avail intelligence: the store with no walls - online retailer conference sydney sept 2011

AVAIL BEHAVIORAL MERCHANDISING

The store with no walls

E-tailing is different!

E-tailing and Retailing are the same!

Same objective: Sales

What is a successful interaction in retail?

1. A purchase - sales today

What do they have in common? SATISFACTION - ENJOYMENT

2. A repeat customer - sales tomorrow

Where retailing still beats e-tailing

30% prefer shopping on ”high street” over e-tail.

49% think retailers offer better customer care and advice while shopping.

36% says if e-tailers improved, they’d buy more.

What can e-tailers learn from retailers?

QUESTION 1

What are the cornerstones of

traditional "corner shop"

merchandising?

QUESTION 2

How can they be applied

in e-tail merchandising?

Best practices in “traditional retail”

Customer enters

Successful sale!

Observe shopper behavior

Offer advice

Impulse offer at checkout

Offer more items of interest

Learnings for e-tailing: Customer enters – on category page!

Help shopper find most relevant products based on

interest expressed

What may happen “Corner store” learning

Too many choices!

Learnings for e-tailing: Customer enters – on product page!

Help shopper feel they are making “right choices” by

proposing alternatives

What may happen “Corner store” learning

Shopper leaves in search for more

options

Learnings for e-tailing: Customer puts item in basket

What may happen “Corner store” learning

Help shopper discover more products and new categories to

explore while they are in the store

Sales lost to competitors

What may happen “Corner store” learning

Learnings for e-tailing: Customer at the checkout

Help shopper by highlighting relevant specials & items they

may have forgot

High-margin items never sold

Achievements if you get it right!

Evans Cycle •  Doubled relevancy of search results

Avail customer – department store •  Uplift 2011: +13,0 %

Direct Golf •  Average order value: + 10 GBP •  Higher conversion rate •  Increased staff productivity

Avail customer – furniture • Uplift 2011: +18,5 %

What happens when a potential customer is not offered a pleasant experience?

BIG MISTAKE!

Key Takeaways

1.  Did I say anything revolutionary? The dynamics of merchandising apply online and offline

2. Then why are so few retailers applying it? Do it – and adhere to merchandising dynamics

3. The challenge of “recommendations” is not technology, it is the merchandising logic

Do you want to discuss Merchandising?

Please join as at our stand D2 after the presentation.

Thank you for the attention!

Jeremy.Glass@Permission.com.au

Phone: 02 8024 5400 Nicklas.Larsson@Avail.net Mobile: +46 703 13 26 26

HEAD OFFICE Engelbrektsgatan 6, 211 33 Malmo, Sweden

+46-40-121217, info@avail.net

www.avail.net