27 June 2012

Customer segments as channels Tailored Content and Sites Steve Emecz [Powa] Mark Turner [Locayta]

Agenda

!   Multi-channel, online

!   The customer segment as the channel

!   Tailored content

!   The International Opportunity

!   Tailored sites

!   Combining tailored sites and tailored content

!   Summary

Mutlichannel - online

Most retailers already operate multiple channels online:

- Own website

- eBay

- Amazon Marketplace

- Play.com

Etc.

and most tailor the content (perhaps only price) to these channels.

Today we’re going to focus on how leading retailers are creating multiple online channels on their own sites by tailoring content to customer segments.

The customer segment as the channel

“If you increase the level of appropriateness of a product to a customer segment , you will increase conversion”.

This could be:

Gender

Geolocation

Buyer profile

etc.

This can be done by manipulating the products on your website or by creating a channel specific site – or both.

Tailoring content to the customer segment…..

Segmenting by customer profile: Premium Shoppers Office Workers Shop during the day Value Shoppers Students Shop in the evening Boohoo has two very distinct customer segments, premium shoppers and value shoppers. By treating them as separate channels Boohoo is able to optimise product presentation to both groups. Premium shoppers are looking for the latest releases and are comfortable at a higher price point. Value shoppers are looking for a blend of what is popular, lower price point and any sale items.

Case Study - Boohoo

Boohoo merchandisers sequence products automatically with a blend of metrics suitable for a premium shopper; Popularity Price Newness

Case Study – Boohoo

Then the metrics suitable for a value shopper; Popularity High stock Low Price Clearance

Case Study - Boohoo

!   As the two segments tend to shop at different times of the day, the business rules are set to automatically change.

!   Boohoo value shoppers tend to be students and typically shop in the evening.

!   Boohoo premium shoppers tend to be office workers who like to shop during the lunch break.

!   In this example the time of the day is the trigger. !   For other retailers it might not be so easy! !   You may want to use the search term they used on Google to

reach your site as a trigger or perhaps they are a returning customer with cookie data…

!   The end result is a significant improvement to conversion rates and increased online revenues.

Creating a specific site for a customer segment……

Case Study – Stewart Golf

Very successful site, but feedback from customers was that the site was quite gadget orientated.

MODA golf site created specifically for female golfers – similar template, fashion orientated content.

The International Opportunity

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50

100

150

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250 Regions €bn 2011

•  Europe bypasses US market •  Europe growing faster than the

UK and US •  Asia Pacific up 35% •  Emerging markets up 45% •  50% of online shoppers have

bought from sites outside their own country

Source :IMRG

The International Dilemma

International customers however need tailored elements to ensure the best conversion:

1.  Language

2.  Currency

3.  Delivery Options

4.  URLs

To maximise conversion, each country needs its own site.

Impact on Conversion

Lets measure the potential impact on conversion of not tailoring for international:

Language 75%*

Delivery Options 50%+

Currency 50%+

Local URL 10%+

However, international expansion is complex, expensive and takes a long time, doesn’t it?

* Translations.com

Cloggs Case Study - 8 Countries in 8 Weeks

The initial wave of international sites in eight weeks included Sweden, Austria and six other European countries

!  Common, image rich design template

!  Each site delivered into the local Google as a local site though Powa’s cloud platform

Cloggs Case Study - 8 Countries in 8 Weeks

!   Language

!   Currency

!   Delivery Options

!   URL (e.g. cloggs.it )

!   Guided Navigation

!   Search

all localised.

At latest count now up to 19 countries including emerging markets such as Austral ia, Brazi l , Singapore and Hong Kong.

Combining Tailored Sites AND Content

!   Cloggs Outlet – site targeted to specific ‘value shopper’ customer segment

!   Locayta implemented to maximise merchandising

Combining Tailored Sites AND Content

As an outlet site, real-time stock check on the merchandising business rules is vital as naturally clearance items can have limited stock.

As all Cloggs items have sizing, it is even more important that the stock check filters the size.

The fastest large scale eCommerce site ROI in UK history? 36 hours…….

Summary

!   Tailoring content on your eCommerce site to specific customer channels increases sales

!   Tailoring eCommerce sites to specific customers also increases sales

!   Combining the two can have stunning results

Brands tailoring this summer include…

mturner@locayta.com steveemecz@powa.com

Weekly eCommerce expansion webinars

www.powa.com/expansion