Merchandising
9 Ecommerce Innovations Worth Testing On Your Own Site
Ever wonder how often other people return an item you want to buy online?
Honestly, it never occurred to me before, but now that I’ve seen Shoeline.com’s Return-O-Meter™, I wish other online retailers would borrow the idea (especially since I’ve learned it’s actually lowered returns and raised Shoeline’s conversion rate).
If you own or are in charge of a marketing budget for an e-commerce shop, you should take a close look at the latest webinar from the good people at Elastic Path Software.
In “9 Ecommerce Innovations: What’s Now & What’s Next,” Elastic Path co-founder Jason Billingsley showcases the latest e-tail trends in these hot categories:
- Video
- Customer Service
- Real World Guided Selling
- Multi-store Retail
- Navigation
- Merchandising
- Social Shopping
- Loyalty
(If you need to bookmark the webinar for now, check out Linda’s recap at Get Elastic.)
OK. Now that you’re about to have a bunch of new ideas for cool features to add to your site, let’s not get carried away just yet. What works for Amazon, NetShops, Shoeline, Zappos, Martin + Osa, Borders.com, Endless.com, American Eagle, Shopatron.com, Backcountry.com, Knicker Picker, Vitamin Global, WineLibrary.com, and Shoeline . . . [deep breath] . . . may not work for you — which is exactly why strategy must come before tactics. Always.
How will you know if these innovations will add value to your visitors’ online shopping experience? Well, if the change you want isn’t too expensive to implement — and if it’s not overly disruptive to your current business model — try it out by running a split test.*
. .
*Split testing is the only way to know whether your site’s new features are A) worth keeping, or B) setting off the Return-O-Meter™. Don’t know where to begin? Join us on Wednesday, July 9th for the first installment of “Always Be Testing,” our free monthly webinar series, co produced by FutureNow and the Google Website Optimizer team.
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Written by:Robert Gorell
When Should You Start Making More Money? (Not Ready?)
Every time you design a new landing page, add a new product to your website, add keywords to your campaign, rewrite a pay-per-click (PPC) ad, craft an email campaign, or redesign your website, you are making assumptions about how your visitors will react.
Such was the case when I sat next to Jeff Smith, Director, Interactive Marketing & eBusiness for the Hudson Bay Company at the CMA Geek dinner (courtesy of my friend Mitch Joel) in Toronto last week.
Jeff was telling me all about his efforts to relaunch his company’s websites this past weekend. Of course, my conversation went to customer experience, analytics, optimization and testing. For numerous reasons, Jeff didn’t really have any analytics for the old site, so he was figuring it would make sense to launch the new site — with its vastly improved customer experience — and wait six months to collect data before even considering any testing. His approach is not all too uncommon.
Let me make this clear: Jeff and his team are top notch. These are just the realities of online retail; it’s difficult, and sometime more so in a company that has such a long retail tradition as HBC.
Jeff and his team made assumptions about new technologies, features and layout for every page of their website. Some of these assumptions were explicit (launching customer reviews with Bazaarvoice would improve the experience and conversion rates) and some implicit (we’ll talk about that below). Some I am sure would be validated right after launch. Others would require testing.
Right there on the table I had Jeff draw the product page layout they had developed. (Well, it was on a piece of paper on top of the table cloth, but you get the point.) Jeff and his team had made the decision that product images would be on the right side of the page. One of the other retailers at the table said theirs was on the left side. So I asked Jeff, “How do you know it won’t cost you a million dollars during the next six months by having your product image on the right-hand side?”
While it might be easier for readability to have it on the right-hand side of the page, the majority of retailers have the product image to the left of the copy. I could see the agita stirring right there (and it wasn’t the Italian food we just ate). “You made an assumption that your product page would work better this way during the design process,” I said, “and you know what happens when you assume. Why not take it to the court of last resorts, the folks who vote with their dollars — your website visitors — and test it?”
I know how smart Jeff is, but do his bosses appreciate everything he brought to the table? He doesn’t have analytics showing lots of benchmark data, but testing would let him prove the assumptions and, most importantly, continuously improve the website. He could then show his organization the value provided by testing his assumptions, learn from both the successes and failures, and focus on improving the experience by adopting a culture of “Always Be Testing.”
I only gave Jeff one or two simple test ideas because I didn’t have the sites in front of me, but they are now live. You can check them out and feel free to offer suggestions in the comments below for things you think Jeff should test or things you’d would like to test if you could:
TheBay.com
1. department page
2. product information page
Zellers.com
1. department page
2. product information page
HomeOutfitters.com
1. department page
2. product information page
When would you like to prove how smart you are and make more money with your website?
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Written by:Bryan Eisenberg
That’s My Amazon Kindle, But Those Aren’t My Hands
I’m not known for being a detail person. I’m not the type of woman who can tell you where we had our first date, what you were wearing, or what we ate, but I can tell you whether we had a good time. But when it comes to marketing to women, I’m starting to notice everything.
It usually starts with a feeling that something’s not right. That’s what happened when I kept seeing banner ads for Amazon’s new reading device, Kindle.
When I looked closer, I realized the problem - this is a first-person view, but those aren’t my hands. They’re very nice hands, but they’re a man’s hands. I thought I was being pretty nitpicky here, but it still bothered me that those weren’t my hands. So imagine my surprise when I went to Amazon to do a little holiday shopping and there it was: My personalized homepage with an ad for the Kindle. But this time… Those ARE my hands! (Well, not my hands, exactly, but a woman’s hands nonetheless.)
I wonder, does Amazon change the Kindle ad on your homepage based on whether your name indicates you’re a man or a woman? I don’t know. Anyone else have an Amazon homepage? Is the Kindle held by a man’s hands or a woman’s?
I was so impressed to see my own hands holding the device, I actually clicked through to read more about it. It looks pretty cool. But I had one big question: “Can you adjust the text size?” I can’t see. Really. It’s a problem. I sometimes won’t buy a book if the text size is too small, and it’s not like you can adjust the text size on a book. I didn’t end up seeing any information on the product page about adjustable text size until I scrolled way down to the bottom. Finally, I saw that, yes, you can indeed adjust text size on the Kindle.
Amazon, you’re doing a lot of things right here — (as of today, Kindles are sold out, so check back with Amazon for updates) — but if I could make one suggestion: Make the adjustable text size a main selling benefit and have it in a large, bold font. For those of us with poor eyesight, this could be the main reason for buying the gadget.
It’s sort of ironic, but the Kindle page should be a lesson to all of us. Showing benefits right away is a must, and readability matters — especially when “readability” is the main selling point for some people. Behavioral and demographic targeting is one thing, but the experience falls flat without persuasive copy.
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Written by:Holly Buchanan
Discounting Your Discounts in Customers’ Minds
For Sale! Prices Slashed!! Marked Down!!!
People have used many of the same tactics for centuries to focus potential customers on the value they’d receive if they were to buy now. But here is a question for you:
Would your customers rather a product be marked down from $203 to $192, or would they prefer a markdown from $199 to $188?
Either way you slice it, they get an $11 price reduction. For you, it changes your final price from $188 to $192. Four dollars more for you sounds better and, believe it or not, customers perceive they’re getting a larger discount at the $192 price point. This is definitely an area that many more retailers need to test regularly.
A recent Journal of Consumer Research paper examined the notion that responses to pricing differs based on the right-hand digits in sale price figures. In fact, participants reacted as though low digits were farther apart than higher ones as well as they were about 20 percent more likely to actually buy.
Are you slashing prices so low that it is “insane“? Are you not getting the best possible effect from your discounting? Do something about it.
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Written by:Bryan Eisenberg
Carrots Worth Their Weight In Gold
Sometimes, it isn’t the carrot on the end of a stick that persuades a customer, it’s the direction that carrot is swinging.
Awhile back, I found myself in the middle of a conference call with the CEO of a young Internet company, in preparation for a consumer research project we were about to launch. The company, a west coast-based service firm, allows customers to securely file emergency contact information and medical files online for an entire family (pets included). Backed by a 24/7 call center, the business is a slam-dunk in giving caretakers peace of mind should any emergency arise.
Our initial work for the company had been to help create more compelling content for their website, with the goal of converting more visitors into customers. At the time of our conference call, web stats showed that while a percentage of people were following the content all the way through to the sign-up page, they bailed out before actually signing on to the service. The CEO was flummoxed.
As we sat there talking, I kept flipping back and forth between the homepage and the sign-up page. Suddenly, it hit me: they were saying the right thing, but not the right way.
CEO: “I don’t get it. Our service costs less than $35 a year, yet the process comes to a screeching halt when visitors have to sign up. What’s the hang-up?”
MM: “Well, your service is still a fairly new business model and perhaps with all you’re promising, it seems too good to be true. Have you thought about offering a free trial?”
CEO: “We do… you can see it on the sign-up page. We give two months for free.”
MM: “That’s great. So, why aren’t you advertising this on your homepage? Surely there are those folks who are a bit more impulsive and will want to check it out right away.”
CEO: “You’re right. We’ll get on that, first thing. Where do you think we should put the info about the $4.95 handling fee?”
You can see where this is going, right? My client was making two common yet potentially dangerous marketing mistakes. Mistakes that are easy to make, yet simple to rectify:
1.) Dangle the Carrot Right in Front of Their Nose
With an Internet business that is appealing-yet-unfamiliar to the consumer, this company needs to work a little harder to convince people it’s worth their time and money to buy the service. The company does offer an option to break through the price-resistance barrier, but they hadn’t thought of placing it on the most important page for price-conscious visitors: the homepage. By creating a graphic on the homepage that links to a detailed offer, the company will see an immediate increase in sign-up; customers looking for an easy way to dip their toe in the water can try the product without obligation. And the company now has a customer’s information to not only follow-up and sell a yearly subscription, but conduct ongoing consumer research directly with users of the service.
2.) Swing the Carrot to Make It Irresistible
Then there is the matter of that $4.95 handling fee. In a world where individuals are barraged with advertising and special offers everyday, consumers are highly sensitized to hidden fees and obligations. The customer’s first reaction to a “free trial” with a $4.95 handling fee is going to be, “Free, my foot!” Hyped advertising or offers with strings attached, either intentional or unintentional, will often do more harm than good. In the case of my client, I recommended either offering a “two month trial for $4.95” or, better yet, removing the handling fee entirely, depending on what their marketing budget can handle.
Honest, informative and persuasive copy is the key to convincing customers to take action. If you’re the person responsible for marketing your business, it’s easy to fall into the trap of “being stuck inside the bottle,” hindered by tunnel vision without being able to objectively view your marketing campaign. What can you do?
Well, for starters, share your strategy, message and copy with a small group of colleagues that can be trusted with giving you objective feedback. If they support you, they’ll work hard to look for holes in your message and make suggestions for developing an airtight strategy. Take what you learn from your support system to create a powerful, honest message that comes from your heart and resonates with consumers, convincing them to do business with you. Finally, don’t expect your message to be perfect the first time around – the most successful marketers constantly tweak and develop their marketing strategy with research and feedback from customers.
Spend some time with your advertising, website and peripheral marketing materials. Does the most important part of your message reveal itself in all the right places? And what is it you’re actually saying to customers… is it really what you meant to say? Only when you take the time to carefully develop and place your message will you have a carrot worth biting into.
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Written by:Michele Miller
Ten E-Business Proverbs for 2006, Part 1
2005 was a great year for e-business.
Goldman, Sachs & Co., Nielsen//NetRatings, and Harris Interactive Inc. reported online sales grew 30 percent year over year this holiday season. That’s great news. If you were one of the businesses that experienced this level of growth (or better), your online business should get lots more attention in 2006. On the downside, you’ll be challenged to hit some lofty growth goals.
A few weeks ago, I shared some thoughts and advice on what you should work on in 2006. This week, I want to share some profound wisdom from my friend Sam Decker, former e-commerce and customer-centricity leader at Dell. Decker recently joined Bazaarvoice, a new company providing managed technology and services to bring word of mouth closer to a company’s online experience (it’s still in stealth mode, and, in full disclosure, I’m an advisor to the company).
Bottom line: when it comes to online success, Decker knows what he’s talking about. He spent seven years at Dell, four of them leading the consumer site, Dell.com, to double conversion annually in the midst of a struggling PC industry and online sales slowdown after the dot-com crash. By 2003, Dell’s consumer online sales reached $3.5 billion, making it the largest e-commerce site (according to comScore).
For several years, I’ve tapped Decker’s expertise and shared his advice in this column as well as my recent book, “Call to Action.” I asked him to reflect on his 13 years of online experience and share his top 10 principles for lasting e-business success. Like orange juice concentrate, below I’ve attempted to squeeze in as much of Decker’s great ideas on e-business strategy, operations, metrics, and merchandising:
Continue reading my column at ClickZ…
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Written by:Bryan Eisenberg
Grading the Gap.com Redesign
The e-tailing community is humming with talk about the new effort at the Gap.com. Gap’s aggressive stance on improving its customer experience is a delight to watch. Its goal to cut down clicks and make online shopping even easier has been the focus of a $10 million redesign. A recent “New York Times” article chronicles the experience:
When women browse Gap.com’s T-shirt section, they do not have to click to a new page to see details about the 16 shirts shown on each page. Rather, when they put the cursor over an item (called “mousing over” in industry parlance), they are invited to click on a “quick look” link for the shirt. That link yields a pop-up window that shows a model wearing the shirt alongside swatches of the colors it is available in. Mouse over any swatch, and the shirt takes on its hue — and the window tells you what sizes are in stock.
When a shopper clicks “add to bag” from within that window, the site does not shuttle her to a checkout page, as many electronic retailers do. Instead, another small window replaces the previous one, showing the shopping bag and asking her to consider multi-item discounts. If she ignores that window or clicks the “close” button, it disappears and she continues browsing shirts from the original page.
From a technology and usability perspective, the new Gap.com product interface is leaps ahead. The use of AJAX (define) is impressive. The site developers should be proud; this interface will be the envy of many.
The site was down over the past few weeks for the upgrade. PR from that, however, might be helping rather than hurting. Whether or not this was by design, it’s successfully working many up into a frenzy.
The redesigned site will certainly spike sales in the short term. But if Gap really wants to maximize this opportunity, I have a few tips.
Continue reading my column over at ClickZ…
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Written by:Bryan Eisenberg
