win03 eddie bauer

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Customer-Focused and Market-Driven --Multi-Channel Retailing at Eddie Bauer

UW Marketing Course, February 24, 2003

Bridgette Boudreau

Marketing Manager, E-CommerceEddie Bauer

Contents

Eddie Bauer a brief history The Challenge of the Channels

The Voice of the Customer

Customer-Focused Web Design Questions, Methods and Tools Usability Lab explored

Case Study EB Product Page 2002 Summary

Q & A

Who was Eddie Bauer?

Eddie Bauer was a legendary Pacific NorthwestOutdoorsman

Eddie established his first sporting goods store indowntown Seattle, Washington in 1920

Eddies character, determination, entrepreneurialspirit and love of the outdoors created a successful

business and enduring legacy Eddie was an innovator

Creed and guarantee(Quality, Value, Service, Guarantee)

Revolutionizing and patenting the shuttlec ock Designing down insulated flight suits for Air Force pilots stationed in Alaska

during WWII Creating and patenting the firs t quilted goose down jacket

That innovative spirit lives on today at Eddie Bauer


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E-Commerce History

1995 1996 R&D, Launch store on AOL 1997 1998 Launch store on the web

1999 2000 Add functionality, integrate with back-end systems

E-Commerce History 2001 2002 Optimize the Customer Experience

Launched Customer-Focused Design Launched in-house usability lab

The Challenge of the Channels


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Its Complex!

Eddie Bauer is a complex organization with three core businessesand three channels.

Apparel Home Outlet

Retail

Catalog

E-Commerce

Businesses

Channels

Its Complex! Heres another way to look at customer touch points in context:

ONLINE ONLINE

X

CATALOG ONLINEq Relevant on-page messaging in catalogs

promoting the features and benefits of shopping online

q Explore prominent 2/3, blow-in or other kinds of intrusive messaging drivingcustomers to the web.

q Work with new customer acquisition toensure we are correctly messaging for newcustomers, 50% of which go online to shop(20% EOB, 30% direct-to-the-web)

q Ensure catalog features and online toolsare consistent (e.g. swim fit finder)

RETAIL ONLINEq Relevant in-store messagingq eb.com -- always open, more sizes, colors

and styles onlineq Ensure online message appears on bags,

by products, at the DOC, fitting rooms,etc as relevant

q Store associate communication and buy-inq Retail to online and retail to catalog must

be an integrated strategy

ONLINE CATALOGq Use catalogs online and online messaging

to extend mailing depth for new customer acquisition

q Test sending smaller DM/Catalogs with amessage stating the customer can see theentire assortment online in catalog form.

q Ensure catalog phone number is readilyavailable for online customers who may behesitant to complete their purchase online.

CATALOG CATALOG

X

RETAIL CATALOGq Direct Order Center update (retail/direct

initiative)q Relevant in-store messaging at the productq Retail to online and retail to catalog must

be an integrated strategy

ONLINE RETAILq

Improved store locator relevance andmessagingq Retail product look-up and stock status (E-

Commerce initiative)q Build a retail email file that can be used to

drive retail traffic

CATALOG RETAILq

Continue multi-channel analysis of catalogperformanceq Explore opportunities to message retail in

catalogs

RETAIL RETAIL

X

Its Complex! Our goal is to increase our understanding of the interplay between

these various customer touch points. To leverage our tri-channel model.

From both a messaging and data standpoint. To ensure that customers receive consistent messages across channels and

businesses. The customers view us as one company, we better act like it!


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The Voice of the Customer

There are three key components to being acustomer-focused company

1. Customer Information Market Research Were Listening Say it out Loud Data


2. Keep your eyes on the competitors

Identify your competitive set from a both a merchandise and marketing perspective Get a clear idea of what you want to know about your competitors and then

Snoop, Spy, and Network to get the info Gather and use information that will help you make business decisions,

avoid getting lost in things that are nice-to-know


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3. LISTEN to your customers, REACT to your competitors Now that you have all this customer information, LISTEN to it!

Be sure you are making business decisions from a customer point-of-view, not

your own filter of the customers point-of-view This is harder than it sounds

Get the right information about your competitors at the right time Knowing everyone in the marketplace is going to have your signature product

during a key sales time period and its going to be cheaper than yours is... Useful info 6-12 months in advance. Useless when youre seeing this play out in your stores.

Customer-Focused Web Design

What is customer-focused design?

An approach to crea ting end-to-end, cross channel experiences based on an understa nding of user s, thei r goals, and their behavior.

Forrester ResearchScenario Design December 2000


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Scenario Design Answers Three Questions

Whatare their goals?

Whoare your users?

How can usersachieve their goals?

Goal




Whoare your users?


Goal




Who

are your users?


Goal



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What are the Questions ?

Who are your customers ? What are their goals ?

How can customers achieve their goals?

What are the Steps ?

Analyze Listen to the Customer Discover Study the Site, Industry and Competition

Design Prototype > Test > Repeat

Implement Engineer and Launch solution Repeat

What are the Tools ?

Site Activity Analysis Provides insight into what and where Analyze success rates of key ta sks (Pipeline Anal ysis) Leverage metrics infrastructure

Customer Feedback Provides insight into who, what and why Leverage call centers (Phone, email) Conduct On Site Surveys and Market Research

Usability Research Provides further insight into why In-House usability Lab Usability Best Practices

Industry Feedback Provides insight into what , where and how Competitive Reviews Provides insight into what , where and

how


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The Eddie Bauer Usability Lab

Facility: Customer experience lab customers execute key tasks

Feels like home (Sofa, tabl e, art, etc.) Computer multiple environments for varied testing (OS, connectio ns etc .,)

Video Camera Monitor task pathway Stopwatch Monitor task time Task List.. Sets a scen ario and provides task direc tion

Usability Coordinator

Design lab teams view studies in progress and brainstorm solutions Design War Room faci litates solution concepting and testing TV Monitor facilitates real time observation of study

Ample Work Spac e

The Eddie Bauer Usability Lab

Guiding Principles: Purpose of studies is to assess how well users can achieve representative tasks

Make the tasks specific to a detailed scenario Focus on what users do , not what they say they do Its fine to ask participants for feedback on how the task went Look for commonality among participants

Avoid leading questions, remain neutral Begin with an easy task

Case Study: Product Page Redesign 2002


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Why Look at Changing the Product Page?

Customers voiced concern about difficulty in finding necessary productinformation.

Initial review of metrics indicated there was conversion and AOS upside potential.

Industry feedback indicated improvements were needed.

Previous design was based on intuition and industry best practi ces for web site design.

Everything must be above the fold Users dont scroll

Users dont read Present only the basic information Click to reveal more details when interested

Old Product Page: Main View


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Old Product Page: More Info View

Project Objectives

Improve the customer experience Increase average order size (units) Increase add-on sales Reduce task time Sustain page performance Improve site conversion rate

Discovery: Key Metrics

Very few users click: more info coordinating products link

Many users view more than one color


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Discovery: Pre-Study Identified Key Issues

Less than half of participants clicked on icons, butcommented on missing information

Confusion over which add button to click

Assumption that clicking to view a color also selects it inthe ordering section

Page refreshes are interruptive, disorienting Size chart & coordinates links not seen

Discovery: Competitor Sites

Studied sites representing alternative approaches: Varying amounts of product details

Varying functionality Varying placement of functionality Varying page layouts

Asked respondents to perform same tasks on each Identified successes to adopt, problems to avoid

Iterative Usability Study Findings

Users read detailed product information on the page Users scroll automatically

Choosing color and size is expected at the end of the page with asubmit button

Participants found view on a model with swatches andresponded positively

Participants clicked on and made positive comments aboutYou May Also Like section

Fewer errors in making color selections


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Key changes:

Expanded productinformation, right on the page

You May Also Like section

View on a Model next towith swatches

Size chart link next to sizeselection

Radio button selections nolonger refresh page

Clicking on color swatchesalso pre- selects color

Improved inventoryavailability info

Pre-redesign Post-redesign

Post-Game Metrics: Pre- vs. Post- Redesign

Units/Order: + 7% Add on Sales: + 550%

P PV/ PV: + 6.4%

Conversion: + 36%

General Task Time: -17% Decision-Based Task Time: -9 %


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Summary

Eddie Bauer was an innovator that innovative spiritlives on today at Eddie Bauer

While being a multi-channel, multi-business company is

complex, its imperative that Eddie Bauer understandhow to leverage this advantage

Be customer-focused and market -driven: listen to yourcustomers, understand the competition, and act on thatlearning

Customer Focused Design leads to increasedprofitability

Thank You

Bridgette BoudreauMarketing Manager, E -Commerce

bridgette [email protected]

Q & A

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