They Are As described earlier Matas was founded in 1949 as a voluntary chain, by a small group of chemists. Gradually, this collaboration was becoming successful and, as a result, Matas A/S was formed. The company started off with first year sales of 537,000kr. 3 Since then the success has been built upon and continued, resulting with Matas having 291 stores in Denmark and 2 in Sverige.

What They Do Being a successful retailer, Matas’ products range includes both international and Danish brands.

They produce some of their products themselves, but they also buy them from various suppliers, as both are produced inland and abroad. Matas now offers a wide range of four products categories: BeautyShop – offering wide selection of products in Mass Beauty and High-End beauty. Matas estimates that the long-term market growth of beauty care will average between 3-4% per year.4 VitalShop – offering wide range of vitamins, minerals and supplements. Market growth for vital shop is estimated to be approximately 1-2% per year.

Material Shop – offering households and personal care products. Market growth estimated to be approximately 1-2% per year.5 Medicare Shop – introduced in 2005, offers skincare products, prescription medicine, and nursing and veterinary drugs. Market growth will be approximately 3% per year.6 In 2001, after the Pharmacy Act was introduced in Denmark, Matas can sell non-prescribed medicines approved and committed for sale outside the pharmacies by the Ministry of Health and Prevent.7 Partnerships In 1956, Matas partnered with Steins Laboratory and presented a constitution of their products that still applies today and implies that Matas products do not contain harmful substances. They only contain what is stated on the package, and that must be the same for all products.8 Today, Matas offers about 90 Swan labeled own products. In addition, they also have a wide range of partners, such as the Cancer Society, Abuse portal, Christmas Seal Foundation, the Asthma and Allergy Denmark9.

1. http://www.matas.dk/responsibility 2. http://www.matas.dk/organization 3. http://www.matas.dk/historie

4. http://www.euroinvestor.dk/pdf/cse/2014/06/12839283/Matas%20annual%20report%202013-14.pdf 5. http://www.matas.dk/organization 6. http://www.euroinvestor.dk/pdf/cse/2014/06/12839283/Matas%20annual%20report%202013-14.pdf 7. http://www.euroinvestor.dk/pdf/cse/2013/06/12371519/Matas_Prospekt_dk_1.pdf page 71 8. http://www.matas.dk/historie 9. http://www.matas.dk/responsibility

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In 2007, majority of Matas stores were converted to a capital chain in which CVC Capital Partners were the principal shareholders. Later in 2013, Matas was listed in Nasdaq OMX Copenhagen, and CVC Capital Partners sold all their shares to Matas, and the former store owners became the direct independent shareholders at Matas.

Competitors Analysis Luxplus Luxplus10 is an online advantage club, providing large discounts in personal care and beauty.

Their website is consistent and user friendly, with sub-bars enabling quick and easy navigation.

The site homepage emphasises on customer benefits of using their store to encourage purchases. The company offer fast delivery within Denmark between one to three days. Luxplus also offers an extended returns policy with a “buy now, can return until February” policy to encourage impulsive purchase. The company offers a bonus cash system, with every purchase made customers will receive “bonus cash” that enables further discounted rates for their next purchase. However, free delivery is only eligible if the consumer has spent more than 600DKK. The website miscommunicates their delivery expectancy, claiming on their homepage it is within one to two days. However within the conditions and policy section, it states delivery expectancy within one to three days.

Nicehair Nicehair11 is a discount shop within personal care and beauty, with primary sales made from their webstore. Their front page consists of bright and attractive visuals however combined with text, it can become overwhelming for a user. It is also difficult for customers to access information such as their delivery and return policy which is not very clear to the user. However, the homepage applies attractive images to promote their latest blog posts such as “how to avoid oily hair” and hair product reviews from hairdressers, in order to engage users. The webstore offers a sign up option to receive free e-newsletter to inform on the latest products and discounts.

Ezzence An online beauty retailer12 whom focuses on promoting their unique selling points on the homepage to quickly engage the consumer. The webstore promotes that it has a trust pilot rating of 9.1 and the website is Emarked to create a sense of security with the consumers. Ezzence promotes an additional USP – offering day to day delivery if a purchase is placed before noon.

The webstore also offers a 100 day return policy, notifying that it will make very good Christmas shopping. Additionally the company also promotes Christmas shopping with a Christmas and Gift Idea sub-headings to encourage high expenditure.

MAC MAC13 is a make-up retailer targeting the younger, fashion conscious consumer and makeup professionals. Their webstore reflects their instore brand image with continuous text font used throughout the webstore, products and marketing. The webstore apply upselling techniques with exclusive offerings for customers to creating a sign up account, enabling to access exclusive celebrity collaboration collections only accessible on their webstore. MAC also offer a more personal experience with a gift wrapping option for their online purchases in order to encourage the customer to not only purchase for themselves but as a gift for others. Within the MAC international webstore, they offer an online chat service for customers to discuss any inquires. The website however lacks personal selling with no live chat or cross-selling for the user. Customers are also restricted with no buy online and collect instore options. MAC also only offer online customers free delivery when the customer has spent 350kk online.

10. www.luxplus.dk 11. www.nicehair.dk 12. www.ezzence.dk

13. www.maccosmetics.com

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Sub-conclusion Overall there is a lack of Christmas promotions to engage in cross selling with only Ezzence and Luxplus taking advantage of this opportunity. There was no offering of free delivery or delivery to pick up at a store or online chat options; providing Matas an opportunity to differentiate itself from its competitors offering an in-store pick up service for only 10 DKK with every product.

Only MAC offered an online chat, which is also a suggestion Matas could optimize to increase user experience.

Client Goals Matas’ primal objective is to improve their user experience of their web-shop - matas.dk in order to maximize conversion rate and turn-over.

Problem Area The popularity of online shopping is continually growing, therefore companies are working progressively to keep up with this market trend and adapt to new technologies. E-commerce sales within Denmark reached DKK 80 billion in 2015, resultantly DKK 11 billion more than in 2014 and 10% of the private consumer spending in Denmark is now done online14.

With 23% of online sales completed on mobile phones and tablets15, the importance for companies to optimize the user experience of their sales platform on all devices is becoming more and more important.

Matas has not created any major changes or updates to their web-shop within the previous four years, therefore their webstore is not entirely up-to-date in regards to web-store market trends.

Furthermore international competitors are currently gaining large market shares within the Danish e-commerce market, currently owning 38% of the overall market. Resultantly, this has allowed international competitors to offer lower prices due to lower VAT and charges16.

Matas may not be competing on price, but focuses on providing quality and service. This means it is vital for Matas to optimize customer user experience to resemble their customer experience within their Matas stores.

14. http://politiken.dk/forbrugogliv/forbrug/indkoeb/

ECE2523022/vi-handlede-for-80-milliarder-paa-nettet-si

ste-aar/

15. http://trendsonline.dk/2015/09/03/dansk-e-handel-i-

markant-vaekst/

16. http://politiken.dk/forbrugogliv/forbrug/indkoeb/

ECE2523022/vi-handlede-for-80-milliarder-paa-nettet-sid

ste-aar/

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Problem Formulation In order to address relevant solutions to the problem area, the team needed to formulate questions that would help to direct the solution efforts on the later stage. Resultantly, the following key questions were formulated: How can Matas improve its e-commerce in order to maximize conversion rate and turn-over without jeopardizing its business model?

Subquestions: • How can Matas digitize the good experience that customers are used to from their offline stores? • Which e-commerce segments need altering in order to achieve the above? • What additional key aspects should be added to already well-functioning e-commerce segments for UX enrichment?

Hypothesis It was noticed in the problem area that Matas has not updated its website within the last four

Matas - Business Model Canvas

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years and has not allowed it to follow the trends in e-commerce industry. Therefore, it would be postulated that lack of customer conversions on Matas’s website is due to the design, layout and information available on it being either outdated or not appealing enough.

Constraints During the client’s pitch no constraints were mentioned, except from pricing constraints. The client did not want the e-commerce campaign to affect its set pricing. Additionally, the group made sure and asked the Matas’s representative through a Google sheet made available by teachers for the question purposes. However, when asked, the client did not voice any specific constraints.

Analysis part Having realized the importance of drawing a detailed Business Model Canvas with specified value proposition for any e-commerce to become successful, the team conducted the above during brainstorming sessions. Additionally, having analysed Matas e-commerce using 4 Sight Model, the team managed to define key aspects that, once improved or added, are expected to help achieving main goals - optimizing user experience design of Matas.dk, which will increase conversion rate and turn-over.

Matas Business Model Canvas Key Partners Since the core competence of Matas is marketing of beauty and health products at retail level, they have formed collaboration with some key partners over the years. Among them is Uldum pharmacy, which provides prescribed medicines in 13 Matas shops17. Uldum pharmacy also provides advice for Matas’ customers before or after picking up prescribed medicine at Matas shops. Matas also entered into partnership with many other organizations through its Club M initiative. Those include: Musikdk, Energinord, Invita, DFDS seaways, small Danish hotels, profil optik, Apollo, Callme, Kaza, Saxo, Zenji mobile, StyleBox, Jensen’s Bøfhus, SEEDS, Falk Lauritsen and Fitness.dk18. For instance, it is possible to use Club Matas card at fitness.dk to buy their products (except from discounted goods) and earn points that can be redeemed later when purchasing Matas products19.

Key Activities Matas is a retail marketing company with 291 shops in Denmark. They have excellent distribution networks to allow their customers to have an easy access to their products. They also provide in-store expert advice to their customers. They are capable of designing marketing strategies based on industry trend and customers’ needs. In its marketing activity, Matas is optimized on search engines and present on social media platforms, such as YouTube and Facebook. In addition, its ability to attract popular commercial brands as their exclusive distributor, is an important activity within the company. However, there is still some unutilized potential within key activities carried on online.

Key Resources Matas is dependent on physical, technology, financial and human resources. As mentioned before, its key physical resources are the 291 shops across Denmark. The shops are strategically located to enable its customers to have an easy access to its products. The company cash flow in 2014 financial year was around DKK 3.5 billion20, thus it has a huge financial resources to attract any brand in the beauty and health industry. Technology is yet another key resource of the company serving as its coordinative tool. Technology wise, Matas has a web-shop, Club Matas native app and collaboration with L’Oreal Make Up Genius. Its employees are also considered as 17. http://www.matas.dk/d7f4c623-008e-4985-a49e-5329af871786da-dk 18. http://clubm.dk/?utm_source=Agillic%20Dialogue&utm_medium=web&utm_campaign=Frontpage 19. https://fitnessdk.dk/medlemskab/pages/clubmatas.aspx

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a key resource, mainly because they are the core providers of Matas customer services in the downstream of the company supply chain.

Value Proposition Products performance is one of the value propositions of Matas. Most of its products are naturally made to solve beauty and health problems of its customers. Its products are mostly differ-

Matas - Value Proposition Canvas

entiated by their high quality. Secondly, having access to the products is made easy through availability of Matas shops nationwide in Denmark. Thirdly, trained staff are always available to help customers in case they want to know more about a particular product. Concerning prescribed drugs, the customers can always contact Uldum pharmacy to seek for advice. Moreover, being a member of Matas Club allows people to buy some discounted products and the cards are used as a part of Club M initiative across different customer service and retail companies in Denmark. Narrowing down all of the above to a concise value proposition statement, Matas.dk is striving for providing a full physical store experience online (see: Value Proposition canvas).

Channels Matas distributes its products through its 272 own physical shops, 19 franchise shops and 5 stylebox shops. Its web-shop (matas.dk) serves as a virtual marketplace for customers to also make purchase and read more about products’ specifications. Social media platforms, such as Facebook and YouTube, serve as a medium of socializing and communicating with its diverse customers. In addition, Club Matas and Club Matas app are also used to engage customers for marketing strategy purposes.

Revenue stream Revenue of Matas is mostly from product sales. As mentioned previously, its cash flow in 2014 is around DKK 3.5 billion, which is a good figure to attract investors. The company is listed on the stock market with market value of DKK 5.1 billion and its average price trading at DKK 125.65 /share21.

20. http://investor.matas.dk/results.cfm 21. http://investor.matas.dk/stockchart.cfm

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Cost Structure Its cost structure is value driven. There are high/low-end products, each with price that is based on the brand and performance of a product. There are also products with reasonable prices. However in general, prices are set based on products’ performance and brand label. Producing Matas’ owned line of health and beauty products, logistics (mostly delivery), marketing and employees are the main expenditure for the company.

Customer segment Since the common marketing confidentiality policy does not allow a company to reveal specific customer data, the client summarized the target market to be 95% women and 5% men during presentation.

Customer relationship Matas has a series of services for customers based on location and individual needs. For instance, in-store services are available for customers seeking advice about what product might best serve one’s needs. Virtual advice is also available through its collaborating partner Uldum Pharmacy concerning prescribed drugs. Belonging to Matas Club also allows the company to gain an insight into buying patterns of customers. Resultantly, it allows to tailor recommendations and messages about discounted and newly released products. When buying on its website, it is possible to sign-up for a newsletter, which is later used for communicating with customers.

Sub-Conclusion Having drown the above Business Model Canvas with a concise value proposition, it is clear that Matas executes its key activities accordingly and through relevant and reliable channels. It is also noticeable that all marketing efforts carried out online are compatible with Matas’ value proposition of providing its customers with best possible customer service experience greatly resembling the physical store one. Key partners are chosen strategically to match Matas’ key resources and activities, which allows to implement all marketing and sales strategies successfully. Correspondingly, such combination enables the company to fully control its cost structure by investing their financial assets in activities and resources crucial to company’s success. Additionally, in order to stand out and maintain great reputation that Matas has managed to gained over the years, the company focuses quite a lot on Customer Relationship aspects. Having introduced numerous loyalty programs, gift services and collaborations with well-known brands, Matas creates a community spirit among its customers.

User journey User Journey of a Matas customer

A visitor enters the webstore after being exposed to Matas. dk advertising, or encouraged from flyers, promotions, Matas newsletter or from visiting the physical store. The visitor selects the appropriate category page from the homepage and, then she/he is being directed to the relevant product page. The visitor selects the product they want for checkout, being either signed in as a guest or a member. Then they select

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their delivery option and continue with their online payment. The visitor receives a confirmation email of purchase and waits for the expected delivery (approximately one to three days working days). Alternatively, the visitor can pick up their purchase at the Matas physical store.

4 Sight Model Analysis TRAFFIC

4 Sight Model for Matas

Having used SimilarWeb analytic tool22, the group managed to get an insight into traffic sources of Matas.dk. The insight stated that 55.54% of the overall traffic comes from searches. Additionally, people usually tend to search for Matas themselves (85.62% - organic searches), in contrast with only 14.38% of the traffic being paid searches. The team also found out that 34.53% comes from direct search actions. When it comes to social media, it seems that those platforms serve more as an informative and entertaining Matas marketing tools rather than traffic drivers, with only 1.49% of the traffic generation.

Branding is another important traffic driver for Matas.dk. This is achieved not only by collaboration with well-known brands (quite often of exclusive beauty products that have great branding resonance), but also by offering a high-quality Matas owned line of products that are sold at attractive prices.

As far as trust marks are concerned, Matas is an Authorized Dealer (Authoriseret Forhandler).

Additionally, offered and Matas brands themselves, Trustpilot, and Club M companies serve as an extra trust mark for consumers.

Having embedded a reviews option on their e-commerce, as well as Trustpilot, Matas made sure that some part of traffic (8.02%) is referrals-based.

Matas also uses email marketing, mostly in a newsletter form or some personalised emails generated from their big data. This way customers exposed to this type of marketing activity are most likely to source more information on a given deal through Matas.dk or at physical store.

22. http://www.similarweb.com/website/matas.dk

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IT As any respecting and reliable e-shop, Matas had payment security & data protection policies in place. All payments are being made in a secure way to prevent customers from being exposed to fraud. As stated by Matas’s Head of the E-commerce and Marketing, the company uses 3D Secure and other relevant security for the above mentioned purposes.

Having realized the importance of IT performance on retaining customer attention, with one second delay in page-load most likely causing 7% loss in customer conversions23 the team conducted a speed test. It turned out that desktop version of the e-commerce scored 71/100 points with its mobile brother scoring 53/100 points24. With 71 points for desktop speed being an acceptable result, 53 points for mobile version speed needs revising and improving.

Having conducted focus groups in its traditional form, as well as with the usage of an eye-tracking device with x participants (details here after conducting our focus groups and eye-tracking test) to test UX (User Experience), the team concluded Matas.dk to be user-friendly. More details on Friday after test – we can use some quotes from participants.

As already mentioned within BMC, Matas had its Club Matas native app and collaborates with L’Oreal, being an integral part of its Make Up Genius app.

SALES: Matas has a very good and well-developed loyalty program. It consists of compatible Club M and Club Matas programs, allowing customers to collect and use points on purchasing at Matas and numerous collaboration partners (see: Key Partners in BMC).

Having looked into selling strategies of Matas, the team did not find neither any track of up-selling, nor cross-selling activities. The team thinks that introducing cross-selling, following the Amazon model (buy 1 product, get an essential add on for less), would result in increasing e-commerce turnover and conversion rate. Correspondingly, up-selling efforts, such as offering a limited, exclusive range of products available only online or upgrades to products normally available at physical stores, would also influence the above aspects in a positive way.

Having moved on and analysed shopping experience, the team concluded that Matas.dk’s shopping cart is smart and responsive. Additionally, the checkout flow is very good, as it includes 5 steps all featured on one site, which makes shopping easy and intuitive.

When it comes to payment processing, there is nothing one can complain about. The payment goes through fast and without any errors or additional charges.

Being known for its emphasis on relationship with costumers, Matas made sure there are gift services available for consumers to use on its e-commerce, too. However, there is no option to choose a desired amount, and customers are limited to fixed gift card prices.

SCM & SERVICE Having wanted to maintain good customer relationship, Matas has a subpage devoted to customer service. However, there is no chat function, which is quite often featured on competitors’ e-shops (e.g. Sephora, MAC international, etc.).

In terms of deliveries and collection, there is a possibility of click and collect in store for all purchases. However, Matas charges its customers with additional fee of 10 DKK if the purchase does not exceed 249 DKK. Given the competitive nature of the health and beauty products market, it is advised to offer such an option complimentary regardless the purchase amount.

23. https://info.ensighten.com/rs/ensighten/images/just-one-second-delay-in-page-load-can-cause-7-percent-

loss-in-customer-conversions.pdf 24. https://developers.google.com/speed/pagespeed/insights/?url=matas.dk

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Additionally, Matas.dk charges its customers for deliveries for all purchases below 400 DKK. Knowing how costly it is to deliver the goods, charges for shipping are justifiable. However, it could be worth lowering the set purchase amount to approximately 200-300 DKK. In terms of fulfilment and product handling, Matas.dk has an impeccable reputation. All products are delivered within 1-3 working days or instantly sent to the selected shop (if not in stock already).

Sub-Conclusion

Heat map - all participants

Matas’s perfomance against the 4 Sight Model test is overall good. However, there are some aspects that require altering or improving. Speed performance (especially on the mobile version of the webshop), click and collect and deliveries that could be less expensive or, in the case of click and collect, complimentary, chat function to improve customer service, gift cards services with a chosen amount option, reviews option for creating community spirit and driving some more traffic from refferals, cross-selling and up-selling efforts, to name just the most urgent ones.

Research findings - eye-tracking test The analysis of research conducted from an eye tracking test, consisting of seven participants, resulted in several outcomes identified. The cluster test results from a random participant demonstrates the overall area where the participant focused their time which was looking at the top of the screen, identified from the green colour.

The orange colour from the cluster test also demonstrates the participant spent secondary of his time looking at the bottom of the homepage. Noticeably, the participant avoided looking at the content within the middle of the homepage. From the analysis of the group cluster test, a similar outcome was identified, establishing majority of particiThe visuals can be found in Appendices: 1-5

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pants spent their time looking at the top of the screen. As when asked, “What is the first thing you notice onthe webshop,” six out of seven participants answered the slider, positioned at the top of the homepage. Noticeably, participants missed the content within the middle of the screen and spent their secondary time at the bottom.

Participants were asked several questions such as: Can you choose a hair product? Can you find the customer service section? Can you find the returns policy? The gaze plot demonstrates where participants specifically looked and in what order at the homepage of the website from these questions. The results from a random participant, shows the participant focused on the header of the website, specifically from the middle of the page to the far right. The participant then skimmed its eye line to the bottom of the page (the footer), focusing on the middle to the far left of the page. The analysis of the group test also demonstrated a similar result, with participants focusing and scanning the header section and skimming down to look at the footer of the website. This shows participants expect to find information and finding products at the top of the screen or the bottom.

The heat map results show a more in-depth look into not only where participants looked but for how long they were looking at a given section on the website. From the red markings it reveals the random participant spent majority of their time at the top of the webpage, focused at the center of the slider. The results then show the participant looked for a short time scrolling down the center of the page in a linear motion, and focusing to a row of products at the bottom of the screen. The group results demonstrated a similar outcome however, more focus at the top of the webpage. There was no colour result throughout the centre of the page but time spent focused at the footer of the page. Repeatedly, demonstrating that customers spend their time primarily at the top or the bottom of the page.

Additionally, with all participants finding the customer service subpage within seconds, majority of them had problems finding a relevant section of the website tackling about returns policy.

When asked “what is your overall impression of the website,” six out of seven participants commented the webshop is organized and easy to use. However, one commented that with too many price markers throughout the home page, it made the usability overwhelming. As an overall result, this study proves that customers expect to find vital information primarily at the header of the webpage and secondarily at the footer. It also proves that some information, especially in regards to returns policy, could be located in a more user friendly section, making it easier for users to navigate.

Conclusions Having conducted primary research, with the usage of eye-tracking device, to test usability and UX, as well as the above described e-commerce measurements and performance theoretical models and frames, the following conclusions can be made.

• Matas needs to introduce some cross-selling and up-selling efforts into their web shop. This needs to be done in order to increase customer retention and conversions, likely resulting in increasing in sales.

• Customer experience on the webshop although already good can be improved by introducing more in-depth products’ descriptions and zoom in option for photos browsing. Gamification is advised to be implemented, as this is likely to attract more users and evoke further interaction on the webshop.

• As proved in the eye-tracking test, layout of the website (slider, discounted products, featured products, offers, etc.) and navigation to some relevant information should be improved to suit users’ preferences better.

• Reviews option should be implemented in order to create the community spirit among the customers.

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Solution Evolve webshop to a full service digital store Matas.dk webshop needs to create features that will evolution from a standardized webshop to a new and engaging digital store. This is suggested to efficiently create and satisfy the visitor’s needs and feelings, just as if they are in a physical store.

Home Page and Product Page Firstly, Matas.dk need to create a more appealing frontpage, as currently with many product sliders can act overwhelming to users. The webshop currently focus on too many feature products and offers, without a primary motivational campaign. Product pages can become increasingly engaging, with more detailed product descriptions, with additional allergy advice. As currently there is no allergy warning or ingredients lists on some products, which is dissatisfying for shoppers who require this key information.

Within product pages Matas.dk can also employ alternative upselling techniques. From the success of Amazon, whom engages users to purchase more by showing related products. This is a suggestion Mata.dk could implement, i.e. if a customer is looking to purchase a shaver, the webstore could recommend a foam and face wash. Resultantly, customers are encouraged to purchase the full package than just one product.

Cross-selling Visualization

Online Chat Communication Creating an online chat function would help customers choose the correct product that they need. As frequently, customers visiting a webshop do not know which product would be best for their needs, or which category to browse. By creating an online chat function, the shopper can efficiently receive help and advice, on where to look or which products would benefit. If a shopper has a complaint, they can gain quick advice within the online chat, resultantly this will avoid crisis management on social media outlets or in the physical store.

Click and Collect Additionally, Matas.dk can create motivation for the user to visit their local Matas store, by adding a collect at store option. This will allow the customer to purchase their product online and quickly gain access to their products within a few hours at a store of their choice, instead of waiting for product delivery. By entering the physical store, shoppers can benefit of accessing personal advice from sale assistant and encouraged to impulse shop.

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Click and Collect Visualization

Gamification

Gamification Visualization

Gamification is a powerful tool that can be implemented to engage users within the webstore.

It is an opportunity for digital motivate, and create fun using the website. It is already implemented within the website, through ClubMatas, however Mata can utilize this on a broader scale.

The Webshop lacks user interactions, through reviews or comments therefore, by motivating user interactions, this will create a small community of shoppers within Matas.dk and develop an increasingly personal user experience for the user. This can be achieved by awarding ClubMatas points when a user interacts within the website, such as writing product reviews. This will create motivation to use the review feature and discuss their user experience with products that provides the ability to recommend to other users. Gamification is an opportunity for the webshop to increase engagement and boost sales.

Video Content Only Clubmatas users have access to video content which advice on their products and explain user benefits. Non Clubmatas members can only access these videos on their Youtube channel but not on the Matas website. However, by providing visitor access to all video content on Matas.dk, by embedding them into an article page with written tips from experts, can increase sales drive. Matas.dk will finally not only just sell products, but will provide the services of a digital store.

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Conclusions With new trends and technologies, E-commerce has evolved into more than just a webshop. Matas.dk on the other hand, haven’t followed the trends and appears to be old fashioned. By adopting new technologies and trends, Matas.dk will become more than just a standardized webshop. It will provide customers an improved user experience, and develop a positive connection towards shopping online with Matas.

Although many competitor webshops are similar, Matas.dk needs to stand out from competitors and provide their users an improved and developed experience. By evolving from a webshop into a digital store, Matas. dk will create a better community based digital store that is more engaging towards their users – resultantly boasting sales.

Customer service is vital for every store, whether it is digital or a physical store, to create trustworthiness and security for every customer. Matas.dk already have a strong customer service policy, but by creating a chat function, Matas.dk is evolving user experience that can furthermore encourage purchases and boost impulse shopping.

Matas.dk lacks cross-selling, therefore they are not motivating their customers to purchase more. Combining recommending customers similar products, Matas.dk can also create more engaging content within its front page and product pages. This is to intrigue customers to shop more and become encouraged to combine different products into a package deal.

Matas.dk wants to motivate their customers to go to their physical stores, but currently the webshop does not encourage this action. By adding a collect at store service, users can pick up their items in a local Matas store.

Often customers are unaware of what products can do, or results they will gain for using a certain product.

Therefore, if customers are motivated to go to a physical Matas store, they can ask for advice. Resultantly this will benefit in gaining trust towards the brand, furthermore boosting sales.

Overall, Matas.dk need to create new features, to evolve and gain competitor edge.

Project management breakdown The main purpose of the project is about what might have responsible for low conversion rate and turnover in matas e-commerce segment of its business. The client wants suggestions to areas such as how its website should be designed for both male and female; looks of its products on it webshop; which customer segments are more online and which product are more relevant to them; and needs advice about digitalizing the company.

Scope The scope was designed within Questioning, Insights, Solution and Handover (QISH) model. In the questioning part, the client presented the case to us, we asked many questions which might allow us to have in-depth knowledge of the company. In the Insight aspect of the report, we conducted our own independent research to ascertain and gather more information about the company. We also proffer solutions to the identified areas which we think might be hampering the success of the company in its e-commerce segment. In conclusion, our findings and solutions were pitched to the clients.

Planning Every stage of the project was co-created by the group members to ensure everyone has his/ her opinion on the project. And agreement which specify what to be achieved and acceptable behavior from everyone was written and subscribed to by everyone. Meeting location and time of meetings were also agreed among us. Rounding up the planning phase, each group member’s area of interest and specialization was identified before researching and writing the report.

Communication Platform Facebook was used throughout the period of the project as both communication platform and project management tool. Each time there was a task to be delivered, it was done using a created page on facebook.

Milestones Client brief ………………………………………………… 16/11/2015 Insights ……………………………………………………... 20/11/2015 Solution ……………………………………………………... 26/11/2015 Handover ……………………………………………………. 30/11/2015

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Reference List 1. http://www.matas.dk/responsibility 2. http://www.matas.dk/organization 3. http://www.matas.dk/historie 4. http://www.euroinvestor.dk/pdf/cse/2014/06/12839283/Matas%20annual%20report%202013-14. pdf 5. http://www.matas.dk/organization 6. http://www.euroinvestor.dk/pdf/cse/2014/06/12839283/Matas%20annual%20report%202013-14. pdf 7. http://www.euroinvestor.dk/pdf/cse/2013/06/12371519/Matas_Prospekt_dk_1.pdf page 71 8. http://www.matas.dk/historie 9. http://www.matas.dk/responsibility 10. www.luxplus.dk 11. www.nicehair.dk 12. www.ezzence.dk 13. www.maccosmetics.com

14. http://politiken.dk/forbrugogliv/forbrug/indkoeb/ECE2523022/vi-handlede-for-80-milliarder-paanettet-sidste-aar/

15. http://trendsonline.dk/2015/09/03/dansk-e-handel-i-markant-vaekst/ 16. http://politiken.dk/forbrugogliv/forbrug/indkoeb/ECE2523022/vi-handlede-for-80-milliarder-paanettet-sidste-aar/

17. http://www.matas.dk/d7f4c623-008e-4985-a49e-5329af871786da-dk 18. http://clubm.dk/?utm_source=Agillic%20Dialogue&utm_medium=web&utm_campaign=Frontpage 19. https://fitnessdk.dk/medlemskab/pages/clubmatas.aspx 20. http://investor.matas.dk/results.cfm 21. http://investor.matas.dk/stockchart.cfm 22. http://www.similarweb.com/website/matas.dk 23. https://info.ensighten.com/rs/ensighten/images/just-one-second-delay-in-page-load-can-cause-7percent-loss-in-customer-conversions.pdf 24. https://developers.google.com/speed/pagespeed/insights/?url=matas.dk

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Appendix 1 Heat map - Participant X

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Appendix 2 Cluster - all participants

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Appendix 3 Cluster - Participant X

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Appendix 4 Gaze plot - all participants

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Appendix 5 Gaze plot - Participant X

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