Luis Arjona

Luis Arjona Associate Principal, Silicon Valley Accelerator, McKinsey and Company

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Luis Arjona, Associate Principal, Silicon Valley Accelerator, McKinsey and Company

Luis Arjona is an Associate Principal in the Silicon Valley Accelerator responsible for @McKinsey's ePerformance Service Line.Since joining the Firm in 1995, Luis has served consumer goods companies, retailers, and e-commerce-related ventures in a wide array of issues ranging from strategy, to organizational redesign, and operations.Luis is a core member of McKinsey's Global Marketing and Electronic Commerce Practices, focusing on the business-to-consumer arena.Prior to joining McKinsey, Luis worked for Goldman, Sachs & Co. in the Corporate Finance Department, and for Booz, Allen & Hamilton in its Latin American Practice.He received his M.B.A. degree from Stanford University Graduate School of Business and holds a B.S. degree in Electrical Engineering and Computer Sciences, summa cum laude, from the Monterrey Institute of Technology in Mexico.Luis is proficient in Spanish, English and Portuguese.

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¡°A business is going to be successful in the long run in the business to consumer space insofar as it can develop a pool of loyal customers,¡± said Luis Arjona, an associate principal at McKinsey.

Arjona said the successful companies had clear objectives and were able to communicate those goals to the customers, had multiple revenue streams, leveraged the technology they had rather than paying for the newest technology, and relied more on targeted marketing than on television ad campaigns.

Another mistake companies made was having big successful marketing campaigns without the infrastructure to deal with the inflow of customers.

¡°We had cases when a company had a successful campaign and got a lot of visitors, but they couldn¡¯t process them - they didn¡¯t know what to do with them,¡± said Arjona.

The study also found that traditional stores with an online presence have an initial advantage over Internet pure plays because of trust and branding.But customers who return to online-only stores end up buying more in the future, likely because of the better technology and personalization.

2000/08/31

Very few e-businesses today can define the metrics of success, said Luis Arjona, a McKinsey consultant who leads the ePerformance program.The ePerformance Scorecard, which includes more than 250, 000 data points, provides a unique and comprehensive look at the business fundamentals that contribute to online success.Pointing to a polarized marketplace, our recent findings provide a clear conclusion : While the new economy may be about creativity, new economy success requires creativity and rigor..

The McKinsey ePerformance Scorecard's latest findings also outlined key areas in which top eCommerce companies excel :.

Luis Arjona Associate Principal, Silicon Valley Accelerator, McKinsey and Company

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For leading Internet players, anywhere from 50 to 75 per cent of their purchases are from repeat customers, according to Luis Arjona, who leads McKinsey's ePerformance initiative.Despite this, few e-businesses make the effort to develop loyal customers.In contrast, the typical offline company spends three to five times more on customer retention than its online competitors.

The battle of the Internet is no longer just for eyeballs.It's a survival game that's on now, and e-businesses that build a pool of loyal customers will be the survivors - and profit makers.

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"Companies need to cast the widest net, and experiment with a mix of several offline and online streams," Arjona says.

CUSTOMISE THE EXPERIENCE

A successful company knows its profitable customers.This is truer today than ever before, now that e-customers are likely to be defined by credit card numbers, which can be used to capture customer data.Businesses can refine and add to this captured data, using a process called a value exchange.

For example, when consumers provide a simple preference, marketers can offer a personalised experience.When consumer provide reactions and feedback, the marketers can respond with tailored offers and recommendations.

Luis ArjonaPartner

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Luis Arjona and Vikas Agrawal 08/01/2000

These days , B-to-C companies have some thorny questions to address , such as where their ebusiness managers should focus their energies in fixing operational problems , and how investors pick the winners from the losers.Everyone's scrambling to determine which B-to-C companies will survive the shakeout to go on to become the next AOL or Yahoo.To help online companies analyze and improve their overall operational performance , McKinsey & Company created the ePerformance Scorecard , a strategic tool that benchmarks the performance of online companies along a large number of key operational metrics.It also helps identify best practices.The recently completed Spring 2000 round of benchmarking tracked the performance of more than 200 ebusinesses in North America , Europe , and Latin America , covering all major B-to-C categories and business models.What it reveals are some consistent working themes across ebusinesses.
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Luis Arjona and Vikas Agrawal are consultants in McKinsey & Company's eCommerce practice , @McKinsey.Arjona leads the ePerformance initiative.

Luis Arjona and Vikas Agrawal Luis Arjona and Vikas Agrawal are consultants in McKinsey & Company's eCommerce practice , @McKinsey.Arjona leads the ePerformance initiative.

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But the online marketplace continues to ramp up , and there are still opportunities for pure-plays , said Luis Arjona , an associate principal at management consultant McKinsey & Company Inc.

A recent McKinsey survey of about 210 Internet B2C businesses found that 14 percent were profitable , he said.Of course , most of them were multi-channel retailers.But a few pure-plays had started to turn profits , too.

'B2C winners are creating substantial value , ' Arjona said. 'That , in itself , is good news.''.

Another area that's experiencing rapid growth is the Internet security business.