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Forrester & SDL - Optimizing eCommerce Experiences
 

Forrester & SDL - Optimizing eCommerce Experiences

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Sucharita Mulpuru of Forrester shares online retail research and best practices for eCommerce marketers to optimize and personalize the customer experience. Tom Smith, SDL, talked through the 6 key ...

Sucharita Mulpuru of Forrester shares online retail research and best practices for eCommerce marketers to optimize and personalize the customer experience. Tom Smith, SDL, talked through the 6 key elements of experience-Commerce with examples from ASOS, Majestic Wines and many others.

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  • Lots of work being done currently on Profile sync, profile data from back-end processes, etc. Retail with a HUGE lead above everyone else on user profiling and data mining, learn from it (plug-in Fredhopper)
  • This has been a result of lots of competition online and challenges making meaningful differences
  • Mike Linton pause
  • Staples, sur la table, best buy

Forrester & SDL - Optimizing eCommerce Experiences Forrester & SDL - Optimizing eCommerce Experiences Presentation Transcript

  • SDL Proprietary and Confidential Turning Browsers into Buyers: How To Optimize the eCommerce Experience Sucharita Mulpuru, VP and Principal Analyst, Forrester Tom Smith, Product Marketing Manager, SDL March 19, 2014
  • From brand experience, to customer experience “A brand is more than just your logo”
  • Customer Experience = Brand & Commerce in Harmony “Your customers have one view of you, don’t give them reason to change that perspective”
  • Likes HP 52 years old Bought a tablet month ago Looking for a sports car Shopping for golden ear rings On the street using 3G, no wifi access points Location: New York The Rise of Context “Tying the scattered, digital existence to the actual, physical self” Early evening Using an Android 5.7 inch device Travels KLM
  • Shoppers don‟t think online vs. offline “Being relevant, is more relevant than ever”
  • „Old school‟ merchants and marketers limit their focus to the transaction
  • The Millennial Generation demands more „experience Commerce‟
  • © 2013 Forrester Research, Inc. Reproduction Prohibited 8 Three drivers of web shopping Top 2 box of 1-5 scale CONVENIENCE SELECTION VALUE Source: Forrester Benchmark Recontact Survey 2013 63% 68% 70% I find better values and deals online I save time by shopping online I find products online that I cannot find anywhere else Base: 4,476 online adulsts
  • © 2012 Forrester Research, Inc. Reproduction Prohibited Most sales will continue to happen in stores
  • © 2012 Forrester Research, Inc. Reproduction Prohibited The number of smartphone and tablet users are growing rapidly
  • Site metrics continue to be challenged 2.2% 2.9% 0% 2% 4% 6% 8% 10% 2000 2010 Conversion Rates 53% 55% 0% 20% 40% 60% 2000 2010 Cart Abandonment Rates $3 $3 $0 $1 $2 $3 $4 2000 2010 Customer service $/order 40% 35% 0% 10% 20% 30% 40% 50% 2000 2010 Repeat Shopper Revenue Source: Forrester and Shop.org State of Retailing Online Studies
  • Phase 1 (1990s-2001) Phase 2 (2001-2008) Phase 3 (present) Site optimization efforts have evolved Site launches • Licensed solutions • Limited budgets • Functionality constrained by bandwidth • Functionality enhancements from point solutions • “Plug-in” modules • “One-for-all” execution Basic site improvements Dynamic optimization • Integration of broad datapoints • “One-to-one” execution • Mainstreaming of cloud infrastructure
  • Phase 2 introduced many now “industry standard” features
  • © 2013 Forrester Research, Inc. Reproduction Prohibited 14 Agenda › Optimizing the experience › Examples
  • Interactive marketing helped to evolve eCommerce executives to “dynamic” thinking › Testing of copy and creative › Dynamic adjustment of datafeeds › Personalized content and segmentation based on previous clickstream history › Landing page optimization
  • Turn browsers into buyers by using… › Intent from on-site search, or search engines › Current interests from clickstream › Recommendations which can be adjusted to a shoppers‟ visit › Items in cart as a trigger for cross-sells and upsells › Insight on whether the visitor is a repeat or first-time visitor › Location of the customer (direct or inferred) › Dynamic pricing › Browser type and mobile information to adjust content
  • Some retailers have been doing this for over a decade
  • Smarter store windows can be incorporated throughout the site experience Site touchpoint Opportunity Homepage/landing page Promotional offers to various customer segments “Smart shipping”; vary offers based on the most cost-effective shipping option Content variance based on geography of viewer Sort site search by inventory availability Product detail pages Personalized recommendations Live support for shoppers based on inferences about likelihood to buy Changes in pricing or offers based on browser and location (e.g. in-stores and mobile search) Offers based on consumer likelihood to buy Checkout Personalized recommendations and offers Same session offers
  • © 2013 Forrester Research, Inc. Reproduction Prohibited 19 Agenda › Optimizing the experience › Examples
  • Do incorporate recommendations throughout the shopping experience 1 2
  • 3 4
  • Recommendations during search results expose useful products at key moments
  • Do put recommendations in email Order Confirmation Shipping Confirmation
  • Do put recommendations above the fold where possible
  • Product detail pages should upsell while checkout cross-sells best
  • Do think about the verbiage for describing your recommendations
  • Faceted navigation is now table stakes
  • Different treatments for different visitors First time visitors get a special offer
  • Do consider suggestive search
  • Do constantly tweak your algorithms
  • © 2013 Forrester Research, Inc. Reproduction Prohibited 31 Adjust what is rendered according to the device www.t.staples.com
  • A few “don‟ts” to think about › Don‟t neglect your product recommendations feature, even if you plan to “set and forget” › Don‟t expect recommendations to overcome clumsy taxonomy › Don‟t underestimate the challenges of doing this in-house › Don‟t ignore your company‟s unique challenges in the due diligence process
  • © 2013 Forrester Research, Inc. Reproduction Prohibited 33 A superior customer experience = a stronger company overall
  • Thank you Sucharita Mulpuru smulpuru@forrester.com
  • The eCommerce Experience Challenge 35 How do I build a differentiated, forward- thinking digital shopping experience while everything changes around me, day to day? How do I invest in top priority projects while thinking about the customer experience – is mobile more important than video, than international, than merchandising, than omnichannel?
  • The eCommerce Experience Challenge 36 How do I stop working on a hunch and more on the data I know will tell me more about how to optimize for my customers? How do I bring all the eCommerce experiences together into one holistic experience that aligns with KPI goals AND brand goals?
  • Towards Experience-Commerce 37 From: Transaction Focus To: Experience Focus • Basic Catalog Content Exposed • Minimal data points, little understanding of customer context • Division between channels • Pushing products • Silos between content/brand & eCommerce teams • Minimal international understanding 1. Catalog Enrichment 2. Context-awareness and Data- influenced Experiences 3. Satisfying the Omnichannel „norm‟ 4. Influencing Product Discovery 5. Blending Content + Commerce 6. Refined, controlled international eCommerce
  • 1. Catalog Enrichment * Invodo research 2013 – How Consumers Shop with Video: http://www2.invodo.com/l/12102/2013-05-17/9399r Video + interactive imagery = Engaging the Customer & Driving to Purchase 55% of consumers are more likely to purchase after watching a video*
  • Likes HP 52 years old Bought a tablet month ago Looking for a sports car Shopping for golden ear rings On the street using 3G, no wifi access points Location: New York The Rise of Context • It‟s about the mobile consumer, not the device • Understand time, device, location and profile • Derive insights from behaviors • Guide the experience Early evening Using an Android 5.7 inch device Travels Delta 2. Context Awareness
  • 2. Data-driven Merchandising 40  Moving an item by one row equals a discount of up to 6% for a short product list and medium position dependent products*  Moving an item by one row equals a discount of up to 21% for a medium-length product list and highly position-dependent products = Moving products has a similar effect as a discount *Based on an experiment with hypothetical purchase decisions. 9 or 27 options per decision. Medium position dependent product: suitcases, highly position dependent product: wine.
  • 3. Satisfy the Omnichannel „Norm‟ 41 Unified Experience Flexibility and seamless shopping Full product offering across all channels Single view for the customer across all channels Single organization servicing all channels Omnichannel Retailer Some cross channel capabilities Single brand access across all channels Separate supply chains and systems Cross-channel Retailer Different channels in silos Silo‟d business units Stock availability High level customer service Product variety Differentiated services Multi-Channel Retailer Bulk of revenue from one channel Traditional brick and mortar retailer Pure play online retailer Single Channel Retailer
  • 3. Satisfy the Omnichannel „Norm‟
  • 4. Influence Product Discovery 43 “One of the problems with e- commerce today is the tendency to equate “search” with “shopping”. Shopping is not a utilitarian function, but instead, a process of discovery. Think of a time you visited a store and found something wonderful, something unexpected. You don‟t have to give that up in order to shop online.” ~ Hiroshi Mikitani, CEO, Rakuten ~
  • 5. Blending (Relevant) Content + Commerce 44
  • 5. Blending (Relevant) Content + Commerce 45
  • 5. Blending (Relevant) Content + Commerce 46
  • 6. Internationalization • Centralized merchandising control? Or local flexibility? • Language considerations? • Propensity to shop on smartphones, tablets? • Prefer video & imagery? • Less likely to make a purchase without going in-store?
  • 7. Internationalization 48 “Sneaker”…“shoe”…“trainer”…“running shoe”?
  • SDL for eCommerce: Optimize & Personalize  Optimize conversion rates 18-40%  Make shopping inspiring, intuitive and part of the complete customer experience  Give your merchants and marketers control over the digital shopping experience  Blend multiple data sources to personalize for each and every customer, regardless of channel eCommerce
  • SDL for eCommerce Optimization and Personalization Data-driven Merchandising Predictive Targeting Business Management Layer Predictive Analysis & Optimization Data Manager Personalization Search & Navigation Brand or Shop – „Branded Store‟ Experience
  • Global Retailers We Work With… 51
  • SDL Customer Experience Cloud