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5 Web Strategies forGaining Market Share in aRough & Tumble Economy

Written by Lauren FreedmanPresident, the e-tailing group, inc.

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

Table of Contents

Introduction ............................................................................................................................................................3

Profile of 8th Annual Merchant Survey Respondents.........................................................................................4

Merchants Optimize to Profit in Turbulent Times/Survey Top-Line Findings...................................................5

Five Web Strategies for Gaining Market Share ...................................................................................................7

1. Better Resource Allocation .....................................................................................................................8

2. Global Branding ....................................................................................................................................10

3. Category-Centric Merchandising..........................................................................................................14

4. Confidence-Building Content ...............................................................................................................20

5. White Glove Service..............................................................................................................................25

Conclusion and Checklist ...................................................................................................................................30

About the e-tailing group and Demandware .....................................................................................................31

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 3

To shed light on the merchant point of view, we will also incorporate findings from the e-tailing group’s8th Annual Merchant Survey, fielded in the first quarter, 2009. The insights of 195 merchants yield industrybenchmarks and peer perspective on industry challenges, planned strategic initiatives, top performingmerchandising tactics, and customer service opportunities.

The focus is clearly on ROI, prioritized initiatives, better targeting and category-centric merchandising and howto do more with less. At the same time, merchants must address the daily struggle, asking, “How are we goingto get the sale today?” and “Do we have the requisite resources and the right functionality to deliver thecustomer experience we define that exceeds customer expectations?”

Evaluating your resources and finding the right platform solution to best drive one’s business remains top-of-mindfor as many as 1/3 of those merchants surveyed expect to change out their platforms in the coming year. Someseek to exploit domestic opportunities while for others going global is core to their business objectives. Themarriage of the right merchandising and the comprehensive content required to give customers the confidenceto buy has never been more critical. There is always room for growth from a merchandising perspective, butwhite glove service should be in place despite the times.

This report includes highlights and statistics from the e-tailing group’s proprietary research and a series of best-in-class examples to illustrate how merchants are truly using the web to maximize growth opportunities and gaintraction beyond traditional channels. No matter where you are within the landscape, may you find within thesepages adaptable ideas to make your own e-business more profitable.

Sincerely,

Lauren FreedmanPresident, the e-tailing group

Introduction

eCommerce continues to grow and evolve despite the times, but merchantsmust be cognizant of both the changing consumer dynamics and the need todeliver proven ROI in these rough and tumble times. The goal of this paper is toshare our thoughts and perspective in this time of conspicuous non-consumption.We will initially provide an overview of the state of ecommerce, then delveinto five strategies for maintaining and gaining market share during thiseconomy including:

1. Better Resource Allocation

2. Global Branding

3. Category-Centric Merchandising

4. Con6dence Building Content

5. White Glove Service

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com4

Merchants of all sizes (annual sales)30% <$1M to $20M24% $20M to $100M28% $100M to $1B18% $1B to $5B>

Senior level participation41% CEO/President/Principal or VP/General Manager51% Director, Senior Manager or Manager8% Analyst, Specialist, Assistant or Other

Selling through a mix of channels28% Internet/Store/Catalog27% Internet only24% Internet/Store18% Internet/Catalog3% Other

Cross-section of B2C products and services33% Apparel30% Home & Garden/Home Improvement/Tools/Appliances/Furniture23% Accessories/Shoes/Luggage/Jewelry17% Sporting Goods/Outdoor Gear16% Gifting/Greeting Cards/Food & Wine13% Health & Beauty12% Toys/Kids10% Books/Music/Video9% Consumer Electronics7% Pets5% Computer Hardware/Software/Peripheral

Pro6le of e-tailing group 8th AnnualMerchant Survey Respondents

Annually in the first quarter the e-tailing group fields an in-depth questionnaire toexecutives with responsibility for ecommerce. This year 195 respondents gavefeedback to 45 questions about strategy, merchandising, and marketing trendsonline. Our goal in continuing this survey is to share industry findings that merchantscan use to benchmark their performance while also serving as a comprehensiveresource for planning and prioritizing site upgrades and enhancements.

We are thrilled that our survey is one of the few in the industry representing a broadcross-section of merchants based on size, title, channel, and mix as noted below.


� Despite the lagging economy ecommerce is

showing more resilience than other channels;

66% anticipate ’09 Internet revenues to increase

over ’08 as this channel continues to see growth.

� eCommerce is core to multi-channel success,

but senior management satisfaction is waning

while pressure rests on ecommerce channel

performance more than ever before.

� Profitability means scrutiny relative to achieving

desired revenue goals while being diligent in

cost savings.

� Though traffic appears to be holding its own,

merchants are challenged to get customers to

convert as conversion numbers are being tested

and other engagement metrics are being consid-

ered in the broader context of multi-channel

shopping.

� Resources are stretched and budgets cut with an

ROI mentality prevailing.

� Testing is central to understanding what works in

this climate where analytics and performance data

underlay decision-making.

� Targeting and segmentation are the order of

the day onsite and particularly via email where

merchants ratchet up efforts from personalized

email to triggered email including abandonment

efforts.

� Optimization is important and in order to

get optimization some merchants may need to

replatform while others will achieve optimization

with build-ons.

Merchants Optimize to Pro6t inTurbulent Times

This year’s top-line survey findings center on how today’s merchants aretweaking, testing, and targeting to elevate the ecommerce channel and theircustomers’ experiences per these highlights:


eCommerce value to core business growth ensures that in ’09, despite the current economic climate,70% of those surveyed intend to invest the same or somewhat more in ecommerce than they did in ’08.

In fact, many are taking advantage of this time to play catch-up while others seek to solidify their category’sleadership position or at a minimum remain competitive.

Compared to 2008, how do you anticipate yourInternet revenues to change in 2009?

How will your ecommerce investments be impacted by the current economic climate?

Considering that the web has consistently been a source of sales gain, 34% reporting a flat or downward trendin their ecommerce business is important to note. However, this channel does continue to see growth as 66%anticipate ’09 Internet revenues to increase over ’08. Managing for these times will hopefully push moremerchants into growth mode though evolution in space, category limitations, and overall business will continueto impact performance.


The next five sections of this report show examples of how merchants aresuccessfully using the web to increase their market share despite limitedresources, a very competitive marketplace, and a weak economy, by lookingat a more global focus, category opportunities, the role of content in theshopping experience, and last but by no means least, the importance of stellarcustomer service.

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MARKETSHARE

Five Web Strategies for GainingMarket Share


1. Better Resource Allocation

How many full time employees are working in your ecommerce program?

Demands of ecommerce are not sufficiently met with the right resourcesparticularly in these cash-strapped times. eCommerce has always been shortstaffed and today’s economy exacerbates this situation. As a result merchantsare re-evaluating priorities and looking to automate some functionality, knowingthat customers expect seamless, smooth, and simple shopping experiences.

To exceed consumer expectations independent retailers must meet ever greaterdemands with limited resources.

Merchants look to find the right model

Now, more than ever, merchants must assess their resources and address unique needs to allocate in thesmartest way; evaluating in light of their own organizations. In their own words those who completed the e-tailinggroup’s 8th Annual Merchant Survey shared thoughts about the challenges, opportunities, and control theydesire to shape their selling strategies:


Many merchants who started their e-business a decade ago just don’t have the tools they need to competetoday as content management needs have changed and overall systems are outdated. Their growing assortmentstrategies coupled with the control necessary to promote and inspire shoppers are essential for a timely andrelevant shopping experience. The options are greater and the admin tools more robust, therefore thecost/benefit analysis must be calculated for each merchant’s scenario.

44% plan to change ecommerce platforms within three years due to inadequate functionality (55%) andinadequate systems (40%) along with outgrowing existing platforms (50%).

9

Merchant commentary

“We are implementing a new ecommerce platformbecause we are held back right now by having todevelop everything in house; it is time to put controlin the hands of the marketers and merchandisers onour team.”

“Is our time best spent on the nuts and bolts ofour business or on merchandising and marketing tocreate differentiation?”

“I need to run my business not my site.”

“What is the fastest road to profitability — I need tominimize cost of infrastructure yet maximize ROIwhere internal pressure to perform grows daily?”

“Do I have the resources to compete in my category?”

“With capital expenditures tightly controlled am Ibetter off to take a more flexible approach to drivingmy e-business?”

“Time to market is more important than ever before soit is essential that we be able to quickly test anddeploy promotions to meet the needs of the changingretail climate.”

“Global selling is intrinsic to our brand and the overallsuccess of our business.”

Why would you look to switch platforms? Check all that apply.


Brand translation tops initiatives

Putting your best foot forward whether you are a retailer, a manufacturer or both requires coordinated marketingefforts and consistent execution with clear objectives set forth. Having long invested in marketing andmessaging, retailers who diligently define their mission, customers, assortment, and service proposition tend tobe leaders in brand translation. However, today I often find that manufacturers and CPG companies like Applehave a leg up in this area given their orientation.

2. Global Branding

Most of the business being done online is centered on the US market thoughgrowth abroad is being seen on all continents. It is important that merchantstake a look at opportunities both at home and abroad and ensure that they havea “global” selling strategy in place.

Today many brands are universally known while others hope to extend their reachbeyond our borders to tap into international opportunities.

Barneys consistently uses their Creative Director as apowerful voice of the brand.

Consumers look to Apple for clean and cleverpresentation of innovative products whether in-storeor online.


Brand visualization

Manufacturers invest significant dollars to position their products and tailor the onsite experience with consistentand core merchandising themes.

.

What is your time frame for coordinating marketing programs acrosssales channels (retail, direct, Internet, TV)?

Coordinated marketing programs across channels are already in place for 67% of merchants as customerexpectations and an elevated merchant opportunity to offer a seamless shopping experience drive such efforts.

Imagery reinforces the power of the Ralph Laurenbrand, embracing video to showcase their style andattitude — with the hook of conditional free shipping.

Godiva’s Chocolate Guide provides a vehicle to toutthe brand’s depth and breadth of selection plus livechat reinforces the service support.


Execution consistency

A brand voice that is delivered seamlessly across channels resonates best with the customer. Though not alwayseasy to put forth, when executed well, the message relates to customers and prospects alike.

Tiffany blue has come to denote quality and caringwhether gracing an ad or a gift given in their “bluebox.” Being an established brand in the mind of theconsumer affords them merchandising liberty beyondwhat a newer brand may experience.

The Container Store’s brand messaging is consistentonsite and via email with services and conveniences tosimplify one’s life. This email example clearlyreinforces their get organized and simplification visionwhile simultaneously introducing the supporting tenetsof such a strategy. These include their recentlylaunched Click and Pickup program along withinspiring gifting services and the customer favorite,free shipping.


Translation takes many forms

For merchants today global opportunities often begin at home, particularly as our population grows morediverse. While 15% of the EG100 offer the ability for consumers to shop in another language, internationalshipping beyond Canada is seen on 34% of sites (4Q ’08 e-tailing group Mystery Shopping). Obviously, once thedecision is made to go global, it is important to provide customers with a complete experience.

Fossil asks “What vintage are you?” and offers adrop-down menu from which customers can shopvia their country of choice. Integrating this in acustomer-centric way also bodes well for convenienceand a successful shopping experience.

Kudos to Amazon for expanding reach by translatingtheir robust content and tools into Japanese and otherlanguages. Their size and sophistication puts them in aposition for selling beyond US borders which hasbeen an important part of their expansion efforts.

When do you anticipate selling and shipping internationally?

As we now find many merchants weighing international possibilities, a range of different approaches andtimelines exist. While 46% of merchants report already being international most are still considering such effortsor have no plans as economic challenges at home may likely take precedence. A further deterrent to globalselling is the fact that it is very difficult to implement the nuances of ecommerce for multiple countries.


Conversion rates in ’08 appeared to be somewhat lower than in ’07, with consumers likely researching productsmore including comparison shopping as a result of the economic times. It is our recommendation that merchantsmove beyond industry-wide conversion rates to understand category performance factoring in their uniquebrand and customer base.

3. Category-Centric Merchandising

Merchandising should always start at the category level. Each merchant mustshowcase the assortment to both engage and inspire the shopper whilesimultaneously delivering profit and performance. The selection of merchandisingtactics should be appropriately integrated and reflect both short and long-termbusiness goals where continual analysis and refinement are ideal.

A merchant’s assortment must in7uence the supporting tools and tactics to becompetitive online once the basics are in place.

Over the past year (2008) how has your conversion ratebeen relative to the prior year?


Merchants find value in an array of features with keyword search (94%), sales and specials (93%), cross-sells(92%), and email as a merchandising vehicle (90%) rated the highest.

The emphasis on search continues beyond keyword search with advanced search and guided navigationsecuring prominent positions as well. Merchants’ desire to grow the average order value (AOV) can be seen inthe strong positioning of up-sells and cross-sells. Promotional tools have also grown in these challenging timeswith sales and specials maintaining a #2 position. Conditional free shipping serves as a powerful perk forshoppers and promotional incentives to buy move up in importance in hopes of driving immediate sales.

All 52 features in the survey in descending order as rated very to somewhat valuable (5-3)


Category-centricity starts with an optimizedsearch experience

From landing page sorts to customized categorytreatments this highly utilized area of one’s site mustcontinually be tweaked for usability and performance.

Beneath the tagline “We share your passion” Sam’sprovides multiple relevant search criteria includingtype, varietal, country, price, flavor summary, reviews,and food paring with icons to identify each.

Beyond brand and price Sephora enables shoppers torefine search by best sellers, what’s new or gifts aswell as exclusives and limited editions. They wiselyincorporate brand and promotional messaging using

integrated tips and tools to set the tone for a robustcustomer experience. Content links and conditionalfree shipping round out the page.

Promotional creativity

In tough economic times, all promotional tools are in playwith placement and messaging integral to their success.

Roots positions their limited time 20% Off Tees eventabove the masthead on their home page; to ensurethat shoppers don’t miss the messaging, they repeatthe offer on each drop-down category menu.The marriage of accessibility, merchandising, andpromotion is clearly in play with this strategy.

Sears sweetens this email opt-in with $10 in couponsjust for signing up then promises deals and discounts2-3 times per week. Links to their weekly ad, in-storepickup, and limited time eBusters are also frontand center.


Strategic placement of promotions mandatory

From the product page to the cart and post-ordercommunication, all locations are fair game forpromotional selling.

A limited time offer with free shipping is theenticement on Bare Escentual’s home page. On aside note this tactic saw strong year-over-year growthas 42% of the EG100 merchants up from 18% in 2007pushed harder to get a sale (4Q ’08 e-tailing groupMystery Shopping).

In their shopping cart RoadRunner Sports proclaims“Wait, There’s Still Time” with the lure of 10% off andfree shipping to those who join their loyalty clubbefore checking out. Their customer-centricity isfurther highlighted with universal access to a runningspecialist via home page utilities.

Customers take control via engagement toolsand customization

37% of the EG100 offer interactive onsite tools while27% have product configurators and 24% allowpersonalization of product (4Q ’08 e-tailing groupMystery Shopping). As today’s consumer mindsetcenters on the individual, merchants are evolvingtools/tactics that build community and ultimatelyfoster brand loyalty. These kinds of tactics areparticularly effective in enthusiast categories whereimpassioned consumers want to connect.

Lego’s downloadable “Digital Designer” enables oneto design and buy customized creations. Note the linkto “tell us what you think” for on-the-spot customerfeedback. Their brand is ripe for interactivity and theirevolved efforts in this area should be commended.


Gardener’s Supply engages customers with a“Kitchen Garden Planner” which includes a drag anddrop map to configure how many plants are needed tocreate one’s own 3x6 garden by choosing from 30options; print this map and a learning center completethe application. Customer participation from thisdedicated segment can help to grow sales and AOVsimultaneously as both depth and breath of productoptions are presented.

Inspiration tactics are essentials

From media-driven selling to customer-generatedcontent take advantage of a myriad of ways to directshopper purchasing. The customers want to be incontrol while the category dictates the appropriateelements for any given brand.

Within “As Seen In” Nine West highlights editorialexposure, their current TV/print ads, and a behind thescenes video of their fashions both on the runwayand in the street.

At the category level Dell presents Top CustomerPicks for that week with ratings and excerpts fromcurrent reviews presented as part of a productcompare environment, always a customer favorite.Immediacy is apparent via instant savings anddeferred billing to help close the sale while click tochat or talk meet the customer’s need for moreinformation — now.


Engagement is the new conversion KPI

Merchants identify new metrics to address cross-channel efforts that embrace consumers andultimately deliver brand loyalty. They look beyondconversion knowing that customers connect withbrands in many ways where it is not always clearwhen and how the sale happens. It is the long-termbrand connection that will last far past the initial saleas these merchant examples suggest.

Within customer service Williams-Sonoma invitesshoppers to special events and cooking classes inover 250 stores with monthly calendars detailingwhere activities are taking place. A store locator andbridal registry link are appropriately featured.

Now playing in the Barnes and Noble Studio areaudio and video interviews with writers. Navigationenables one to also read a review, email-a-friend,bookmark, podcast or buy the author’s works. Boththeir author community and store personnel areleveraged to stimulate visits and ultimately sales.


4. Con6dence-Building Content

Behind targeting, onsite search, and site redesigns, both content and productenhancement tools are on the list to tackle this year to improve websiteperformance. Merchants must give customers information to feel 100%confident when they consider making a purchase. This includes a combinationof visual cues, product information, and rich tools that make products come tolife when tactical options are limited.

Merchants are investing heavily in category, product and channel information to delivera robust and comprehensive consumer experience.

What initiatives are you planning to improve website performance?Check all that apply.


Play your value proposition

Embrace your assortment and branding to give customers a sense of their true shopping options. Whether thatmeans teasing visitors with what’s new in-store or testing new concepts that embrace the current economicclimate, being clear on your value proposition simplifies messaging.

Product page content must be robust

From a complete product description to targetedrecommendations comprehensive content best servesthe consumer. All the necessary supporting elementsmust be in place for the shopper where all productswarrant a rich and robust presentation.

This American Girl product page gives every shoppertype what they need to immediately buy the doll andrelated items, or learn more, read a review, add towish list, email-a-friend, share and explore content.Wisely, ways to buy includes bundles at value pricingand in-store events are integrated into the productpage experience.

Within the category “New”/subcategory “Home”Crate & Barrel presents visuals and links to browsean extensive array of new and often exclusiveproducts inspiring shoppers to both buy online andvisit their stores.

L.L.Bean brands “Bean Values” complete withiconography to denote “the best quality and price”on basics — without a sale event! A proprietary creditcard offer promises free shipping among otherbenefits and keeps their loyalist shopper in the foldfor another season.


Below a comprehensive product presentation Staplesorganizes details, specs, reviews, promotions andrelated products with tabs for easy shopping. Amongthe tactics that make this a winning page — multipleviews, zoom, notation as an exclusive, price afterrebate shown, shipping/store delivery options, add tofavorites, customer reviews, and product compare. Iparticularly like that they are taking advantage of aprime location to showcase current promotions.

Supporting views fill a selling void

The right views can seal the sale where all questionsabout the products are covered. Each merchant mustdecide the level of photography investment they canafford to make, evaluating its importance relative tobeing not only competitive in the category butessential for customer conversion.

Alternative views can really make a difference whenshopping in cyber-space as these examples fromJ.Crew and Famous Footwear clearly demonstratevia execution that also offers shop by colorchange/size tools. In home and apparel fashion, thevalue of these tactics seems powerful and shouldresult in higher KPI performance.

Technology supports selling

Showcase products that complete a look or give theconsumer a better way to visualize their product inuse. By doing so consumers imagine and are inspiredto purchase and merchants are rewarded with greatersales and a higher AOV.


The Gap bundles baby bedding into 4-piece sets,enabling shoppers to buy it all in a single click.Alternatively one can view the individual items or zoomwithin the room setting.

In the Nine West LookBook shoppers browse outfitsthen click to buy desired products included in the lookfrom a pop-up window.

Timely brand content romances the assortment

Show customers the power of the brands you carry,delivering execution in line with direct-to-consumerselling. Today merchants can take advantage ofsyndicated content to best showcase the brands.However, as retailers and manufacturers often sellhead-to-head, retailers must continue givingconsumers a reason and unique point of view in orderto maintain and grow their market share.

On the Toys ’R Us site the iPod Nano is featured in apresentation that clearly leverages Apple’s marketingvisuals. Their messaging drives in store traffic,leveraging the web’s ability to market and informbrand enthusiasts.

Sephora showcases the Urban Decay brand withinthe shop-by-brand area of their site where pages areformatted with links to help customers learn more.Their robust execution has strong appeal to beautybuyers and the bottom-line.


Confidence-building tactics perform

Giving customers a complete sense of the productthrough demonstrations and video ensures they makethe right buy while simultaneously reducing returnrates (although direct impact on conversion is yet tobe substantiated in our surveys). The opportunity todeliver results should continue to improve as cost-effective video is now a reality.

eBags no frills, behind the scenes video demos offergreat sales support. Inclusion of ratings, email-a-friend, download to phone, and share links on thepage is smart merchandising.

Green Mountain Coffee adds Keurig’s video demofrom YouTube to their site to give shoppers the fullflavor of this product and a banner boldly announcesfree shipping for the category.

Videos vault in importance

Video adds another dimension as 65% EG100 vs.45% last year embrace the opportunity to show more(4Q ’08 e-tailing group Mystery Shopping).

Golfsmith has long been a proponent of video toshowcase products as the vendors in this category areknown to provide a plethora of quality footage. Theopportunity to add video footage from winning golfersfurther inspires their merchandising efforts.

Look to homedepot.com TV to find videos aggregatedon this merchant’s site including how-tos, inspiration,and tips. As conveniences the “degree of difficulty”and running time are noted. These efforts are ideal foronline access but can also drive cross-channel visitsand shopping while reinforcing the Home Depotbrand promise.


The top ranking marketing and customer service tactic for retaining customers is exemplary customer servicefollowed by targeted email and streamlined checkout. In tough times we would suggest that elevating servicestandards rather than ratcheting back such efforts is the right retail vision. Every customer transaction andcommunication touch point is a chance to establish a brand-bond that today’s merchants cannot afford to missin their quest for success.

5. White Glove Service

As part of the e-tailing group mystery shopping, we have always considered theservice a customer receives to be of the utmost importance. For us this includesall self-service components as well as any touch points you might have withyour customers once they have placed an order or merely have a productinquiry. Both knowledge of your brand’s value proposition along with timely andthoughtful execution will be important to growing market share.

Customer service differentiation is even more critical in tough economic times asconsumers look for risk-free shopping and merchants must deliver.

Please rank your top 3 marketing and customer service tactics for retaining customerswith “1” being the most important to your strategy and “3” being the least important.


Reinforce service differentiation

From the home page to your guarantee, make shopping a risk-free proposition for your customer. These timessuggest that giving your customer exemplary service is more important than ever before.

REALITY EXPECTATION

Delivery 4.76 days Next day or quicker deliveries based on thehigh bar set by Amazon, Zappos and others

CSRs Mixed bag Support personnel must know the product and movebeyond being order takers and delivery informants

Email Response 20.15 hours Real product knowledge sent in a personalizedTime fashion delivered within 24 hours of query

Live Chat 32% of EG100 merchants Complete product and institutional informationutilize live chat where where more consumers come to expect thisservice levels mimic option available to them as part of site experienceoverall brand execution

Source: 4Q ’08 e-tailing group Mystery Shopping

Stellar service across-the-board should be non-negotiable yet per the above chart, based on benchmarking100 sites, the realities of customer service do not always match expectations. In a perfect e-world product wouldbe shipped moments after the customer hits the buy button and queries would be answered immediately,personally, professionally, and accurately.

From a live chat perspective our recent merchant discussions indicate that the tactic performs well with muchhigher conversion and AOV reported. It is important to note however that exemplary service and training shouldbe in place prior to embarking on this added customer convenience.

“The RedEnvelope Difference” includes unique gifts ofexceptional quality, personalization, great shippingrates/options, and standout gift wrap all tied up in abig white bow! The home page positioning gives theirmessage “can’t miss” visibility.


Sundance promises world class customer service viathis well-worded guarantee: “If at any time or for anyreason you do not feel that your purchase has wornwell, aged gracefully or lived up to your expectationssimply return it for an exchange or refund.” Coupledwith strong Sundance imagery this presents awinning combination.

Supply exemplary expertise

Translate corporate knowledge via useful onsitetools and communication to elevate customerexperience. This can range from FAQs and corporateexpertise to video and Web 2.0 tools that embellishthe shopping experience.

“the doctors’ pet information center” on DoctorsFoster and Smith’s site is replete with “information &pet tips from our experts” including an Article Librarylisting topics A-to-Z that is sure to build a trustedbrand-bond with passionate pet owners.

In their “Beginner’s Corner” Orvis provides a glossaryand how-to content. Customers are encouraged tooffer suggestions for this area as well as to send instories for inclusion in the catalog/website. Thisenthusiast’s dream welcomes newbies in hopes ofestablishing life-long relationships.

They know the value of these customer relationshipsand their support/service belies such efforts.


Incorporate time-savings tools

From quick views to express checkouts (some multi-store) shopping simplicity appeals to time-starvedshoppers. It is our recommendation that every tacticunder consideration center around convenience andtime saving, the #1 reason people shop online.

Consumers benefit from bolstered promotions andtime-saving tools. Shared ownership means sharedbenefits for customers of The Gap, Old Navy, BananaRepublic and Piperlime— from shopping one sitewith a single checkout to $7 flat rate shipping.

From their search results page Target’s “quick info”feature opens a window with tabbed productinformation plus links to reviews and to either buy orconveniently add the item to a registry. This tactic isespecially desirable for commodity products whereshoppers can quickly make purchasing decisions.

Take service beyond the call

Connect with your customer for both brand buildingand buying opportunities.

As a brand building device Jones New York, intro-duces and profiles their resident fashion expert theninvites shoppers to ask him style related questionsmaking this intimate connection a wonderful option.

Branded as “the world’s largest running store,” RoadRunner Sport’s home page is merchandised to the hilt— a best price guarantee, deal of the week, and $5shipping appeal to the price-driven while their shoedog search engine and what’s new aid decision-making. There is even “green” messaging andcustomer service is literally top-of-mind with a friendlyCSR positioned atop the page to set-off contactinformation.


Lead with loyalty

Remind shoppers of how they can be rewardedin these challenging times. All merchants must be inthe loyalty business as retention has always beenless expensive than acquisition. Keeping our currentshoppers happy should be a topic for discussion atevery retailer where all of us remember what it takesto keep customers coming back. 50% of EG100merchants, up from 43% in 2007, have introducedloyalty programs (4Q ’08 e-tailing group MysteryShopping).

On this well designed page Sephora explains thedetails of its beauty insider rewards program via boldheadlines, succinct text, and clear product photos.Links to join or view FAQs complete the functionality.

The hp home and home office store competes withthe masses for ink sales via a rewards program.“Here’s What You Get” enumerates the benefits —exclusive offers and deals, reward discounts, andfree next business day delivery.


We have shown 44 examples that inspire, inform, and promote to get the saletoday while building sustainable customer relationships for tomorrow. It is up toeach merchant to assess the opportunity for their brand, their category, and theircustomers in hopes of optimizing their cross-channel customer experience.Please utilize this checklist as a tool to take stock of the web for your business.

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Conclusion and Checklist: Are youprepared to battle for market share?

Take timely measure of your brand’s ecommerce state, assessing internalresources and where your investments can make the biggest ROI impact.

Tackle the basics and then elevate the customer experience withcategory-centric tools; it is all about prioritization.

Total content requirements must be delivered from a category, product,and channel point of view as complete information is essential.

Test new tactics periodically to enhance the site’s merchandising.

Target unique customer segments with distinct experiences that supporttheir needs.

Take advantage of every opportunity to deliver exemplary customer serviceas it is truly the differential.

Think global for greater customer reach.


About the e-tailing groupWe are seasoned experts specializing in providingpractical merchandising and customer servicesolutions to elevate the multi-channel customerexperience. By conducting merchant and consumermindset research we help develop smart strategies formerchants and thought leadership for technologists.Additionally our industry benchmarks provide the basisfor media outreach and merchandising education.

� 15 years ecommerce consulting

� Author, It’s Just Shopping

� 50+ years traditional retail and catalog experience

� Fortune 500 client projects ranging from strategic

planning, merchandising, marketing, to technol-

ogy development and messaging

� Proprietary research studies on mystery shop-

ping and merchandising, “egeg” index, marketing

and multi-channel customer mindset, in-store

pickup and gift registry

� eCommerce expert and frequent speaker at

industry events; trade associations

About DemandwareHigh-growth retailers and consumer brands looking todevelop or extend the reach of their B2C ecommercebusiness trust Demandware as their strategic partnerfor ongoing success. Demandware solutions,comprised of the only enterprise-class, on-demandecommerce platform and expert services, delivermerchandising effectiveness, proven site reliability andindustry best practices that exceed profitability goals.Only Demandware provides a distinct time-to-marketadvantage for launching multiple ecommerce sites,customizing the consumer experience from contentto code, and maintaining sites at the forefront ofecommerce innovation. Demandware clients includeindustry leaders such as Bare Escentuals, BarneysNew York, Columbia Sportswear, Crocs, JonesApparel Group, House of Fraser, Playmobil andTimberland. For more information about Demandware,visit www.demandware.com, call 888-553-9216 oremail [email protected].

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