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A results-focused, visual buyer’s guide that ranks the top vendors in the eCommerce industry.

2016 Buyer’s Guide: ecommerce software matrix

© 2016, Bridgeline Digital. All Rights Reserved. Reproduction Prohibited.

2016 Buyer’s Guide: eCommerce Software Matrix

understanding Need: enterprise ecommerce software

62% of respondents in a 2014 survey conducted by Internet Retailer put “e-commerce platform” at the top of their technology spending list. Moreover, according to Thad Rueter, a Senior Editor at Internet Retailer, “the survey results show that 86.5% of respondents plan to increase their e-commerce technology spending in the coming year. Of those anticipating an increase, 24.4% expect a spending increase of between 15.1% and 25%, the largest such bulge for that question.”

market analysis: shift in approach

Prior coverage of the eCommerce space focused on primary functions of a shopping cart, and its ability to help, rather than undermine, a checkout experience. But with shopping cart abandonment rates rising, simply examining a software’s capabilities and the ease of which a non-technical user can take advantage of these tools is an incomplete analysis.

Standard features like Search Engine Optimization (SEO) capabilities, personalization tools, and more, of course, are paramount to web store success; however, in 2016, our own research coupled with analysis from some of the best industry analysts, found that a paradigm shift in the eCommerce industry has begun to coalesce.

In the report “Market Overview: Digital Customer Experience Delivery Platforms,” Forrester Research describes the difference between niche software and true web experience management platforms:

Enterprises leverage numerous software tools in support of cross channel digital customer experiences. However, market fragmentation and integration challenges have opened the door to integrated platforms.

Software vendors have bought and/or built a range of foundational capabilities for on-site digital experiences and have pushed integration with other tools, enabling enterprises to establish flexible, heterogeneous platforms that address their requirements.

introduction to ecommerce software Buyer’s Guide, 2016 edition

“

”Source: Forrester Research



focus Beyond software, examine ability to deliver results

Forrester Research refers to this as both Digital Experience (DX) and Customer Experience Management (CXM). Naming conventions aside, a focus on the solution, and how eCommerce capabilities work within that framework, has finally taken precedent over the basis of measuring what software selection will result in maximum return on digital investment (rodi).

So, finally, the attention has been given to a software’s agility, whether it be native development or integrated tools. However, what a great deal of analysis is still missing is the post-selection process.

roadmap to web experience management success:

Many companies spend a lot of time and resources on finding the best technology for their business needs but then give little more than a passing thought to how this technology will be successfully configured. Finding the right partner, in conjunction with the right technology, can often be the key differentiator in a successful implementation.

- Tiffany Elliot, Digital Clarity Group

introduction to ecommerce software Buyer’s Guide, 2016 edition

analyst’s corner:

“In other words, the more software

you need, the less important it

becomes. The role of the software

(and of the vendor selection process)

is diminished in comparison to

the role of the implementation,

integration, and incorporation of the

software into a complete solution.”

- Guide to Service Providers for Web

Content and Customer Experience

Management, Digital Clarity Group

“The implementation team is key to

project success and definitely part of the

solution. Overlooking that piece is folly.”

- Brice Dunwoodie, CMS Wire

“

”

Contextualized Web

Content Management

Integrated Digital Experience Features

Implementation

Services

2016 eCommerce Matrix Grading Criteria

Features:

Services:

Logistics:

Value:

Does the software have features that convert customers?

What are the development costs? Once your webstore is functional, are there additional fees? Finally, what does this mean in terms of Total Cost of Ownership?

Taxes, shipping costs, and other logistical considerations are hugely important to your bottom line. How does each vendor support your ful�llment needs?

Is the vendor a true, end-to-end partner? Can they provide support? Do they understand your business pain?

To see full matrix and scoring system,

see last page



features: Top-tier eCommerce capabilities are becoming increasingly important. Plug-ins or a basic shopping cart is no longer a sustainable model, and analysts are taking notice. Going back to our CXM Model, look for integrated capabilities that create meaningful customer experiences.

important Note: While select CXM features may not apply to your organization, understanding what’s important and what’s gratuitous, should come with asking vendors about real-world case studies and references.

• search engine optimization: A superior eCommerce platform should make life easier on the marketer, allowing them to publish content that is automatically SEO friendly. This will maximize the visibility of your web store.

• enterprise search management: Over time, information on your website becomes buried inside databases, in folders, inside emails or on other media. Ultimately, the business value of the information can be largely diminished if consumers and employees cannot easily access the content. The problem is that many software providers CHARGE as much as a THIRD of the initial purchase price for their CMS just for an additional search mechanism.

• analytics, Personalized customer experiences: “Personalization and targeting engines are the frameworks from which the practice of delivering tailored, digital interactions is made possible. Personalization is the first principle of relevance and a cornerstone of a sound customer engagement strategy.” - Assessing and Improving Your Customer Engagement Maturity, Digital Clarity Group

“[iAPPS] also includes [Perceptive

Search] — an enterprise search

platform — which is built into the

framework at no additional cost (similar

to what you see with Ektron and

FAST - except you pay for FAST).”

- Barb Mosher Zinck, CMS Wire

“In conversations with Gartner, EPiServer

customers continue to question the

completeness of EPiServer’s modules

for e-commerce, social software and

marketing in its “suite” approach.”

- Gartner’s 2014 Magic Quadrant

analyst’s corner:



services:From a traditional sense, the “Services” portion of the Matrix speaks to a vendor’s ability to help troubleshoot problems with their software. But in the digital age, your company needs more than a support staff from your vendor.

Business software is the foundation, of course, and eCommerce technology should have context that relates to your needs behind its functionality.

More importantly, your vendor must also be a resource -- a strategic partner -- who can provide guidance and expertise in what has become an increasingly competitive landscape.

So, in reality, this section examines how well a vendor can meet your actual business needs. Does the vendor (and its software) understand how to help develop, create, and optimize a true eCommerce strategy specific to your business?

“Volusion has been hit with negative

reviews that are aimed at their support

team. Most of these reviews state

that their customer support lacks the

knowledge to answer certain questions.

Others even state that the call holding is

extremely long and not worth the wait.

“Like most dashboards, there are a few

metrics conveying information about

site performance and general order

information. However the Big Commerce

dashboard feels a little painful relative to

other ecommerce software competitors.”

– James Kelly, Reviews.com

“The biggest downside [of Shopify] is the

limited ability to change the checkout page.

Although you have some control over it,

it is minor. So if you’re trying to design

the checkout page to be exactly how you

want, Shopify is probably not for you.”

- Forbes.com

analyst’s corner:



Logistics: About 75 million people, or 1/3 of the total U.S. Internet population, buy something shippable online over the course of a quarter.

To that end, you have all of these channels, pulling in orders, and yet Aberdeen reported only 35% of retailers currently share order management across each of their channel. This is anything, but efficient.

Furthermore, it hurts inventory management, shipping costs, and hinders accurate financial planning. In the same report, 57% of retailers said they plan to establish this capability.

This part of our Matrix details how well these solutions integrate with logistics companies. Those who simply offer a partner channel were rated poorly, whereas those with partnerships with prominent, world-class logistics companies – like in the case of Bridgeline Digital’s relationship with UPS –were rated highly. It’s often overlooked, but make no mistake about it, how well your eCommerce presence can cut back variable costs plays a big part in growth.

“Systems need to be able to tell the

retailer not only what it has, but also

where in the facility, supply chain or store

it resides. Increasingly, organizations are

investing in ways to identify, track and

act on inventory in an improved way.

“Since today’s consumer is looking for

an always-on, always-open shopping

experience, fulfillment options need to

be robust. Organizations are redesigning

their distribution networks and/or utilizing

the service offerings of a third-party

logistics organization (3PL) to rapidly

enable omnichannel fulfillment.”

-Internet Retailer, “Critical Components

for your omnichannel strategy”

analyst’s corner:



Value: Value is a tricky component in our Matrix. Obviously each of the other parts of the Matrix play into the value of each solution (e.g. features are only as good as their ease-of use). Consequently, in some ways, the Value portion of our matrix is a cumulative section. However, in other ways, this section is more granular.

What’s important here is understanding your road map – where your organization is, and where it wants to go – and how pricing models can impact these aspirations. Up front, you should understand that many vendors tie your success to their pricing, in some instances charging transaction fees up to 2%. Depending on your expected growth and margins, this model can quickly become a dangerous game.

A more pressing – and larger organizational – decision is determining how much of the technology do you want to own plays a critical role in your selection. That starts with the licensing options each vendor provides, which we’ll detail on the next page.

“[iAPPS] understands that Customer

Experience Management involves first

understanding where a client is —

from a customer experience maturity

standpoint — and then building a

roadmap that will move them toward full

customer experience management. ”

- Digital Clarity Group, Assessing and Improving

Your Customer Engagement Maturity

[Magento’s] platform is like a giant

complex dinosaur that just won’t quit.

Yes, it has plenty of features and then

some, but the user interface is not

friendly at all. It is a classic example of

a product designed by engineers and

developers who do not really understand

what makes a user interface great.

-Fobes.com

analyst’s corner:



Value: Licensing options:

There are two popular licensing options software companies offer – Perpetual & Software as a Service (SaaS).

Perpetual License - Perpetual software licensing works well for companies that want to maintain their web store in-house. With a perpetual license, all of the software is installed on your servers and is managed by you, in your environment.

Benefits Perpetual License options include:

• Flexibility of Deployment

• Ownership and Direct Control

• No Constraints on Administrative Customizations

saas License – With the Software as a Service (Saas) licensing option, the need to install your web store and applications on your own servers in-house or in a dedicated co-location environment disappears.

Basically, SaaS support lifts the burden of installation, ongoing maintenance, hardware upgrades and constant internal support from your company, which keeps overhead light and provides for a more flexible environment.

Benefits of saas License options include:

• Elimination of High Server Costs, Providing Ease of Entry

• Less Reliance on Internal IT Staff

• Continued Product Support and Maintenance

“[iAPPS] is rated as a ‘Champion.’ It’s

an excellent product for retailer websites

needing integrated eCommerce.”

-Info-Tech Research Group,

Vendor Landscape Report

analyst’s corner:



top ecommerce ratings:



final thoughts:

The solution includes the professional services team, the

buying organization’s specific context and needs, various

processes, strategy, and the people and governance.

- scott Liewehr, digital clarity Group

Selecting an eCommerce solution is not just about flashy features and up-front costs. Your selection committee must consider other elements – fulfillment needs & how the solution can unify your customer engagement channels to maximize conversion rates and revenue.

In the end, your company must weigh out all of the pros and cons of each platform and determine which elements an eCommerce solution are most important to your business.

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2016 buyer’s guide - 1smartmedia.com€¦ · 86.5% of respondents plan to increase their...

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