Modern shoppers insist on a rich online experience to simulate actively scanning store shelves to identify potential solutions for their needs and to interact with products to make their final purchase decision. Interactive merchandising technology allows online shoppers to interact with products in order to eliminate any unanswered questions and reduce their hesitation to purchase.

1. technologies
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2. Why online merchandising is 1,000 times more important than offline merchandising.
(And 6 Ways To Make Sure You Do It Right)
technologies
Why online merchandising is 1,000 times
more important than offline merchanidsing.
(And 6 ways to make sure you do it right)
Okay.
The title might border on hyperbole, but
we’ll say it a million times if we have to: in
today’s economy, online merchandising is far
more important than offline merchandising.
A bold claim? You bet. But we’re passionate in the belief
that todays’ shoppers involve online product content and
information in their purchase decision much more than other
sources, making online merchandising 1,000 times more
important than offline merchandising. At the very least, it is 980
times more important.
Let’s start by defining merchandising – both offline and online
– with an anecdote that explains the difference between it,
marketing and sales.
Imagine an average store in an average city that sells office
equipment and supplies. Marketing is what gets people through
the doors of the store. That could be advertising, direct mail
promotions, or a guy wearing a sandwich board handing out
flyers. Merchandising is making sure that the products look
attractive on the shelf, that on-sale items are in prominent
locations, and that printer paper and office supply staples are
located in the back of the store, making shoppers walk past
additional products that hopefully catch their eye. Sales is
handled by store clerks, answering product questions, making
sure stock is available, and basically removing any obstacles
preventing a shopper from making a purchase.
Marketing = getting people in the door
Merchandising = putting things on the shelves
Sales = removing obstacles that prevent
customers from buying them
2 Easy2 Technologies - 1220 Huron Rd East, 7th Floor, Cleveland, Ohio 44115 - P: 216.812.3200 - www.easy2.com March, 2012

3. Why online merchandising is 1,000 times more important than offline merchandising.
(And 6 Ways To Make Sure You Do It Right)
technologies
What about online?
1 Give shoppers information,
information and more information
The purchase decision is the same as it has always been:
Online marketing = driving traffic to the site it starts with the identification of a problem, research to
Online merchandising = connecting shoppers to the locate a suitable solution to the problem, evaluation of
product for which they are looking, educating them, alternatives, and finally, a purchase. What has changed is
answering their questions, and eliminating any obstacles that most of this process, if not all of it, is now done online.
that keep them from adding the item to their shopping Even in cases where the purchase takes place offline, more
cart and completing the sale. than likely it has been influenced by an online information
search.
Online merchandising is connecting the right products
to the right shopper, with the right information, at the 80% of all product searches
right time. That’s a lot of “rights,” right? Yes, it is, but it begin online, whether the
underscores the importance of doing things, well, right! product is to be purchased
online or offline.
So, why is online merchandising so much more important (Forrester Research , 2010)
than offline merchandising? The reason is simple: online
merchandising HAS to be better because it is also acting 46% of all daily searches are for products
as a salesperson. In a brick and mortar store, there are and services. (SRI, October 2010)
people whose responsibility it is to help sell products. Sales
clerks, category specialists, even the person who makes For purposes of this paper, when we mention “search,”
sure the products are in stock and on the shelf. They all we aren’t referring to search engines, SEO or SEM; we’re
help remove obstacles that could keep a shopper from describing shoppers using the internet to research
purchasing a product. Online, it’s just the shopper and the products they are interested in purchasing. It should not
products - there is no one helping sell products – so online be a surprise to learn that search is happening well beyond
merchandising has to play the role of sales, too. traditional search engines. In fact, searching for product
information on retail sites is a preferred first stop, even to
The average in-store conversion rate for retailers ranges search engines.2
between 20% and 40%1, but online conversion rates
average 2.6% according to Forrester Research. Ouch! Shoppers are more than twice as likely
Retailers have the basics of eCommerce down pat, but to perform product research on retailer
online merchandising is still an area of concern, yet a websites as they are on manufacturer sites.
tremendous opportunity for growth. (ComScore)
It’s easy to improve your online merchandising with more Retailers: Offer as much informational product content on
innovative tools and technologies. Since you’re reading this your site as possible because shoppers are starting their
paper, you’re already on your way! Good for you! search with you. Retailers should also note that there are
really only two things separating one online retailer from
Here are six tactics to improve your online merchandising, another: product content and pricing / shipping. Providing
and in turn, increase conversions and sales: shoppers with engaging and educational product content
will help build loyalty for you and keep shoppers on your
site longer.
March, 2012 Easy2 Technologies - 1220 Huron Rd East, 7th Floor, Cleveland, Ohio 44115 - P: 216.812.3200 - www.easy2.com 3

4. Why online merchandising is 1,000 times more important than offline merchandising.
(And 6 Ways To Make Sure You Do It Right)
technologies
53% purchased from the retailer on whose Presented with a positive online shopping
website they had spent the most time. experience, shoppers more likely to reward
(Nielsen , 2008) retailers with brand loyalty, with 67 percent
indicating their willingness to share a positive
Visitors who engage in interactive product experience. Conversely, they can be very
demos spend an average of 4 minutes longer on unforgiving, with 72 percent compelled to share
the site than those who don’t, a 30% increase in a negative online experience with friends and
site stickiness. (Internet Retailer 2004)
, family, and 70 percent turning to a competitor
as a result. (DemandWare, 2011)
Manufacturers: Make it a top priority to create compelling
marketing collateral, image assets and product content, It is vital to give online shoppers the best experience
for your site and for your retail partners’ sites. It is crucial possible, because if you do, they will sing your praises;
that you make it easy for a shopper to purchase your if you don’t, they won’t think twice about sharing their
product and the easiest way to do it is to provide as much negative experience!
information as possible in order to remove any obstacles
standing in the way of a purchase. Product selectors are similar to buying guides, but are
designed for shoppers who know what category of
2 Helpbuying guides find the right
and
your shoppers
products with product selectors
(because category
product they need, but are not sure of which specific
product. Selectors present shoppers with a series of
questions that narrow down product choices based on
navigation isn’t enough!) their answers. They are perfect for large product lines,
complicated products, or when multiple brands offer the
Does your site help shoppers find the right product? If you same products.
answered, “sure – our category navigation does that,” think
again. Category navigation is adequate when shoppers Choosing a buying guide or product selector depends
know exactly what they are looking for, but when they on depth or breadth. A company that makes or sells a
don’t, guided selling tools such as product selectors and complete line of power tools (drills, reciprocating saws,
buying guides can help them help themselves, and build power shears, disc sanders, routers, etc.) should help
your brand loyalty in the process. customers find the category they are looking for first, then
focus on the specific product they need. Buying guides do
Let’s use lawn mowers as an example. Category navigation this perfectly. Product selectors are the right interactive
is adequate is a shopper knows they are looking for a John tool to do that.
Deere self-propelled mulching walk behind mower with
pull start. But if the shopper doesn’t know what type of
mower they need, or want a buying guide can educate
them and help them select the right mower. Questions
like, “How large is your yard?” “Is the terrain flat or hilly?” 40%
“Do you want to mulch or bag grass clippings?” and “Gas
or electric engine?” helps the shopper narrow their choices Retailers have seen up to a 40% increase
and decide which lawn mower is right for their needs. in conversions using interactive tools like
In the process of helping a shopper learn, you are also product selectors and buying guides.
earning their trust, and their loyalty. (Easy2 Technologies, 2011)
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5. Why online merchandising is 1,000 times more important than offline merchandising.
(And 6 Ways To Make Sure You Do It Right)
technologies
Since product selectors and buying guides help shoppers Allowing a customer to touch a product gives them a
choose the right product, they reduce costs after the sale sense of “ownership” and tends to increase the likelihood
by decreasing returns and refunds. An added bonus to of purchase. The same is true of online product content.
improving your online merchandising tools. Letting online shoppers interact with a product will
increase the odds of purchase!
3 Let online shoppers interact with
your products Purchase Conversion is 12% higher for
customers who viewed a product demo
“One of the inhibitors to shopping online compared to customers who have not.
is you can’t touch the products, so the (Internet Retailer)
more detail consumers can see, the more
likely they are to make purchases online.” Online merchandising needs to be improved in order to
(Internet Retailer, 2005) satisfy the needs of shoppers. For example, 91% of online
shoppers believe 360 degree spin technology is very
Risk is inherent to online transactions because shoppers do useful3, but only 39% of marketers rate it as “very effective.”4
not have the ability to physically handle merchandise and Clearly there is a gap between what online shoppers want,
examine it before making a purchase. Modern shoppers and what marketers believe they want. Until that gap is
insist on a rich online experience to simulate actively closed, and retailers and manufacturers give shoppers
scanning store shelves to identify potential solutions what they want, online sales will underperform. Make sure
for their needs and to interact with products to make you close the gap with interactive merchandising tools.
4 Let in-store shoppers interact with
their final purchase decision. Interactive merchandising
technology allows online shoppers to interact with
products in order to eliminate any unanswered questions your products, online
and reduce their hesitation to purchase.
You’ve seen QR codes; they’re the
Hint: shoppers want you to be more interactive! postage stamp-sized barcodes
that look like a sadistic crossword
Interactive content such as image puzzle-maker created them.
zoom, 360 degree rotations and Manufacturers are increasingly
detailed specifications can simulate putting these codes on their
the “touchy feely” in-store experience, product packaging or in
while video demos can show advertising. When scanned with a mobile device, the codes
products being used under realistic link to a web page that displays more information about
circumstances and simulate an in- the product.
store clerk’s live demonstrations. This interactive content
helps empower shoppers and removes any obstacles
standing in the way of a purchase.
The most popular mobile applications
Online product demos boost the add-to-cart used in-store are scanner apps, with 44%
ratio by about 6% among shoppers who of smartphone users using them while in
engage in demos over shoppers who don’t. a store. (iModerate Research Technologies,
(PEW Research , 2010) March 2011)
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6. Why online merchandising is 1,000 times more important than offline merchandising.
(And 6 Ways To Make Sure You Do It Right)
technologies
Retailers are using QR codes in-store too, by linking
to category buying guides, product selectors, mobile
5 Mirror your shoppers’ behavior – be
mobile
coupons, how-to videos, consumer reviews and demos. The statistics are staggering: close to 50% of all shoppers
This mobile content allows manufacturers and retailers to in the US are using their mobile device to research and
always be “in the aisle,” helping shoppers choose the right browse products; just under 60% use their device while
product for their needs. Allowing in-store patrons access to shopping; and of those mobile shoppers, 70% are visiting
interactive online content can help create or preserve the a store’s site, while in the store! This is a strong indication
sale, and generate brand loyalty at the same time. that consumers want to interact with products, especially
while they shop.
More than two-thirds of mobile shoppers
(69%) used their phones to visit the store’s Using mobile technology to engage with shoppers has
own website, but nearly half (46%) also three major benefits:
used their phones to access a competitor’s
website. (Foresee, January 2011) 1) Increase sales. There is a distinct link between relevant
information provided in-store and purchase decisions.
More information means more sales.
2) Increase loyalty and satisfaction. Shoppers reward
brands and retailers that meet their information needs and
help them purchase the correct product with loyalty and
positive word-of-mouth.
3) Mobile connects physical products and stores to the
online world.
A shopper in the aisle that is searching for product 25% of US mobile web users only access the
information is begging you to help them buy the product. web from their mobile phones and mobile
Don’t let them down with the same product image that is predicted to be bigger than internet in 5
is on the package! Give them engaging and educational years. (Morgan Stanley, 2010)
content to ensure that they complete the purchase,
because the only things separating you from your
competitor are information and pricing! Much like the growth of the Internet as a shopping
channel in the 1990s, mobile is poised to be adopted even
Here’s a frightening statistic: 73% of shoppers with more rapidly. Shoppers are accustomed to researching
smartphones prefer to use their mobile device in-store and buying products online, and doing so with their
rather than ask a sales associate for help!5 It is incredibly mobile devices, whether at home or in-store, is the logical
important to provide them with engaging and educational next step. Offering mobile content and tools that helps
interactive content that will remove any obstacles standing shoppers find what they need and make an educated
in the way of their purchase. Help them feel confident decision makes perfect sense.
enough to buy!
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7. Why online merchandising is 1,000 times more important than offline merchandising.
(And 6 Ways To Make Sure You Do It Right)
technologies
6 Inspire youryour products them
how to use
shoppers – show Fifty-two percent of shoppers who have had
a bad online experience are less likely to
buy from that brand in an offline channel .
Shoppers want to see your products in-use. A shirt, jacket (DemandWare, 2011)
and tie combination look much better on a mannequin
than hanging on separate hangers, right? Sure they do! On the other hand, if the product information you provide
What’s more, a fully-assembled ensemble encourages sales a shopper helps them choose the right product, then
because shoppers can envision what the pieces look like they will probably buy from you again, and in your other
when put together. channels.
Showing in-use product images helps shoppers envision 65% of shoppers report that a digital brand
how they would use the product in their life. A set of dishes experience has changed their opinion (either
nicely arranged on a festive holiday table will have much positively or negatively) about a brand or
more of an impact than if the dishes were simply shot on a the products a brand offers.
white background. A snazzy leather steering wheel cover (Razorfish , 2009)
installed on a sleek sports car will create more interest than
if it were just photographed out of packaging. A golden The online experience is no longer just an extension of
retriever romping in a field and playing with a colorful a brand; it is a fundamental part of the holistic brand
dog toy will do a better job selling it than a static product experience, so it’s critical that manufacturers and retailers
image. Sadly, many people lack an imagination so help provide top-notch online content to shoppers because
them visualize how they could use the product! it affects the entire brand. The fact that todays’ shoppers
rely so heavily on online content and information in
Manufacturers: Make creation of image assets a priority, their product search means that online merchandising
and make a significant effort to work with your retailers to is (at least) 1,000 times more important than offline
get as much product content on their site as possible. By merchandising.
showing shoppers how they can use your product, you will
help them feel confident in their purchase.
Let’s continue the conversation!
Retailers: Take a lesson from successful catalogs; offer
in-use images as well as outlined static product images.
Insist that your vendors provide you with as much content
as possible, including videos, specifications, demos, test
results, warrantee information – anything that will remove
obstacles keeping shoppers from buying.
Email us at: info@easy2.com
Call us at: 877.299.3366
Visit us at: www.easy2.com
Conclusion
Shopping starts online, and today’s shoppers are multi- Think the information in this paper is helpful? Share it!
channel shoppers - if one channel provides a disappointing
experience, they’ll abandon the others.
March, 2012 Easy2 Technologies - 1220 Huron Rd East, 7th Floor, Cleveland, Ohio 44115 - P: 216.812.3200 - www.easy2.com 7

8. Why online merchandising is 1,000 times more important than offline merchandising.
(And 6 Ways To Make Sure You Do It Right)
technologies
About Easy2:
Easy2 Technologies is a leading interactive merchandising To learn more about how Easy2 helps manufacturers and
content and technology provider. We connect retailers increase conversions and sales, contact:
manufacturers, retailers and shoppers with engaging
and educational content that helps remove obstacles George Koenig
between seller and buyer that stand in the way of making VP, Sales
a confident purchase. We make it easy for shoppers to george.koenig@easy2.com
choose our clients’ products, for retailers to implement
interactive merchandising content and for manufacturers Jerry Spelic
to create engaging content and publish it on their retail Director of Marketing
partners’ websites. jerry.spelic@easy2.com
RESOURCES: In addition to those already cited, the following sources
were also used in creation of this report:
1 – Experian, 2009
2 – Forrester Research, 2010 SRI, October 2010
3 – Adobe, January 2010 PEW Research Center, May 2010
4 – Adobe, April 2011 DemandWare, 2011
5 – Accenture, 2010 Easy2 Technologies, 2011
6 – On Device Research, 2010 iModerate Research Technologies, March 2011
7 – Nielsen, 2009 Foresee, January 2011
8 – Bazaarvoice and Keller Fay, 2006 Razorfish, 2009
9 – Rubbermaid Case Study, April 2010 eMarketer, February 2010
10 – Sterling Commerce, 2010 iPerceptions, January 2008
Shop.org, comScore and Social Shopping Labs, 2011
Morgan Stanley, 2010
8 Easy2 Technologies - 1220 Huron Rd East, 7th Floor, Cleveland, Ohio 44115 - P: 216.812.3200 - www.easy2.com March, 2012

9. For more information:
Easy2 Technologies
1220 Huron Rd East, 7th Floor
Cleveland, Ohio 44115
1.877.299.3366
w: easy2.com
technologies
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