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Webinar: The Web as a Workhorse. Featuring Lauren Freedman President, the e-tailing group. A Few Housekeeping Items Before We Get Started: To Join the Teleconference: Tel. 866-469-3239 or 650-429-3300 Presentation Content:
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Webinar: The Web as a Workhorse Featuring Lauren Freedman President, the e-tailing group • A Few Housekeeping Items Before We Get Started: • To Join the Teleconference: Tel. 866-469-3239 or 650-429-3300 • Presentation Content: • Slides and Webinar recording will be made available for download at www.demandware.com • Please use the “Q&A” function to ask questions.
Webinar Agenda Welcome and Opening Remarks Adam Forrest, Product Marketing Manager, Demandware Main Presentation: The Web as a Workhorse Lauren Freedman, President, the e-tailing group Active Merchandising Adam Forrest, Product Marketing Manager, Demandware Best Practices that Lead to Superior Customer ExperiencesHeather Reasonover, Director, Marketing & Interactive Services, PFSweb Questions & Answers
About Demandware & PFSweb • Demandware • Leading and top rated on-demand ecommerce platform • Over 100 brands live on the platform • PFSweb • Leading provider of integrated business infrastructure solutions and fulfillment services • Service Fortune 1000, Global 2000 and brand name companies • Together, we provide the leading end-to-end ecommerce solution
About Lauren Freedman and the e-tailing group • 15 years e-commerce consulting • Author, It’s Just Shopping • 50+ years traditional retail and catalog experience • Fortune 500 client projects ranging from strategic planning, merchandising, marketing, to technology development and messaging • Proprietary research studies on mystery shopping and merchandising, egeg Index, marketing and multi-channel customer mindset, In-Store Pickup and Gift Registry • E-commerce expert and frequent speakerat industry events, trade associations
Lauren Freedman, President, the e-tailing group • State of the eCommerce Times • 5 Ways Web is a Workhouse • I. Resource Allocation Review • II. Global Branding • III. Category-Centric Merchandising • IV. Confidence-Building Content • V. White Glove Service
Profile of 8th Annual e-tailing group Merchant Survey Respondents Merchants of all sizes (annual sales) 30% $<$1M to $20M 24% $20M to $100M 28% $100M to $1B 18% $1B to $5B> Senior level participation 41% CEO/President/Principal or VP/ General Manager 51% Director, Senior Manager or Manager 8% Analyst, Specialist, Assistant or Other Selling through a mix of channels 28% Internet/Store/Catalog 27% Internet only 24% Internet/Store 18% Internet/Catalog 3% Other Cross-section of B2C products and services 33% Apparel 30% Home & Garden/Home Improvement/ Tools/Appliances/Furniture 23% Accessories/Shoes/Luggage/Jewelry 17% Sporting Goods/Outdoor Gear 16% Gifting/Greeting Cards/Food & Wine 13% Health & Beauty 12% Toys/Kids 10% Books/Music/Video 9% Consumer Electronics 7% Pets 5% Computer Hardware/Software/Peripherals 8th Annual e-tailing group Merchant Survey
Merchant Survey Topline Findings • Despite the lagging economy e-commerce is showing more resilience than other channels; 66% anticipate ‘09 Internet revenues to increase over ’08 as this channel continues to see growth • Ecommerce core to multi-channel success where senior management satisfaction is waning while pressure rests on ecommerce channel performance more than ever before • Profitability means scrutiny on both achieving desired revenue goals while being diligent in cost savings • Merchants are challenged to get customers to convert where conversion numbers are being tested and other engagement metrics are being considered in the broader context of multi-channel shopping • Resources are stretched and budgets cut where ROI mentality prevails • Testing is central to understanding what works in this climate where analytics and performance data underlay decision-making • Targeting and segmentation are the order of the day onsite and particularly via email where merchants ratchet up efforts from personalized email to triggered email including abandonment efforts • Optimization is important and in order to get optimization you may need to replatform while others will get optimization with built-ons
34% report a flat or downward trend in their e-commerce business; though this channel continues to see growth as 66% anticipate ‘09 Internet revenues to increase over ’08 8th Annual e-tailing group Merchant Survey
eCommerce value to core business growth ensures that in ‘09, despite the current economic climate, 70% of those surveyed intend to invest the same or somewhat more in e-commerce than they did in ‘08 8th Annual e-tailing group Merchant Survey
I. Resource Allocation Review To exceed consumer expectations independent retailers must meet ever greater demands with limited resources
Demands of ecommerce are not sufficiently met with the right resources particularly in these cash-strapped times 8th Annual e-tailing group Merchant Survey
Merchants look to find the right model “We are implementing a new e-commerce platform because we are held back right now by having to develop everything in house; it is time to put control in the hands of the marketers and merchandisers on our team.” Is our time best spent on the nuts and bolts of my business or on merchandising and marketing to create differentiation? I need to run my business not my site. What is the fastest road to profitability—I need to minimize cost of infrastructure yet maximize ROI where internal pressure to perform grows daily? Do I have the resources to compete in my category? With capital expenditures tightly controlled am I better off to take a more flexible approach to driving my e-business? Global selling is intrinsic to our brand and the overall success of our business Time to market is more important than ever before so it is essential that we be able to quickly test and deploy promotions to meet the needs of the changing retail climate 14
44% merchants plan to change e-commerce platforms within 3 years due to inadequate functionality (55%) and inadequate systems (40%) along with outgrowing existing platforms (50%) 8th Annual e-tailing group Merchant Survey
II. Global Branding Today many brands are universally known while others hope to extend their reach beyond our borders to tap into international opportunities
Brand translation tops initiatives Putting your best foot forward whether you are a retailer, a manufacturer or both requires consistent and diligent marketing efforts
Coordinated marketing programs across channels are already in place for 67% of merchants as customer expectations and an elevated merchant opportunity to offer a seamless shopping experience drives such efforts 8th Annual e-tailing group Merchant Survey
Execution consistency A brand voice that is delivered seamlessly across channels resonates best with the customer
While 46% of merchants report already being international most are still considering such efforts or have no plans as economic challenges at home may likely take precedence 8th Annual e-tailing group Merchant Survey
Translation takes many forms 15% of EG 100 offer the ability for consumers to shop in another language while international shipping beyond Canada is seen on 34% of sites 4Q08 e-tailing group Mystery Shopping
III. Category-Centric Merchandising A merchant’s assortment must influence the supporting tools and tactics to be competitive online once the basics are in place
Conversion rates in ‘08 appeared to be somewhat lower than in ’07 with consumers likely researching products more including comparison shopping as a result of the economic times 8th Annual e-tailing group Merchant Survey
Merchants find value in a array of features: keyword search (94%), sales and specials (93%), cross-sells (92%), and email as a merchandising vehicle (90%)
Category-centricity starts with an optimized search experience From landing page sorts to customized category treatments this highly utilized area of your site must continually be tweaked for usability and performance
Strategic placement of promotions mandatory From the product page to the cart and post-order communication all locations are fair game for promotional selling
Customers take control via engagement tools and customization 37% of EG100 offer interactive onsite tools while 27% have product configurators and 24% allow personalization of product 4Q08 e-tailing group Mystery Shopping
IV. Confidence-Building Content Merchants are investing heavily in category, product and channel information to deliver a robust and comprehensive consumer experience
Behind targeting, onsite search and site redesigns both content and product enhancement tools are on the list to tackle this year 8th Annual e-tailing group Merchant Survey
Play your value proposition Embrace your assortment and branding to give customers a sense of their true shopping options
Product page content must be robust From a complete product description to targeted recommendations comprehensive content best serves the consumer
Supporting views fill a selling void The right views can seal the sale where all questions about the products are covered
Technology supports selling Showcase product that layers the complete look or shows consumer a better way to visualize their product in use
Videos vault in importance Video adds another dimension as 65% EG100 vs. 45% last year embrace the opportunity to show more 4Q08 e-tailing group Mystery Shopping
V. White Glove Service Customer service differentiation is even more critical in tough economic times as consumers look for risk-free shopping and merchants must deliver
The top-ranking marketing and customer service tactic for retaining customers is exemplary customer service followed by targeted email and streamlined checkout 8th Annual e-tailing group Merchant Survey
Stellar service across the board should be non-negotiable 4Q08 e-tailing group Mystery Shopping
Reinforce service differentiation From the home page to your guarantee make shopping a risk free proposition for your customer
Supply exemplary expertise Translate corporate knowledge via useful onsite tools and communication to elevate customer experience
Incorporate time-saving tools From quick views to express checkouts (some multi-store) shopping simplicity appeals to time-starved shoppers
Take service beyond the call Connect with your customer for both brand building and buying opportunities
Lead with loyalty Remind shoppers of how they can be rewarded in these challenging times 50% of EG100 merchants up from 43% in 2007 have introduced loyalty programs 4Q08 e-tailing group Mystery Shopping
Is the web a workhorse in your business? • Take timely measure of your brand’s ecommerce state assessing your internal resources and where your dollars and investment can make the biggest ROI impact • Tackle the basics and then elevate the customer experience with category-centric tools • Total content requirements must be delivered from a category, product and channel point of view • Test new tactics periodically to enhance the site’s merchandising • Target unique customer segments with distinct experiences that support their needs • Take advantage of every opportunity to deliver exemplary customer service • Think global for greater customer reach
Contact Information • Lauren Freedman • President, • the e-tailing group, inc. • 1444 W Altgeld Street • Chicago, IL 60614 • 773-975-7280 • lf@e-tailing.com • www.e-tailing.com
Active Merchandising™Tailored Customer Experiences, Total Control, Strategic SellingAdam ForrestProduct Marketing ManagerDemandware
Merchant Survey Topline Findings • Despite the lagging economy e-commerce is showing more resilience than other channels; 66% anticipate ‘09 Internet revenues to increase over ’08 as this channel continues to see growth • Ecommerce core to multi-channel success where senior management satisfaction is waning while pressure rests on ecommerce channel performance more than ever before • Profitability means scrutiny on both achieving desired revenue goals while being diligent in cost savings • Merchants are challenged to get customers to convert where conversion numbers are being tested and other engagement metrics are being considered in the broader context of multi-channel shopping • Resources are stretched and budgets cut where ROI mentality prevails • Testing is central to understanding what works in this climate where analytics and performance data underlay decision-making • Targeting and segmentation are the order of the day onsite and particularly via email where merchants ratchet up efforts from personalized email to triggered email including abandonment efforts • Optimization is important and in order to get optimization you may need to replatform while others will get optimization with built-ons
Demandware Active Merchandising™ is Comprised of: Catalog, Pricing, Promotions, Recommendations Smart Search – search relevancy ranking driven by analytics Customer Targeting, Customer Rules Engine, Merchandising Slots Advanced data collection used for merchandising automation Core Merchandising Searchandising Personalized Merchandising Analytics-Driven Merchandising
Demandware Active Merchandising™ Architecture Tags your merchandising pages Store merchandising data in reports Collect Data Trigger rules based on data threshold Closed Loop Manage merchandising rules through unified UI Automate search sort orders and personalize merchandising offers dynamically Fill Slots
Manage All Merchandising with Total ControlCore Merchandising • Leverage a single, task-based user interface to quickly and easily control all merchandising functionality Robust Product Catalog Demandware ‘s comprehensive product catalog functionality includes: category and product definitions, image files, variations, attributes, up-sells, cross-sells, substitutions, product bundles recommendations, product comparison, catalog syndication, import/export and more Flexible Pricing Engine For developing complex pricing strategies that serve multiple geographies Demandware offers: price books, markdowns, tiered pricing, multi-currency (100 types), and quantity discounts (bulk) Industry-Leading Promotions Engine The Demandware promotions engine features rules and restrictions, import/export for multi-channel consistency, and 55 promotion types including: conditional, unconditional, item level, order level, tiered, coupon, shipping, gift with purchase, discounts, and BOGOs