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3 Tips to Improve Online Channel Conversion and Grow Your Sales With Online Retail Partners


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Tips for CPG Companies to Grow Their Online Sales

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3 Tips to Improve Online Channel Conversion and Grow Your Sales With Online Retail Partners

  1. 1. 3 Tips to Improve Digital Channel Conversion & Grow Your Sales with Online Retail Partners © Copyright Clavis Technology Ltd., All rights reserved.
  2. 2. About Us: Clavis Technology Clavis Technology is at the forefront of the consumer goods eCommerce Revolution, delivering eCommerce Insights and Online Store Audits to Food & Beverage, Personal Care and Household Products manufacturers and brand owners. Our solution analyzes your products’ Placement, Portfolio and Integrity across leading online stores to enable you to optimize your digital channel distribution, integrity and presentment, and grow your online sales. Follow @clavistech on Twitter for daily CPG eCommerce news and information. Find Us
  3. 3. TABLE OF CONTENTS: Groceries Fast Becoming a Common Online Purchase 4 The Size of the Prize 5 Always-On Multichannel Consumers 6 Tip #1: Online Store Product Portfolio 7 Tip #2: Online Store Product Placement 8 Tip #3: Product Information and Content Integrity 9 More Resources 10
  4. 4. Groceries Fast Becoming a Common Online Purchase Consumer packaged goods, food & beverage, personal care and household products companies are seeing unprecedented growth in sales via the online channel. According to global information and measurement company Nielsen, online CPG sales are expected to grow at a 25% compound annual growth rate from 2012-2015. The issue for brand owners and manufacturers now is how to take advantage of this market shift to grow their overall business and make the transition from a traditional retail channel to the multichannel world and the “endless aisle” of the online store. Today, in some categories, up to 20% of purchases are conducted online and about 80% of in-store retail sales are affected by online research; these numbers will inevitably climb as the younger, always-on, generation grows up to start families. There is incredible opportunity for companies to benefit from the growing online channel - however with it come new challenges. The brand image, description and marketing content that your company spends so much time and money on is becoming increasingly out of your control. When selling on sites like or, your product is only as good as the content representing it on each product web page. New data shows that the quality of this information is not always up to scratch. A recent Clavis study of 17 top online retail sites found that over two thirds of product pages failed to meet expectations. Find Us // Page 4
  5. 5. The Size of the Prize A recent study by top UK supermarket Sainsbury’s compared two brand manufacturers, both generating 2% growth in sales across Sainsbury’s bricks and mortar stores in the first three quarters of the 2012 financial year. However Supplier A, which focused on the digital channel, saw a 30% rise in its business through Sainsbury’s online store. And rather than cannibalizing in store sales, as some might expect, Supplier A actually delivered overall sales growth of 4.2% for the period, compared with just 2.6% total growth for Supplier B. We applied the Sainsbury’s model to the example of a grocery supplier which does $1billion dollars in annual revenue and starting with just 3%, or $30 million, in online retail channel sales. This shows that by putting in the effort to achieve an annual online growth rate of 30%, the manufacturer could generate over $240 million in additional top line revenue over four years. // Page 5
  6. 6. Always-On Multichannel Consumers Despite the growth in online sales of groceries and consumer goods it can be a challenge to get consumers all the way through the path to purchase in the online retail and clicks & bricks stores where your products are sold. At every step from Demand creation, through Research and Evaluation to Conversion there is potential for something to go wrong that stops the consumer from adding your product to their basket. In the bricks and mortar world your sales teams invest a lot of time and effort into managing shelf-presentment with top retailers and the visibility of your products in leading stores. Similar effort needs to be invested by brand owners when it comes to managing product listings and product information across online and mobile channels. To achieve success in a changing marketplace where online retail stores account for an ever growing proportion of revenue, brand owners and manufacturers need to ensure that: • • • You have the right assortment of products in the online channel. Consumers can easily find your products using search or menus. And the information about your products is accurate, complete and properly presented. Find Us // Page 6
  7. 7. Online Store Product Portfolio Just as the starting point for the traditional retail channel is getting your products into the right stores, the first thing to get right in the digital channel is your Portfolio of available products. You need to ensure you have the appropriate assortment to meet the needs of online consumers and increase their propensity to buy. The right portfolio of products in the online channel may well be different from your offline distribution – maybe there are product sizes or variants that sell better online that would increase consumers’ propensity to buy. Start by tracking your online portfolio with a few key online retail partners and compare your distribution to your competitors. Then work with your retail partners to optimize your portfolio by e-store. However, just discovering and tracking which of your products/brands are available in the myriad of online retail stores can be a challenge – and even if they are listed in a dot com store are they actually available for purchase online? If your product is listed, but not available when the consumer wants to buy, it can lead to more than just one lost sale. If the consumer switches to an alternative brand their business could be lost for good. // Page 7
  8. 8. Online Store Product Placement Once you have your products available in a traditional store, it’s time to start thinking about shelf placement and promotions to drive sales. The same applies online, but with the endless eCommerce aisle and a different approach to categories Placement becomes an issue of Search and Category/Menu ranking.  You want consumers to be able to find your products easily among all the options they have in the online store. If they can’t find them they can’t add them to their baskets and favorite-lists. Numerous studies have been carried out that show the different behaviours of online shoppers: It turns out that in most online grocery stores between 30 to 40% of adds to baskets involve products that are found through free text search, while a further 20 to 30% come direct from consumers navigating down the menu structure. The rest of “basket adds” are usually from regular shoppers’ saved favorite items. This means it’s critical that your product content is optimized for search performance in these stores and that your products are listed in an appropriate range of categories and sub-categories.  At the same time your promotions need to be properly executed and in the right place at the right time to ensure you beat the competition and get the lion’s share of impulse buys, adds to baskets and adds to favorites. Find Us // Page 8
  9. 9. Product Information and Content Integrity On the internet information is the key to success.” Equivalent to and yet more important than product quality in the off-line world, your products in the online channel are only as good as the information available about them on the sites. On the internet information is the key to success. For brands to win online they must ensure that the information available about their products is more complete, more widely available, better presented and more accurate, than that of their competitors. Online shoppers may be keen to buy, but because they don’t physically see or hold your products, manufacturers need to work with their retail partners to make sure their product information is complete, accurate and properly presented in order to improve online sales performance, protect brand integrity and grow market share across all channels. Product Information and Content Integrity is important at every stage of the path to purchase. Your product pages in online retail stores at the start of a consumer’s path must have internet friendly titles, images and complete descriptions. These need to include the most relevant marketing bullets/feature benefits to help ensure you rank high in search. At the end of the path where the consumer is ready to purchase many sales are lost because some vital nugget of information, such as a nutritional panel or directions detail, is missing, incomplete or inaccurate. // Page 9
  10. 10. More Resources The tips on the previous pages are a good jumping off point to start thinking about optimizing your product across leading online retail stores. Why not register for a demonstration of how Clavis Technology can help you audit and analyze your products' Placement, Portfolio and Integrity in leading Online Retail stores. Interested in finding out more about the problems we found with consumer packaged goods data online? Get a FREE DOWNLOAD of our recent study of consumer packaged goods brands on the top 17 eCommerce sites. Get this informative infographic to learn more about the state of CPG eCommerce right now. Find Us // Page 10
  11. 11. Ready to start improving your online conversions? If you’re interested in improving your online sales by as much as 30%, request a custom demo of Clavis eCommerce Insight today!