Technology Trends in eCommerce 2010 2013

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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 …

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.

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  • [] consists of a collection of graph-like, isometric maps featuring the most "trustworthy" online sources of trends, and their recent tweets.
  • Analytics tools help us understand Missed Opportunities to Buy (products viewed or added to basket) Purchase history (Online or Offline) as a result of online browsing Retention or engagement - Frequency/Recency of visit even if non-purchasing visit Browsing habits Propensity to Purchase – by individual, product, segment etc Ad-hoc customer segmentation based on browsing as well as purchasing
  • 62% of adult 'net users have watched video online, a figure that's risen from 33% two and a half years ago. Meanwhile a massive 89% of youngsters also watch video online. 36% of youngsters watch online video on a typical day, and 19% of all 'net users do so
  • Evolving the checkout process should provide the quickest payback as it is at the end of the funnel
  • Web-enabled mobile phone users are much more likely to employ their devices to get weather forecasts, read news, find movie times and bank online than to buy products. Consumers are willing to use their mobile phones to buy items such as pizza, movie tickets and travel reservations. And some have even used their devices to purchase consumer electronics, computers and apparel. But mobile phone users say they would make more purchases if the process were not so cumbersome, products were easier to find and their devices supported secure credit card transactions.
  • Below are just some of the exciting mobile media technology opportunities available to retailers seeking to leverage it: • Mobile couponing provides ease of access for consumers, higher redemption rates and cost savings by eliminating weekly FSI printing. • QR code and bar code readers use sophisticated, high-capacity bar codes (QR codes) and bar code readers on mobile devices, allowing consumers to connect directly with merchandise. • Store plan-o-grams take the customer relationship to a new level by providing dynamic, interactive floor plans and merchandise directories to customers while they are in the store. • Mobile commerce allows consumers to complete commerce transactions from the phone. Campaign data from several programs executed by Razorfish™ • RFID and mobile wallet enable consumers, via the next generation of handsets, to speed through checkout with digital payment, while remaining linked to their FID and loyalty information. • Social shopping lets consumers “shop” socially using text and MMS messaging. Retailers that provide tools to facilitate this emerging behavior will foster new connections with its engaged users. • Mobile media and location-based services bring personalization through the front door of the store by using the location-based targeting ability of mobile media to drive consumers to stores near them, and to know where and when they are in the store.
  • The API allows non-Tesco developers to access the following services via the API: Login List product categories List products in a given category Search for products by text search / barcode List Basket Change Basket (a single command for adding / deleting / changing quantity) List Delivery Slots Select a delivery slot List pending orders Amend Order


  • 1. 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   2
  • 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  spend3  
  • 4. • 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.   •  Sales  funnel  reports  are  one  of  the  most   Site  Analy1cs  tools   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.   On  any  given  page,  where  are  our   customers  clicking?.  Dark  red  areas  =  Most   frequently  clicked  areas   4
  • 5. Which  test  won?  (A/B  tes+ng)   Var  A:    Right-­‐side  Add  to  Cart     Var  D:  Le<-­‐side  Add  to  Cart     1.9%  Click  through  rate   2.2%  Click  through  rate   Purchases  li,ed  nearly  16%   Website  analy+cs  tools  +  a  technology  environment  that  allows  for  tes+ng       =  user  centered  design    =  more  revenue   5
  • 6. Example  real-­‐ +me  dashboard   that  could  be   built  for  COL   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.
  • 7. Searchandising   85%  of  top  80    e-­‐commerce  businesses  have  sor1ng  and  filtering     capabili1es  on  search  results  (8) 7
  • 8. 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 find-a-bil-i-ty n browsing to see if anything a. The quality of being locatable or navigable catches their eye - Here a customer b. The degree to which a particular object is easy to is wandering around, department discover or locate by department, as they would do in a physical store. A good c. The degree to which a system or environment supports navigation & retrieval navigational category structure is the best way to provide customers with a clear On the web, and specifically for e-commerce sites, understanding of what you sell findability means how easy is it for a shopper to find the product they are looking for. (19) 8
  • 9. Make  it  personal  and  empowering   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   9
  • 10. Needs  based  merchandising:  microsites  and  brand  bou+ques   Hugo  Boss  brand  bouGque   10
  • 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)   11
  • 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“ 12
  • 13. Cross-­‐sell,  up-­‐sell   “you  are  $X  away  from  free  shipping”     “More  from  this  (category,  brand,     “Recommended  products”   author,  arGst)”   “You  may  also  like”   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   “Frequently  bought  together”   “Customers  who  viewed  X  also  viewed”   “Customers  who  bought  X  also  bought”   Shopping  cart  recommenda+ons  is  used  by  55%  of  top  80  online  retailers  (8)   13
  • 14. Naviga6on  only  when  you  need  it   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)   14
  • 15. (25)   Watching   online   videos  on   sites  like   YouTube  is   more   prevalent   than  the  use   of  social   networking   sites   15
  • 16. Video  in  ecommerce   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.     click-­‐to-­‐buy   16
  • 17. Convergence  of  internet  and  TV   17
  • 19. 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)   Google  Checkout  is   Forrester  Research   a  fast,  secure   reports  that  23%  of   checkout  process   that  helps  increase   customers   sales  by  bringing   abandon  at   you  more   customers  and   checkout  if  they   allowing  them  to   are  asked  to   buy  from  you   quickly  and  easily   register.   with  a  single  login.     20
  • 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  sha re  via  social  network  doubled  (9)   Product  ra+ng  &  reviews  is  offered  by  59%  of  the  top  80   e-­‐commerce  businesses  (8)   21
  • 22. Recipe  websites  and  blogs  take  off..   Source:  hDp://­‐you-­‐use-­‐a-­‐recipe-­‐when-­‐making-­‐dinner/   More  comments  at:  hDp://­‐without.html#more     22
  • 23. 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. However,  research  shows  that  when  making  dinner   we  usually  just  wing  it  (21)     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. 23
  • 24. General  merchandise…where  should  we  focus?   In  the  past  3  months,  what  items  have  you  purchased  on  the  internet?  (24)   2008   2005   (24)   24
  • 25. MOBILE  INTERNET   25
  • 26. Don’t  just  think  iphone,  think  PHONE   (26)   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.   27
  • 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)   28
  • 29. 29
  • 30. “Our  head  of  Social  Media  is  the  customer”  –  McDonald’s   Click  to  play:   hDp://     30
  • 31. Specials,   events,  vo+ng,   links  to  their   website,   331,000  fans!   coupons  +   Fastest  growing     more   brand  Facebook   site    ever   31
  • 32. Psst…email  is  the  s+ll  largest  social  media  plaworm   Gen  Y  respondents:   hDp://­‐media-­‐sharing-­‐trends-­‐2009   32
  • 33. “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)   Social  Media   33
  • 34. Social  media  is  not  just  a  marke1ng  tool   hDp://   34
  • 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  "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   hDp://­‐source-­‐answer/   their  businesses  expand  in  unexpected  and   profitable  direc+ons.   35
  • 36. Search   con+nues  to   dominate   search   36
  • 37. Google  keeps  adding  more  op+ons   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)   37
  • 38. References   1.  Ecommerce  book   2.  hDp://­‐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,,  a  leading  digital  retail  industry  body   5.  Forrester  Research  June  2009;  for  the  full  ar+cle  refer:  hDp://­‐performance/  and  the  webinar  at:   hDp://   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://­‐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://­‐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  study  conducted  by  Forrester  Research,   August  2008   19.  Evalua+ng  Findability  (source:  hDp://­‐findability)   20.  Product  Selec+on  and  Discovery:  What  You  Can  Learn  From  the  Telco  Industry,  hDp://­‐product-­‐discovery/   21.  NPD  Research,  Sept  2009   22.  Razorfish  Digital  Outlook  2009   23.  hDp://   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://­‐phones.aspx?qprid=55&sample=31   38