february 8, 2011. housekeeping dial-in information: 1 (312) 878-0218 access code: 292-093-510 audio...
TRANSCRIPT
Housekeeping
Dial-in Information:1 (312) 878-0218 Access Code: 292-093-510 Audio PIN: Shown after joining the WebinarWebinar ID: 272-346-304
• All slides will be available after the webinar• All registrants will receive a copy of the full report the
week of January 21st.
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Today’s Presenters
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Lauren FreedmanPresidentthe e-tailing groupwww.e-tailing.com
Rita BrogleyCEOAmadesawww.amadesa.com
The Voice of Cross-Channel Merchandising
Straight talk from “in-the-trenches” online merchandising experts
16 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
Cross-category projects spanning specialty retail to departments
Proprietary research studies on mystery shopping, merchandising, mobile and consumer behavior
Today’s Agenda
• 2010 Holiday Trends and Takeaways• Highlights from The Amadesa/e-tailing group
Merchant Testing Survey• 5 of the 7 Secrets of Successful Testing• Testing-Ready Checklist
I. 2010 Holiday Trends and Takeaways• US Internet sales rose 15.4% to $36.4 billion where sales over the Internet
now account for about 10% of all retail sales 1
• Retail sales rebound rising 5.5% up from 3% predictions earlier in the year 2
• Category increases were seen in Apparel (11.2%), Jewelry (8.4%) and Luxury Goods (6.7%) 1
• Cyber Monday was the first billion-dollar spending day in history (1 of 6), and the first time we’ve witnessed Cyber Monday rank as the heaviest online spending day of the year. 3
• Ecommerce holiday spending climbed 10% per transaction in 2010 versus 2009 1
• Retailers targeted many of their promotions even earlier than usual and reaped the benefits
1) MasterCard 2) NRF 3) comScore
2010 EG100 Merchants
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1-800 Flowers Clinique Gardener’s Supply Lowe's Shop NBCABT Coach Garnet Hill Macy's StaplesAltrec Cooking.com Giggle National Geographic SundanceAmazon.com Crate & Barrel GNC Nike Sunglass HutAmerican Girl Crutchfield Godiva Nordstrom TargetApple Dell Golfsmith Office Depot The AvenueArmani Exchange Dick’s Sporting Goods Green Mountain Orvis The Container StoreArtful Home Discovery Channel Harry & David Overstock The Home DepotAveda Disney.com HP Home and Home Office PetSmart Things RememberedBarnes & Noble Drs. Foster & Smith HSN Polo Title 9Bath & Body Works DSW Shoes Improvements Catalog Pottery Barn Toys ‘R UsBest Buy eBags.com iRobot QVC UltaBlue Nile EBGames J. Crew RadioShack Urban OutfittersBluefly Eileen Fisher JCPenney Redenvelope Victoria’s SecretBoden USA eToys King Arthur Flour REI Walgreen’sBorders Famous Footwear Kohls Road Runner Sports Wal-MartBrooks Brothers Foot Locker L.L. Bean Saks Fifth Avenue Williams-SonomaBrookstone Forever 21 Lamps Plus Sears Wine.comBuy.com Frontgate Lands’ End Sephora ZalesCabela’s Gap Lego Shop Bop Zappos
The Customer Experience is Ratcheted Up
Seasonal PromosLimited-time only dealsBranding and Manufacturer videosTop sellersHSN AnywhereMobile App
EG100 80+ INDEX WINNERSOrvisSears
GolfsmithHSN
L.L.BeanAbt
CrutchfieldTarget
REIBest Buy
Elevated Search Tools Drive Shopping Efficiency
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70 EG100 merchants smartly leverage navigational drop downs with 48
merchandised for greater effectiveness
Promotional Creativity Bolstered By Everybody’s Favorite: Free Shipping
Free shipping was used in more than half of all e-commerce transactions this season, up significantly from last year
-comScore
4Q10 4Q09Limited hour specials (lunch time, 4 hour) 50% 40%Offer Free Shipping on all Products 7% 4%Offer Conditional Free shipping on All Products 52%* 40% *Offer Conditional Free shipping on Certain Products 43% * 47% *Free Shipping For Frequent Buyers 25% * N/AConditional Free shipping to a store 28% * 26% *
Product Information Is Category and Consumer-centric
Screen ShareGalleryFeaturesVideoRatings and Reviews
4Q10 4Q09 Product Page/Product Enhancement
Ratings/ Reviews 87% 74% Depth of Reviews (1-3 3=extensive) 2.27 * 2.27 * Zoom 86% 89% Alternate views 80% 76% Color Change 61%* 64% * Guides/How To’s on Product Page 39% 30% Tips/Glossaries on Product Page 26% 24% Ask and Answer/ Q & A 18% N/A 3D 18% 21% Shop with a Friend 4% N/A
Video Role Expanded and Sees Strong Customer Engagement
4Q10 4Q09Videos/Audio 88% 64% Location: Home Page 16%* N/A Category Page 36%* N/A Brand Boutique 41% * N/A Product Page 73% * 55% Other 75% * N/A Type: Branding Content 69% * N/A Manufacturer Content 47% * N/A Category Content 53% * N/A Product Content 76%* N/A Guides/ How To's 33% * N/A
Retail site visitors who view video stay two minutes longer on average and are 64% more likely to purchase than other site visitors.
-comScore
Mobile and Social on the Fast TrackCommunity EQ100
4Q10 EG100 4Q09
% Change
Social Networking Links 83% 60% 38%
Facebook 96%* 85%* 13%
Twitter 87%* 73%* 19%
You Tube 43%* 35%* 23%
"Like" Button 36% N/A N/A
Share 75% 67% 12%
Blog 50% 36% 39%
Mobile Commerce 44% 13% 238%
Mobile Alerts 29% 21% 38%
Community Boards 28% 29% -3%
Mobile and social make strong inroads Black Friday 2010 as consumers using mobile devices accounted for 5.6% of visits to retail websites - a 50-fold increase over 2009 when it was just 1%
-Coremetrics
The Amazon Effect Continues
63.7% of consumers who shopped among 20 leading e-commerce sites in December say they shopped at Amazon.com, up from 55.1% a year ago.
-Kantar Retail ShopperScape survey
Customer Service Means Better Meeting The Needs of Today’s Consumers
1-800-FlowersAbt
CoachDrs Foster and Smith
Foot LockerKing Arthur Flour
Lands’ EndOrvis
Saks Fifth Avenue
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2010 EG100 Customer Service Winners
The Stakes are Higher
Merchants Must Ratchet up the Shopping Experience as Customer Expectations Continue to Ascend
Testing’s Time is Now
The Future of Testing is Now
• Having a great website is no longer optional
• If you’re not testing today, you should be—website optimization is mission critical
• Testing is easy
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Methodology and ObjectivesGoal: Explore retailer sentiment regarding testing online and cross-channel along
with desire to add the capability in the future
Methodology: 160 merchants completed an online survey to explore retailer sentiment regarding
testing online and cross-channel or one’s desire to add the feature in the future where 79% (127) were testers/ 21% (33) were non-testers
Survey Objective:To understand the following surrounding testing: current state tools and tactics employed organizational approach performance results perceptions
Topline Findings
• Testing emanates from a culture that believes in its value• Most merchants believe testing is valuable• When not testing they are simply resource-challenged• Merchants perceive strong ROI results will be
forthcoming from testing where both user experience and improved site conversion are seen
• A/B testing is the favored methodology while a broad array of areas are being tested
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Testers tend to be either very active (33%) or “once in a while” users of the tool (38%)
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We are very active testers
We test once in a while
We are going to be testing in 2011
We only test during slow periods / low seasonality
We believe in testing, it just never has been a high enough priority to be activated
We have never tested
We used to test but no longer do so
33%
38%
8%
1%
13%
7%
0%
What is the current state of testing in your organizationas it relates to site optimization?
Improve user experience
Overall increase in site conversion
Search results/landing pages
Navigation refinement
Increase average order size
Decrease shopping cart abandonment rate
Category/product classification
61%
57%
32%
31%
24%
20%
17%
Which aspects of the site have been most impacted by testing? Check all that apply.
Testing has the most impact on improving the user experience (61%) and increasing site conversion (57%) but
also has influence on multiple areas of the site
A/B testing is the standard (82%);other tools are deployed based on merchant choice
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A/B testing (serve different content/images to test which elicits the desired action most often)
Segmentation (segment user traffic and deliver content accordingly)
Multivariate testing (serve multiple elements in different combinations to test which elicits the desired action most often)
Content targeting (deliver content based on pre-established rules)
Advanced targeting/automated behavioral targeting (machine-learning micro segment targeting in real time)
82%
37%
35%
27%
13%
What types of testing or related tools are you employing? Check all that apply.
63% of those who test, do so monthly or more frequently
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Daily Weekly Monthly Quarterly Seasonally Periodically
13%
23%
27%
12%
5%
19%
How frequently do/did you test?
TESTING SECRET #1TRY IT!
Always test first, be it style, content, functionality or features. Go out on a limb!
TESTING SECRET #2: SEEK SHORT-TERM WINS
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creative execution (65%) and copy (50%) are the two areas tested most, followed by promotions (46%), marketing campaigns (45%), images (43%), key page templates (42%), and more
See the full report for the rest…
TESTING SECRET #3 SEEK SHORT-TERM WINS
The KIS (Keep it Simple) Factor• Start small• Think apples and oranges
Extra Credit Points - Tactical• Divide up testing creative • The more specific you can fashion the test the better• Test items individually and hone in on them• Give tests enough time to reach statistical confidence levels
Control
Amadesa
Q: Should we start the form on the homepage?
Showing the first step of the form increased
member registrations by 113.8% after one week!
General Mills: Pillsbury
A: Yes!113.8% Conversion Rate Lift
Q: Can we remove product description, move products above the fold without impacting revenue?
MEC
Hiding the product description moved more products above the fold AND increased revenue per visit by 12.2% after
only 9 days!
A: Yes!
12.2% RPV Lift = $1.6MM added annually
TESTING SECRET #4 TARGET WISELY
• Know your user groups
• Identify which groups are most impactful to KPIs
• Test within each segment
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Q: Does message matching enhance user experience and increase revenue?A: Yes!
Showing a geo targeted value proposition message across the entire site increased revenue per visit between 8% - 25%!
New Car
Used Car
Home, Mortgage
Credit Cards
General Terms 45% RPV Lift 70.7% RPV Lift
TESTING SECRET #5SELECT THE RIGHT PARTNER
The Four Pillars
• Information Technology
• Strategy and Planning
• Creative Development
• Budget
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D.TESTING-READY QUESTIONSStrategic• Is my organization ready for testing?• What is the right way to sell in testing’s value to my organization? • How can I justify the investment?• What performance expectations should our team have in place?• How can we best create a testing plan and how in-depth should our strategy be?• What industry or retailer insights can be shared regarding testing proof-of-concept and potential
ROI?Resources • Who are the right members of our team to drive the testing initiative?• What level of investment is required to do testing right?• Can we handle it internally or should we seek the support of a designated testing partner? • How much time should we expect to allocate to our testing efforts in Year 1? Year 2? Execution• What should we test first and where do we build from there?• How can we maintain testing momentum within the designated group to continue improving on
performance results? • How do we best read the results and subsequently share within our organization?• What is the optimal process that we should follow to test smart?
Q & A
Lauren Freedmanthe e-tailing [email protected]
773-975-7280www.e-tailing.com
Rita BrogleyAmadesa
www.amadesa.com