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Blogging Live: Shop.org Merchandising Workshop--Test Your Way to Site Conversion Nirvana

Posted on July 17, 2008 by Vanessa
The presenters for this session were Jay Greenberg, Director of eCommerce, Spencer's
George Michie, Co-Founder and VP Client Services, The Rimm-Kaufman Group
Stephanie Pike, Web Strategy, Circuit City Stores, Inc.
(By the time this session rolled around my battery had died on my laptop so I had to take notes the old fashioned way. Needless to say this is going to be a collaboration of my notes, but a lot of great content was shared by these speakers that I thought was important enough to post anyway.)

The purpose of this session was to teach us about effectively testing on our websites.  The speakers brought their personal experiences to the table and shared their successes as well as their failures.  It is funny because to me it seemed like we could learn a lot more from the failures they shared then the successes.

Some of the areas they would be discussing were:
  • Expectation management
  • What to test
  • How to test
  • What to do after the test is completed

Conversion Nirvana refers to the idea that conversion is a cyclical experience.  The reality is that of MVT tests that are performed many are not going to be conclusive.  A merchandising rule that was shared in addition to Bryan's Golden Rule was to: "List 70%, Offer 100%, and Creative for 10%".  Conversion rates depend on the quality of the traffic that comes to the site.  So how do we work toward "Conversion Nirvana"?

  • Improving conversion rates
  • Targeting segments to take this farther
  • Eliminating massive redesign projects
  • Ending subjective arguments about creative
  • Developing confidence
  • Don't test little things
  • Be patient; expect a lot of 0 results between two versions
  • Testing misses lifetime value issues, null results might be a victory
    • To elaborate on what he explained was lifetime value issues he explained that a customer may have a poor experience but because they were able to make it far enough in to the checkout process they may complete the sale.  Having said that the customer that had the poor experience on your website will probably remember their poor experience and not return to the site again.

How do we decide what to test?
  • Scalability of testing:
  • How important is the campaign?
  • What can I learn and can it be used across other departments or areas?
  • How easy can I get the actionable data?
  • Am I empowered to react on the results of the test, if so do I have the resources to take action?

Some key points to remember:
  • Test against what you can control to get improved conversion rate.
  • Define the business objectives ahead of time.

Where to start:
  • Headlines
  • Images, e.g. People v. Product, Solo v. Lifestyle
  • Copy
  • Copy Length

The items I listed above were the key takeaways that I got from the session.  Some of the things that were interesting to see were the actual tests that Spencer's and Circuit City performed.  Each retailer would show the audience their test and then take a poll to see what we thought the winner would be.  The point they were making was the test doesn't always turn out the way you thought it would, and be careful about what you are testing as there may be noise that clouds the consistency of the test.

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Blogging Live: Shop.org Merchandising Workshop-- Opening Up eCommerce: Innovations in Customer-Focused Merchandising

Posted on July 16, 2008 by Vanessa

The presenters for this session were Laura Evans, Executive Director of Retail, Resource Interactive and Steve Kahn, Vice President Internet Marketing, DSW (Paraphrased)

Laura Evans of Resource Interactive spoke first.  She explained that she would be taking us through some of the innovations that retailers have had to make over the last year to improve their eCommerce experience.  They recently did this such thing with DSW.com.  In launching the new DSW website the two companies partnered to make this site more engaging to customers.

Some of the key features they wanted to use in building the DSW website were:

  • New and successful merchandising trends
  • Solution selling
  • An engaging product story
  • Customer generated assortments
  • mCommerce capabilities for on demand selection


Solution selling is all about providing results to a consumer in whatever fashion they may be looking for it. This can be done in many ways, one of which is grouping complementary products so a complete solution is created for the customer.  Use lifestyle photos to convey the usage or the category of the product.  Give detailed product descriptions and when appropriate take the information from the product package and use it in the description.  An engaging product story refers to bringing a product to life this can be done with 3-D images and videos.  She gives an example of how RalphLauren.com does a good job of utilizing videos throughout categories, and the videos are used to inspire the customer and educate them.  She adds that we should merchandise by product attributes so that customers have multiple ways of finding the products they are searching for.  She then challenges us to think about how customers shop when they go in to a store, she adds "they don't see a list of products when they walk in, they see products and merchandised entries" she explains that we should be giving customers the option of finding their products through visual wayfinding and not just words.  Customer generated assortments are ways in which the customer can become the merchandiser and product advisor.  She gives examples like kaboodle.com which allows "self proclaimed product connoisseurs" to choose a few product options and then ask the community which product they should purchase.  She also features PolyVore.com which allows consumers to pull together their own outfits.  They wanted all of these things to be present in the DSW.com website and she is going to let Steve Kahn take over to explain what they did.

The DSW Story

DSW had very little (in fact Steve said no) direct business.  They found that 70% of sales came from their customers already in their loyalty program.  They took the information and presented it to the board so they could get funding for a website.  The board agreed to meet but they wanted to know what DSW thought they could do better than current online shoe retailers.  They decided that because of their ability to listen to current and non-current customers, their ability to focus and utilize their current members, their brand, their business partners and their industry expertise they could do a few things better than other current online shoe retailers.  They came up with 7 different things they could do better and mapped it out to the board, but he focused on 3 during the session.  They also presented their aptitude for understanding their current business, competitive analysis and potential vendors.  The last piece before presenting to the board was the detailed financial plan.  The three items they decided they could do better and focus on were:

  • Presentation
  • Channel Integration
  • Loyalty


These differentiators are key components to the new website.  Presentation and immaculate images are found on every product detail page (in fact I think I heard the crowd aaahhhhhed when he did a demonstration of the images on their product detail pages, they really were fantastic).  Channel Integration deals with their ability to partner with vendors, warehouse, and use current relationships to add the online channel.  Loyalty comes with the program that they already have in place with members.

Two Caveats to this Presentation

  1. He gave everyone in the audience a coupon code to save on a purchase on the website or in store (very cool).
  2. I was brazen enough to ask him about the Zappos lawsuit at the cocktail party and he was kind enough to answer openly and honestly, but asked for the respect in not blogging about his response so that is all I am going to say!

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Blogging Live: Shop.org Merchandising Workshop--The State of Retailing Online

Posted on July 16, 2008 by Vanessa

The presenters for this session were Carrie Johnson, VP and Research Director and Brian Walker, Senior Analyst both of Forrester Research
(Paraphrased)


Carrie spoke first and let us know that it would be brief because she was going to "throw up numbers from her mouth" (funnier when she said it, and the rest of the crowd laughed too).  She explained that she was going to share the numbers from the recent Forrester study on The State of Retailing Online and what we could do with the findings.  This study is in its 11th year and here are some of their findings (the study will be published soon, so I didn't get them all, but I got some):

Although there is talk of recession Forrester still believes that online retailing will see a 17% increase over last year.  This is attributed to domestic issues like the rising gas prices and the increase in the number of people purchasing online. International purchases also play a part in this projection as they are attributing things like the falling dollar, to a list of incentives that other countries would want to purchase from U.S. retailers.

  • Online merchandising is becoming an increasingly important role that is getting more attention and may move it away from just a marketing task.
  • Conversion rates continue to be mediocre
  • Content is hard but you have to get better at it
  • There is a lack of focus on real optimization
  • The online merchandiser is under-valued as a discipline
  • Cart abandonment has increased and this is most likely due to the research done by savvy shoppers before they make a purchase
  • Over 80% of the online retail industry is going to be investing in shopping carts and checkout over the next 12 months
  • eCommerce sites are failing to meet the needs, only 4% pass and the average score is a 5.4 out of 25

Brian Walker takes the lead of the presentation and urgently states "Get better content now!"  He then reminds us that this is not a new idea, he quotes Jakob Nielsen that said "content is the focus of a web user’s attention", and then tells us that this quote is from a book published in 1999.  (The silence tells me that a lot of the crowd is thinking what I am thinking, which was, I think we are doing a pretty good job at content.  I guess we will need to evaluate some of our product detail pages).  He like the last speaker lets us know that there are things that we can do to set ourselves apart from the pack, one of the things being free returns for items.  He explains that he knows this is costly but it may be an increasingly important tactic.  (My thought here was that this tactic would just drive prices up, but maybe that is negative).  

He wants to get back to the subject of having good content so he explains that it is important to have the content itself, he adds "80% of retailers are going to the manufacturers sites for content".  He gives us a list of things that he thinks we can improve on, even if we think we are doing a pretty good job at creating quality content.  The list key tactics went something like:

  • Focus on the product
  • Go deep into information the customer would need
  • Leverage product expertise and assets
  • Optimize internal processes
  • Focus on the customer
  • Ensure legibility and information digestibility
    • He went in to further explanation about this point.  He used shopping for a camera as an example (apparently retailers of digital cameras have some improving to do).  He showed us a screen shot of a camera he was interested in buying, but all of the information was written for someone that is an avid photographer or knows a lot about cameras, for the average shopper it wasn't useful.  This example can be used for other areas and is why he listed digestibility as a key tactic to successful content
  • Focus on discoverability
  • Fix site search indexing and binning (in our case categorization)
  • Cross populate product so the consumer has more ways to shop
  • Practice SEO basics like improving urls, titles, JavaScript, etc.
  • Be a merchant don't over assort, but instead be a guide


Q and A

Q: Do you think fuel prices will affect online purchasing?

A: I think this is an area that we can capitalize on and an opportunity for the industry to grow.

 

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Blogging Live: Shop.org Merchandising Workshop--The Golden Rule of Online Merchandising

Posted on July 16, 2008 by Vanessa

The presenter for this session was Bryan Eisenberg, Co-Founder Future Now Inc.

Bryan is a great speaker, he got his plugs out of the way and let us all know that his company has gone public and his new book is coming out any day now.  He was also nice enough to share that the audience there was a talented hard working experienced group, and that he thought the challenges we are facing here are at a different level than those he has experienced at the many other conferences he speaks at.  He then added that he believes there is a disconnect between what we are saying about our websites and how great they are and what our websites actually look like. He goes on to say (this quote and the others are paraphrased) "At work we wear superhero capes, and disconnect ourselves between who we are when we go home and shop."  He believes that there has been more change to commerce and customer behavior in the last 7 years than the past 500.  He explains this theory in discussing what people do when they watch T.V. and that television advertisers have had to essentially surprise people to get their attention.  This is because as he states "People who are watching T.V. are multi-tasking, in fact a Yahoo study shows that 40% of the people that are watching T.V. are asleep".  His point about this was all leading up to the revelation that those who are shopping online, can't really be actively doing something else, like sleeping, while they are shopping, he reiterates the point by reminding us that these customers are actively involved in our websites.  He challenges the crowd to stop being so busy with the daily tasks that seem urgent and instead re-focus and on the important.

Future Now Studies

His company, Future Now Inc., consults websites and benchmarks the industry.  One of their studies showed that 76.7% of internet retailers did not pass their test.  He adds that this is "Frightening".  He lets us know that we are getting better at optimization according to his studies, but those of us who have been only using Google products will need to move on to something more sophisticated if we want to keep up, his explanation is that Google products are cool because they get smaller retailers started with testing and optimization but there is a reason they are free and it is because the paid versions offer more.  (As an aside, and this is me, I have talked to other retailers of our size who have tried analytics solutions that they paid for and went back to Google analytics, so this may be true for some of these solutions, but I don't think that it is true of all).  Now back to the customer experience study that his company released, the 2007 Future Now Customer Experience Study found that the average score was 43 out of 100, and of the retailers that were looked at, only four would have passed.  Some of the things that they looked at were: Product presentation, delivery options, checkout processes, and customer service information.  Some of the things that they deliberately left out because they didn't believe they were factors related to the actual customer experience were price and the ease of finding products.  *Update, Bryan was nice enough to clarify that he didn't say that these points were not part of the customer experience, and let me know that one of the reasons these pieces were left out of the study was the ease of measuring.*(I agree in some aspects, but the ease of finding products is questionable as far as I am concerned, as I think it is a big part of the experience.  Take for example if I went shopping in a store today and I had a hard time finding what I was looking for, I then get frustrated and have to find help, in the internet retail world that would mean calling a customer service rep or sending an email or reaching them by LiveChat).  Bryan then started sharing some of the results of the study: 62% of online retailers only had a brief blurb in the product description, only 11% had exceptional ad copy (he did clarify that this was the only opinion question included in the study), 67% of customers who come to an online retail site to buy leave because there was not enough product information.  He boldly states what we should all already know, but I guess it needed to be said "If you don't have enough copy and the right images people will not buy from you".

Think Like a Customer

He moves on in an effort to explain further, "customers are like toddlers with money, their favorite question is why.  Why is this product better?  Why should I buy from you?... They have all of the same questions but less attention span than a child".  Next he starts showing examples of a search he did for digital camera on both Bestbuy.com and CircuitCity.com, the screen shots showed a list of cameras and a list of attribute refinements, but the attribute refinements listed are based on pixels, and brand, etc.  He then asks the crowd if we have ever bought a camera and gotten frustrated about the speed in which it takes pictures and been disappointed when the camera was too slow.  Yes was the prominent answer in the room and those that didn't answer seemed to be able to sympathize with the example.  Bryan then asks us all why we aren't merchandising it if we know the problem exists?  Like a lot of other things that Amazon does well it was the one site that he found, that sold cameras that had reviews about the speed of the camera.  While other sites may have had reviews, they weren't used in the attribute refinements or the descriptions, but because Amazon is Amazon there is a Firefox plug-in called Pluribo that will "magically summarize the user reviews on most electronics pages".  (Cool tidbit that I didn't know about, does that mean I am kicked out of the nerd club?) 

Understand the Decision Making Processes

As a sociology major Bryan learned about personality types and how that effects purchasing decisions, he gave us a site called Capt.org that summarizes Myers Briggs personalities for reference.  He thinks that marketers are intuitive by nature but that we need to think more like our customers that are probably the opposite as 72% of the populations is a sensing type and not intuitive.  He adds that spontaneous personality types like top sellers and new releases, those that are considered humanistic like reviews, but methodical people will search by the category, and those that are competitive will search by a specific term.  He adds that if we don't have the ability to showcase our products in this way our customers will bounce.  He uses Overstock.com as an example as he had a success story about how the changes Future Now suggested for their movies category page dramatically increased sales.  He gives us a lesson on how we can add reviews to our product description when it seems appropriate.  What he does is look at all of the reviews for the product he is working on, he then begins to plot them on a graph.  The graph is categorized by positive v. negative and logical v. emotional.  He adds to this by giving us some more examples so that we can put what he is saying in to perspective "25% don't have options to enlarge the image, 65% don't have multiple images, the basics are what is missing not the innovative.  Too many websites have difficult to read fonts, and that is coming from a study where the average age of the sample was 30.  13% of those reviewed don't let the customers change the font size, 61% don't offer live stocking, 59% don't offer expedited shipping, and 41% don't provide assurances during the checkout."  By assurances he means showing the returns or shipping policies at checkout, and having copy that reads on the order of: Easy returns policy, money back guarantee, free return shipping, etc.   He continues "45% display customer service hours, 59% correctly answered email questions within 24 hours and of those the answer was completely irrelevant 50% of the time".  He gives an example of Zappos.com and how they received higher scores because they were able to answer the question properly and able to do so within two hours.  He then adds that only 20% of multi-channel retailers had order online with in store pick-up, which seemed to be a common theme throughout.

The Golden Rule of Merchandising

Bryan then asks us all what the Golden Rule was, in unison the crowd chimed "Do unto others as you would want done to you".  Bryan agrees and then explains that the Golden Rule of Merchandising is similar but has a twist to it; he remarks confidently "Do unto others as they want done unto themselves".  He closes by reassuring us that he knows and agrees that there is a balance between being customer centric and staying within the numbers.

Q and A

This is also paraphrased.

Q: Why would we need to move away from Google Optimizer and studies have shown that customers don't like to read so why should we add to our copy if we want them to read it?

A: Google Optimizer isn't bad because it gives retailers that aren't currently optimizing or testing at all to start out small but once you get good at it I would suggest moving on.  As far as ad copy goes it should help the customer reach their goals, there is a saying that ad copy should be like a women's skirt, short enough to be interesting but long enough to cover the essentials.  Test what works so that you can balance what customers want to read and what they need in the product information.

Q: If you had to suggest what should be optimized and by whom what would it be?

A: Web analysts are hard to find but find someone with a background in analytics and good designers and copywriters so that you can test all of these areas.

Q: What was the Firefox plug-in?

A: Pluribo and it only works on some categories right now.

Q: If you had to suggest the top 3 priorities that we can implement now what would they be?

A: There is a hierarchy of optimization that you can find on our site that lists several steps in the hierarchy.  Off the bat I would say better copy and better images but this could take a lot of resources.  On an intuitive level you have to think about what gives people assurances throughout the checkout.  If you are thinking on this level then you would consider general usability, because online shopping is like the evolution of cell phones, they may be different but the basic functionalities are done the same.  Accessibility, how easy is it to get to your site?  Functionality, make sure that everything works.  Then start looking at 404 errors, when I was shopping for that camera I clicked on a walmart.com ad and I got a 404 error, not only did they pay for the click but I was an automatic bounce, and I will make sure to tell Raul about it after.  Then start moving on to in stock messaging and more.

Q: Who is doing all of these things really well?

A: We published a list and some sites may have improved by now, but I know one is BlueNile and others I would have to get back to you on.  Some websites did really well in certain categories for instance Zappos.com scored really high in customer service.

 

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Blogging Live: Shop.org Merchandising Workshop

Posted on July 16, 2008 by Vanessa

Dear Readers,

I had the pleasure of attending and participating in a panel at Shop.org yesterday.  I was not the only one who found themself out of luck when trying to get a wireless connection yesterday so I am going to take what I would have blogged live yesterday and post for you all today.  As you may be aware from reading other live blogs the content is written so quickly that often mistakes may occur and the context may seem out of order, but hopefully the general idea and the nuggets of useful information will become clear by the end of the post.  I hope you all enjoy what I learned yesterday and find it as useful as I did.  Feel free to send me comments about any mistakes you may find, I can deal with constructive criticism.

All the best,

Vanessa

 

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