Fast-Selling Bling
OrderMotion fills Goldspeed.com's need for order-tracking and improved CRM.
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Goldspeed.com, currently the largest Internet discount jeweler in the United States, was smaller three years ago when executives decided they needed new technology to take the company to the next level. The company was using a basic hosted CRM solution, but the system's reporting capabilities were inadequate and it was crashing too often, says Goldspeed.com CEO Neil Kugelman. "Based on the orders we had when we bought the [legacy] system, it was sufficient. But as our needs grew we needed something more robust." So Goldspeed decided to look at new CRM solutions. Kugelman wanted to stay with an ASP model so that Goldspeed.com didn't have to bring in technicians just to handle the CRM system. Kugelman looked at a handful of different potential technologies, and discussed his vision for Goldspeed.com's business for the next year and the five years on with the CEOs and CTOs of CRM technology vendors. The new system had to be more robust than Goldspeed.com's legacy system, and had to offer benefits for the company's suppliers and consumers. Such benefits would then lead to increased business for Goldspeed.com, according to Kugelman. The company went with CommercialWare's OrderMotion software, an end-to-end order management system. The software connects and centralizes Goldspeed.com's business functions, from inventory management to payment processing. "We wanted to be able to tie all vendors into our system electronically with all of the necessary passwords so that they could log on to our system to do business," Kugelman says. Such capability enables vendors to stay updated on Goldspeed.com's supply needs, enabling it to react much more quickly to fill orders. "It used to be the quickest we could get something shipped was 24 hours," Kugelman says. "Now we can have someone order something [specialized] like a personalized wedding ring with an inscription at 6 p.m. and it can be gift wrapped and at his home or office the next morning. We can ship it one to two hours after the initial order is placed. That's common in the computer industry, but that's unheard of in this industry." The OrderMotion system provides Goldspeed.com with real-time reports on customers, suppliers, and vendors. Goldspeed.com can enter customer orders from e-commerce and telemarketing. The system also supports more traditional entries via direct mail. Real-time capabilities extend to order taking, complete with credit card verification. This is particularly important to Internet retailers, who have among the highest chargeback rates among all merchants, according to payment-industry reports. Since adding OrderMotion about three years ago Goldspeed.com has cut its chargebacks to nearly nothing, according to Kugelman. Real-time inventory information enables Goldspeed.com to notify customers immediately if an item is out of stock, another capability the legacy system didn't have. By tracking orders throughout the entire supply chain, OrderMotion enables Goldspeed.com to send out automated emails for order confirmations as well as product ship dates. Kugelman is considering adding a third email to notify customers when the item arrives. "We've cut our back orders by 50 percent," Kugelman says. "We can track stocks, a customer's previous order history, and when the order is shipped. We also give the customers the ability to track the shipment themselves. This is the Holy Grail--when all of this can be combined in an efficient manner." Kugelman also credits OrderMotion for increasing the percentage of customers who make repeat orders within a year from 10 percent to more than 50 percent. OrderMotion's SmartReports feature gives Goldspeed.com on-screen, real-time reports providing business information in a variety of customizable formats. "The system is working very well," Kugelman says. "We had a number of expectations when we chose OrderMotion. They've exceeded them. They've also come up with some ideas that we haven't implemented yet." The Payoff By implementing CommercialWare's OrderMotion software Goldspeed.com has experienced
  • a repeat-customer order increase from 10 percent to 50 percent;
  • a cut in order shipment time from 24 hours to 1 to 2 hours;
  • a reduction in back orders of 50 percent.
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