Home' The Franchise Review : September 2015 Contents 45
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At the back end, the new system integrates more than 20
disparate supplier systems into one platform -- a boon for stock
inventory and management for franchisees, while enabling
more choice and transparency for customers.
The new system places choice and transparency directly in the
hands of the consumer, providing customers with direct access
to real time pricing and promotional offers for 13 different tyre
brands and 18 different wheel brands. Customers now have full
access to stock availability, and can book a fitting online with
their nearest JAX Tyres store, or with what are soon to be JAX
accredited dealers -- the latter generally located in regional areas.
Board says that customers now have more than 15,000 tyres and
wheels for up to 184,000 different vehicles at their fingertips.
'We felt really strongly that choice and price transparency
should be at the core of the new system,' he says.
'The counter argument was, "Well, customers could simply use
our system to shop around". While this may be true, we felt
customers would prefer a tyre retailer who puts honesty and
transparency at the heart of what it offers.
'Thus far, customers have responded very positively.'
Within two hours of the new website launching -- late on Friday
27 March -- JAX had made its first online sale. JAXOnline is
now recording double digit sales growth every month, with the
majority of sales occurring outside normal business hours -- as
initial research had predicted.
While still a relatively small slice of overall tyre sales, Board
says that website sales would continue to grow as customers
embraced online tyre purchasing.
With every Australian connected to an average of three devices,
the new site has been designed with mobile in mind. In the
month following the launch of the e commerce platform, 35 per
cent of customers visited the JAX website on a mobile device.
Now, the average ratio of customers visiting via a mobile device
and those using a desktop computer is 50 to 50.
The system also enables JAX franchises to take control
of the complete supply chain. Retailers can access stock
levels at warehouses without having to rely on suppliers,
which greatly improves the path to purchase for individual
purchasers and franchisees.
Board acknowledges that the tyre industry and its consumers
are often disconnected. Some consumers feel uneasy about
buying their tyres online, which is something that he hopes the
new platform will help to address.
'We think the product is revolutionary, and we aren't the only
ones,' he says.
Scott Downey, Franchisee at JAX Tyres Artarmon, says,
'JAXOnline has been a fabulous development for us. The fact
that my customers can now purchase and order tyres when
I'm closed on a Sunday, or after hours any night of the week, is
'The system allows me to come into work on a Monday with all
our online orders and supplier confirmations sitting there in my
email, and the money already in my bank account.
'The website is thorough, and customers can look up all our
prices online, making us a trusted tyre retailer. I've got nothing
but praise for the new website.
'I look forward to seeing what else the website does for me as it
gains more traction.'
The development of the new website and e commerce
platform was a project management feat, given the number of
stakeholders involved, Board says.
'It's one thing to build a new e commerce website, but this
has been a real feat in not only improving the experience for
consumers in a challenged industry, but also the experience of
the JAX Tyre's franchisees,' he says.
'We now have a single interface to deal with the disparate
systems of our suppliers. JAX has been able to get ahead of the
curve when it comes to the customer experience, unlike other
businesses in the industry.'
While it's a significant one off spend, the new e commerce
system is part of a wider investment program that is revitalising
Australia's largest independent tyre retail and underbody
specialist. Board says that JAX was investing heavily in
franchise refurbishments, and increased marketing spend
to upgrade the entire customer experience -- including the
recently installed in store JAX Touchpoint tyre selection
devices, and the planned roll out of media tables and JAXTV.
A new series of television commercials has hit the airwaves,
while the company is also investing in public relations, search
engine optimisation and social media.
'These investments are absolutely necessary to ensure that we stay
at the cutting edge of the industry, and to continue offering the best
customer experience as we grow our footprint,' Board says.
Employing more than 500 people across 81 locations, JAX has
added eight stores in the past 12 months, and plans to add
another nine in the next 12 months.
Board says that expanding the JAX footprint beyond the
eastern seaboard is also on the horizon.
'We think there are still fantastic opportunities in the eastern
states to grow and expand, but we are certainly keeping an eye
on Western and South Australia -- two regions that are heavily
dependent on car transport,' he says.
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