E-tailing and Retailing are the same! Same objective: Sales
What is a successful interaction in retail? 1. A purchase 2. A repeat customer - sales today - sales tomorrow What do they have in common? SATISFACTION - ENJOYMENT
Where retailing still beats e-tailing30% prefer shopping on ”high street” over e-tail.49% think retailers offer better customer careand advice while shopping.36% says if e-tailers improved, they’d buy more.
What can e-tailers learn from retailers? QUESTION 1 QUESTION 2 What are the How can they cornerstones of be applied traditional in e-tail "corner shop" merchandising? merchandising?
Best practices in “traditional retail” Customer enters Observe shopper Offer advice behavior Successful sale! Impulse offer at Offer more items of checkout interest
Learnings for e-tailing:Customer enters – on category page!What may happen “Corner store” learning Too many choices! Help shopper find most relevant products based on interest expressed
Learnings for e-tailing:Customer enters – on product page!What may happen “Corner store” learningShopper leaves in Help shopper feel they are search for more making “right choices” by options proposing alternatives
Learnings for e-tailing:Customer puts item in basketWhat may happen “Corner store” learning Sales lost to Help shopper discover more competitors products and new categories to explore while they are in the store
Learnings for e-tailing:Customer at the checkoutWhat may happen “Corner store” learningHigh-margin items Help shopper by highlighting never sold relevant specials & items they may have forgot
Achievements if you get it right!Direct Golf• Average order value: + 10 GBP• Higher conversion rate• Increased staff productivityAvail customer – department store• Uplift 2011: +13,0 %Avail customer – furniture• Uplift 2011: +18,5 %Evans Cycle• Doubled relevancy of search results
What happens when a potential customeris not offered a pleasant experience? BIG MISTAKE!
Key Takeaways1. Did I say anything revolutionary?The dynamics of merchandising apply online and offline2. Then why are so few retailers applying it?Do it – and adhere to merchandising dynamics3. The challenge of “recommendations” isnot technology, it is the merchandising logic
Do you want to discuss Merchandising? Please join as at our stand D2 after the presentation. Thank you for the attention!Jeremy.Glass@Permission.com.au Nicklas.Larsson@Avail.net Phone: 02 8024 5400 Mobile: +46 703 13 26 26
HEAD OFFICEEngelbrektsgatan 6, 211 33 Malmo, Sweden +46-40-121217, email@example.com www.avail.net