Ten years ago, the idea that Amazon could compete with the Goliath from Arkansas would be thought insane. Back in those dark ages, Amazon CEO Jeff Bezos was predicting the end of offline retailing, and traditional brick and mortar retailers were equally sure that the only thing consumers would buy online would be books. Mr. Bezos probably came closest on the guessing game, but he was wrong about some significant details.
Retailers facing the 2009 holiday season are veterans of a multi-channel world. Consumers shift from catalogs to stores to the Internet based on their need. But now, just as retailers have learned how to straddle multiple channels, they are facing the toughest economy in decades.
Good news: Shop.org predicts the e-commerce channel will grow 11% in 2009, and while this will not make up losses in other channels, every retailer wants to beat their competitors for their share, especially during the holidays.
Critical factors
Multi-channel is multi-influence, and in a year when price is so critical, moving other factors into a consumer’s consideration set will not be simple or easy. Consumers will make their choice of brick and mortar destinations while they are online.Mastering online marketing is now a concern for CFOs as well as CMOs. Here is a hint: Twitter and Facebook aren’t going to do it. Look at what makes the Internet so powerful for consumers: convenience.
For good reason, most major retailers know that search engines are the favorite weapons of the time-crunched consumer. Now is the time for final test drives. Reports on which words are delivering the best CPC (cost-per-conversion) should be readily available, if the results aren’t meeting expectations, now is the time to fix it. Hint: look at the results from Q4’08 to add a dimension to what you want to do.
The majority of online retailers miss the mark with their online advertising leading to disappointing results. Here are six basics many retailers miss:
• Include a call to action (Hint: “Shop Now” out performs “Buy Now”).
• Don’t include a specific price; give them an offer. Once consumers know the price, they have no need to visit your site as shoppers or buyers.
• Limit the animation, but if you are going to do it, consider repeating the first screen and the last screen. Consumers may not see the entire ad, and repeating the first screen will give them a chance to get the entire offer.
• During the holiday season, holiday messaging does not lift response. Everyone knows it’s the holidays, so use that valuable real estate to do something else.
• Seriously consider investing in rich media ads that offer consumers access to information on multiple products in the banner. Our results show that consumers who start to shop in the banner are significantly more likely to convert to a sale on site. Tracking actions on these ads will also give you invaluable learning about product preference across a media buy.
• If you are talking to women about tech, go for the direct product information, not the emotional sell. We’ve tested this repeatedly, and education works better than emotion.
Make it easy
Once on the site, consumers should be able to easily find the products they want, and the brand should be able to easily cross-sell products. Consumers are now in the brand’s house, but it needs to work for them, or sales will be lost. If at least 50% of your visitors aren’t converting to an on-site sale, you have a problem. And you do not have time to redesign a site for the 2009 holiday season.No matter what your inhouse team or digital agency says, that door is closed. Instead, look at a few more basic things.
Test the mix of elements on the home page. Almost all retail sites follow a grid format that enables the brand to rearrange the merchandise mix, change text and even font. Don’t wait for the holidays to find out what is most readable, as it really doesn’t matter what the offer is if they can’t read it.
The visibility of consumer ratings is critical. Are there links easily available? Can consumers easily enter their opinions, and do you thank them? It’s an automated e-mail that can carry a powerful message beyond the thank you—links to the site, sign up for e-mail, and a coupon in appreciation of sharing, even if the review wasn’t favorable. They spent thoughtful time with the brand because they care. Take care
of them.
Use social networking to make cash registers ring. Most retail sites support sharing content via e-mail as well as the creation of a Wish List. This year, they need links for upload to the full contingent of social networking sites. Real viral marketing is not videos on YouTube. Teens sharing desired presents with mom and girlfriends posting their Holiday Wish List link on Facebook—that’s social networking that rings a cash register.
Channel the power of e-mail. The most misused tool in the retailers’ online arsenal is e-mail. E-mail has power most retailers haven’t even begun to unleash. E-mail can retain current customers, recruit new customers, and enable the brand to deliver personalized value to their best customers. Brands in return get sales and invaluable insight into their customers.
None of this can happen with e-mail designed like in-store displays: one or two large visuals and a subject line like “20% Off Sandals” mailed twice a week. Here are nine ways to improve open rates, click-through to the site, and even grow the database:
• Make it easy to sign up, and don’t hide it at the bottom of the home page.
• Have a regular schedule for e-mails; test mailing times and days.
• Select an e-mail vendor that has high deliverability rates through even tough-to-penetrate ISPs like Comcast.
• Include text links of key content at the top to make sure consumers who have chosen to leave images off read the message and to reach those taking a first glance on mobile.
• Do not use a one or two single graphics. Create a reusable template that supports multiple products. Templates help with costs and enable brands to test product placement and offers and cross sell. Also, there should be multiple reasons to click through to the site. Hint: e-mails are a great place to promote gift cards.
• Do include the navigation bar to the site. It will increase click-through to the site even if it makes the designers miserable.
• Create messaging that encourages click-through. For example, “5 Lighting Fixtures for under $50” will get more clicks than “20% off Lighting Fixtures.” The former gives a reason to click; the latter begs a question (20% off what base price?)
• Add real content to product sell such as the latest consumer review of a product. All will build a reason to read and to click.
• Stay legal, and never abuse your consumers.
The process of getting consumers to your site through purchase and return is tough, but increasingly there are tools available to achieve great results. Even in the world of Tweets and Friending, there is a growing volume of best practices that work. This holiday season, the retailers that faithfully practice them stand the best chance of attaining results that surpass any pundit’s expectations.
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