Alta White Paper D2C eCommerce Case Study 2016

Self-service E-store Solves
Manufacturer’s Direct-to-Consumer Challenges
case study: direct-to-consumer e-commerce
AltaResources.com

© Alta Resources. All rights reserved.
The Challenge
A leading durable-goods manufacturer offered a product portfolio that included high-
quality windows and doors, as well as the replacement parts and accessories necessary for
repairs and maintenance. In January 2010, that company awarded Alta Resources with the
execution and management of its multichannel customer care, including phone and email.
The client’s customer base represented a wide range of skill sets and experience levels,
from novice consumers/homeowners to professional contractors and builders. With the
poor economy at the time, new-window sales were declining as more and more cost-
conscious “do-it-yourselfers” began repairing windows rather than purchasing new ones.
As the DIY trend dictated, consumers grew increasingly accustomed to contacting the
company’s outsourced care team at Alta Resources, setting in motion an influx of inbound
inquiries and support issues. The care specialists’ role went beyond enhancing relationships
with customers through phone and email support. They became sales experts, problem
solvers and how-to specialists.
The care team often acted in a sales capacity by assisting customers in identifying and
ordering the necessary parts and accessories needed to service their windows. The
process, however, was a complex one, as the client had in its portfolio more than 20,000
product SKUs, with each product also possessing multiple attributes (e.g., color and size).
In addition, window models and ID numbers were not always easily identifiable, making it
difficult for average consumers to find and obtain replacement parts.
Conversations with consumers also uncovered a unique challenge: As consumers ventured
into the world of DIY window repairs, they typically lacked both the necessary technical
knowledge of windows and the familiarity with window parts’ trade terminology. That
impeded their ability to provide accurate descriptions when contacting customer care.
From a care/support perspective, effectively servicing do-it-yourselfers who lacked
adequate knowledge was challenging because consumers often could not provide
sufficient product details pertaining to their windows. Care specialists had difficulty
understanding which window a customer might be attempting to service/repair, which
further hindered proper parts diagnosis.
As such, a care specialist could only base a diagnosis on loosely based, technically
inaccurate information from the customer. That meant the ordering process was filled with
uncertainty and guesswork — a detriment to the overall brand experience. A customer’s
inability to describe his/her window, along with the uncertainty that he/she was ordering
the right part, was evident in the increase of order inaccuracies and parts returns.
In lieu of contacting customer support for parts assistance, an alternative to order
placement existed — distributors and third-party online vendors. However, this too,
presented obstacles.

The Challenge (continued)
Because the manufacturer’s parts were difficult to locate, identify and purchase online,
customers were inconvenienced by having to visit local distributors. While distributors, such
as leading specialty/home-improvement stores, assisted customers with parts purchases,
the breadth of the products’ colors, vintages and sizes made maintaining a parts inventory
challenging. In many cases, distributors did not have the proper parts in stock and, as a
result, had to go through the process of locating and specially ordering a window part.
The time and resources required to find and order a parts product had concerned the
client’s distributors for some time, as parts provided minimal margin; therefore, they
increasingly opened up to the idea of a direct-to-consumer (D2C) solution. For distributors,
the support efforts often out valued the margins on the parts sales. And when considering
complex, low-margin parts logistics and returns, the advantages (i.e., revenue and margin)
mostly benefited third-party online vendors.
All of these factors caused the client to take a step back and reevaluate its approach
to providing customers with service parts. The company believed that funneling parts
customers through phone calls and emails was negatively impacting the end-user
experience.
Consumers had clearly expressed a need for a simplified, direct way of getting the parts
they needed. In addition, the end-user market, if leveraged successfully, could have a
significant, positive impact on sales and brand satisfaction.
Realizing the need for a D2C e-commerce solution, the client was further limited by the fact
that reaching consumers directly has never been a core for manufacturers. The company
also possessed limited Web-marketing expertise and no e-commerce platform capabilities.
With Alta Resources already managing the care program, we approached the client about
extending their brand experience to the Web, where parts could be ordered directly and
more conveniently through a scalable self-service model. Alta Resources provided strategic
advantages of both knowing the client’s business and leveraging an integrated-services
model.
While the recent cultural shift in the manufacturing/durables industry had been toward self-
service, the client was conscious of its distributor and vendor relationships. It was highly
sensitive of cutting into its partners’ parts revenues and, thus, jeopardizing those business-
important relationships. The D2C solution had to be crafted in such a way as to account for
that vital factor.

The Solution
Leveraging the successful care program maintained for the client, Alta Resources was able
to identify key data insights from customer contacts. This helped define a strategy — a
blend of people, processes and technology — for targeting consumers directly, followed by
full-scale implementation.
A D2C-parts exploratory phase supported the concept of a self-service e-store. A key
finding showed that Web adoption already existed because distributors and third-party
vendors had been, in a limited manner, selling online and/or directing consumers to specific
online sources for parts. The practical need for online self-service existed.
While the parts-purchase process was far from streamlined and in much need of
improvement, the client still maintained reservations that moving toward a self-service
model would create a channel conflict by attracting revenue from the distribution channel.
However, in assessing the client’s business landscape, it was learned that distributors were
largely in favor of the move toward self-service, as it required less time and effort to connect
consumers with the right parts. This, in turn, allowed distributors to dedicate more time
and resources to selling higher-value items, as opposed to the high-markup, low-margin
aftermarket business.
In some cases, distributors can earn additional revenue through custom-designed affiliate
programs (referral rewards). In this particular instance, Alta Resources worked with the
client to identify a unique strategy that would gain additional buy-in: All parts products
available via the client’s e-store would be marked up by two percent over the retail price
offered through distributors. Consumers would likely prefer the ease of ordering via a self-
service website, but budget-conscious consumers would likely be driven to purchase at the
distributor level. In adopting this approach, the client provided alternative options for its
parts customers, while not entirely eliminating a distributor’s parts business.
With majority buy-in for a self-service solution, the client leveraged Alta Resources,
with its proprietary e-commerce platform, to conceptualize, design, build and launch
a replacement-parts e-store. In addition to e-commerce expertise, Alta Resources is
experienced in consumer-direct strategies; in fact, several Fortune 500 brands outsource
their customer-management business processes to Alta Resources.
The focus throughout the process was to solve the client’s unique challenges, particularly
streamlining the parts-purchase process. The client hoped to enhance the customer
experience and, in turn, create greater brand satisfaction/loyalty. In doing so, it would
capitalize on a growing need in a growing aftermarket-parts business, increasing its margin
and lowering its cost to serve. The site should also support distributors and vendors in their
ability to service customers more effectively, while acting as a resource for Alta Resources’
care team to sell to and educate consumers.
In fact, there was collaboration with the care team to understand what would make a
functional site. In the past, the client had directed parts customers to distributors and
vendors, meaning data regarding consumer behaviors was largely nonexistent.

The Solution (continued)
In managing the client’s integrated care program, Alta Resources captured and leveraged
data from actual parts customers to create a better e-store and an e-commerce presence
that met a growing need.
Initial piloting prior to full-scale rollout presented opportunities for new-platform education
at all levels, as well as functionality testing and understanding the effects on user
experience. The e-store began with 2,000 products and, to balance the limited selection, a
scalable product-rollout schedule was devised; it included future e-store enhancements and
processes to support more-complex product offerings.
The Web store launched in April 2011, one year after the initial care program began. It was
structured with product optimization to facilitate easier, faster searching 24/7, thus making
hard-to-find products discoverable online. It was also available publically and, as a result,
accessible for all customer types, from homeowners to contractors. Furthermore, the Web
store was integrated with other core business processes. The benefit of leveraging Alta
Resources’ integrated-services approach not only consolidated more business processes
through one partner but also created an efficient, streamlined consumer experience.
E-store Features
• User-friendly navigation and design
• Client-managed content, pricing, promotions and more
• Robust on-site search by multiple product identifiers (product ID, keywords,
product description, parent product and more)
• Custom, faceted attribute search (color, trim, size, etc.) to filter results
• Product and part visuals, including drawings and videos, to increase
customer confidence
• An education/resource center to house frequently asked questions, replacement
instructions, safety guides and more
• Analytics to understand site/user behaviors
• CRM integration and purchase-data capture for use in targeted marketing
campaigns (this critical data had been missing, as it could not be collected at the
retail/distributor level)
• Cross- and up-sell capabilities through account registration and checkout process
• Secure checkout process and PCI-compliant payment processing
• Order management (leveraging the client’s existing system for easy transition)
• Integrated, multichannel support via phone, chat and email

The Solution (continued)
In a truly integrated fashion, Alta Resources leveraged its e-commerce solution to better
equip and empower care specialists with the resources necessary to properly assist
customers in their parts diagnoses. Specialists became product experts to support
customers through product info, recommendations (cross and up selling) and, later,
technical assistance with the Web store. Care specialists also authored and maintained
a cloud-based knowledge-management tool, which made product content, such as
specifications, easily accessible for use when interacting with customers.
As a result of the e-store’s success, the client sought additional enhancements, including
mobile-friendly design and functionality, mobile-app integration and a refreshed e-store
design, all having launched by early 2014. Through all these upgrades, Alta Resources
seamlessly synchronized its system with the client’s, resulting in secure transactions, real-
time data and an uninterrupted workflow.

The Results
By empowering end users with the ability to order directly and more conveniently,
Alta Resources’ integrated solution strengthened the client’s brand. It provided more
opportunities to target customers, simplify the ordering process and increase:
• Brand exposure
• Customer engagement
• Purchase satisfaction
• First-attempt resolution
• Value-added, cross-sell and up-sell opportunities
The client also benefited from lower return rates, decreased cost to serve and incremental
revenue at retail pricing.
Because the client was now going direct to consumer with its parts products, customers
gained a direct line of contact with the client, could receive information on parts and were
equipped with 24/7 self-service. Consumers demonstrated approval and adoption of the
self-service model through increased site visits and transactions. The robust, user-friendly
features, coupled with the ability to contact a support expert (care specialist) via email, chat
or phone, gave customers the confidence to navigate the self-service e-store.
The implemented solution also solved one of the client’s sensitivities — bypassing its
distributor network — by opening up the brand to direct parts access and self-service
purchasing. By funneling customers through a centralized channel for parts purchases, the
client was able to better own/control its brand experience and gain valuable customer
insights, yet it kept intact the purchase touch point at the distributor/retail level, should
consumers prefer it.
Distributors largely adopted the D2C solution, as it enabled them to drive traffic to a
centralized e-store. The path to purchase became more streamlined and seamless because
the client consolidated even more business processes through one partner. In fact, the
program’s success prompted the client to adopt a similar Alta Resources e-commerce
solution for another of its brands in March 2012.
Furthermore, following the program’s inception in April 2011, the online parts store
amassed more than 15,000 products within its first year (today, it features almost 30,000
part and accessory SKU); online revenue growth went from $0 to multimillion in seven
months, with continued growth. Other proof that Alta Resources helped the client go “from
pilot to viable” includes*:
• Seamlessly migrated 30,000 products/SKU to the new system (each product also
possessed varying attribute data, from available colors to sizes, that also had to be
fully functional online)

© Alta Resources. All rights reserved.*Stats, with the exception of mobile, are from e-store launch to September 2016, approximately.
The Results (continued)
• Achieved more than four million site visits and $21.3 million in sales at retail pricing
(incremental revenue that did not exist prior to the launch of the site)
• Converted visitors at an average rate of more than 5.5 percent
• Transacted 243,275 purchases online
• Exceeded first-year revenue goals by 84 percent
• Decreased the parts return rate to below two percent (compared to a seven-percent
return rate from phone-based orders via customer support), demonstrating an
increase in customer confidence in self-service as well as serving as a testament to
the helpfulness of the online resources, search features, parts visuals, etc.
• Netted an average cost to serve of more than $5.37 per transaction
In early 2014, the e-store received mobile-friendly enhancements as an increasing amount of
traffic and transactions were attributed to smartphone and tablet traffic. This move prevented
isolation of the growing mobile customer base. In fact, prior to mobile optimization,
10 percent of traffic and two percent of transactions occurred via mobile devices.
Following optimization, mobile accounted for 39 percent of traffic. This signified a customer
base that was not only self-service adoptive but also digital savvy. In fact, the migration toward
mobile is fitting for this audience, as most parts customers typically perform their online
searches and parts diagnoses at the job scene/site where they have direct access to windows
(versus being tethered to a wired computer far away from the window).

An Insider Perspective
This success story began with a partnership for customer-engaging, sales-enhancing
customer care. That created inroads to the client’s other key needs, to which Alta Resources
applied a holistic approach.
When the voice of the customer — customer data captured within our care program —
uncovered a growing demand for a simpler solution to order service parts directly, we
collaborated with the client to develop and deploy an online strategy that balanced both
brand aesthetics and user functionality.
This strategy also allowed the client to consolidate several core business processes through
one trusted partner – Alta Resources. As such, we solved every key challenge the client
faced, including a streamlined customer experience, decreased cost to serve and gained
efficiencies.
Moreover, we enabled the client to overcome its greatest challenge: going consumer direct.
In fact, the client began reaching customers with service-parts products in a way it hadn’t
before, without risking the relationships with its other business partners. Our self-service
e-commerce model delivered on the need for a better purchase experience that, ultimately,
created consumer confidence and brand engagement.
The ability to meet a customer’s and a brand’s need is inherent to Alta Resources because
we understand both sides and speak both languages. Our role is to connect customers
and brands to one another. In this case, the meeting ground was a self-service e-store that
successfully bridged the gap.

sales
care
fulfillment
e-commerce
back office
About Alta Resources
Founded in 1995, privately held Alta Resources specializes in customer management
business process outsourcing for world-recognized brands across various industries,
including consumer-packaged goods, health insurance and entertainment.
But we’re much more than outsourcing; we’re a leader in the relationship business. That’s
because our clients trust us to connect and reconnect with their customers across every
touch point, online and offline.
Everything we do is integrated to create a total,
seamless brand experience. From the moment a
customer shops a website to securely submitting
a payment to receiving a package to contacting
customer service, Alta Resources fuels every essential
interaction, on the front lines and behind the scenes.
We’re a balanced mix of best-in-class people, proven
processes and innovative technology.
With our service lines — care, sales, e-commerce,
back office and fulfillment — working in tandem,
clients can grow sales, save costs and consolidate
their core business processes through a single, trusted
partner. In turn, not only do we create consistent brand
experiences on behalf of those clients, but we also
make those experiences better so that customers are converted and retained.
While our success has been documented, you may never know our name behind the brands
you use daily; we’re OK with that. The secret to helping those brands reach and resonate
with consumers is our transparency, meaning teams dedicate themselves to specific clients
— and only those clients.
With headquarters and a fulfillment facility in Neenah, Wisconsin, Alta Resources has
additional operations in California, Florida and the Philippines.
To learn more or to read more success stories just like this, visit AltaResources.com.

Alta White Paper D2C eCommerce Case Study 2016

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