Leifheit’s Successful Pilot Demonstrates Untapped B2C Sales Potential
For many years, Leifheit, a German home products manufacturer, distributed its items through third-party vendors. Recently, the company decided to launch a direct-to-consumer approach by selling through its own online store. While this strategy proved profitable, it came with some technical challenges. What contributed to the success of this e-commerce initiative? Several factors played a role.
Key 1: Communication
Communication is crucial in any project. All participants need visibility into the progress of the work. Given that this project involved multiple geographically dispersed teams, we had to strategize on how to maintain connectivity. We opted for Google Hangouts and Jira's project tracking tools instead of relying on email for communication. Regular video conferences with Leifheit significantly improved our information sharing and allowed both parties to address any questions or uncertainties. Having a Project Coordinator from Leifheit Polska also greatly aided our efforts.
Key 2: Cleanup
Our initial tasks included a comprehensive review of the existing code and reducing Leifheit's technological debt. Within two months, we rectified code errors and ensured the platform functioned properly. We also resolved issues related to communication between ERP and e-commerce, such as payment processing and product return procedures.
Key 3: Project Support
We aimed for maximum transparency in the project support process. This involved holding regular status meetings and providing lists of necessary actions and decisions to meet deadlines. Such openness fostered trust and collaboration throughout the project.
Key 4: Choosing the Right Platform
Leifheit's online store was established on SAP Commerce, which offers stability, security, and capabilities for international e-commerce. SAP Commerce enables the creation of localized stores on a unified platform and allows users to manage product catalogs and availability tailored to specific markets. It supports multiple currencies, tax rates, and languages, providing extensive flexibility. Additionally, it is not a custom-built platform but rather a collection of components that can be tailored to meet needs, resulting in faster implementation than a bespoke solution. Further customization is possible through various extensions, including those offered by e-point. Another advantage is that Leifheit also utilized SAP ERP and SAP Marketing; thus, an e-commerce solution within the same ecosystem was a logical choice. SAP has a strong reputation for reliability and service, providing technical support and built on well-established technologies like Java and Apache SOLR.
E-Commerce Success Requires UX Optimization
While the project involved significant technical work—cleaning code and implementing optimization techniques—true success depended on enhancing the customer experience. Our design and UX teams put in outstanding effort to develop a solution that improved both conversion rates and sales figures. Overall, the outcomes speak for themselves, with a 255% increase in sales within just three months. At this stage of the project, we focused on quick wins—accelerated optimization efforts that yielded significant results in a short timeframe by identifying and addressing issues in the purchasing process.