Download - Forrester & SDL - Optimizing eCommerce Experiences

SDL Proprietary and Confidential

Turning Browsers into Buyers: How To Optimize the eCommerce Experience

Sucharita Mulpuru, VP and Principal Analyst, Forrester

Tom Smith, Product Marketing Manager, SDL

March 19, 2014

From brand experience, to customer experience

“A brand is more than just your logo”

Customer Experience = Brand & Commerce in Harmony

“Your customers have one view of you, don’t give them reason to change that perspective”

Likes HP

52 years old

Bought a tablet month ago

Looking for a sports car

Shopping for golden ear rings

On the street using 3G, no wifi

access points

Location: New York

The Rise of Context“Tying the scattered, digital existence to the actual, physical self”

Early evening

Using an Android 5.7 inch device

Travels KLM

Shoppers don’t think online vs. offline

“Being relevant, is more relevant than ever”

‘Old school’ merchants and marketers limit their focus to

the transaction

The Millennial Generation demands more ‘experience

Commerce’

© 2013 Forrester Research, Inc. Reproduction Prohibited 8

Three drivers of web shopping

Top 2 box of 1-5 scale

CONVENIENCE

SELECTION

VALUE

Source: Forrester Benchmark Recontact Survey 2013

I find better values and deals online

I save time by shopping online

I find products online that I cannot find anywhere else

63%

68%

70%

Base: 4,476 online adulsts

© 2012 Forrester Research, Inc. Reproduction Prohibited

Most sales will continue to happen in stores

© 2012 Forrester Research, Inc. Reproduction Prohibited

The number of smartphone and tablet users are growing rapidly

Site metrics continue to be challenged

2000 20100%

2%

4%

6%

8%

10%

2.2% 2.9%

Conversion Rates

2000 20100%

10%20%30%40%50%60% 53% 55%

Cart Abandonment Rates

2000 2010$0

$1

$2

$3

$4 $3 $3

Customer service $/order

2000 20100%

10%

20%

30%

40%

50%40%

35%

Repeat Shopper Revenue

Source: Forrester and Shop.org State of Retailing Online Studies

Phase 1 (1990s-2001) Phase 2 (2001-2008) Phase 3 (present)

Site optimization efforts have evolved

Site launches

• Licensed solutions• Limited budgets• Functionality constrained by

bandwidth• Functionality

enhancements from point solutions

• “Plug-in” modules• “One-for-all” execution

Basic site improvements

Dynamic optimization

• Integration of broad datapoints

• “One-to-one” execution• Mainstreaming of cloud

infrastructure

Phase 2 introduced many now “industry standard” features


Agenda

›Optimizing the experience

›Examples

Interactive marketing helped to evolve eCommerce executives to “dynamic” thinking

› Testing of copy and creative

› Dynamic adjustment of datafeeds

› Personalized content and segmentation based on previous clickstream history

› Landing page optimization

Turn browsers into buyers by using…

› Intent from on-site search, or search engines

› Current interests from clickstream

› Recommendations which can be adjusted to a shoppers’ visit

› Items in cart as a trigger for cross-sells and upsells

› Insight on whether the visitor is a repeat or first-time visitor

› Location of the customer (direct or inferred)

› Dynamic pricing

› Browser type and mobile information to adjust content

Some retailers have been doing this for over a decade

Smarter store windows can be incorporated throughout the site experience

Site touchpoint Opportunity

Homepage/landing page Promotional offers to various customer segments “Smart shipping”; vary offers based on the most cost-effective shipping optionContent variance based on geography of viewerSort site search by inventory availability

Product detail pages Personalized recommendationsLive support for shoppers based on inferences about likelihood to buyChanges in pricing or offers based on browser and location (e.g. in-stores and mobile search)Offers based on consumer likelihood to buy

Checkout Personalized recommendations and offersSame session offers


Agenda

›Optimizing the experience

›Examples

Do incorporate recommendations throughout the shopping experience

1

2

Recommendations during search results expose useful products at key moments

Do put recommendations in email

Order Confirmation

Shipping Confirmation

Do put recommendations above the fold where possible

Product detail pages should upsell while checkout cross-sells best

Do think about the verbiage for describing your recommendations

Faceted navigation is now table stakes

Different treatments for different visitors

First time visitors get a special offer

Do consider suggestive search

Do constantly tweak your algorithms


Adjust what is rendered according to the device

www.t.staples.com

A few “don’ts” to think about

› Don’t neglect your product recommendations feature, even if you plan to “set and forget”

› Don’t expect recommendations to overcome clumsy taxonomy

› Don’t underestimate the challenges of doing this in-house

› Don’t ignore your company’s unique challenges in the due diligence process


A superior customer experience = a stronger company overall

Thank youSucharita Mulpuru

[email protected]

35

The eCommerce Experience Challenge

How do I build a differentiated, forward-

thinking digital shopping experience while everything changes around me, day to

day?How do I invest in top priority projects while

thinking about the customer experience – is mobile more important than video, than

international, than merchandising, than

omnichannel?

36

The eCommerce Experience Challenge

How do I stop working on a hunch and more on the data

I know will tell me more about how to optimize for my

customers?

How do I bring all the eCommerce experiences together into one holistic

experience that aligns with KPI goals AND brand goals?

Towards Experience-Commerce

37

From: Transaction Focus

To: Experience Focus

• Basic Catalog Content Exposed

• Minimal data points, little

understanding of customer

context

• Division between channels

• Pushing products

• Silos between content/brand &

eCommerce teams

• Minimal international

understanding

1. Catalog Enrichment

2. Context-awareness and Data-

influenced Experiences

3. Satisfying the Omnichannel ‘norm’

4. Influencing Product Discovery

5. Blending Content + Commerce

6. Refined, controlled international

eCommerce

1. Catalog Enrichment

* Invodo research 2013 – How Consumers Shop with Video: http://www2.invodo.com/l/12102/2013-05-17/9399r

Video + interactive imagery = Engaging the Customer & Driving to

Purchase

55% of consumers are more likely to purchase after

watching a video*

Likes HP

52 years old

Bought a tablet month ago

Looking for a sports car

Shopping for golden ear rings

On the street using 3G, no wifi

access points

Location: New York

The Rise of Context

• It’s about the mobile consumer, not the device

• Understand time, device, location and profile

• Derive insights from behaviors

• Guide the experience

Early evening

Using an Android 5.7 inch device

Travels Delta

2. Context Awareness

40

2. Data-driven Merchandising

Moving an item by one row equals a discount of up to 6% for a short product list and medium position dependent products*

Moving an item by one row equals a discount of up to 21% for a medium-length product list and highly position-dependent products

= -21%*

Moving products has a similar effect as a discount

*Based on an experiment with hypothetical purchase decisions. 9 or 27 options per decision. Medium position dependent product: suitcases, highly position dependent product: wine.

3. Satisfy the Omnichannel ‘Norm’

41

Unified Experience

Flexibility and seamless shopping

Full product offering across all channels

Single view for the customer across all

channels

Single organization servicing all channels

Omnichannel Retailer

Some cross channel

capabilities

Single brand access across all channels

Separate supply chains and systems

Cross-channel Retailer

Different channels in

silos

Silo’d business units

Stock availability

High level customer service

Product variety

Differentiated services

Multi-Channel Retailer

Bulk of revenue from one channel

Traditional brick and mortar retailer

Pure play online retailer

Single Channel Retailer

3. Satisfy the Omnichannel ‘Norm’

4. Influence Product Discovery

43

“One of the problems with e-commerce today is the tendency to equate “search” with “shopping”.

Shopping is not a utilitarian function, but instead, a process of

discovery. Think of a time you visited a store and found

something wonderful, something unexpected. You don’t have to give

that up in order to shop online.”

~ Hiroshi Mikitani, CEO, Rakuten ~

44

5. Blending (Relevant) Content + Commerce

45


46


6. Internationalization

• Centralized merchandising control? Or local flexibility?• Language considerations?

• Propensity to shop on smartphones, tablets?• Prefer video & imagery?

• Less likely to make a purchase without going in-store?

48

7. Internationalization

“Sneaker”…“shoe”…“trainer”…“running shoe”?

SDL for eCommerce: Optimize & Personalize

Optimize conversion rates 18-40% Make shopping inspiring, intuitive and

part of the complete customer experience

Give your merchants and marketers control over the digital shopping experience

Blend multiple data sources to personalize for each and every customer, regardless of channel

eCommerce

SDL for eCommerce Optimization and Personalization

Data-driven Merchandising

Predictive Targeting

Business Management Layer

Predictive Analysis & Optimization

Data Manager

PersonalizationSearch

& Navigation

Brand or Shop – ‘Branded Store’ Experience

51

Global Retailers We Work With…

SDL’s VisionCustomer Experience Cloud

Deliver seamless, data-driven experiences at each point of the customer journey – across channels, devices and languages.

SDL Customer Experience Cloud