Etailing Merchant Rules Part 1

8/8/2019 Etailing Merchant Rules Part 1

http://slidepdf.com/reader/full/etailing-merchant-rules-part-1 1/16

Part I

the role of he Online Mechn

A Delicate Balancing Act

Proprietary research conducted

y the e-tailing group

Sponsored by ATG

THE MERCHANT RULES

By Lauren Freedman

the e-tailing group



INTRODUCTION

I am a merchant at heart so the e-tailing group was built on the premise that merchandising mattered

and would have an important inuence on selling across any channel. In 2001, I authored a book

entitled, It’s Just Shopping. Now, almost 10 years later, my clients and I continue to invoke that

phrase when discussing ecommerce and the many new customer touch points available through

mobile devices and social channels. There were times when I wondered if the art of merchandisingwas a phenomenon of old school retailing.

ATG has been wonderful to me over the years and sponsorship of this white paper has truly

bestowed a topic that is near and dear to me. In order to validate my own merchandising theories,

I once again reached out to the merchant community; speaking to 25 merchants across the retail

landscape. There were several goals that factored into individual selections but one integral

objective was to talk to seasoned merchants who had come from traditional merchandising roles

and subsequently migrated into ecommerce environments. It was this perspective that gave me

the clearest understanding of their evolved roles. Additionally, I sought to explore how a company’s

channel composition impacts their merchandising direction so both multi-channel and pure-play

interviews were conducted. Lastly, a look at both manufacturers and traditional retailers addressed

the disparate goals that may be in play from an engagement versus a direct selling perspective as

more manufacturers pursue direct-to-consumer strategies.

As shopping is now available 24x7, the customer has clearly evolved too. With the immediacy

and urgent nature of ecommerce reaching a frenetic pace, merchants are challenged to deliver a

consistent and compelling experience; serving as the brand steward in all available and emerging

channels. There is clearly pressure on the merchant to embrace these opportunities though discerning

the how, what, where, and why it is essential to optimize performance and stay on course. The

Merchant Rules will be divided into three distinct parts, connected through the premise that when

merchants rule “merchandising is optimized across all channels for a compelling and customer-centric

cross-channel experience.” Here is what each part will cover:

Part I. The Role of the Online Merchant—A Delicate Balancing Act

Part II. The Evolving Customer Experience

Part III. Optimizing Emerging and Cross-Channel Opportunities

Yet, throughout ecommerce advancements, escalation of the customer

experience, and accessibility of new channels, the role of the merchant

has remained consistent while evolving to embrace the changing web.

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To begin, I will put a stake in the ground regarding the deitio of oie meadisi and how

merchants distinguish themselves from their marketing counterparts. From there, I will dive into

a discussion of the merchant’s role including the marriage of the art and science given today’s

diverse dynamics. The deluge of data will be a central topic as will the growing need to creatively

interpret that data in the context of trend and brand where being a seasoned merchant has its

advantages. As one merchant suggested, “A good idea can go a long way despite the misinterpreta-

tion of the data.”

The science of selling has grown and many tools are currently at the merchant’s disposal from

analytics to anecdotes gleaned through customer surveys where interpretation again becomes

central to optimization. I can only conclude that strong execution of desired merchandising initiatives

will be a combination of the right idea that is well received within one’s organization, then accomplished

via automation to engage a customer and elicit a purchase.

The second component of this white paper centers on the customer experience. Over the last ve

years the industry has witnessed signicant change in support of rich customer experiences. A

discussion of what denes “rich” starts with an understanding of today’s customers and insights

into how well we really do know our customers versus times when face-to-face interactions were

standard in-store fare.

Ultimately, all retailers must be vigilant in their determination to attain parity and differentiation

in a world that evolves in exponential terms. Merchants charged with delivering channel appropriate

merchandising must harness information to inform their thinking and deliver rich shopper experiences

available for selling in a 24x7 customer-driven world.

The third aspect of this white paper embraces the new selling platforms from mobile to social and

what role these new frontiers play for merchandisers. Of course the store’s role and implications

for cross-channel selling are being presented in ways never seen before so a merchant’s radar

must be in tune to this changing climate.

The need to surprise and delight the customer has not changed, though

convenience and accessibility coupled with comprehensive product and

category information serve as virtual salespeople.

Implications are endless for savvy merchants to optimize results for one’s brand,

one’s business and most importantly to wow one’s customers.

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PART I

THE ROLE OF THE ONLINE MERCHANT—A DELICATE BALANCING ACT

Deitio ad State of Oie Meadisi

Classical interpretations were plentiful when I asked “How do you dene online merchandising?”

Initial reactions suggested that it was quite similar or almost the same as ofine merchandising

with the merchandiser today simply working harder and differently than in the past.

Two key differences cited by multiple individuals were the immediacy factor and need to be nimble.

Working under compressed timelines changes the game where optimization of the brand and the

overall business is the desired goal. An expectation of serving up the fresh and new is fundamental

for cross-channel success. One merchant reminisced, “In the old days I managed our brand’s

downtown store; we’d set the oor at lunch and watch the customers buy while planning for the

catalog was always 6-9 months out. Online we see trends immediately and can react to them. We

dreamed in the past about wanting to know how customers shopped or at what rate they might

convert; we now have those answers and tools to assess these and other questions.”

Knowing what to do with this information and wondering if and how shoppers will follow suit are

the immediate challenges. Virtual merchandising strategies can be created to run as long or short

as desired with endless options so Minding the Store, as Stanley Marcus titled his 1974 classic, is

a more complex undertaking.

Meeting Financial Benchmars

Many referenced the basics - it is about selling product while meeting preset sales and margin

goals, implying that being nancially astute is still essential to properly promote the right product

at the right price. Merchants buy for target audiences, aggregating experiences to a focused productpoint-of-view. From there choices of positioning are made to best showcase the merchandise

including associated product recommendations. Marketing works hand-in-hand to drive trafc via

onsite and offsite banners with SEM and SEO contributing toward success. Online retailers must

be cognizant of from where the customer is coming as one’s orientation via an enthusiast blog

post will be different than a visitor who came via SlickDeals and the merchandising and messaging

should reect that entry point.

Anything is possible at any given time so while the principles online are

not different from ofine, the methodology and speed with which they are

implemented is exhilarating.

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Branding

There is a sweet-spot where being a retail merchant and a brand ambassador must meet. Contrary

to what is required in the catalog world or oor setting at retail, the web is a convergence of both

of these elements. Merchants need to convey an on-point experience that makes the customer feel

like there’s a brand presence where frequency of change is an online reality. Along these lines, one

furniture retailer emphasized their desire to incorporate the voice of the brand’s design associate

into the website, nding that related comprehensive information facilitates customer decision- making while still humanizing the web experience.

Procurement and Forecasting

Product procurement, selecting vendors, and product development along with managing inventory

have remained core to every merchant’s job though twists based on unique scenarios can shed

perspective. Interesting discussions centered on how web merchandising supports the ofine

business; often a factor of joint inventory. One footwear company explained they don’t own or

have total control of inventory. Contrary to that model, a veteran merchandiser reected that the

merchant’s role is easier today as few companies separate their inventory by channels any more.

In the past the web was seen as an alternative market and this is no longer the case. Another

reinforced the role of accurately forecasting for the web channel as an important part of the job

description.

More Meaningful Assortments

Retailers are under pressure to drive and grow their businesses. The web has allowed merchants

to make a choice about whether to maintain an edited assortment, be consistent across channels,

grow assortments exponentially or merely meaningfully expand to further support customer needs.

Aware that there is more to sell than what is in the warehouse, they seek greater depth and

breadth of category. The challenge, no matter the sku base, centers on how to stay true to one’s

brand while still delivering compelling product to one’s customers.

Although larger assortments and the power of the “long tail” garner the lion’s share of publicity,

not all merchants have chosen to go that route. Those with a rich heritage talked about their

The willingness of manufacturers to drop-ship coupled with improved

service levels allows merchants to more easily extend assortments

without balance-sheet risk.

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assortments remaining true to the brand, providing a reason for customers to come and buy.

Manufacturers, not surprisingly, have set a different course than their retail counterparts where

timing is important and they cannot venture too far ahead. Their obligation is to a brand that

causes sell-through at retail, as it is their dominant revenue-driver.

The nature of today’s cross-channel shopping behavior implies that customers expect at least

parity with the store assortment. Several merchants cited initial trepidation with featuring customor complicated products online but despite those reservations, they have now extended offerings

online to better meet customer expectations.

Diffeetiati To Seetio

Many top retailers once dened their success by products carried that were different than others,

but today it is harder to have exclusive merchandise when nding similar goods is merely a mouse-

click away. With online powerhouses like Amazon and comparison shopping engines, competition

can be erce for commodity products. The old rules of retailing have been turned upside down and

creating brand awareness for these products in an already established market can be daunting.

Additionally as one retailer lamented, the web uniquely exposes assortments much more directly

than the store, where the customer does not always receive the complete picture. Online visitors

can see how rich or thin your assortment might be through competitive shopping, where searching

via attributes may reveal limitations. Through marketplace modeling and simple category extensions,

both online and retail can benet from assortment growth. Furthermore, via kiosks, the store can

enable associates to tap into extended inventory. Fueled by technology, shoppers can be shifted to

a channel with available inventory; ultimately delivering superior customer satisfaction.

General consensus suggests that a larger breadth of assortment is necessary to be competitive

in the online world. Meaningful ranges come in many incarnations with insights from search logs

triggering initial opportunities. From shoes to apparel, merchants are seeing strong results with

outlier sizes moving beyond standard store assortments, yet still working within the connes of

their brand to avoid customer confusion. One multi-channel footwear retailer has evolved their

appeal to a more aspirational customer by adding styles that target a slightly younger audience.

In a different vein, a furniture retailer cited the ability to visualize products in multiple nishes,

something not feasible within retail real estate limitations.

Growth often comes from competitors’ customers, so one must have

both a superior shopping experience and the right search drivers, which

can take time to achieve.

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Others reported monitoring their assortments to ensure that they are intriguing enough for customers

to stay with the brand longer. A brand targeting younger girls has identied product assortment

gaps from a price-point perspective and their challenge is bridging the gap in a timely manner,

given long product lead times.

Web as Testing GroundOne sporting goods retailer has seen private label business grow signicantly online and at retail as

a result of web testing, where they test 144 items online at any given time. Performance has been

strong and these exclusive items now represent 4-5% of their inventory. Feedback to the buying

team from this testing also helps minimize liability to the organization, serving as an excellent

cross-channel barometer.

Another shared their roots in storage and organization where they began with 5,000 products and

have escalated to 24,000. Criteria for product expansion was based on looking for businesses that

interested their female customer demographic. Of course, while products can always be added,

giving them visibility and nding cross-merchandising opportunities is all important, plus dead-on

execution must be in place. One merchant noted that contrary to a retail store where a buyer may

be physically unpacking the rolling racks, new product online does not always nd its way up

front. This is a channel-challenge especially for pure-plays without a range of channels to liquidate

product, but they believe it can be offset with customized reporting.

The baseline role of the merchant still centers around core tasks performed at retail. Changing the

dynamics centers on assortment and an opportunity to grow one’s business. That requires passion

along with an ability to cleverly marry the art and science of selling, as the next section of this

white paper will explore.

Cross-Channel Merchandising—The Passion for Performance

After talking to these seasoned merchants, it is reassuring to know that merchandising functions

are not simply automated, as I rmly believe that you just cannot strip away the passion and drive

of a great merchant.

Where an eye for what type of merchandise is right for one’s business is a must, taste level goes

without saying plus gut instinct is not to be underestimated. As one interviewee shared,

The perfect merchant is a strong leader who has to be exible and willingto change direction in a heartbeat, constantly adapting to changing rules

of engagement with both the consumer and the marketplace.

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“A merchant is a merchant; either they have it or they don’t because at the end of the day the

goal is the same.” Many a good merchant has made big mistakes and learned from them. You can

certainly make the merchant smarter with data but seasoned veterans often abandon data in defer-

ence to their gut.

One retailer emphasized that today’s merchant should be a “business person with an online lens.”

As interpreter of the data, a creative point-of-view coupled with nancial acumen must be present.

A good merchant is collaborative, working hand-in-hand with marketing counterparts to build the

annual marketing and merchandising promotional calendar. Cross-channel input should be sought

to ensure all voices are heard. Merchants set the direction while marketing nds ways to promote

the brand and product offerings. Some distinguished their roles as merchandising being inside the

.com while marketing is everything pulling customers to it, particularly the trafc. It should also be

noted that when teams are smaller, roles tend to overlap more and a merchandiser’s responsibility

may be broader.

Setimets abot te At of Meadisi

Sentiments about the art of merchandising were often the most interesting for me as they reinforced

the merchant’s value and the special skills they bring to their job. Many of those I talked with

preferred hiring seasoned merchants as their honed skill sets were indispensable, having found that

one can more readily teach someone to understand the reporting and analysis part of the job.

There is a plethora of science available via analytics, but sophisticated product merchandising

demands a logical decision-making thought process and sometimes one must take a leap of faith.

For example, it requires understanding why something sells differently online versus in the store.

Seasoning also comes in handy when the data say “x”, but the merchant chooses to do “y”, based

on their own brand overlay and an interest in delivering a better, more targeted experience for the

customer.

A stroke of innovation and creativity in one’s personality is optimal; always thinking about how to

drive business with existing inventory as well as generate interest in new products. In the same

A merchant’s instincts should be appreciated when their desire is to leadand create the market rather than follow. Even the best analytics cannot

pick new product nor is it possible to get metrics on something you have

not yet sold online.

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If a meat’s midset is stity podt-oieted ad aks aia destadi,

they liely will not be taen seriously within most organizations.



vein companies can hire people to run custom reports, but understanding what questions to ask

is a differentiator. Dedication coupled with paying attention to details is imperative as one should

expect them to be endless.

General sentiment suggested that someone who is a great artist can overcome poor science. As

one put it, “Hire a great artist and support them with a scientist.” Both approaches can deliver

results so it depends on one’s current needs and resources.

A Beded Ski Set is Best

The merchant’s job is to romance the product while serving as an online salesperson.

Such holistic thinking is invaluable when one must address issues like dening search terms used

to locate a product or nding opportunities to position product in multiple locations on a site.

Marketing must then align the demographics for a specic product by seeking out avenues to

reach the right customers. One media merchant cited an example of taking a niche DVD title and

turning a best seller into an even better performer through just such marketing efforts.

An exploration of how merchants viewed the art and science of their own jobs or their counterparts

provided some interesting perspective where the art won out slightly at 55% and science weighed

in at 45%, almost an even split which is telling unto itself. I particularly liked this assessment,

“We are informed of our opportunity based on history but trends and science should also be a

catalyst for urgency.” Another interesting perspective summarized the art versus the science citing,

“Analytics are backwards focused while art is forward thinking with planning often nine months out.”

One must look at the business climate, overall economy, and customer condence. I think a truly

good merchant is able to identify products that will sell to the end user. It is a combination of “gut

feel” and experience, but regardless of circumstances, savvy merchants should never let analytics

get in the way of their emotional connections with customers.

A tangential factor is that the data is more readily available to senior executives, so several

merchants and one retailer in particular suggested often being challenged within their own ranks.

Serving as a champion of the online business within your own organization is optimal. Such efforts

can solidify your role in a cross-channel context by dening the web’s value to the overall business.

This kind of interaction should encourage channel-agnostic behavior.

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The best merchants do not dene merchandising as an art or a science

since they possess both analytical abilities and keen instincts.



Positioi Podt fo Sess

A merchant must manage and massage their products; making a statement to consumers in the

most efcient and attractive way possible given their metrics and promotional cadence. Merchandising

veterans suggested that it tends to be signicantly more work to pull together merchandised

collections online and is the equivalent of an endcap or planogram in a retail environment. In

catalog merchandising there is an expectation that a page will deliver “x,” and some who come

from that orientation believe that the online world should embrace similar thinking. Understandingthe cost dynamics of online selling can uncover additional real estate that might better deliver

incremental sales.

Merchants now have to think about how product is sold in many venues, starting with understanding

what levers should be pulled to uniquely present product online.

They must understand the many ways a customer navigates a site from onsite search to product

names and effective groupings. At retail one can change the store on a dime but the ability to

restructure an online store is much more demanding given pre-existing navigational structures.

Every aspect of product promotion, from product selection to pricing, creative messaging, imagery,

and supporting video are all in play. Strategic placement of product in various places on the site

can bolster sales. Once a customer has arrived at the site, ensuring condence builders are in

place from a branding and tactical perspective is also core to a merchant’s role.

One retailer shared their core set of merchandising processes knowing that telling the story on

the website is not that much different than at retail, except you have much more data. Striking a

delicate balance, their process cadence was as follows: analyze, plan, execute on plan, optimize

on data, report, then blend both.

As this approach indicates, merchandising talent is a blend where the art of storytelling is required,

adding a bit of a marketing prowess to this already complex position. Being able to make a

presentation that elicits the desired response among consumers is not a simple feat. One ofce

supply retailer emphasized that they hire journalists who know how to tell that story. Their

understanding of words and how consumers scan online for what’s relevant to make buying

decisions has been invaluable in support of evolved selling.

They must be able to make the product “sing to their customers” when

creatively showcasing everything from a luxury handbag to an overstockedstriped tie.

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The Automation Factor

Based on these insights, and knowing the volume of work required of today’s merchants, I thought

it would be insightful to understand how automated merchandising processes have really become.

Not surprisingly the answers were as varied as the merchants. On a scale of 1-10, where 10 was

most automated, the average scores for 23 merchants came in at a 4.6 with a goal of 7-8 almost

universally desired. Protection of one’s brand was a factor in maintaining human intervention

and not striving to be a “10.” There was a legitimate fear that merchants might otherwise lose thepersonal touch or soul associated with the brand. While it’s costly to have a hands-on approach to

merchandising these companies believe that it is essential to effectively connect with consumers.

Some felt that while automation could be appropriate for auto parts the human factor was necessary

for apparel and more emotional brands.

Personalization was also a topic of discussion where varying degrees of automation were in place.

Some of those I spoke with were utilizing automated point solutions and others were still leveraging

a manually-based approach. Of those not currently using automation in this area, most recognized

the value to drive incremental revenue contributions. Consensus included moving toward a blend

of manual merchandising and technology (personalized product recommendations) that enables a

merchant to override algorithmic recommendations to emphasize best sellers or new merchandising.

Some also nd themselves more intimately involved with key marketing partners and portals,

where human intervention matters as one gifting company discussed.

A challenge touched on by many I interviewed was data residing in several systems that do not

always talk to one another, so merchandising is forced to do workarounds to accommodate their

needs. One retailer cited available web tools including the Omniture suite but also that there were

30 disparate systems from which data could be extracted. He shared that 64 people are entering

styles in 64 different ways but the replacement of all buying systems with one new system will

undoubtedly improve the process. He believes that through continued automation they will be able

to have more accessible data to better drive their business. Another large multi-channel player

found frustration with not being able to look solely at the ecommerce portion of the business

distinct from store sales where brick and mortar retailers do not pay attention to the merchandise

mix and movement in the same manner.

A smaller merchant found themselves in an enviable position, as their system tracks demand and

recommends reorder quantities, though they struggle with creating purchase orders that all of their

vendors accept in an electronic format.

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One merchant equated their scenario to wanting to have the universal remote,

citing the need for multiple tools to accurately manage inventory along with a

better content management system. Their other concern was that not all systems,

despite their robust nature, were user-friendly from an administrative perspective,

adding additional time and complexity to the job.



Their accessible data needs are fully accommodated since integration with their analytics and other

point solutions required a limited nancial commitment and short implementation time. They are

also fortunate that declining technology costs afforded them a robust system typically only

reserved for their larger counterparts.

Part of the desire for automation is that merchants in many categories desire a real-time viewing

capability to more quickly make changes to the site once the data has been reviewed. This wouldbe especially valuable for sequencing where retailers prefer human intervention, noting that funny

things can happen when groupings go unmonitored. Some of the sophisticated sellers I spoke with

were resorting product based on seven-day buying behavior though not all others would likely go

that route.

A specialty retailer selling shirts discovered that too many bright colored shirts were initially seen

so they followed up with white styles indicating that not looking at presentations visually can be

dangerous. Others wanted to be sure to place new product rst when full size runs were in-stock,

concluding that a mixed level of automation and human intervention for many is best in order to

take advantage of a merchant’s sensibility and automated system efciency.

Taing Advantage of the Tools

It is important to state that beyond all of the art we cannot manage what we do not measure.

One of the most powerful aspects of the web is the myriad of tools at a merchant’s disposal giving

them more data than ever before on which to base decisions. At this juncture, reporting is a work

in progress that even with its aws still provides many opportunities to improve one’s business.

Those that are primarily data-driven are able to monitor past sales, make a decision, and correct

themselves so experience matters when one is required to quickly make directional adjustments.

While some reported that they had smart people looking at analytics, there is never enough time

for the art of putting together data to be meaningful and Excel is still the basis for much of the

manipulation. No one has perfected ways to deliver the data as the merchants deem necessary

since analytics, as many pointed out, can be read any way you want. We have learned over time,

but still struggle with what we measure, for instance, questioning if it is bad that someone merely

browses without adding product to their cart. In the end it is safe to say that retailers should not

only rely on analytics and must consider customers and timing, as both will impact decision-making.

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A problem solver mentality is ideal where detective-like instincts

are required for strategic thinking amid the complexity of data.



The ow of information to be processed is daunting, so the skilledmerchant must be incredibly organized and know how to zero in on

“relevant” information.

Along with other resources in the organization, tools should be considered a merchant’s partner.

Analytics were typically top-of-mind in any discussion about securing key KPIs that ranged from

clicks through conversion. Product sales by channel, top sellers, inventory sell-through, protability,

and historical data were all touched upon as well during these discussions. Search terms were also

utilized to track products of interest. Inventory was managed at this level to understand current

stock levels, pricing, and aging. Recommendations and their contribution to the bottom-line was

part of the analysis too. Lastly, competitive insights were of great value to understand their matrixof search terms, search volume, and product selection though that data was not always readily

available without going beyond standard analytics.

Faced with reams of irrelevant data, merchants emphasized the importance of being “street” about

their approach to the information. To simplify their approach they tended to divide and conquer,

seeking out key focus KPIs in an attempt to rst understand the bigger picture. They found it

critical to keep people on track as they were measured against goals that centered on KPIs.

Today merchants also can receive feedback very quickly from the customer through open-ended

consumer surveys or services such as ForeSee Results and Tealeaf. They can also engage the

customer and ask specic questions through proprietary surveys. Merchant experiences suggest

consumers receive robust information where those on both ends of the satisfaction spectrum are

rst to comment. One home merchant took advantage of this information and personally called

dissatised customers to address their problems while simultaneously building a relationship the

old-fashioned way. Social media including Twitter, Facebook, blogs, chat logs, and the all-powerful

user-generated content are becoming very helpful for buyers to learn about one’s product offering

including customer favorites and disappointments. Robust data warehouses also allow merchants

to monitor customer purchase paths in hopes of understanding choices and implications relative

to merchandising. Retailers must therefore decide the level of data they can digest effectively to

grow their business to desired levels.

Data Challenges

Notwithstanding widespread availability, most acknowledged the need for resources to review this

extensive data in hopes of understanding their customers better.

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Caution should be exercised as several merchants did mention that

while testing feels like a science, administration may not be entirely

foolproof or always tell the true tale.

They should seek out online merchandising statistics that make sense for their business and

position. With time a scarce resource, automating reports that were more tailored to one’s needs

was seen as optimal. Analytics could also be more automated where many merchants suggested

needing an alert or exception trigger to avoid errors or suggest a change in merchandising direction.

Such alerts could prevent a merchant from pushing the wrong product when better options exist

to increase sales with out-of-stocks, hot sellers, or sellouts likely candidates for such

triggered information.

Additionally, despite the amount of data, it is not always in a workable format so merchants

have created custom reports for sales and other areas. It was also mentioned that information

from across other channels such as email performance or a mailed catalog should be factored in

given the inuence they may have in telling the total story. One multi-channel merchant sought to

understand the behavioral differences across channels and created deviation reports against store

product. Others suggested a need to familiarize oneself with store tools in order to more effectively

share information across channels in hopes of understanding if the web customer is different,

necessitating alternative assortments.

The Role of Testing

A tester mentality is another dimension a merchant needs. Many dened this as a willingness to

try new tactics and openness to leveraging that skill set via today’s new technologies. Clearly an

adaptable mindset comes in handy.

Beyond analytics, testing has been a wonderful advancement in terms of merchandising and

marketing. These sciences have further sped up the process of understanding what kinds of

products perform and what types of creative actually convert. Ads, banners, and promotions canbe created, tested, and launched using less manpower and time than traditional brick and mortar

retailing. The beauty of testing for one sporting goods retailer was the ability to swap out

promotions and feature sets to understand their impact; something that would not be possible

in a traditional retail setting.

It is still early regarding testing and performance with merchants reporting many gaps. There were

two camps, on one-hand retailers should be doing more, using testing tools where branding prevails

and merchandising is often overridden. Others found that despite testing, more data did not

always improve a merchant’s ability to pick winners.

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The passion of retail merchants is unparalleled and more than ever before,

they are taking advantage of the science and tools made available ecommerce.

Moreover, testing was universally seen to have great value to nd the root of the problem when

one is frustrating a shopper. It is always valuable if the test is well thought out and the data is

used intelligently.

An apparel merchant noted that this data does not always guide you to the right decision; you

have to move beyond data by testing and trying out-of-the box ideas to nd new ways to sell.

Merchants also make platform choices that should facilitate compelling category-centric

merchandising, striving for best-in-class execution and stellar shopping experiences. A seasoned

and savvy merchant will leverage both the tools and the technology where the “art of merchandising”

will serve as the compass to guide their cross-channel offering.

An interest in consumer behavior is invaluable when assessing industry trends and competition in

the context of a brand’s merchandising and subsequently applying the learning online. Consumer

behavior can wreak havoc on merchants as one emphasized, “You can dig into all the data in the

world but consumers can switch on you in a day.” Buyers are emotional and their behavior is often

erratic in nature. Understanding that behavior and subsequently evolving the customer experience

to suit both the brand and one’s customers will be the focus of Part 2 of The Merchant Rules

series.

CLICk HERE FOR

PART II - EvOlvIng ThE cuSTOMEr ExPErIEncE

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http://www.atg.com/online-customer-experience

http://www.atg.com/online-customer-experience



ABOuT uS

the e-tailing group, inc. serves as the multi-channel merchant’s

eye, bringing a merchant’s sensibility to evolving the multi-channel

shopping experience. A Chicago-based consultancy, they provide

practical strategic perspectives and actionable merchandising

solutions to merchants selling online as well as to enabling

technology rms.

For more background about this research study or additional

information on the e-tailing group, inc. please contact Lauren

Freedman via email to [email protected] or visit the e-tailing group

website www.e-tailing.com.

A trusted, global specialist in e-commerce, ATG (Art Technology

Group, Inc., NASDAQ: ARTG) has spent the last decade

focused on helping the world’s premier brands maximize the

success of their online businesses. The ATG Commerce applicationsuite is the top-rated platform by industry analysts for powering

highly personalized, efcient and effective e-commerce sites. The

company’s platform-neutral e-commerce optimization services

can be easily added to any Web site to increase conversions and

reduce abandonment. These services include ATG Recommendations

and eStara Connections.

For more information, please visit http://www.atg.com.

http://www.atg.com/

http://www.atg.com/

Etailing Merchant Rules Part 1

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