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Archive for the 'Merchandising' Category


Navandising: Merchandising in Navigation

Something I’ve spotted on a few retailers’ sites lately – the showing of offers and other calls to action in AJAX flyout menus:

Moosejaw Mountaineering

moosejaw-nav-indising

American Eagle Outfitters

ae.com nav-indising

GNC

gnc nav-andising

Personally, I think this is a great idea. It allows the site to do a form of targeted selling based on the interest/intent of the customer without complicated tools or rules, and gives you the opportunity to present offers without cluttering up category pages. Like rich autocomplete, the injecting something visual into a text menu may be a trend we see pick up in 2010.

Cyber Monday 2009 Post Mortem: Items Per Order Benchmarks

Coremetrics has released some benchmark data in its Cyber Monday Report (.pdf) which breaks down Black Friday and Cyber Monday 2009 metrics vs. 2008 for retail as a whole and various industries.

Highlights from the study:

  • Cyber Monday sales were 24% higher than Black Friday this year
  • Cyber Monday items per order were 10% higher than Black Friday
  • Consumers spent 5.8% more on Cyber Monday than Black Friday
  • Compared to Cyber Monday 2008, sales were up 13.7% and average order value (AOV) up 38.2%
  • Apparel and jewelry sites saw the biggest jump in AOV (26.4% and 14.3%)
  • Department stores attracted 33% more new customers, though AOV dipped ~10%

If you download the report and check out the benchmarks, you’ll notice that items per order for all retail sites were 5.92 – not bad. But when you drill down to the industries listed, none are higher than Health and Beauty at 3.31. Even department stores were 3.05 on Cyber Monday.

Curious about which categories brought the average to nearly 6 items per order, I emailed Coremetrics. So here’s a Get Elastic exclusive…

  • Office Supply/Electronics – 6.09 items per order
  • Niche Retail – 11.57 items per order
  • Pets – 16.42 items per order!

Fido’s getting spoiled this year.

While I can only speculate why pet stores averaged so high on items per order (perhaps it’s a combination of low dollar value items and high free shipping thresholds), I was surprised department stores were not moving more items, especially with the opportunity to position themselves as one-stop-shopping destinations.

Improving your items per order and AOV

How do you measure up to your industry and retail as a whole with regards to items per order?

If you’re looking for tips for increasing items per order and average order value, consider offering:

And don’t forget to optimize your cross-sells and upsells. Here are some articles on product recommendations if you’ve missed them:

Measuring and Improving Cross Sell and Upsell
Merchandising Usability: Better Ways to Display Cross Sell and Upsell
Effective Merchandising: What Sells?
Cross-Selling Tips for Online Retailers

Targeted Selling: Carrots in the Cart

Targeted selling refers to the delivery of content and offers to different site visitors and customers based on what you know about them. You can apply targeted selling rules to featured products on a home page, cross-sells/upsells on product pages, promotional banners on home pages or search results, or even in the shopping cart.

The most common offer you’ll find on a cart summary page is “you are $X away from free shipping” when a free shipping promotion is offered on purchases above a certain dollar amount. The message is called a “carrot,” to entice customers to add a little more to the cart to qualify for the offer.

A unique application of the “carrot” based on cart contents is used by Maghound. Maghound is a kind of “Netflix for magazines” — Maghound’s subscription service allows customers to build their own subscription bundles for a monthly price, with the ability to change subscriptions at any time during the year.

Maghound has 4 subscription tiers:

Customers begin selecting magazines and after adding a title to the cart, the cart summary box updates with the title, and a message (in the yellow box) reminding the customer how many titles are included at the current tier of membership.

Once you hit your first tier (3 titles), the message changes to “Pick 2 for $3.00 more per month!”

And so it goes after the second tier is met:

The cart summary continues to upsell as the cart contents change. The “carrot” depends on what’s already in the cart:

Once you fill tier 3, each additional magazine is offered for only $1 more (who can resist?)

Maghound is a unique example of guided selling and promotions in the shopping cart. Another industry that typically uses guided selling in the cart is telco. Customers need to be led through the complex process of bundling a handset with a contract, services and accessories. This example is from Telus Mobility.

Telco’s guided selling could incorporate targeted selling if the links in the cart summary were based on what’s in the cart (for example, the link to accessories will land on a page that shows only products compatible with the device in the cart.)

Guided selling / targeted promotion implementation in the cart summary is so custom to a business that you most likely need a custom build to make it work (both of the above are Elastic Path customers). As more retailers across industries incorporate guided selling, product bundles and subscription/loyalty programs, we’ll see more examples of this around the ‘Net in the future.

Product Selection and Discovery: What You Can Learn From the Telco Industry

Though yesterday’s webinar was niche – we focused on the telco industry specifically – a number of best practices presented in the session are applicable to any online store. This post is a summary of the Phone and Plan Discovery portion of the webinar, highlighting what telcos are doing to help customers find the right wireless handset amongst a sea of options.

Filtered Navigation

Most telco sites do take advantage of filtered navigation options to help customers find the best phone for them. This is so important when there are as many as 180 products to choose from, and features play an important role in the purchase decision.

All retailers can benefit from adding more relevant filters based on important product attributes. This can improve conversion rates as you help customers hone in on and compare only products relevant to their purchase criteria. It also helps customers understand products better when they can see major attributes at a glance – “Oh, some phones have FM radio and speakerphone? Yeah, I want that.”

Filters limited to Category / Manufacturer were not as helpful:

Think about your current filter options (commonly price, brand, style) and think of how you can filter further by attribute like color, size, feature, battery length, star rating etc.

Product Results

Some ideas on improving category, filter and search results pages:

1. Don’t waste pixels in screen resolution

Often there is opportunity to grab more screen real estate to display more product information:

2. Allow customer to toggle between list and grid view

3. Add badges for feature highlights

4. Put model and color variations on one product page

Instead of listing a separate sku for each color / version (like 8GB vs. 16GB), show one product page with available options:

5. Customer AND expert reviews

Allowing customers to sort by and filter by customer and 3rd party review ratings is helpful for humanistic and methodical shoppers, respectively.

6. Consider slide tools

Horizontal sliders replicate the in-store experience of scanning a display shelf and gives your site a modern feel. It can help the customer compare the looks of the product (very important for phones that are now fashion accessories) without scrolling up and down and may work well for books, music, fashion and jewelry categories.

7. Give them a quick look

Mouseover/hover features are a great way to expose more product detail that a customer is interested in.

Sometimes this is done with a “lightbox” feature like Adobe Scene7’s Quick View feature.

Comparison Matrix

The comparison matrix is very helpful for side-by-side comparisons – and it warrants a blog post of its own (yes this is a hint that I’m going to blog about this soon on Get Elastic.)

Best Buy is a nice example, it shows the number of phones you can select at a time and allows you to launch the compare tool from the product you just selected. (Some sites require you to scroll to the top of the page to find that hidden “Compare” button).

From the matrix, you can remove selections, print the page or highlight the differences between the models being compared:

Product Discovery

One of the most challenging things about online retail is the fact that the customer must rely on 2 dimensional images to experience the product. Anything that shows off a product helps reduce fears, uncertainties, doubts and dealbreakers about products.

It’s now common to find image zoom, color switching and multiple product views — and more and more e-stores are adding video, 360 degree views and size comparisons.

Some products, like mobile phones, software, appliances and electronics benefit from additional tools like:

Tutorials

Very helpful for new and existing customers:

Product simulators

The above is by Sony Ericsson, we haven’t found other handset manufacturers providing this.

What‘s in the box

Showing visually the accessories that come with a product is more effective than a bullet point list. It can also be a value proposition – look how much stuff is included with {insert product name here}.

Icons

When your product has a lot of features and specs, icons can help customers scan the page and hone in on what they care about – especially for those who process information visually better than textually.

The full one-hour webinar covered many more tactics including navigation, guided selling, cart/checkout and service upgrades. Why not check out the replay of Ecommerce Best Practices for the Telco Industry?

Next Webinar

Every Second Counts: How Website Performance Impacts Shopper Behavior

Is your website keeping up with the competition when it comes to web page response times? Today’s shoppers have high expectations when it comes to buying online. Websites which take too long to load can result in negative brand perception, diminished goodwill and a significant loss in overall sales.

Join us on November 4th to learn about the impact of site speed on shopper behavior. In this one hour webinar, Marketing Manager Margaret Rivera of Akamai will present findings from a new study which has identified two seconds as the new threshold for acceptable web page response times.

Webinar Takeaways:
• How poor site performance leads to shopper dissatisfaction and site abandonment
• How website performance reaches beyond the site into the physical store
• The consequences for an online retailer whose website underperforms

Sign up today!

After the Shipping Deadline: Holiday Merchandising Tips

Unless you can afford free overnight shipping to holiday shoppers, you need a plan for merchandising your e-store for that period between the shipping cutoff date and Christmas Day. Consider applying the following ideas to your website and email campaigns to keep the register ringing like sleigh bells:

Promote Electronic Gift Cards

  • Remind customers it’s never too late to send an electronic gift card prominently on the home page, horizontal navigation, email campaigns, product page cross-sells etc
  • In 2007, Musician’s Friend provided a cash-back incentive for purchasing an e-gift certificate with a “$20 ComeBack Cash in the New Year” offer. Buy a gift certificate of $100 or more and receive a $20 gift card to use before February 15, 2008.

Switch Gears to Clearance

Last year we saw post-Christmas sales begin before Santa had a chance to round up his reindeer. Customers may be anticipating retailers to do the same this year, so consider the timing of your post-holiday markdowns and the deadlines for your banner/home page design creative.

Show Off What’s New

Some retailers opt to forget the holidays and focus on new (regular priced) arrivals:

Ring In the New Year

If you sell relevant products, why not switch gears to the New Year? (Think party supplies, outfits and New Year resolutions.)

Belated Gift Notifications

CompUSA and Omaha Steaks have offered to send e-gift announcements to gift recipients to let them know they were not forgotten, their gift is on the way but will arrive after Christmas.

Keep Your Shipping Cutoff Dates Up

Finally, don’t remove your shipping cutoff dates even after the deadline has passed. Your customers are not psychic and will want to find this information before deciding to continue shopping with you. Make it easy. You may lose the gifting sale but you may keep the customer on your site or drive them in-store.

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