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July 19, 2008

Can you direct me to E Commerce Street?

I was recently going through some old digital photos and came across the following I thought readers of this forum might get a kick out of: 

ECommerceStreetSmall.jpg

 

I’m somewhat embarrassed to admit, even looking at the data embedded in the jpeg, I can’t figure out where I took this thing. I think it was somewhere in central TX where I live.

Which I’d like to say got me thinking about Multi-Channel Commerce, but instead it made me remember a recent article I read on Eye-Fi, which brings interesting value-add technologies to plain ol’ SD cards. They now offer the Eye-Fi Explore card that, by triangulating wi-fi signals which the company has meticulously mapped (read some of the articles at http://www.eye.fi/news/reviews-awards/ to get a better idea of how this works than I can present here), imprints every photo with the approximate location at which it was taken. THAT would allow me to figure out where I found E Commerce street!

And THAT got me thinking about multi-channel commerce in a whole new way. Perhaps our traditional channel paradigm needs to change from the old medium-based framework of bricks & mortar, online, direct, etc. to a different frame of reference.

The Eye-Fi card, of course, got me thinking that location would be one component of this new framework…but as we all know, a one-dimensional framework is somewhat unappealing. So I had to find other components. If this new paradigm can be summarized as a graph (as all good paradigms can), what are its axes?

I have a notion that at least one of them is somehow related to proximity, or perhaps intimacy, yielding two axes:

  1. Location: as technology improves, marketers gain better and better information about where you are, which they can then use to target you by the most appropriate channel based on this knowledge.
  2. Intimacy: this could be a big axis, or several. I’m using “Intimacy” to indicate a category that contains some superset of:
    1. What is the time: the timing of the interaction is relevant on every conceivable level: the year, the season, the month, week, day, hour, minute.
    2. What you are doing: are you on a lunch break from work? Driving to the country for a weekend with the family? In an unfamiliar location?
    3. Who you are: what are your demographics? Health concerns? Hobbies? Profession? Interests? Tastes? Pulse/blood pressure/other easy-to-measure-and-transmit vital stats at this particular moment?
    4. How well do we know you: how much data on the above points (or any others related to intimacy) do we have? How about location data? How reliable is all of this?

As technology improves, it’s inevitable that marketers and sellers will get better and better information about their prospects’ and customers’ intimacy axis as well. As the accuracy of this information improves, and the technology delivering it becomes more ubiquitous, maybe we’ll finally see the long-predicted debut of the location-dependent lunchtime fast-food SMS coupon.

But I’d like to ask you to help me think outside the box about how the combination of location and intimacy—together with their lower-level facilitating technologies, like wi-fi, wi-max, GPS, SMS/MMS, digital imaging, character recognition, customer data management, artificial intelligence, and increasingly robust mobile web access devices—will impact our thinking about channels going forward. Beside the $.50 off hamburger coupons that might pop up as you stroll past a MacDonald’s at noon, what else should we look forward to? Some thought starters:

-         Product, price, placement, and promotion—besides the hamburger coupon, how can location and intimacy knowledge be leveraged to improve the classic 4Ps? If I as a marketer know where you are and something about what your tastes are, how does that influence the products I promote to you and how I position them?

-         Data input—Remember, in addition to facilitating voice and text communication, most cellphones now contain cameras and MMS capability. How can this feature be used to drive interactivity between marketer and buyer? Think about technologies like OCR, barcode recognition, and automated language  translation.

-         Social networking—how might marketers use location awareness, imaging/sms, mobile data input/send capabilities, and ubiquitous internet connectivity to encourage social networks in a way that both improves the customer experience and increases the bottom line?

-         Ethics—on a recent trip to the UK, my mobile provider figured out that I was there and SMS’d me a message about my roaming rates. I don’t remember opting in for this kind of message, but I was happy to receive it. What kinds of communications, under what kinds of circumstances, is it ethical for a marketer to push (unsolicited) to a shopper by leveraging the technologies we’re discussing?

-         Feasibility—From a technology standpoint, how feasible are these Big Ideas? How long will we have to wait for the software and hardware necessary to realize them?

I’d love to hear your feedback—especially if you have axes to add to (or grind into:^) the framework!

July 3, 2008

One page check-out and perpetual shopping cart: an opportunity not to be missed!

Imagine a world where more than a third of the visitors of a store would start their shopping and fill their trolley and then, all of a sudden, leave the store with all these baskets lying on the floor. It looks more like science-fiction that anything else, but unfortunately for online retailers this is still the daily routine: according to a recent report from Jupiter Research only 64% of shopping carts filled on a site will result in a purchase!

This could be explained by a variety of reasons: people use their shopping baskets to compare prices, are afraid to give their credit card information online or hidden delivery charges. But one sure thing is that online retailers are still struggling to design check-out processes which are truly engaging and intuitive. The typical check-out process will consist of 3 to 4 different pages (with a progress bar in the best case scenario) where I am likely to loose sight of my shopping basket and forced to register to order. These sorts of processes have not been designed with the customer in mind and are clearly creating a negative experience which will result in a poor brand perception.

Online retailers should stop reinventing the wheel and simply look at what customers do in the brick and mortar world. In the real world I see my basket all the way from the start of my shopping experience to check-out and I can add or remove products until payment – the till being a really good place for selling other goods like chewing gums or TV magazines (cross-selling) and I do not have to register for a loyalty card prior checking out. So why is the vast majority of the websites not just designed like this? Two main reasons:

  1. Rich Internet Applications (RIA) are still considered as gadgets or nice to have by online retailers
  2. Lack of customer centricity with usability testing and personas definition skipped and IT or Marketing defining the requirements.

A few online retailers have already understood that, done their homework and as a result they are setting new standards across the web with painless one page check-out processes and perpetual shopping baskets. Reebok, Nike, Gap (see picture below) or Anthropologie (again see picture below) can be identified as pioneers in this area and the good news is that customers are rewarding them for that! Anthropologie claimed for example an increase of 24% of their shopping basket conversion after implementing their new check-out process.

Anthropologie

 GAP

It is clear that online retailers not following this trend will not address key consumers needs (perpetual shopping baskets and one page check-out are generally rated as more important than toll free number or live help) and will continue to leave money on the table in the process. Can they really afford it?

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