Lauren Freedman & Her Team Of ecommerce Experts Share Trends, Research Results And Relevant Advice

It's Just Shopping

Parsons’ Students Apply e-tailing group Mystery Shopping Methodology to Learn eCommerce Ropes

July 13th, 2010 by Lynn Pregont

Parsons’ Students Apply e-tailing group Mystery Shopping Methodology to Learn eCommerce Rope

For the second consecutive year students in Joan Abraham’s e-Marketing class at Parsons the New School of Design applied e-tailing group Mystery Shopping metrics to their major term assignment of identifying best practices for merchandising a website. Working in teams, they learned how to benchmark a website for successful ecommerce, mystery shopped a merchant of choice, then set priorities for recommended site improvements.

Abraham explained, “The course description states that: ‘Students will learn what is important and what to avoid in using these new methods of distribution in the fashion industry.’ Utilizing the e-tailing group’s 280 benchmarks gave them a real world understanding of key elements that provide customer service and state-of-the-art merchandising on a website. Their creativity was amazing. I particularly loved that so many focused on videos in their presentations as that’s my area of concentration with StyleBranding, Inc.”

The attached PowerPoint presentations exemplify how well these students performed the task at hand as they assessed Target1, Target2, Intermix, Halston, and Angel Street Thrift Shop.

Ultimately their comments throughout the assignment were the most rewarding for us as they took away lessons from this experience that will enable them to be best-in-class merchants (and savvy shoppers) in years to come.

Sarah: “The e-tailing group PowerPoint served as a great road map for our upcoming project and a tool for those of us who are looking to branch into online retailing. The presentation along with the supporting files did an impressive job of encompassing all the various elements in the online shopping experience, from point of entry to the sale and return of a product.”

Sarah: “It’s great to know that these types of services exist. Having this information on hand is a huge advantage for businesses and a great way for them to see how they measure up. As we begin our search, it’ll be interesting to see how our retailers stack up to the competition. I’m looking forward to the seeing what our research reveals.”

Ji Hye: “The e-tailing group provides services that I would be very interested in. As an online business owner I would like to know statistics about the competition, such as how many hours to respond to a customer email, how many clicks from selection of product through checkout their websites require, the number of business days to receive a product. The mystery shopping exercise collects data that I definitely want to know.”

AndreaL: “This exercise was very helpful to understand ways that a business can create the best online retail experience. While shopping online, we are all looking and utilizing these tools but I haven’t really considered all of these elements and how they can be combined to create a superior shopping experience. It is very obvious when you encounter a bad site but there are so many little nuances that can separate a good site from a superior one. I will be doing some assessing during my online shopping going forward.”

AndreaA: “The e-tailing group PowerPoint and articles on the [e-tailing group] site were really helpful in terms of understanding exactly what aspects of a site make it user-friendly and successful. I also found the comparison percentages of this year and last year to be extremely telling about just how important the online retailing aspect of a business has become and how much growth and development is being put into sites across-the-board. “

AndreaA (later in project): “If I were an online entrepreneur, I would like to use the e-tailing group’s services to help me come up with the best design for navigating my website. By reviewing the data of my competitors, I would see what kinds of key capabilities I need to deliver in order to exceed or match the competition. The comparison statistics would guide the architecture of the website, since what an online retail site needs to do in order to distinguish itself from its competitors is provide a shopping experience – a fulfilling, pleasing, painless experience. However, the e-tailing group’s services would be useful on an ongoing basis as well. I assume that after a year or so, it would be very helpful to take a look at the latest data to further refine the website, and to figure out where I can improve and give the consumers more of what they want.”

Lindsey: “I think it’s interesting to see how very predictable we can all be when it comes to shopping online. Not surprising that many companies have selling us online down to a science! When looking at the e-tailing group breakdown…I was intrigued and amused to see that it was the same way I shop online! Refine by price lowest to highest, etc. It was very informative. Great info, thanks!”

Annie: “…The thing that really struck me about the e-tailing group PPT was the percentage increases in every category in just one year. This just goes to show that ecommerce isn’t just a fleeting trend, it is the future of fashion retailing and businesses across-the-board are investing in their online presence to ensure that their sites are as high-tech and user-friendly as possible. To compete with what is out there you really do have to think of everything, and the e-tailing group does a great job of providing a checklist to help us make sure we are doing just that!! Thanks for sharing this information it puts everything we are working on in a larger context.”

Andrea Raghunandan and her project partner Sarah Kang took on a the daunting task of assessing Angel Street Thrift Shop, a local New York merchant that has yet to implement ecommerce. They wisely aggregated examples to show how this merchant might execute features important to selling via the online channel in support of their mission: donating proceeds to benefit programs for individuals and families affected by Substance Abuse, HIV/AIDS and Mental Illness. After completion of the assignment she said:

“The mystery shopping project utilizing the e-tailing group benchmarks was quite frankly one of the more useful exercises I participated in during school. I have since performed an evaluation of ecommerce sites I came across using the parameters I learned from the e-tailing group and can easily recognize an effective site from one that can be improved…a skill I can employ in the real world.”

At the e-tailing group we assess 280 metrics on 100 sites annually to provde a snapshot of the cross-channel user experience. How do you assess the effectiveness of your website?

Tags: benchmark a website, ecommerce best practices, Parsons the New School for Design, state-of-the-art merchandising online, StyleBranding, successful ecommerce, superior online shopping experience, The e-tailing group, website merchandising
Posted in It's Just Shopping Blog | No Comments »

Melding Multi-Channels with Mobile

May 10th, 2010 by Lisa Schwartz

“Mobile Will Be Bigger Than Desktop Internet in 5 Years.” – Morgan Stanley

“Sooner or later, more people nationwide will go online through their mobile devices than their computers. It’s not a question of if, but when for retailers. Absence from mobile will cost them market share.”- Mickey Alam Khan

Recently the e-tailing group attended the Heartland Mobile Council’s Mobile University, which is part of an ongoing effort to “educate brands about the importance of a long-term strategic approach to mobile marketing and how to integrate mobile into their businesses.”

A wide variety of topics were discussed, but one of the strongest messages conveyed was that mobile marketing efforts must be integrated across channels for multi-channel merchants. In a presentation at the Retail Innovation & Marketing Conference, Tracy Benson, Senior Director of Interactive Marketing at Best Buy, debuted a video that shows clear examples of how this multi-channel “meld” is only going to gain in importance as mobile technology continues to become entrenched in our day-to-day routines.

In the United States alone, 91% of the population owns a cell phone according to cellular-news.com. And findings from a recent consumer survey by Sterling Commerce “continued to highlight consumers’ desire to link the online and physical experience.”

In spite of these staggering statistics, according to the e-tailing group’s 9^th Annual Merchant Survey, 73% of those surveyed “are not engaging shoppers in mobile in any way.”

In response to merchant’s slow adoption rate of mobile technology, Mickey Alam Khan, Editor-in-Chief of Mobile Marketer, suggested,

“Retailers need to launch mobile sites and – where necessary – mobile applications, as fast as they can. They can’t afford to play catch up. The consumer is already ahead of them in mobile web adoption. Retailers also need to quickly launch SMS programs that tie in with their multi-channel loyalty and database marketing efforts. Both efforts are not that difficult but require will within retail organizations that are still trying to put this weak economy behind them.”

Just as the e-tailing group was in the forefront of benchmarking e-commerce we too want to understand the consumer mobile experience from the shopper perspective and will look to once again set industry standards for selling smart via this new channel.

Merchants must sensibly respond to consumer demand assessing their brand and their customer base.

GETTING STARTED IS AS EASY AS 1, 2, 3!

Send SMS. According to 4Info, 70% of the US population is currently using SMS (texting) technology. So starting with SMS to drive traffic to bricks-and-mortar stores is a good strategy. Use free offers and incentives to entice consumers to opt-in for future text messages. Roger & Holland’s campaign attracted over 1,300 members to its mobile program in two months! They’ve also tracked $18,000+ in business directly back to their mobile club efforts. Then, continue using text messages to deliver alerts of store openings, new merchandise, special offers, coupons and discounts. Also, include links to drive traffic to mobile sites. As Gary Schwartz, President/CEO of Impact Mobile said during one of the Mobile University’s panel discussions, “It’s about understanding your consumer, who is text messaging and using the mobile web—you want to be part of your audience’s communication channels.”
Build a mobile-friendly website that works on all smartphones. Ensure the site has:
- Strong search functionality. Just as on websites, Google-minded consumers want to search
- Branding elements consistent with the store and online experience
- A store locator function. Have a store locator button on every single page supporting cross-channel needs.
- Special offers or the latest store circulars

Create an application if relevant. An application is advisable for retailers with weekly circulars and loyalty programs. Jared Horowitz, Manager of Business Development and Direct Marketing at Steve Madden says, “Seventy-five percent of users coming to the website via mobile are coming from the iPhone or iPod touch, so an iPhone app is part of our multi-channel strategy”In April, the Gilt Groupe reported that 7% of their weekend sales came from the company’s iPhone app. In addition, they offered an incentive for customers to download their new iPad application which gleaned 3% of their sales with the first two days after being launched!

Experts agree that, as web-enabled smart-phones and affordable data plans become commonplace, retailers and marketers will be forced to rethink their cross-channel marketing strategies to target on-the-go consumers.

So with over 285,000,000 mobile phone users in the US alone, how will your organization “mobile-ize?”

Tags: 9th Annual Merchant Survey, Best Buy, cross-channel, Gary Schwartz, Gilt Groupe, Heartland Mobile Council, iPad, iPhone, Jared Horowitz, Mickey Alam Khan, mobile, Mobile Applications, mobile initiatives, SMS, Steve Madden, Text Messages, Tracy Benson
Posted in It's Just Shopping Blog | No Comments »

Are email reminders of products abandoned in the shopping cart an intelligent policy or an intrusive ploy?

March 15th, 2010 by Lynn Pregont

While preparing out latest e-tail detail, “More Merchants Rely on Email to Minimize Cart Abandonment,” the question of customer privacy sparked a conversation within our office.

Is reaching out to customers to remind them that products are left behind good customer service or does it cross a boundary and become intrusive?

The fact that 20% of the e-tailing group’s EG100 merchants sent abandonment emails during our 4Q ’09 tracking period, a 6% increase over last year, suggests that this is an effective tactic to capture sales that might otherwise be lost. Notably, they represented a broader cross-section of product categories too.

After much discussion we agreed that messaging and execution are what make these emails viable. Relevant merchandising and customer service should position each communiqué as a benefit to the customer, versus snooping into their shopping bag.

The issue of timing and frequency for sending such email reminders is also topical. Our take is that one reminder is sufficient and on average the merchants we tracked sent those 6 days after product was left behind.

Please check out the related e-tail detail to see best-in-class site examples and read a smart strategy checklist but here is a short-list of pointers:

From a design perspective, HTML formatting enables showing an image of the item in question which serves as a good visual reminder

A helpful customer service tactic is to include the number of days that items will be held in the cart

Established merchandising tactics like, top-rated items or what’s new add appeal but my favorite is suggesting the item be added to a wish list for future consideration

Promotional enticements are always a good “carrot” especially a limited time discount or free shipping for the abandoned product

These two mass merchants take very different approaches but both include some of the essentials that should make them welcomed by recipients:

Do you think that sending a reminder email when something is left in the cart is a smart strategy?

Tags: ecommerce, email strategy, shopping cart, shopping cart abandonment, triggered email
Posted in It's Just Shopping Blog | No Comments »

Facebook Fans: Discover 3 Ways to Get Them

February 13th, 2010 by Lisa Schwartz

Does this sound like your organization? “Instead of researching the best ways to engage, many businesses create accounts across multiple social networks and publish content without a plan or purpose”, says Brian Solis, founder and principal, FutureWorks, in the article Why You Need a Strategy for Social Media. As we found in our 12th Annual Mystery Shopping Study, a study of 100 online retailers, 60% of the retailers featured links to social network presences on their e-commerce sites.

But is that really enough to get customers to engage with your brand via social media vehicles? According to a recent study by ForeSee Results Inc., 49% of respondents who become a retailer “fan” do so to learn about special deals and options, 45% to learn about products, and 5% for customer support.

So give ‘em what they want! Here are 3 ways to do that:

Offer Facebook-exclusive coupons , discounts, free gifts & “insider” information
Giving consumers an incentive to join, is a sure-fire way to increase your Facebook fan base. By integrating sharing into the experience, participants will be encouraged to “go viral” and get their friends to also participate.

This is exactly what happened when in January, Einstein Bros. Bagels gave all of its Facebook fans a “buy one bagel, get one free” coupon. They increased the company’s Facebook fan base from 4,700 to more than 378,000.

Create a compelling contest
Offer contests and sweepstakes that will engage consumers and entice them to join. Here, at the e-tailing group, we get an abundance of merchant e-mails and noticed a recent trend: more retailers are offering incentives to become a Facebook fan.

As an example of this, in December, Southwest Airlines saw great success with their Fans Fly Free Facebook contest where more than 400,000 new fans joined and engaged with the brand! On the right, H20+ coaxes consumers to become a fan and thus to be eligible for their sweepstakes.

Enlighten, educate & engage
Offer media-rich informational resources and applications. Neiman Marcus with over 66,000 fans has successfully combined customer conversations, product photos, sweepstakes and “how-to” videos to provide consumers with a reason to become a loyal Facebook fan.

As a fan of select merchants like Sephora , I enjoy getting updates on my wall about upcoming/private sales, new products and breaking company news. With over 414,000 fans, clearly they’ve been successful at engaging new fans.

These are just 3 ways to get customers to become your Facebook fans, engage with your brand and hopefully “spread the word. “

The e-tailing group wants to know…what ways have you found most successful for attracting customers to your Facebook page?

Posted in It's Just Shopping Blog | 3 Comments »

Should I be apprehensive about returning an item?

February 8th, 2010 by Kylee Magno

The results are in from our 12^th Annual Mystery Shopping Study and we’re excited to see that return policies/ product guarantees were visible on 96% of the sites in our study- an increase of 37% over last year. The policies range from 30-90 day returns to 100% satisfaction, with the majority focused on satisfaction, so why did I encounter so many problems while trying to process my returns?

Are merchants stating “100% satisfaction” as a way of staying competitive in tough economic times, lulling shoppers into a false sense of security while not making any changes to the way returns are handled? Or is it less-than-enthused customer service representatives who don’t want any more paperwork flowing across their desks …I’m putting my money on the latter.

Many conversations about returns focused on the “lack of money” I would be receiving back from my return with statements such as

“Once we deduct the cost of the pre-paid shipping label we’ve included, you will only be receiving a few dollars back”, “There’s a re-stocking fee, a handling fee and then the fee for the pre-paid label”, and my all time favorite “even though you enjoyed free shipping of the item, returns are subject to the original cost of shipping deducted from the amount credited back, because we shouldn’t have to absorb your shipping costs.”

There were even those who made it seem as if a refund were an “urban legend”, so why bother;

“You MUST use the prepaid shipping label that was included; a $12.95 deduction would be taken from your credit (even though the cost would be $5.95 to send myself via UPS). You are responsible for tracking the package, calling customer service and requesting a refund. Returns come into our warehouse and we really have no procedure in place to know when your item is returned and a credit should be issued” (Side note: 3 calls and 30 days later I received a credit)

In the end it’s always the same; the best return policy or product guarantee on the planet means nothing if you have the wrong people manning the “front lines”. Customer service agents should try to save the sale by suggesting alternative items, promoting current specials or just graciously accepting returns, creating a win, win situation for both the customer and the retailer.

Will I continue to shop these merchants? Probably if they have something I really want. Will I buy an item I’m unsure of for myself or a gift recipient? Definitely not.

Would you buy again from a merchant who treats their customers this way?

Tags: customer experience, customer service, mystery shopping, Product Guarantee, Return Policies, Returns
Posted in It's Just Shopping Blog | No Comments »

Gift Registries Miss the Mark on Customer Courtship

November 24th, 2009 by Lynn Pregont

Our Mystery Shoppers recently turned their focus to gift registries, living the process both online and off at 25 stores and on 26 websites with bridal, baby and/or general gift registries. While compiling their experiences into a report (available for pre-order to download February 2010), I was astounded to learn how many merchants are “leaving the bride after the honeymoon.”

Tags: bridal registry, gift registry
Posted in It's Just Shopping Blog | No Comments »

Lip From Lauren: SMB Lesson #1-Be Paranoid—Don’t Be Too Cool for School

November 23rd, 2009 by Lauren Freedman

The web has afforded a new opportunity for entrepreneurs to compete as the cost of technology has come down substantially in the last few years. Despite this cost reduction, there is no excuse for not doing your homework in advance of your site development. I could have closed my eyes in every interview as the lessons were simple and ones we have all heard from our parents, our teachers and best bosses. In the process of developing our SMB Guide, I heard many words of wisdom but one of my favorites was prior to selecting a platform define 10 things your platform will have to do effectively from creating a database to uploading a product feed on Amazon or the user friendliness of one’s backend admin tool. Assess how effectively each of the tasks can be done on each of these potential platforms and quickly rule out ecommerce platforms that don’t accomplish your goals efficiently and effectively. Read More »

Posted in It's Just Shopping Blog, Lip From Lauren | No Comments »