This document discusses using shopper typologies and segmentation to inform ecommerce strategies and website design. It recommends conducting surveys of website buyers to understand who they are demographically, their attitudes, shopping behaviors, and needs. The results can be used to identify the most important and profitable customer segments for the website. These key segments then drive decisions around the website tone, architecture, tools, content, and merchandising to best meet the needs of the primary target segments. Qualitative research with personas helps illustrate differences between segments to guide design. The overall goal is to align the website and digital strategy with the most valuable shopper types.

1. Shopper Typologies to
Drive Site Design and
Ecommerce Strategies
April 25, 2012

2. Who Am I?
Eric Paquette
Senior Vice President
Copernicus Marketing
Consulting and Research
Aegis Media

3. ERIC PAQUETTE, SVP
(617) 449-4189
Eric.Paquette@copernicusmarketing.com

4. Background
 Expected Growth in eCommerce Sales for
U.S. On-Line Retail Sales 2012
– Apparel and Accessories: +19.7%
224.2
– Books, Music, Videos: +18.0%
194.3 – Computers and Electronics: +15.9%
167.3 Source: eMarketer
155.2 +15.3%
+16.1%  While most of the top eCommerce sites are
+7.8% retailers selling a mix of brands, several brand
specific sites crack the Top 25
– Apple (#3)
– Victoria’s Secret (#18)
– L.L. Bean (#21)
– Gap (#24)
2009 2010 2011 2012*

5. Ecommerce is also growing for brands that use retailers for distribution
More and more brands are expanding their direct on-line presence.
 Significantly higher margins
 Providing significantly expanded reach for distribution
 Provides access to customer data
 Opportunities to develop customer insights
 More and more, consumers expect to be able to buy brands directly

6. And brand websites provide a much richer brand experience

7. They are typically only a sub-set of brand buyers
While direct on-line sales are increasingly important to brands, it is critical to realize that direct buyers have
a distinct set of needs compared to general brand shoppers.
The on-line shopping experience is decidedly different than a retail experience. That has implications for who
is going to shop on-line in different product categories.
% of Brand Buyers Who
Buy Directly On-Line
26% Often 50+% of
brand sales are
directed to the site
4% for these shoppers

8. In fact, there are many types of ecommerce shoppers
Broad Selection Browser/Researcher
Retail Haters Latest & Greatest
Family Provisioner Bargain Hunter

9. Understanding general on-line behavior doesn’t explain enough
Any given person can behave very differently with different brands or on different sites.

10. The mix and value of those shopper types depends on the category and brand
Apparel Brand A Apparel Brand B
% of Direct % of Direct % of Direct % of Direct
Ecommerce Ecommerce Ecommerce Ecommerce
Buyers Sales Buyers Sales
8%
14%
22%
44% 32%
25%
19%
16% 24%
27% 40%
18%
10% 22%
9% 8%
25%
10% 15% 12%

11. Understanding site users has wide ranging implications
 Website tone, look and feel  Email/direct marketing strategies
and tactics
 Site architecture
 Social and search tools and
 Site shopping tools strategies
 Availability / role of mobile site  Site merchandising strategies
 Amount / role of branded content  Pricing strategy
vs. ecommerce

12. Start with surveys of site buyers
 Who are they demographically?  How does the site compare to other sites
/ channels?
 What is their “brand” segment?
 Who do they shop the site for?
 What are their attitudes about
shopping on-line?  What is the “journey” when buying?
 What do they want when shopping for  What devices are used when shopping?
our brand?
 What current / potential site tools,
 What do they want from our site? content, etc. are desired?
– Shopping experience
– Product, price, etc.  What are social behaviors for the brand?
– Brand experience

13. Who do you survey?
Our focus is on relatively recent buyers on the site….
 Who are they?
 How and why have they shopped recently?
We might include those interested in buying on the site….
 If just developing an ecommerce presence
 If envisioning a significant overhaul of the site
 We would want on-line buyers in the category
We want to interview lots of them to provide strong links to customer databases….
 Fortunately interviews from customer databases are inexpensive

14. Understand the basics of your on-line buyers is a first step
The on-line shopper might not fit the stereotypical profile of the brand buyer potentially influencing the look,
feel, and tone of your site.

15. Identify the segment that is most important to ecommerce sales
Develop a Meaningful, Profit-Directed and Actionable Segmentation
CREATE
Hundreds of TEST
Variables To identify
1. Attitudes characteristics PRODUCE
2. Site Needs of people who Optimal
3. Buying Behaviors are profitable Segmentation
4. Demographics for your
5. Brand Segment ecommerce
Membership SITE
6. Database data
15

16. Who is Most Important?
Using “predictive” characteristics to define segments leads to clear targeting.
% of Direct % of Direct % of Direct
Ecommerce Ecommerce Ecommerce
Buyers Sales Profits
22%
44% 48%
19%
16%
27%
25%
18%
10%
14%
25% 9%
5%
10% 8%

17. What about the overall brand targets?
The result is not the same, but ideally is generally aligned with the overall marketing targets for the brand.
Ecommerce Targets
Brand Targets 20% 20%
35%
Primary Target 50%
43% 30%
38%
Secondary Target 30%
37% 40%
20% 27%
Non-Target

18. The target segment drives the site design, tools, and site “positioning”
The details of quantitative research are often embellished with qualitative research and Personas are
developed to guide design teams.
The Perfect Fit Hate-to-Shop Gifters Price Pilgrims Browsers
Different Demographically
Different Attitudes about Shopping On-Line
Different in Terms of Who Buying For
Different Devices Used to Shop
Very Different in Needs/Wants Shopping
18

19. The tone and look vary based on the target

20. The prominence of “branding” can vary

21. The site architecture driven by the needs of the target

22. The segments inform different tools as well
Illustrative Case
The Perfect Fit Hate-to-Shop Gifters Price Pilgrims Browsers
Featured “Deals”   
New Product Features  
“Compare” Tool 
Return Policy  
Store Locator/Interaction 
Customer Service Hotline  
Breadth of Selection  
Customer Reviews 
Product Recommendations  

23. Link the segments to your customer database
Profile the segments with their database data….
 Validating results of the survey
 Extending the information that is available
Predict segment membership using available
database information….
 Transactional and other data
 Historical
 3rd Party Data
Enabling segment specific direct marketing
activities.

24. Strategies and tactics can be used to address secondary targets as well
Historical patterns in segment shopping behavior can identify seasonal opportunities
 Direct marketing opportunities
 Site “merchandising” opportunities
 Site pricing / sale strategies
Share of Site Sales by Segment
50%
45% Hate to Shop
40%
35% Perfect Fit
30%
25% Gifters
20%
15%
Bargain
10% Hunters
5%
Browsers
0%

25. Linking the database enables segment-specific direct offers
Segment specific offers can be developed, tested and tracked.

26. Recap
 Your web buyers are generally not the same as your overall brand buyers.
 There are many different types of on-line shoppers on your site.
 These groups have different wants and needs from that on-line shopping
experience.
 Importantly, they also they also provide very different levels of profit potential for
your ecommerce channel.
 Understanding the segments, and your ecommerce target provides clear guidance
for your site design, strategies and tactics.

27. Mark Your Calendars!
Wednesday, May 23, 2012
Mission Impossible:
Profiling Shopping Occasions for
Retail and Channel Partners
Jeff Maloy
Senior Vice President
Copernicus Marketing Consulting and Research
Register Now: copernicusmarketing.com/webcasts
Wednesday, May 23, 2012

28. ERIC PAQUETTE, SVP
(617) 449-4189
Eric.Paquette@copernicusmarketing.com