Gourmet food company implements faster site to avoid shopping cart abandonments; saves $250,000 to $300,000 a year.
Wolferman’s is a maker of specialty and gourmet foods known for its
delicious english muffins, scones and crumpets. Unfortunately, its Web site was
so slow it was giving customers – and Wolferman’s top management –
heartburn.
In fact, the site virtually ground to a halt when hit with the typical
demands made during the holidays. Faced with slow access, little information as
to items in stock and other details, and sluggish order systems, Wolferman’s
customers frequently chose to just abandon the site. The company estimated that
site abandonments were costing it nearly $500,000 a season.
“The market we’re in is highly competitive,” said John Butorac,
divisional vice president at Wolferman’s. “When people start abandoning their
shopping carts because it takes minutes instead of seconds to order our english
muffins online, you’re not going to stay in business very long.”
With consulting help from eOneGroup, an IBM business partner in Omaha,
Neb., Wolferman’s completely revamped its site and the back-end processes
supporting it. The company implemented eOneCommerce, an enterprise e-commerce
engine that runs on IBM’s WebSphere application server and DB2 database.
Additionally, the company opted to host the site with Omaha-based plaNet
Consulting, enabling it to offload day-to-day maintenance.
The result is a faster, more pleasant online shopping experience for
Wolferman’s customers. Before the revamp, customers had problems finding items
and checking availability. Now, the site is more reliable and customers can
access immediate, accurate product availability information. They can also place
orders, review previous requests and track shipments, all in real time. And the
site has no problems handling the increased demands of the holidays.
"The IBM solution has transformed our Internet business," Butorac said.
"We were losing customers due to frustration, but now we&singlequot;re getting e-mails from
customers who rave about shopping on the Wolferman&singlequot;s site.”
And not only has the new site stemmed the loss of some $500,000 during
the holidays, but it has also encouraged more customers to shop online, saving
Wolferman’s between $250,000 to $300,000. This is because purchases made online
are less costly -- in terms of administration and order fulfillment costs -- for
the company to handle than those made through its catalog call
centers.
"A typical order placed with our call center costs between $4 and $5 to
process," Butorac said. "But when customers go through our new Web site, the
cost goes down to as low as $1.50 per order. That adds up to between $250,000
and $300,000 a year in savings."
In addition,
Butorac said that since the site is more responsive, it has resulted in a 20%
increase in sales in just one year. All told, the savings and increased sales
have led Wolferman’s to realize a quick return on its investment. "By preventing
a repeat of the $300,000 to $600,000 in losses that we previously experienced,
the solution has paid for itself in a single holiday season," he
said.