Designing the next generation customer experience in multi-channel retailing

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November 13, 2009

Mobile Momentum – What’s the Hold-up?

Every retailer in the eCommerce world is excited about the prospect of interacting with their customers via mobile devices like iPhones.  They dream of the day when a customer places an order using an iPhone app, then drives by the store to pick it up.  They envision their customer creating a shopping list, pushing a button, and getting an ordered pick list mapped to the layout of their local store.  They also want to create an item-Finder where the customer walks into the store, enters an item description on their phone and gets an aisle and shelf location for that item returned to them on their screen.  They would love for their customers to be able to access product reviews, video demonstrations and detailed specifications from their mobile device so that the purchasing decision could be made on the spot, even for expensive items like cameras and TV sets.

There are many rational reasons for this exuberance.  There are twice as many mobile phones in the world as computers.  The price of cell phone service is expected to continue its downward trend until it is affordable by all but the poorest people on the planet.  In the USA, it is hard to find any  teen or young adult without a mobile device of some sort, regardless of income.   In the US and Europe, the mobile computing device is seen as complimenting the use of the home or office computer.  In many parts of Asia, however, the phone is affordable and the computer is not.  In these regions, the phone is the only computer available.

However, this beautiful picture is easy to describe, but harder to paint.  There are several reasons for this:

·         Network Slowness - Network speeds are annoying.  Even if you are in range of your carrier’s network, the response times are not up to modern customer expectations, making them reluctant to even try and use their phone as an app platform.

·         Model Proliferation - Mobile Phone device models number in the hundreds, and if you count out-dated phones still in use, into the thousands.  New models are introduced on a weekly basis, complicating this further.

·         Lack of Standards - Very few phones are created to a programming standard.  Most phones have a custom interface that is programmed as part of the product development process.  This lack of standards makes third-party creation an application that will run on all makes and models literally impossible.  In fact, programming to even the five or ten most popular phone platforms is unaffordable by all but the best funded companies.  (This is the cause of app-envy, a phenomenon that occurs when your friend can use a great application on her device that doesn’t exist on yours.)

·         Phone Browsers - Phone browsers are mostly terrible.  Many of us tried using a browser when we got our first smart-phone.  We had to scroll up, down, left and right so often that we gave up.  It felt like reading a magazine through a keyhole.  Most people use their phone-based browsers for flight status, sports scores, headlines and not much else.

All is not lost however, as everyone in the mobile phone industry understands these problems and is motivated to solve them, or at least lessen the pain that they inflict on the customer.   I will list a few of these positive trends.

·         Network Slowness – The great race of this decade is to improve mobile data transmission speeds.  If you remember back 5 or 6 years, you could grow a beard waiting on a page to load on your phone.  Now, things are faster, but not nearly like Wi-Fi.  However, with each passing year, speeds will improve because this is a “do-it or die” issue for carriers.  If fact, there may come a day when Wi-Fi speeds are surpassed by 4G, 5G, or nG.

·         Model Proliferation -The number of phone models will continue to increase until this class of devices reaches a certain level of maturity.  Eventually, all of the logical improvements will be made, and future improvements will provide diminishing usefulness. 

·         Lack of Standards – There are two major standards that are here or emerging: iPhone and Android,( along with many ideas for future ones).  The iPhone is a pseudo-standard based on the popularity of Apple product.  Creating and selling apps on this platform is already a billion dollar business.  The tight distribution model via a single carrier, AT&T, is holding this platform back from being even bigger.  This could change, however.  In the future, other carriers may be selling the iPhone.  If this happens soon enough, the iPhone could become the dominant platform for the foreseeable future, resulting in a huge market share.  In that case, the developer will be primarily able to program to one device:   ----- If that happens too slowly, however, the Google Android OS is positioned to fill the vacuum.  Android is an open-source smart-phone operating system that provides many of the features of the iPhone.  Its primary advantage is that every phone manufacturer can create products for this platform without paying anyone a fee, and every carrier can sell one that works on its network.    Android also provides a Java-based programming target for third-party developers that could grow to rival the iPhone in size, (but spread over dozens of phone models offered by many carriers).

·         Phone Browsers - There is one safe course of action that developers can take while waiting for the shakeout to occur: program to the browser.  To me, the best part of both the iPhone and the Android phones (like the HTC Hero) is the browser.  Both phones display in wide-screen mode when turned sideways.  Both have the two-fingered zoom that make browsing on the small screen better than tolerable.  This feature makes real non-mobile Web pages easy to view and interact with.  Perhaps the wise course for developers would be to program your new apps to the browsers, making sure that the display looks good on the best smart phones.  You could then write a native app for each important phone platform that redirects the user to the Web page in one touch.

The mobile niche is interesting, but very fluid.  There is gold at the end of this rainbow for those who figure it out, however.

November 11, 2009

SEO Vs marketing: Which is more important?

SEO (Search Engine Optimisation) is a necessity for retailers in today’s e-commerce market.  A customer should not be expected to know the URL for a retailer, they should be able to search for the product they are looking have the retailer’s URL returned for them. 

Therefore a variety of SEO techniques should be effectively implemented by any retailer in order for them to be seen ‘king of the search results’. An example of this is www.scarfworld.com.  This website has placed keywords in the title to assist in SEO, and as a result it is one of the top results in Google for ‘Scarf’.

Marketing on the other hand has been the mainstay of retailers for decades.  Before e-commerce was even heard of, retailers have been using marketing techniques to ensure that customers (and prospective customers) knew that the retailer had what they wanted, or they had a wide selection of alternatives.  http://www.funshipisland.com is an example of a microsite.  It is an entirely contained website which runs independently but it is owned by the Carnival corporation which runs a separate website for selling its cruise packages.

Here are just 3 examples of techniques for both SEO and marketing:

SEO:

-          Title tags: Title tags are commonly used when search engines index websites, therefore having an informative title tag about your site/page is very important.  Having your company name as the title is no longer enough, the name, address, and type of products is more advised.

-          Meta tags: Not commonly used by Google anymore but still worth having.  Meta tags will provide some search engines with information about your site which is not visible to customers.

-          Content: The most important technique in SEO.  Ensuring your pages have appropriate and detailed content will guarantee search engines will pick up your pages and return them in results in the correct context.  Not only is it important for SEO, it’s also beneficial for your customers to have as much detail as possible.

Marketing:

-          Email campaigns: Retailers can send blanket emails to customers to build awareness of promotions of seasonal ranges that are going on.  However, the most effective form of email campaign is a targeted email campaign.  Products, deals, and offers are emailed to the customer based on their preferences (i.e. products they’ve viewed or purchased).  This can draw traffic to the retailer’s website as the customer wants to find out more.

-          Microsites: A retailer can set up one (or many) microsites on their website.  A microsite is a small website which focuses on a specific range, brand, or product.  Building a microsite has various advantages, for example it can have SEO of its own.

-          RSS: RSS (Really simple syndication) can be setup to allow customers to receive information about deals, promotions or new releases direct to their desktop without having to have an email address or navigate to a website.  With smartphones emerging in the market, RSS is becoming a more popular method of keeping up to date with the latest product releases.

Of course both SEO and marketing have their own pros and cons.  In SEO, a retailer can use a variety of techniques from white hat, black hat, or grey hat.  White hat SEO techniques are methods which are sanctioned by search engines while black hat methods disapproved of.  Black hat methods often involve deception such as hidden text or repeating key words needlessly in the hope of improving SEO.  Grey hat are methods considered not to be white hat or black hat (or in some instances may be both) – i.e. it’s a grey area as to whether or not certain methods are appropriate.

Marketing also has its pros and cons.  Insistent emails from retailers can become frustrating for a customer and it can result in them blocking emails from the retailer altogether.  Similarly, using microsites can be problematic if branding is not used appropriately.  Many retailers use microsites as an opportunity to break from their standard CSS and HTML templates in order to promote the range, product, or brand.  By not clearly marking that the microsite still belongs to the retailer, a customer (especially one not comfortable with online shopping) may feel they do not know the site and therefore cannot trust it.

In conclusion, to make customers aware of your business and your products a retailer must effectively implement both marketing and SEO.  Marketing and SEO do sit very closely together, and in some instances overlap, however only time will tell if one becomes more dominant than the other in generating brand awareness.

November 02, 2009

Your Web Page is Too Quiet

If you are like me, you always have some streaming music either from an internet radio or a favorite playlist when shopping online. If you turn it off for a while you will notice how awfully quiet everything becomes. While retailers have done a decent job to attend to the consumer’s every sense in their physical stores, they have largely left the online domain to the visual dimension only. While technology is not there yet to help with touching, tasting and smelling, hearing is definitely possible, yet ignored by everyone. I can definitely do without some of the annoying overhead messages or background noise heard in the stores, but I would not mind listening to music or have some sort of sound effects while I browse a site. Using some carefully selected music or sounds can add a totally new dimension to the online user experience. A retailer can utilize this to drive brand recognition, improve product visualization and even call to action to drive sales. The trackable user experience and instant feedback from deploying this online can also help the retailer fine tune their sound messaging and improve the customer experience and sales conversion in their physical stores.
 

A great overview and introduction to deploying sound can be found in this TED speech by Julian Treasure - http://www.ted.com/talks/lang/eng/julian_treasure_the_4_ways_sound_affects_us.html. It is fun, dynamic, educational and only about five minutes long. Mr. Treasure represents the effect of sounds based on the sound properties he refers to as Drivers (Time, Pitch, Texture, Density and Dynamics), the situational influence – Filters (Function, Environment, People and Brand Values) and the effect itself – Outcomes (Physiological, Psychological, Cognitive and Emotional). The proper combination of Drivers and Filters can be used to trigger the desired Outcomes.

Below are a few things that come to mind when implementing the use of sound online:


·         Start small with playing sounds/effects on individual items only (ex. Forest sounds on hiking gear) or use compositions to tie whole themes together like Halloween or a Summer apparel collection


·         Allow users to voice record their product ratings. This can bring more credibility and life to the review  


·         Employ a control on the web page which is easy to see, displays what music is being played and is easy to turn on/off


·         Link to the music store or CD item being played. If someone likes it, let them easily buy it


·         To take things further, an online radio station like Pandora could be deployed where the retailer can create their own “Station” centered on a theme or event. This station can be easily shared with the consumer and placed on sites like Facebook and Twitter
 

It would be very hard to get something like this right the first time, so proper testing and measuring results will be keys to success:
 

·         Start with allowing only certain users to hear the music/sounds played and measuring the effectiveness. If a company knows more about the online user, it can also measure response in various segments and use to fine tune segment specific messaging

·         Some metrics to consider:

-       Time spent on pages with or without music
-       Sales conversion ratio while music is playing
-       Size of basket when music/sound is used
-       Percent of time music was selectively turned off
-       Sales of specific music tracks which are playing
-       Above metrics broken down by the set of Drivers and Filters employed
 

As shown in the video above, sounds invoke deep and complex responses and getting the desired ones while still maintaining the correct branding may be a challenge. However, I feel that with the proper marketing resources, technical backing and the right amount of testing the potential is very exciting!


Please share any experience you have had around this topic or companies you have seen that have successfully implemented this.