technology trends in ecommerce 2010 2013
DESCRIPTION
Below is a presentation I prepared whilst working on the digital roadmap for Coles online, the leading eCommerce grocery business in Australia. It provides a snapshot of some of the key trends facing e-tailers over the coming 12-36 months.TRANSCRIPT
Some interes+ng technology trends 2010 – 2013 30 January 2009
Andrew Braun
2
“Internet marke+ng is s+ll in its infancy. Too much aDen+on has been given to digital adver+sing and not enough
to the crea+on of loyal customer rela+onships, which are especially valuable in the “one click” purchasing
environment…The true power of internet marke1ng is the ability to interact to develop superior customer knowledge and real-‐1me rhythm to significantly build one’s business.”
Rick Braddock, Chairman and CEO, FreshDirect
3
(17)
CRM and web analy+cs tools assist us to beDer understand our customers, as we can: Build user profiles, define user segments, market to segments , create micro segments, spend more on micro
segments, which assists us to op+mise our marke+ng spend
4
• Sales funnel reports are one of the most important analy+c reports.
• Sales funnel reports uncover leakage or abandonment in the shopping cart process.
• These reports also highlight how customers are interac+ng with the shopping cart – how they are entering and exi+ng and where they go to next.
• Providing the business with an opportunity to address abandonment issues and increase conversion efficiency.
• Customisable dashboard to highlight key metrics relevant to different audiences. • Alerts can be established to no+fy the user that targets have/have not been met.
On any given page, where are our customers clicking?. Dark red areas = Most
frequently clicked areas
Site Analy1cs tools
5
Which test won? (A/B tes+ng) Var A: Right-‐side Add to Cart 1.9% Click through rate
Var D: Le<-‐side Add to Cart 2.2% Click through rate
Website analy+cs tools + a technology environment that allows for tes+ng
= user centered design = more revenue
Purchases li,ed nearly 16%
TESCO brings business intelligence to more users
Tesco has begun building a new analysis system that allows more users across its operations to work with data warehouse information. The new solution, which is based
on Microstrategy software (which Coles has), will not only be deployed in the head offices but also in the stores. Dedicated dashboards for the outlets will support the store managers with information about their performance.
Tesco has been running a Teradata data warehouse since 1998.
Example real-‐+me dashboard that could be built for COL
7
Searchandising 85% of top 80 e-‐commerce businesses have sor1ng and filtering
capabili1es on search results (8)
8
find-a-bil-i-ty n a. The quality of being locatable or navigable b. The degree to which a particular object is easy to discover or locate c. The degree to which a system or environment supports navigation & retrieval
On the web, and specifically for e-commerce sites, findability means how easy is it for a shopper to find the product they are looking for. (19)
Customers approach purchasing a product on an e-commerce website in one of 3 modes (19):
1. They know exactly what they want - the search box plays the predominant if not exclusive role 2. They have some idea of what they want - Search gets the customer started but navigation using filters is necessary to narrow down the choices to the ones that meet the customer’s needs 3. They have no idea, and are just browsing to see if anything catches their eye - Here a customer is wandering around, department by department, as they would do in a physical store. A good navigational category structure is the best way to provide customers with a clear understanding of what you sell
Make it personal and empowering
9
Home page needs to accommodate all types of users (7), e.g. • Explorer: has purpose in mind, conversion probability low to medium • Hunter: Brand or product in mind, conversion probability medium • Tracker: knows exactly what they want, conversion probability high
Needs based merchandising: microsites and brand bou+ques
10
www.zappos.com
www.ebay.com Hugo Boss brand bouGque
11
A picture (or video) tells a
thousand words
60% of the top 80 e-‐commerce retailers
have advanced picture capabili+es
(e.g. Zoom) and “of those using
alterna+ve images, 49% rated them very effec1ve, while 80%
of retailers planned to make them an
investment priority for the next 12 months.” (18)
12
Amazon: "The product detail page is where all buying traffic is driven. Amazon has amazing systems that focus on moving traffic to the product detail
page so buyers can make a purchase decision. Having the same item sitting in two or three different places (Auctions and zShops) wasn't good for our customers“
Cross-‐sell, up-‐sell
13
8% increase in sales when used on products pages 3% increase when used on order pages 6% increase when used on card pages 15% increase when used in call centre 8% increase when used in EDMs
Shopping cart recommenda+ons is used by 55% of top 80 online retailers (8)
“Recommended products” “You may also like”
“Customers who bought X also bought” “Customers who viewed X also viewed”
“Frequently bought together”
“More from this (category, brand, author, arGst)”
“you are $X away from free shipping”
14
Let the content BE the interface, and all interac+ons should fall naturally around it, enabling direct manipula+on or in-‐line naviga+on. A focused UI, especially when an item requires a make complex decision making process or offers many customizable op+ons, can help increase revenues by up to 40%, while shortening the sales cycle by 75%. (20)
Naviga6on only when you need it
15
Watching online
videos on sites like YouTube is
more prevalent
than the use of social
networking sites
(25)
Video in ecommerce
16
click-‐to-‐buy
Shop Direct, the UK’s leading online and home shopping retailer selling a huge range of fashion, footwear, home and leisure products, recently produced and added over 1500 videos onto their
nine eCommerce sites driving double digit conversion increases. Their implementa+on was well integrated and complementary to product imagery.
Convergence of internet and TV
17
GENERAL ONLINE CONSUMER TRENDS
18
Every second counts: consumers will not wait
• Users expect pages to load in under 4 seconds (5) • Google is likely to place page-‐load performance higher in the list of criteria for its ever-‐changing algorithms. (11)
19
20
The largest retailers con+nue to focus on enriching and refining the checkout process (8) with an
es+mated 79% of retailers priori+sing a Checkout process redesign in 2010 (4)
Forrester Research reports that 23% of customers abandon at checkout if they are asked to register.
Google Checkout is a fast, secure checkout process that helps increase sales by bringing you more customers and allowing them to buy from you quickly and easily with a single login.
21
Ebay core value proposi+on is TRUST (7) • Trus+ng sellers and buyers • Trus+ng product informa+on is accurate and clear • Trus+ng they have a resource if something goes wrong
User Generated Content (ra+ngs/reviews, ask & answer, stories, blogs, tweets) aids TRUST (7)
80% of reviews are +ive, with avg. ra+ng is 4.3 out 5 Drives more sales
176% increase in conversions for top rated categories 36% increase in AOV for those that sorted by ra+ngs 42% increase conversion for EDMs Percent who share experiences directly with company went down, while percent who share via social network doubled (9)
Product ra+ng & reviews is offered by 59% of the top 80 e-‐commerce businesses (8)
22 Source: hDp://www.slashfood.com/2009/03/20/do-‐you-‐use-‐a-‐recipe-‐when-‐making-‐dinner/ More comments at: hDp://www.epicurious.com/ar+clesguides/blogs/editor/2009/03/dinner-‐without.html#more
Recipe websites and blogs take off..
23
However, research shows that when making dinner we usually just wing it (21)
Only four out of 10 people who regularly prepare their households' meals use a recipe at least once a week, according to the NPD Group, which surveyed 3,000 adults as part of its Kitchen Audit.
In a year's time, 90 percent of people will make a dish using a recipe…and a cookbook that's been in the home at least two years will be our main source.
24
(24)
General merchandise…where should we focus?
2008
2005
In the past 3 months, what items have you purchased on the internet? (24)
25
MOBILE INTERNET
26
Don’t just think iphone, think PHONE
65% have access to a 3G network
(26)
27
Mobile commerce More than 70 million people in the US will access the Internet
from their mobile phones in 2009. So it’s no surprise that retailers
such as 1-‐800-‐FLOWERS, Amazon, Ralph Lauren, Sears and toys-‐R-‐Us have launched mobile commerce programs so they can be where
their customers are.
28
“The always-‐on, always-‐with-‐you nature of mobile phones will allow them to become the connecGve Gssue that unlocks the fundamental power of personalizaGon in retail, linking together online, in-‐store, Federated IdenGty, purchase history and social media interacGon all within one plaWorm.”(22)
29
30
“Our head of Social Media is the customer” – McDonald’s
hDp://www.youtube.com/watch?v=ypmfs3z8esI Click to play:
31
331,000 fans! Fastest growing brand Facebook
site ever
Specials, events, vo+ng, links to their website, coupons + more
32
Psst…email is the s+ll largest social media plaworm
Gen Y respondents:
hDp://blog.socialtwist.com/tellafriend/social-‐media-‐sharing-‐trends-‐2009
33
Social Media
“It is especially important for leading brands to become proficient in social media – they o<en have the most to gain and the most to lose based on what is being said online…leading brands must think hard about scaling their ability to monitor feedback and to let consumers know the are ‘being heard’” (15)
34
Social media is not just a marke1ng tool
hDp://offthewall.resource.com/
35
API = Access to Partners/Programmers Instantly
Currently more than 100,000 apps officially available from the App Store
"We know of at least 70 different ways of shopping online, but we've reached the point where we can't afford the +me,
resources or support to create 70 different apps," says Nick Lansley, head of R&D at tesco.com. "So we've turned the issue on its head: rather than support them all, we have created a founda+on layer -‐ an API -‐ that lets third-‐party developers create great apps that do a par+cular job very
well.“
Facebook, TwiDer, Amazon, eBay, Bewair, Google and 7Digital are just a few to have embraced openness, and all have seen
their businesses expand in unexpected and profitable direc+ons.
hDp://www.revolu+onmagazine.com/news/947967/open-‐source-‐answer/
36
search
Search con+nues to dominate
Google keeps adding more op+ons
37
Google can serve highly targeted ads that include richer product informa+on directly in the ad itself -‐ including product image, price, and merchant name.
Users are becoming more specific in searching search terms with more than 1 keywords are increasing in all categories. The cost of sale drops by up to 50% when moving SEM campaigns to ‘exact’ match, rather than generic terms. (7)
38
References 1. Ecommerce book 2. hDp://www.ausfoodnews.com.au/2009/11/09/changes-‐in-‐grocery-‐shopping-‐trends-‐see-‐more-‐purchase-‐decisions-‐made-‐at-‐
home-‐2.html 3. Survey on users of ecommerce websites – iPercep+ons, re+al/E-‐commerce industry report Q2 2008 (Oct 2009) 4. July 09, shop.org, a leading digital retail industry body 5. Forrester Research June 2009; for the full ar+cle refer: hDp://www.getelas+c.com/site-‐performance/ and the webinar at:
hDp://www.elas+cpath.com/webinars/performance/ 6. Coles online Debrief (from focus groups), 11 August 2009, Blaze 7. Keynote speakers, E-‐Retailer conference, Sydney August 2009 8. DeloiDe’s 2009 Online Retail Business Capability Assessment (n=80 leading online retailers) 9. 2009 Survey of Online Consumer Behaviour, Harris Interac+ve, Aug 2009 (n = 2188) 10. Forrester, Growth of Social Technology Adop+on, Oct 2008 11. hDp://www.marke+ngvox.com/comscore-‐puts-‐page-‐load-‐+me-‐under-‐microscope-‐045533/?
utm_campaign=newsleDer&utm_source=mv&utm_medium=textlink 12. A look at the leading trends for next year -‐
hDp://www.ausfoodnews.com.au/2009/11/18/a-‐look-‐at-‐the-‐leading-‐trends-‐for-‐next-‐year.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+AustralianFoodNews+%28Australian+Food+News%29
13. Usability One – User needs focus groups 15/7/08 14. Usability One – Online survey 18/8/08 15. Building Great Brands in the Digital Age, Nielsen 2009 16. COL Research: Online grocery Shopping – Key research findings from online survey, May 2009 17. Online Commerce in 2009: The Game has changes – have retailers? Retail Systems Research (n=71 leading online retailers) 18. The State Of Retailing Online 2008: Merchandising And Web Op+miza+on Report, a Shop.org study conducted by Forrester Research,
August 2008 19. Evalua+ng Findability (source: hDp://findwaD.com/findability/evalua+ng-‐findability) 20. Product Selec+on and Discovery: What You Can Learn From the Telco Industry, hDp://www.getelas+c.com/telco-‐product-‐discovery/ 21. NPD Research, Sept 2009 22. Razorfish Digital Outlook 2009 23. hDp://www.emarketer.com/Reports/All/Emarketer_2000606.aspx 24. Neilsen Global Online Shopping Report, Feb 2008 25. Pew Internet & Americal life project survery Mar 2009 n = 1667 26. Australian Interac+ve Media Industry Associa+on, Mobile Industry Group, 5th Edi+on – Special Topic: Mobile Commerce September
2009, Australian Mobile Phone Lifestyle Index, n = 3710 27. hDp://marketshare.hitslink.com/mobile-‐phones.aspx?qprid=55&sample=31