Some  interes+ng  technology  trends  2010  –  2013  30  January  2009  

 Andrew  Braun  

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“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  

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(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  

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•  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  

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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  

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Searchandising  85%  of  top  80    e-­‐commerce  businesses  have  sor1ng  and  filtering  

capabili1es  on  search  results  (8)  

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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  

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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  

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www.zappos.com  

www.ebay.com   Hugo  Boss  brand  bouGque  

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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)  

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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  

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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”    

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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  

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Watching  online  

videos  on  sites  like  YouTube  is  

more  prevalent  

than  the  use  of  social  

networking  sites  

(25)  

Video  in  ecommerce  

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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  

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GENERAL  ONLINE  CONSUMER  TRENDS  

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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)  

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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.    

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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..  

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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.

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(24)  

General  merchandise…where  should  we  focus?  

2008  

2005  

In  the  past  3  months,  what  items  have  you  purchased  on  the  internet?  (24)  

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MOBILE  INTERNET  

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Don’t  just  think  iphone,  think  PHONE  

65%  have  access  to  a  3G  network  

(26)  

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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.  

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“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)  

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“Our  head  of  Social  Media  is  the  customer”  –  McDonald’s  

hDp://www.youtube.com/watch?v=ypmfs3z8esI    Click  to  play:  

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331,000  fans!  Fastest  growing    brand  Facebook  

site    ever  

Specials,  events,  vo+ng,  links  to  their  website,  coupons  +  more  

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Psst…email  is  the  s+ll  largest  social  media  plaworm  

Gen  Y  respondents:  

hDp://blog.socialtwist.com/tellafriend/social-­‐media-­‐sharing-­‐trends-­‐2009  

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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)  

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Social  media  is  not  just  a  marke1ng  tool  

hDp://offthewall.resource.com/  

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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/  

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search  

Search  con+nues  to  dominate  

Google  keeps  adding  more  op+ons  

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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)  

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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