Page 18 - CBM26
P. 18

~ Intershop ~





            careful planning. The company aims at multiple goals and   thinner and increase the survivability of the company.
            pursues multiple trends. Chief among them is sustainability,   I believe Intershop is an amazing tool. I know it, and I know
            both a goal and trend. A need, one should say, to guarantee   its potential, and I would love to keep working with it,”
            that our children will have a planet to call ‘home’.   Michael continues.

            Regarding IGO’s KPIs, which ones would that be?   Finally, what trends do you see in the industry that
            “I think the main KPI was to be profitable. Three years ago,   could define its future?
            we were losing money and now we are very profitable again,   “Sustainability is the primary trend. We notice that. People in
            we closed a gap of millions in three years. The second KPI was   Europe are increasingly more concerned about climate change
            that at that time, we had an assortment of 1700 products and   because we already feel its consequences. So, you don’t want to
            now we have an assortment of over 11.000 products.”  leave a destroyed planet for your kids, right?

            Finally, I think that the ROAs—Return On Advertising—was   That’s why companies searching for business gifts or
            negative. We were paying for people to buy from us for the   promotional materials are pushing more and more for
            first time and hoped they would buy a second time for us to   sustainable products. Products made with renewable or
            have a small profit. And what we have now is a ROAs of 7 or   biodegradable materials like jute, cork, bamboo, and even
            7.5, which means that we pay €1 in advertising, and we get   elephant dung paper. We are pushing to become fully
            €7.5 as direct money back. And that is a big win. And the last   sustainable. And it is something that, I believe, will have to
            would be the SEO visibility because our SEO visibility was   be done by the entire industry. Because in two to three years,
            really bad, and I think nowadays we have in our traffic peaks   everybody will be pushing to buy sustainable and recycled
            of 3000 to 4000 people per day in organic traffic. All of this is   materials products. And in two to three years also, we hope to
            thanks to the new e-commerce team.”               be fully sustainable in all of our products and to be selling up
                                                              to 95% of the business online.
            Considering this success, how much do you think
            e-commerce will weigh in the future of IGO?       We have pushed for sustainability and will keep on pushing
            “Wow, a lot. In fact, if we check the numbers, we see that   for it. We donate to our communities and our society because
            almost 85% of all the revenues of IGO are (in)directly   we believe in profiting—of course—but we also believe in the
            involved with e-commerce. It is the core of our business,” says   people around us. IGO is working together with One tree
            Michael.                                          planted, we donate money (out of our own pocket) to plant
                                                              trees with every order that we have, we already planted over
            Does this pose any potential threat?              150.000 trees in de last 2,5 years! So, IGO’s challenge and
            “Yes. We are becoming increasingly dependent on one single   commitment is to be good for the environment, good for our
            sales channel, and that is never a good thing. To give you   society, and good for our employees and clients,” Michael
            an example, when we had some technical challenges with   concludes.  ••
            our Google product feed, Google temporarily blocked our
            campaigns, the entire company felt a drop in its sales.

            So, one of our plans for the future is to spread this risk by
            reaching more markets and creating more websites—more
            e-commerce sites—to deal with those markets. In that way, if
            we are down on one site, we will still sell on the others, and
            if something is happening in one continent, we might still be
            able to work in other regions.”

            What are some future plans for IGO?
            “Currently, we sell in the Netherlands, Germany, UK, France,
            Belgium, Austria, Luxemburg, Ireland, Sweden, Denmark,
            Finland, Norway, and Switzerland. We would love to expand
            into Italy, Spain, and Portugal, but also into the USA. I’m
            sure that if IGO can break into the USA, we will become a
            Unicorn.

            Another expansion, from a digital marketing perspective, is
            to expand into different search engines than Google. Google
            indeed drives more than 75-80% of European traffic, but
            if you expand into Bing or Criteo, you also spread the risk







                                                            18
   13   14   15   16   17   18   19   20   21   22   23