skimspiration 2015: using virtual environments to optimize the online shopping process

e-Commerce: 5 tips to improve your online sales figuresMini Kalivianakis, John Ashraf | 4 June 2015

In Europe, online retailers are expanding14 times faster than conventional outlets

Mature markets

Mid range markets

Source:http://www.retailresearch.org/onlineretailing.php

Online sales

9.5% or more of domestic retailing

Online sales

6.5% - 9.5% of domestic retailing

2

3

It is crucial to adapt to an Omni-channel sales environment

In the past companies needed

to optimize their sales only in

“real stores”

Now it is crucial to optimize the

assortment also for online retail channels

and to think about both online and

mobile devices

PASTIn-store optimization

CURRENTCross-platform

optimization

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 Aug-14

Mobile retail traffic

Desktop retail traffic

4 Source: ComScore 2014

Mobile retail traffic is exceedingdesktop traffic

Source:http://www.retailresearch.org/onlineretailing.php

5

SKIM is expert in e-Commerce

and has been helping clients by

replicating online retail

environments

Our experienceand expertise

6

Real Amazon website

SKIM Amazon AppReal Amazon AppSKIM Amazon website

7

SKIM Shopping Environments

8

Search result

overviewMore details on

product page

Zoom in function

to evaluate packProduct added

to the basket!

Show the Flow

9

Search result

overviewMore details on

product page

Zoom in function

to evaluate packProduct added

to the basket!

Example questions that we can answer

How should I set

my price online?

How influential are

customer ratings?

How should I design my

photos and benefits?

Should I show my full

assortment online?

What are the drivers

behind consumer choice?

5 key learnings from our studies that can help you optimize your

assortment for e-Commerce

5 Key Learnings

Impact

of Sorting

Search

Positioning

Mobile

shoppers

have a short

time span

Creative

Imagery

Reviews &

pricing

The #1 organic listing is still clicked on most often (32.8%)

Organic listings lower on the search list (especially positions 2-4) are clicked

on more often in 2014 than in 2004

People are viewing more search results listings during a single search session

(and they spend less time to view each of the search results)

Key Learning 1: Search position is important, but less important than it was 10 years ago

#1

Google investigated the importance of search output in 2005 and in 2014

11

0%

2%

4%

6%

8%

10%

12%

1 4 7 10 13 16 19 22

Pro

ba

bili

ty o

f C

ho

ice

Order in the Search List

Yet, the search position stillimpacts the probability of choice

HIGHSEARCHPOSITIONING

INCREASED

VISIBILITY

CUSTOMERCONSIDERATION

Desktop shopping

13

Mobile devices can

only display a

limited number of

products at once

Mobile devices have

conditioned

searchers

to scan vertically more

than horizontally

Key Learning 2: For mobile it is even more important to be in the top of search resultsPeople have a short time span

0%

2%

4%

6%

8%

10%

12%

1 4 7 10 13 16 19 22P

rob

ab

ility

of ch

oic

e

Order in the search list

Mobile

PC

Often online retailers sort items by

popularity or “best sellers”

14

Key Learning 3: Use of sorting changes your competitive environment

41%

42%

23%

18%

42%32%

Landing page After sortingby price

After sortingby ratings

Percent of products chosen according to their search rank

Rank #1

Ranks #2-5

Ranks #6-15

Rank #16+

15

ONLINE STOREHelp shoppers see the benefits

of the product

Key Learning 4: Products clearly showing benefits have higher probability of choiceOnline there is more freedom to play with creative imagery

REAL STOREThere is only the “real

product”

ONLINE STOREHelp shoppers see the benefits

of the product

Fresh

cream

16

Key Learning 5: Good reviews command a higher price

-80%

-40%

0%

40%

80%

120%

160%

5 6 7 8 9

Impa

ct on

pre

fere

nce s

ha

re

Average review score

base price

+10%

+20%

If your review score

increases with 2.5, you

can increase your price

with 20% without losing

preference share

5 key learnings from our studies that can help you optimize your

assortment for e-Commerce

Summary

Impact

of Sorting

Search

Positioning

Mobile

shoppers

have a short

time span

Creative

Imagery

Reviews &

pricing

In-conclusion

• eCommerce is becoming

more and more important

• We hope our 5 tips will help

you optimising your online

portfolio