MASTERING MOBILE MERCHANDISINGMystery Shopping Insights, Tactical Selling, Practical Solutions
the e-tailing group - PAGE 2 -
20 years e-commerce consulting
Author, It’s Just Shopping
50+ years traditional retail and catalog experience
Fortune 500 client projects ranging from strategic planning, merchandising, marketing, to technology development and messaging
Projects spanning retail landscape with global coverage
Proprietary research studies on mystery shopping, merchandising, mobile and consumer behavior
The Voice of Cross-Channel MerchandisingStraight talk from “in-the-trenches” online merchandising experts
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The State of Mobile
eMarketer Stats 2014 2015 2016 2017 2018
Mobile sales (b) $57.79 $76.41 $98.12 $114.50 $132.69
% Growth 37.2% 32.2% 28.4% 16.7% 15.9%
% total web sales 19% 22% 25% 26%. 27%
Usage •In December 2013, 56.9% of time spent online occurred on mobile devices 1
•56% of U.S. Internet users use both desktops and mobile devices to access digital content online, including e-retail sites & apps 1
Device Shift•While most digital commerce spending still occurs on desktops, mobile is accounting for an increasingly meaningful percentage(10.5% in 2013) and is growing at significantly faster rates (23%) 1
•Smartphone sales were 7% of total online spending in 2013, while tablets contributed 3.5% 1
•In 2014, 124.8 million U.S. consumers will shop on a smartphone representing 63.5% of digital shoppers 2
•Tablets will outpace smartphone growth; in 2014 $38.02 billion in sales on tablets compared to $18.49 billion on smartphones (this already exceeds a 2-to-1 ration); By 2018, 72.6% of m-commerce will take place on tablets, totaling $96.31 billion2
Shopping•Digital sales still only account for 9% so store sales remain significant 3
•U.S. retail mobile commerce sales will soar from $42.13 billion in 2013 (16% of total web sales) to $132.69 billion in 2018 (27%of web sales) 2
1) comScore 2) eMarketer 3) Forrester (all 2014)
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108 Merchants of all sizes (annual sales)28%<$1M to $20M23%$20M to $100M27%$100M to $1B22%$1B to $5B>
Selling through a mix of channels100%Internet86%Email82%Mobile55%Store47%Catalog27%Social12%TV
Q1, 40, 44
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75%
61%
56%
50%
39%
Our mobile effort is critical to the growthof our business
We are in the early stages of our mobileinitiatives and just hoping to keep pace
We are working on achieving a superioromni-channel experience and mobile
plays a key role in that effort
Mobile represents the growth in ourbusiness and we are investing
accordingly
It's hard for us to know where to investrelative to mobile initiatives
Thinking about the challenges you face as a retailer relative to your mobile efforts, please state your level of
agreement with each of the following statementsTop-2: Strongly/Somewhat Agree
Q35
Mobile is the #1 issues for retailers yet they are in the early stages of working towards superior online
experiences
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75%58%
53%44%
31%29%29%
24%18%16%
4%
Customer experience
Technology
Responsive design
Mobile tracking/analytics
Retargeting
Mobile advertising
Omni-channel tracking
Back-end systems to support…
In-store initiatives
Push notification
Other (please specify)
Where will you be investing in 2014 relative to mobile? Check all that apply.
Q36
Having acknowledged mobile’s infancy, 3-out-of-4 retailers will be making investments in the customer
experience
Half place an emphasis on technology and responsive design
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What’s Important: Store Locator, Detailed Product Information, Locators, Finding Product, Reviews
73%67%
65%60%
58%57%
54%54%
52%48%
45%41%
37%32%
28%
Store locator
Detailed product informationProduct /Inventory locator (check inventory)
Ability to refine and sort search resultsReal-time product reviews
Frequent buyer/loyalty programs
Daily dealsRich product imagery including alternative views
Location-based option (retailers send information…Keyword search with type ahead of auto suggest…
Mobile specific deals
Ability to text/ email store locator informationGifting (gift certificates and other gift services)
VideoSocial media (Facebook, Like a product)
Q. We would like to understand the importance of a range of features that may be part of your mcommerce experience using a scale of 1-5,
where "5" is very important, and "1" is not at all important. Top-2: Very/Somewhat Important
Source: e-tailing group 2014 Merchant Survey
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40%
34%
33%
28%
27%
25%
21%
20%
18%
18%
13%
Branding
Customer service
Overall user experience
Shopping cart
Search and Navigation
Product page (content, imagery, video)
Promotional Tactics
My Account (membership, profiling…
Merchandising Tactics
Category-related content
Personalization
How would you rank the following areas of your mcommerce experience on a scale from excellent to
inferior?Top-2: Excellent/Good
Q33
Retailers have work to do in all aspects of their mcommerce experiences
Source: e-tailing group 2014 Merchant Survey
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Goals, Methodology, Merchants• Evaluate the sites in the context of real shopping experiences benchmarking the on-the-
go consumer experience from information gathering through purchasing and customer support.
• Evaluate the onsite user experience based on 174 metrics, looking at 6 top tasksconsumers are likely to perform always factoring in the overall usability of their experience
• Review of the mcommerce experience on each site relative to: – Key page prowess– Brand parity, likelihood to buy and errors experienced in the process – Effective merchandising execution– Feature-rich retail locators, lookup and pickup options for multi-channel retailers– Product and category information depth– Shopper-centric search options – Strong cross-channel shopper profile integration– Efficient checkout, related tools and likelihood to buy– Cross-device and cross-channel promotion
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Retailers Must Adapt To Meet Connected Customers
Exemplary Mobile
Experiences
ROBUST
INFORMATION
(STORE, PRODUCT, DETAILS,
PHOTOGRAPHY)
CONSISTENT BRANDING
THE FAST FACTOR
(SEARCH & NAVIGATION)
ACCESSIBLE
SERVICE
INTEGRATED SHOPPING
ACROSS CHANNELS
STREAMLINED CHECKOUT
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Consumer Thinking and Themes
Themes Consumer Thinking Brand Parity -Is the site experience consistent with my expectations for the brand?
Inspiration -Has the retailer merchandised the site in an engaging way to capture my attention?
The Fast Factor (Search & Navigation) -Can I find the product I’m looking for quickly and make choices based on my preferences?
Robust Product Information -Is all the information (imagery, copy) about any given product available to make a confident buying decision?
Accessible Customer Service -Are retailer policies put forth in an approachable manner? -Can I quickly contact a retailer with any outstanding questions?
Streamlined Checkout -Can I swiftly checkout where the retailer has conveniently stored my profile data and made it available across channels?
Integrated Shopping Across Channels -Has the retailer provided all the details about their stores from hours to directions should I wish to make a trip to the store? -Are the logistical tools in place to allow me to shop conveniently from one channel to the next? -Is the shopping experience localized for a more personalized experience?
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THE RETAIL CUSTOMER EXPERIENCE: MYSTERY SHOPPING HIGHLIGHTS
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EG M50
1-800 Flowers Dick’s Sporting Goods HSN QVC The North Face
Abt Electronics DSW J.Crew Ralph Lauren Tiffany & Co.
Amazon eBags JCPenney Saks Fifth Avenue Toys ‘R Us
American Eagle Outfitters Estee Lauder Lane Bryant Sears Ulta
Barnes & Noble FTD Lowe’s Sephora Urban Outfitters
Best Buy Foot Locker Macy’s Staples Victoria’s Secret
Chico's Gap New Egg Steve Madden Vitamin Shoppe
Coach Golfsmith Nordstrom Target Walgreens
Crate&Barrel Harry & David Office Depot The Home Depot Walmart
Crutchfield Hayneedle Petco The Men’s Wearhouse Williams-Sonoma
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Winning Retailers
the e-tailing group 5th Annual Mobile
Customer Experience Index
Top-7 Performing Websites(Scoring rounded out of a possible 100)
EG M50 MOBILE
MERCHANTS71.60
QVC 84.17
eBags 83.33
Foot Locker 83.00
American Eagle Outfitters 82.75
The Men’s Wearhouse 81.75
Staples 80.25
Sephora 80.25
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Strong brands start with parity
Parity 2014 2013
%
Penetration
%
Penetration
Design Parity (1-3 Where 3=Consistent
Design)
2.63 2.00
Brand Parity (1-3 Where
3=Consistently Branded)
2.61 2.38
Category Parity (1-3 Where
3=Consistent with ecommerce Site)
2.81 2.83
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Mcommerce Makes Me Want To
2014 2013
Yes 68% 58%
Maybe 16% 32%
No 16% 10%
No Sale Scenarios Examples
Customer Service Information -No 800 #, insufficient customer service information
Search & Navigation -Confusing navigation or one that leads to "dead end" (where the links
don't work)
-Onsite search challenges failing to produce relevant results
Merchandising -Limited or no merchandising/promotions particularly relative to
ecommerce counterpart
Information -Pertinent product information/visuals missing where ecommerce site is
a better option
Product Pages -Product pages tend to be long, scrolling and/or ineffective, becoming
difficult to read and follow
-No guides to aid in decision-making for information-intensive categories
Lack of Channel Parity -Different level of product and category content
-Lack of consistency where mcommerce site lacks important
informational details
Design -The font seems hard to read on product pages
Checkout/My Account -No cross-channel profiling
-No My Account capability
-Too many steps in checkout process making it time-consuming to
complete the transaction
Errors -Slow site riddled with errors at varying stages of the shopping process
Redirects -Must access the full site for purchase
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MASTERING 6 MOBILE TASKS
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PROVIDE A RETAIL LOCATOR THAT INCLUDES COMPREHENSIVE INFORMATION SO YOUR
CUSTOMERS ARRIVE AT THEIR DESTINATION READY TO PURCHASE
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Strong retail locators are top-of-mind
-
CHECK FOR PRODUCT AT RETAIL STORE 2014 2013
Store Locator
Store Location 42 stores 42 stores
Retail Locator on M-Commerce Site 98%* 98%*
Stores Listed By State Only 0%* 10%*
By City/State 100%* 83%*
Zip Code 93%* 80%*
Geolocation 88%* 90%*
Directions to Location 90%* 93%*
Map 90%* 93%*
Store Hours 98%* 90%*
Store Phone Number 98%* 100%*
Clickable Link 98%* 83%*
Manual Dial 3%* 17%*
Store Features/ Services 71%* 49%*
Quality of Retail Locator (1-5 where 5= Best) 4.48* 4.04*
Mobile Store Locator Accessible From Google 88%* 81%*
Subset of EG M50
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Connect to a Store: The Retail Locator
THE VITAMIN SHOPPE Accessible phone number at all
locator access points Flexible finder (city, state, zip) Map Store Photo Hours Extra: Email Sign up encouraged
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EMBRACE INVENTORY LOOKUP AND THE ABILITY TO RESERVE AND PICK UP PRODUCTS TO EFFICIENTLY
CONNECT CUSTOMERS TO YOUR STORES
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Connect to a Store: Cross Channel Tools
-Retailers embrace cross-channel tools and attempt to localize experiences when adopted in brick and mortar channels
-Unfortunately inventory lookup and store pickup capabilities are not always part of the overall corporate strategy
CHECK FOR PRODUCT AT RETAIL STORE 2014 2013
Check In-Store Product Availability 2014 2013
Store Product Locator 69%* 50%*
Geolocation 76%* 59%*
Store Pick-Up
Ecommerce Store Pick-Up 55%* 45%*
Mcommerce Store Pick-Up 87% * 81%*
Ecommerce Store Item Reserve 10%* N/A
Same Item Available For Pickup From Mcommerce & Ecommerce
Sites (PC Available Item Chosen)
87%* 90%*
Weekly Circular
Print/Weekly Circular On Ecommerce Site 30% 30%
Print Weekly Circular On Mcommerce Site 93%* 20%
Zip Code Entry 93%* 100%*
Geolocator 86%* 90%*
*subset of EG M50
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Connect to a Store: Cross Channel Tools
Inventory noted by store
Reserve in store with 20-30 minute updates
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EMPLOY A COMBINATION OF MERCHANDISING AND PROMOTIONAL TACTICS ON THE HOME PAGE AND
THROUGHOUT THE SITE AS ENTICEMENTS TO DRIVE VISITORS DEEPER INTO SHOPPING
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PAGE POTENTIAL
POINTS
AVERAGE
SCORE
2014
Home page 5.00 4.33
Category page 2.00 1.61
Search results 3.00 2.12
Product page 5.00 4.10
Shopping cart 5.00 3.35
Key page efforts are strong
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Merchandising powers the site experience
TOYS ‘R US Price match guarantee
Free shipping
Hot sellers
Recommended for you
personalization
What’s new
Trending toys
Community including social tools
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Brand + merchandising + efficiency is a winning combination
STEVE MADDENExpandable navigation including:
Categories
Merchandising themes (i.e.
best sellers)
Shop by size access
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Visual merchandising and linkage complement one another
HSN New arrivals
Brand logos
Promotions
Extended sizes highlighted
New Diane Gilman
Extensive linkage to features,
departments, brands and shop
by capabilities
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The category page can be a workhorse
EBAGS LUGGAGE
Refinements
Your path
Product labeling
New product
Top of page scrolling
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Dedicate real estate to promotions
THE HOME DEPOT Offer showcase with multiple
promotions
Savings center with
multiple promotions
Preferred store
highlighted
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ENSURE KEYWORD SEARCH IS ACCESSABLE FROM ALL PAGES, AND SEARCH RESULTS ARE RELEVANT WHERE REFINEMENTS AND SORTS ALLOW USERS TO CONTROL THE EXPERIENCE AS
DESIRED
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FIND-A-PRODUCT &
SEARCH
2014 2013
Keyword Search 100% 100%
Keyword Search Accessible From All Pages 94% 92%
Refine Results Interface
Exposed 5%* 21%*
Expandable 43%* 59%*
Drop-Down 25%* 23%*
Other (Pop-Up, Radio Buttons) 36%* 18%*
Refine Results Options 88% 78%
#/ Type Shown Consistent On Mcommerce & Ecommerce Site 62%* 69%*
Price 77%* 79%*
Brand 77%* 84%*
Category 77%* 79%*
Color 66%* 47%*
Size 56%* 47%*
Category-Centric (heel height, optical zoom, etc.) 50%* N/A
Rating of Refinement Options (1-3 3=Best) 1.94* 1.86*
Landing Page Sorts 86% 80%
#/ Type Shown Consistent On Mcommerce & Ecommerce Site 70% 74%*
Price Low-High/High-Low 98%/100%* 90%*
Ratings/Top Rated 78%* 69%*
What’s New 67%* 60%*
Top Sellers 65%* 60%*
Best Match/Relevancy 60%* 50%*
*subset of EG M50
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Be category-centric
BEST BUY Advanced
search found
on 14% of sites
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Sorts should combine industry and category standards where layout is a value add
Refinements/filters with color visualizedSide by side filter by and sorts seen from search results
Search results
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Enhance product pages with comprehensive product information, relevant recommendations, product photos that can
be enlarged/viewed from other angles, change colors, and provide rich media along
with meaningful ratings and reviews
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Product Page Details
Mcommerce vs. Ecommerce Consistency
(Based On 3 Items)
2014 2013
Price Same 99% 100%
Image Same 91% 95%
Content Same 43% 76%
Product Page Details 2014 2013
Product Page Enhancements
Recommended Products 84% 64%
Guides/How To Videos 38% 14%
Zoom 64% 60%
Alternative Views 86% 82%
Color Change 84%* 61%*
Product Information Depth (1-3 3=Comparable To Main Site) 2.86 2.83
Ratings/ Reviews 88% 84%
*subset of EG M50
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Comprehensive product page
QVC Ratings Expandable links Social connectors Personalization recommendations Speed Buy
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HSN Combination of expandable and accessible links Payment options Social sharing Scrolling related items Express Buy
Layout proficiency
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Abt Strong product imagery Expandable link structure Free shipping reinforced “Customers also bought”
personalization Recently viewed
Product image & personalization
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Explore the right level of supporting category content to embellish the experience, tapping
into video for optimal engagement
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Video details
ULTA Strong product imagery Video Gift labeling and Gift with
Purchase Free shipping reinforced “We Also Suggest”
Personalization Recently viewed
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CRUTCHFIELD Free shipping Product highlights Product video Lifetime support Stock status
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The checkout process should be convenient and streamlined with a minimal number of steps including choice of payment options
and ‘buy with confidence’ builders along the journey
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BUY A PRODUCT 2014 2013
My Account Area 78% 82%
Able To Edit Profile Info 82%* 68%*
Ability To Sign-In With Facebook 14% 10%
Ability To Sign-In With Other Social Networks 10% N/A
Ability To Create An Account/Register 98% 94%
Ability To Create List/Save Items On Ecommerce Site 84% 66%
Retrieve Shopping List/Saved Items On Mcommerce Site 79%* 58%*
Mcommerce Ability To Save Items/Save Entire Cart 42% 34%
Shared Cart 66% 70%
Subset of EG M50
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OFFICE DEPOT Creative treatment of My Account by Staples
makes for at-a-glance viewing
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Sign in via social networks
1-800 FLOWERS
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Shared access is seen on this Crate & Barrel example suggesting sign in for access. In-store pickup and free shipping are smartly reinforced.
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Shopping Cart 2014 2013
Pre-Populated Customer Information When Signing Into Mcommerce Site 98% 98%
One Click Settings 64% 40%
Persistent Cart 92% 100%
The Order 2014 2013
Rating Of Checkout Process (1-3 3=Flawless/Effortless) 2.68 2.64
# Clicks To Checkout 5.42 5.04
Recommended Products Beyond Product Page 24% 18%
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FOOT LOCKER Collapsible cart VIP promotion Unlocked social media with links to new releases Accessible phone # Social links
Shopping Cart 2014 2013
Delineated/ Stepped Checkout 70% 74%
Collapsible Cart 20% 12%
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SAKS FIFTH AVENUE
Clean layout
Shop with confidence links
PayPal
Clickable contact information
Social links
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LANE BRYANT
Layout treatment
Promotions called out
Ship to home or store
PayPal
Footer links including social
The Order 2014 2013
Alternative Payment Options Available 70% 54%
PayPal 97%* 96%*
Other (Google Wallet, M.Visa) 23%* 14%*
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Customer service should be readily available as a destination and smartly integrated
Customers should have all the information necessary to make a purchase (shipping,
return policy, etc.)
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SEEK CUSTOMER SERVICE 2014 2013
Dedicated Customer Service Area/Help/FAQ’s 88% 84%
Sufficient Customer Service Information To Answer
Questions (Returns, Shipping Etc.) (1-3 3=Sufficient)
2.38 2.46
Phone Contact
800#, Toll-Free # or “Call” Button 96% 96%
Phone Number Visible/Clickable On Home Page 54%* 65%*
Accessibility Of 800# (1-3 3= Most Accessible) 2.43* 2.43*
Email Contact
Contact Via Email 82% 82%
Contact Us Form 66%* 73% (41 sites)
Contact Via Email Address 39%* 29% (41 sites)
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DICK’S SPORTING GOODS Comprehensive set of links
for everything from orders to payment
Popular topics are called out for easy reference
Free shipping in universal navigation
A 1-stop customer service center is optimal for visitors
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PETCO Efficient layout and integration
of customer service content Pals rewards promotion Free shipping reinforced
Clear access to contact information is customer-centric
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Embrace mobile dynamics
• Know your brand and your customer base
• Discern what is necessary to sell and what is superfluous
• Marry branding and merchandising to inspire the shopper
• Ensure all execution keeps in mind the need for efficiency
• Deliver a rich experience that is accessible across channels
• Keep customer service top-of-mind to retain customers
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Lauren FreedmanPresident
the e-tailing group
e. LF@ e-tailing.comp. 773-975-7280
Thank You!