e business world 2013 - newman martin: e-retailing & mobile commerce (part 2)

Let’s turn back the clock

He knew when you walked in the door it had been 6 months since you bought those light bulbs and he up sold some batteries

She knew when your Gran walked in the door that she was

after her winter tights and she sold her some winter gloves

The job of key landing pages on a website are to correlate with the users experience of shopping offline

The Home Page

Page Objective:

• Same as a shop window

• To Engage

• To entice me to enter the shop

“Isn’t it just like walking by a store window in a shopping centre?”

The Home Page

Tactical Objectives:

• New visitors (Attract/Entice):

• Hot sellers

• Most popular

• Promos etc

• Returning Visitors (Remind/Update):

• Recently viewed & Related to your past interests

• New Products“Isn’t it just like walking by a store

window in a shopping centre?”

Inspiration Through Curation…

8

Dynamic Merchandising and Personalisation solutions can help to deliver this experience

How these solutions work

Real-Time Optimisation

Business Drivers & Best Practices

Merchandising Rules

Historical

• Browsing History• Past Purchases• User Preferences• Demographics• Ratings & Reviews

Catalog

• Product Attributes• Content Attributes• Customer

Attributes

Real-time

• Current Session Behavior

• Site Context• Referring Site• Geo-Location• Time of Day

Multi-Algorithm Optimization

Targeted Content

Mobile

Email

Contact Center

InStore

Web

A few examples…

Confidential

Home page

• Dynamic box title change to show your ‘Recently Viewed Items’

Confidential

Combined Strategies

• Maximize strategies and content on high engagement pages

Product Detail Page: Quick Shop

• Hover feature• See price & offer - SHOP

• Without extra clicks

Confidential

Shopping Cart

• Promote products for free shipping and cross sell opportunities

One big weakness across the board = The lack of segmented and personalised emails

Really?

Key success factor = Guarantees and calls to action

19

Scarcity and guarantees always drive sales

Kiddicare

Key success factor = Visual merchandising

If I can’t see it properly, how do you expect me to buy it?

A shot to sell lingerie!

Now for something truly titillating

23

Myla’s old model selection

She is way too skinny and too pale…Almost anorexic. It is a put off for a lot of customers.

Competitor’s Model Choice

Healthy, curvy, voluptious and olive/dark skinned models sell lingerie(Agent Provocateur, Boux Avenue and M & S)

Myla’s recent model selection

26

More voluptuous models led to a conversion increase of 20%+

27

Hmmm

Models v flats/ Mannequins.

Women’s – In my experience, model shots sell through is between 5% & 20% better than flats/mannequinsThe benefits vary by product type: • Dresses, trousers, jeans the best• Skirts, tailoring, coats, underwear all benefit from model shots• Increases sales and decreases returns

Men’s – overall flats/mannequins perform better• Except jeans, trousers, and underwear

ROI• Each garment costs 30% - 40% more to shoot on a model than on

a mannequin (model, hair and make up, stylist)

Scale and length looks different across products very hard to discern difference with no model

ASOS go to great lengths to ensure consistency of shot.

Belly buttons aligned so that customer can easily guage positioning fit/length of product

Austin Reed £55 George @ Asda - £4 jeans

Fit hard to decipher

Fit not hard to decipher

Net a Porter £1500 +

Similar length on product listing Big difference in length on roll over

Image Size

35

Online visual merchandising has to convey the product detail and brand values of quality to the customer…there is no sales assistant to do this!Therefore image size is critical to this

How big are these toasters?

37

A 4 slice toaster….really?

38

But sometimes size isn’t everything

39

Lighting and styling is hugely important

40

Impossible to make out any detail and no product description to support features

41

Where’s the pleat?

42

Key Success Factor = Internationalisation

You know we like to colonise…we’re now doing so online

However…we don’t always get it right

• 40% of shoppers in the EU now use the internet to buy goods and services

• Within the next five years cross-border trade is expected to account for 20% of all ecommerce

(Retail Week, Sep 12)

What’s happening now in terms of strategy and approach?

6 strategies in play

1. Do nothing: Don’t allow anyone to buy from overseas

2. Standardisation: Switch on the buy button only3. Adaptation: Localise some aspects4. Localisation: Fully localise the customer proposition

online5. Multi channel market entry: Lead with online, open

stores6. Lead with stores: Then localise online

1. Do nothing

2. They’ve switched on the buy button, but that’s all

3. Adaptation = localise some aspects

Adaptation is pretty half-hearted…language is still English

Currency is the only thing to have visibly changed

4. Then there’s “the full monty”

Local language, payment, currency, customer service

Hey, the World speak’s English!

No they don’t…‘Wieviel kostet das?’

Why is it so important to give foreign nationals a local language site?

Cross border sales are growing...but localised propositions work best

5. Web then stores

6. Stores then localised web

Is it worth doing?

You better believe it!

3 jumbos a week to Australia£1.25m-£1.5m a week

I know you’ve not always been friends…

Half of the population is under 30…and they like fashion

Key Success Factor = Are you a Social or anti social brand?

Key Success Factor = Are you a Social or anti social brand?

Social Proof

Key Success Factor = Mobile

We are‘shopping on the go’

119

Mobile is redefining how consumers shop

120

Mobile isn’t going to be a game changer…It has already changed the game!

Schuh will take 50%+ of all online sales through mobile by the end of 2013