Effective Effective Merchandising for Merchandising for

Online retailersOnline retailersJon BovardJon Bovard

Efficient merchandising?Efficient merchandising?• Connecting a buyer with the relevant Connecting a buyer with the relevant

product(s)product(s)• Maximising conversion, order value Maximising conversion, order value

and marginand margin• Maximising “real estate” efficiencyMaximising “real estate” efficiency• Maximising sell throughMaximising sell through• Minimising confusionMinimising confusion• Minimising time on site and page Minimising time on site and page

views!views!

4 big questions4 big questions1.1. How do I design my site for my How do I design my site for my

audience?audience?2.2. How do i make the most of my How do i make the most of my

website's “real estate”?website's “real estate”?3.3. Why is onsite search important?Why is onsite search important?4.4. How do i measure all of this!!??How do i measure all of this!!??

Case Study – NeimanMarcus.comCase Study – NeimanMarcus.com

Case Study - DealsDirect.com.auCase Study - DealsDirect.com.au

Site Design for MerchandisingSite Design for Merchandising

• The Question: Who am I and why am I The Question: Who am I and why am I here?here?

• The challenge: Not every visitor has The challenge: Not every visitor has the same intentthe same intent

• Website design must account for Website design must account for different ‘modes’ of potential buyerdifferent ‘modes’ of potential buyer

• We must market and merchandise to We must market and merchandise to them all slightly differentlythem all slightly differently

• The answer is The answer is PersonasPersonas

eCommerce PersonaseCommerce Personas• A Persona is a 'mode' of shoppingA Persona is a 'mode' of shopping• 3 Personas: 3 Personas:

•the explorer the explorer •the hunter the hunter •the trackerthe tracker

• Each mode shops differentlyEach mode shops differently• Each persona has a different Each persona has a different journey journey

and uses different website and uses different website featuresfeatures

Personas - The ExplorerPersonas - The Explorer ExplorerExplorer. Has a purpose in mind. . Has a purpose in mind. I need a new outfit for Saturday nightI need a new outfit for Saturday night I wanna buy a present for DadI wanna buy a present for Dad I want something on saleI want something on sale

Conversion probability: low to mediumConversion probability: low to medium

Personas - The HunterPersonas - The Hunter• HunterHunter. Has a brand or product type in . Has a brand or product type in

mind. Needs guidancemind. Needs guidance I need a Sony computer. Not sure which one I need a Sony computer. Not sure which one

exactlyexactly I need a new dress but not sure what look I needI need a new dress but not sure what look I need I’m gonna buy a DVD playerI’m gonna buy a DVD player

Conversion probability: mediumConversion probability: medium

Personas - The TrackerPersonas - The Tracker• TrackerTracker. Knows exactly what they . Knows exactly what they

want. want. I need a Kodak Digital Camera C813I need a Kodak Digital Camera C813 I want a Michael kors cashmere cable sweaterI want a Michael kors cashmere cable sweater I’m gonna buy Dad the new Doctor Who DVDI’m gonna buy Dad the new Doctor Who DVD

Conversion probability: highConversion probability: high

NeimanMarcus – PersonasNeimanMarcus – Personas

EDITORIAL AND PROMO CONTENT - THE EXPLORER

CATEGORY BASED NAVIGATION - THE TRACKER

HUNTER

HUNTER

FOLD

Dealsdirect – PersonasDealsdirect – Personas

FOLD

TRACKER

TRACKER

EDITORIAL AND PROMO CONTENTTHE EXPLORER EXPLOREREXPLORER

HUNTER

HUNTER

Personas - The ExplorerPersonas - The Explorer Action PointsAction Points• Inspire the Explorer!Inspire the Explorer!• More likely to browse, gift finders, solution More likely to browse, gift finders, solution

choosers or contact support for advicechoosers or contact support for advice• Shop by 'occasion'Shop by 'occasion'• More responsive to targeted promotionsMore responsive to targeted promotions• Editorial content helps influenceEditorial content helps influence• Less likely to use Internal searchLess likely to use Internal search

Personas - The HunterPersonas - The Hunter Action PointsAction Points• Prominent, meaningful category navigationProminent, meaningful category navigation• Filtering, sorting and “sifting” is important to Filtering, sorting and “sifting” is important to

the Hunterthe Hunter• Likely to use category navigationLikely to use category navigation• Perhaps responsive to promotional materialPerhaps responsive to promotional material• Likely to use Internal search if frustratedLikely to use Internal search if frustrated

Personas - The TrackerPersonas - The Tracker Action PointsAction Points• Hot prospect!Hot prospect!• Very likely to use internal searchVery likely to use internal search• Very likely to convert if the price, shipping and Very likely to convert if the price, shipping and

user experience is pleasinguser experience is pleasing• Unlikely to notice promotional materialUnlikely to notice promotional material

The most important pagesThe most important pages• The HomepageThe Homepage 60-70% of traffic see this page60-70% of traffic see this page

• The Range pageThe Range page Refining my optionsRefining my options

• The Product detail pageThe Product detail page The ‘Why should I buy this?’ pageThe ‘Why should I buy this?’ page

• The Search results pageThe Search results page The Help me! pageThe Help me! page

The Homepage DesignThe Homepage Design• All important info above the foldAll important info above the fold• Should aim to satisfy all PersonasShould aim to satisfy all Personas• On some websites.. only 60-70% of On some websites.. only 60-70% of

visitors actually see the homepagevisitors actually see the homepage• Search should be prominentSearch should be prominent• Promotional space is at a premiumPromotional space is at a premium

The ‘Range’ PageThe ‘Range’ Page• Refine my choicesRefine my choices• Allow the user to sort Allow the user to sort

results. Price, Name, results. Price, Name, New Products first, etcNew Products first, etc

• Show the number of Show the number of productsproducts

• Results paging – Show Results paging – Show all!all!

• Add to basket from Add to basket from Range page – if possibleRange page – if possible

Product Page DesignProduct Page Design• Why should I buy this product?Why should I buy this product?• All critical info above the fold!All critical info above the fold!• Provide clear details of pricing, Provide clear details of pricing,

returnsreturns, delivery times and , delivery times and charges charges

• Provide a phone numberProvide a phone number• Quality photography is Quality photography is

importantimportant• Use rich media where Use rich media where

possible/appropriatepossible/appropriate• Customer Reviews ‘may’ add Customer Reviews ‘may’ add

value (be careful!)value (be careful!)• Show related or alternative Show related or alternative

items where possibleitems where possible• Have a clear ‘Buy’ buttonHave a clear ‘Buy’ button• Breadcrumb’s can help with Breadcrumb’s can help with

contextcontext• Some websites require Some websites require multiplemultiple

product page templates product page templates (books versus fashion)(books versus fashion)

Real estate and eTailReal estate and eTail• Blank space used for promotingBlank space used for promoting• Banners, buttons, moviesBanners, buttons, movies• Ideally rotatedIdeally rotated• Even more ideally - targetted at an Even more ideally - targetted at an

individualindividual• Does not matter whereDoes not matter where• What matters is efficiency!What matters is efficiency! If a promo not making sales – kill it!If a promo not making sales – kill it!

Real estate – the foldReal estate – the fold

FOLD

Real estate – scrollingReal estate – scrolling• Limited space – less is moreLimited space – less is more• Remember - The fold is gold.Remember - The fold is gold.• Research from ClicktaleResearch from Clicktale• 76% of pages with a scrollbar are 76% of pages with a scrollbar are

scrolled (ie. 24% are scrolled (ie. 24% are notnot!)!)• 22% of the page views with a scroll-bar 22% of the page views with a scroll-bar

are scrolled all the way to the bottom.are scrolled all the way to the bottom.

Real estate KPI's

•Measure the following– impressions - how many views of a promo or product– clicks - number of visitors clicking– conversion - users who purchased from that promo/product–Revenue per impression – sales from a promo or product.. relative to its traffic

Real estate efficiency

•View to buy ratios •How efficient is my promo/product?

•‘Exclusive Creed’ Homepage promo – ‘August’ 2009

450 clicks

(CTR 3%)

12 orders

(conversion of 2.7%)

$900 sales

(6.1 cents per impression)

14,560 Impressions

Onsite searchOnsite search• Who uses search?Who uses search? I’m lost – help me or I am leaving!I’m lost – help me or I am leaving! I’m in a hurry - help me or I am leaving!I’m in a hurry - help me or I am leaving! I know exactly what I want – therefore I’m a hot I know exactly what I want – therefore I’m a hot

prospectprospect I want to know more about your shipping I want to know more about your shipping

costs/returns/contact details etccosts/returns/contact details etc

Onsite search - searchendisingOnsite search - searchendising

• Is it important?Is it important? 9.3% of sales come from internal search 9.3% of sales come from internal search

(Doubleclick)(Doubleclick) Search users convert between 2x – 4x more Search users convert between 2x – 4x more

than site averagethan site average The only time customers objectively tell us what The only time customers objectively tell us what

they want!they want!

A few caveatsA few caveats• Every site and every business model is Every site and every business model is

differentdifferent• Exceptions to every rule!Exceptions to every rule!• Industry variations means variations in Industry variations means variations in

techniques and application of “rules”techniques and application of “rules”• Luxury high value, FMCG, electronics Luxury high value, FMCG, electronics

all should consider variationsall should consider variations• Adapting the rules is a Adapting the rules is a skillskill

Contact detailsjon.bovard@gmail.com

http://www.linkedin.com/in/jonbovard

Appendix followsAppendix follows

Thank YouThank You

High-end merchandising High-end merchandising systemssystems

• Rules based mechanismsRules based mechanisms• Change sort orders, promotional bannersChange sort orders, promotional banners• Sophisticated Merchandising systems for high Sophisticated Merchandising systems for high

end ecommerceend ecommerce• SLI Systems, Fredhopper, Celebros and some SLI Systems, Fredhopper, Celebros and some

integrated into Web analytics platformsintegrated into Web analytics platforms• Allow for rules based control over where, when Allow for rules based control over where, when

and how products and promotions are exposed and how products and promotions are exposed to the end consumerto the end consumer

Merchandising Google analyticsMerchandising Google analytics

• Google analytics can be used to measure Google analytics can be used to measure internal promotionsinternal promotions

• Campaigns report – use internal link Campaigns report – use internal link tagging tagging insteadinstead of tagging external of tagging external campaignscampaigns

• Events report – tag individual promotional Events report – tag individual promotional itemsitems

• For more information:For more information:• http://www.tealium.com/blog/web-analytics/tracking-internal-http://www.tealium.com/blog/web-analytics/tracking-internal-

campaigns-with-google-analytics/campaigns-with-google-analytics/

Online retail Checkout specialOnline retail Checkout special

http://econsultancy.com/reports/online-rethttp://econsultancy.com/reports/online-retail-2007-checkout-specialail-2007-checkout-special

Dr Mike BaxterDr Mike Baxter In the Mind of the Customer In the Mind of the Customer Proposition and Transaction Proposition and Transaction The Checkout Process The Checkout Process Design Patterns for Checkout Design Patterns for Checkout Conclusions and Recommendations Conclusions and Recommendations

Onsite search engineOnsite search engine• Should be Prominent and obviousShould be Prominent and obvious• It should work. Well!It should work. Well! Misspellings (laptpos, jacketts, reebok) Misspellings (laptpos, jacketts, reebok) Synonyms – ladies heels > shoes, jackets > Synonyms – ladies heels > shoes, jackets >

coatscoats No results – suggest alternativesNo results – suggest alternatives Non product searches – returns, customer Non product searches – returns, customer

supportsupport Filter results – by category, size, price etcFilter results – by category, size, price etc