the e-tailing group & neustar webinar Countdown to a
Creative & Profitable Selling Season August 17, 2010
Slide 2
15 years e-commerce consulting Author, Its 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 and consumer behavior
The Voice of Cross-Channel Merchandising Straight talk from
in-the-trenches online merchandising experts 2
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Holiday Forecast-Cautious Optimism Q1 ecommerce sales grew by
6% 1 while forecasts suggest annual growth of 10% a year through
2013 2 US retail sales are only poised to see 3-4% gains 3
Consumers will still be frugal this holiday season so deal seekers
will be on the prowl Christmas falls on a Saturday so retailers
have 29 days to market post Thanksgiving Consumers shop across a
range of retailers online from Amazon to Zappos so competition will
remain fierce where multi-channel merchants will likely have an
edge due to their significant investments Todays consumers are
increasingly choosing to both research and shop via the web so
cross-channel investments will continue to pay off where mobile and
social will begin to take hold 3 1) comScore 2)eMarketer 3)NRF
Slide 4
The primary reasons for shopping online are still convenience
and savings 4 Q17 Mindset of a Multichannel Shopper Study;
2009
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5 the e-tailing group 100 4Q09 1-800-flowers Diapers.com King
Arthur FlourSephora Aeropostale Dicks Sporting Goods KohlsShop NBC
Amazon.com Discovery Channel L.L. Bean Shop PBS American Girl Drs
Foster & Smith Lamps Plus Skechers Apple Drugstore.com Lancme
USA Solutions Armani Exchange eBags.com Lands End Sony Style Aveda
EBGames LegoStaples Bare Necessities eToys LowesSundance Barnes
& Noble Famous Footwear MacysTarget Bass Pro Forever 21 MoMaThe
Avenue Bath & Body Works Frontgate New EggThe Childrens Place
Bed Bath & Beyond Gaiam Nordstrom The Container Store BEST BUY
Gap Office DepotThe Home Depot Blue Nile Gardeners Supply
OrvisThings Remembered Bluefly Garnet Hill OverstockToys R Us
Borders Giggle PetSmartUnder Armour Brooks Brothers Godiva Polo
Urban Outfitters Brookstone Golfsmith Pottery BarnVictorias Secret
Buy.com Green Mountain QVCVitamin Shoppe Cabelas Harry & David
Radio ShackWalgreens Clinique HP Home & Home Office RedEnvelope
Wal-Mart Coach HSN REIWilliams-Sonoma Cooking.com iRobot Road
Runner SportsWine.com Crate & Barrel J.Crew Saks Fifth
AvenueZales Crutchfield JCPenney SearsZappos
Slide 6
Employ Essentials 6 One-stop shopping for gift giving
Price-point links Recipient segmentation Gift card touted as the
gift that always fits Holiday delivery timing
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Suggestively Sell Your Products & Provide Promotional
Offers To Close The Sale 7 Selection and value with, Hundreds of
gifts under $50! messaging Gift card sweepstakes Free shipping
designated on holiday dcor and specified product
Slide 8
The Gift Card Should Keep on Giving 8 90% of the EG100
currently making them available on their sites Consumers prefer
choice relative to type and redemption option 90% offer to mail the
card 60% offer digital delivery (unfortunately) Cross-channel
redemption optimal so merchants should strive to accommodate both
format and channel flexibility
Slide 9
Personalize and Customize Gift Cards 9 An array of engaging
house designs available Design your own card 1 in 5 merchants
offered custom capability in 2009 1/3 of consumers spent between
$50 and $200 total on gift cards purchased
online-BigResearch-4Q09
Slide 10
Enable Group Gifting 10 Best Buy gets creative with their Pitch
In Card. Its a hybrid between a gift card and a wish list that
enables group gifting. Shoppers simply sign up for a free card
Friends/family can add funds at any time Recipient can draw from
for purchases on the site
Slide 11
Innovation via Mobile GiftCards and GiftCoins 11 Targets
customers can take advantage of two more innovative gift card
options: Mobile GiftCards- save their gift card to their phone to
check balances and make in- store purchases GiftCoins in
denominations of $5 sold in-store only in bags of five for $25
making them ideal as small gifts, rewards or prizes.
Slide 12
Give Clear Directions for Wish List Use 12 One can quickly
find, create or update a wish list Tips are wisely shared including
cross- channel wish list creation capabilities Helpful links are
merchandising-driven beginning with top sellers Subsequent options
help find the right product by age and category Relative to value
ranking of website gifting features consumers gave wish lists 2 nd
billing behind only gift centers 4Q09 Mystery Shopping penetration
up from 49% to 56%
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Showcase Top Sellers & Top Rated 13 Customer ratings/
reviews were the most important capability for retailers to have on
their websites when it comes to selecting and purchasing product
PowerReviews/e-tailing group 2010 Social Shopping Study
Slide 14
Inspire with Creative Promotions 14 Out-of-the box thinking is
mandatory to compete with the savviest of merchants Test and Tweak
in the 4 th Quarter to see what resonates with your customers
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An Array of Promotional Tactics is Sure to Appeal 15
Bath&BodyWorks : $10 and Under Stocking Stuffers + Santas
Secret Sale 6 value-priced products with links to more Prime real
estate devoted to holiday shipping cut-off dates Online only sale
with rotating offers $3 shipping on orders of $50 or more
Purchase-with-purchase
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Daily Deals Generate Impulse Buying 16 Over a 4-day campaign
Discovery Stores home page presents 3 deals a day Sneak peak of
tomorrows deals fosters return visits Floorline links facilitate
easy shopping for holiday gifts
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Buy More/Save More In Time For Christmas 17 Bluefly: 12/19/09
email SAVE Up to 65% + $2 Two-Day Shipping In Time for Christmas!
Guaranteed delivery by Christmas 2-day shipping only $2.00
Enticement of new designer shoes starting at 20% off
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Optimize Outlets & Clearance Events 18 Frontgate: 12/11/09
email Save up to 50%: All New Holiday Reductions! Over 100 holiday
items just added Reductions to 50% Organized by department
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Free Shipping Likely to Be Shoppers Tactic of Choice 19 Insert
MarketLive Logo Q13
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Tout Free Shipping Benefits 20 Urban Outfitters Creative Free
Shipping Email Free Returns and Exchanges highlighted Stocking
Stuffer link for impulse buying 40% of 4Q09 EG100 merchants offered
free shipping tying it to a dollar threshold (i.e. free shipping on
orders over $100) 47% made that same offer based on a
pre-designated product selection
Slide 21
Put a Promotional Calendar in Place Around Key Dates From Black
Friday to Cyber Monday and post-Christmas have a calendar of
promotions ready to put in to action Include promotions for
early-bird selling through holiday clearance sales which are an
important source of year-end traffic Early January is an opportune
time to showcase new products in hopes of maintaining margin during
this heavy markdown period Augment gifting tactics with targeted
onsite placement during the fourth- quarter 21 DateDay Nov 30Cyber
Monday Dec 14Monday Nov 27Black Friday Dec 5Tuesday Dec 7Monday
Dec16Wednesday Big Research/Shop.org 4Q09 Top Revenue Days
Slide 22
Choose Visibility Tactics Based on the Importance of Gifting to
Your Overall Business 22 Visibility tactics can include any or all
of the following: Gift certificate positioned in universal
navigation and select other locations Top navigation link with
holiday color or with holiday design treatment Recommendations of
gift product, services or tools from the home page to the product
page or via shopping cart.
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After Early-bird October Tactics, Post-thanksgiving Cyber
Monday Kicks Off The Online Season 23 Online-only exclusive deals
Limited-time offers kick-off a 25-day customer communication
program Traditional standards from Buy More/Save More to take an
extra percentage off ones total purchase Gift center access
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24 Reinforce Year-round Opportunities Secure visibility onsite
via navigation and key page placement
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Add Timely Last Minute Messaging from the Home Page to the Gift
Center to Checkout 25 Legos gift center is a prime example of how
to incorporate this information Holiday shipping cut-off dates top
the page A holiday countdown re-enforces the urgency to buy now A
gift card feature provides excellent suggestive selling for the
undecided
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Last Minute Selling Strategies Drive Revenues 26 Forever 21
aggregates value prices with gifts under $20 Message to timely
delivery Supported with Free standard shipping Free upgrade to
expedited shipping when orders are placed by 12/21
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Extend Shipper Options at the Last Minute 27 Crate & Barrel
extends shipper options with a 2-day gift countdown Free shipping,
a gift card promotion, and a link to last minute gifts Holiday and
gift card links are visible in seasonal colors Annual furniture
clearance starting the day after Christmas noted Localized effort
with closest store to encourage shoppers to visit before and after
the holidays
Slide 28
Plant the Idea of Sending Gift Cards with Reminders Throughout
the Site and via Email 28 Crutchfield boldly expresses the need and
the solution in this email sent on 12/23/09 with the subject line,
Theres still time: e-mail gift cards still available Execution is
clear from the headline Need a present? Problem solved Headline
December 24th deadline for e-gift cards Card visual showing
available denominations Express shipping cut-off dates accompany a
link for last minute gifts Toll-free phone number for personal
touch
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29 When In Doubt Drive Traffic In-store Incentivize on total
Purchase Reinforce rewards Highlight social links 42% of US retail
sales were accounted for or influenced by the web Forrester
Research
Slide 30
Include Merchandising in Post-Order Communications To Boost
Year-End Sales 30 HSNs comprehensive onsite order confirmation
includes a right-hand column with three product suggestions based
on customers who bought this item also bought At the bottom of the
page 3 banners in holiday red/green offer 3 more suggestive selling
messages to promote a charity tie-in, gift cards, and a
contest.
Slide 31
Circle Back with Post-Christmas Cheer 31 Reminding recipients
to use gift cards particularly post-Christmas
Slide 32
Customer Service Should be a Differentiator 32 Strong customer
service starts with onsite tools that can be self-service in nature
starting with comprehensive contact information coupled with
complete details delineated by FAQs Ensure that your customer
service representatives respond swiftly to all email queries and
are well trained in both product knowledge and corporate protocol
Customers have heightened expectations that often stem from last
minute purchasing; communicate quickly and clearly when
out-of-stock situations arise Deliver in a timely fashion; 4Q09
delivery time on orders placed via standard delivery was 4.05 days
and sophisticated sellers will push this time
Slide 33
Customer assistance top 2 ratings for importance when buying
gifts online find that accessible contact information (ideally toll
free) and access to ones cart at all times smooth shopping
experiences 33 Insert MarketLive Logo Q20
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Supply a stellar service destination 34
Slide 35
Marry Customer Service & Merchandising 35 Williams-Sonomas
order confirmation Clear links to track ones order Visible 800#
Customer service hours of operation All occasion Gift Card touted
Whats New in Store drives cross- channel traffic and preserves
margin
Slide 36
the e-tailing group Holiday Readiness Checklist 36 1.Review
your current 4Q plan including performance metrics from last
holiday season 2.Brainstorm with your entire team and re-prioritize
your promotions and gifting strategies based on current business
trends 3.Get creative developing compelling tactics that inspire
customers to spend freely 4.Build-out a calendar that includes all
key selling dates and associated merchandising strategies from
early-bird to post-holiday 5.Evaluate all potential marketing tools
taking advantage of traditional tactics including email to more
forward thinking social strategies that foster reach 6.Test tactics
early in order to revisit as the season swings into full gear
7.Focus on having products in-stock and when that is not possible
communicate with customers about back-order status 8.Institute
and/or upgrade your gift card offerings to ideally offer them
electronically as well as via mail with redemption in all selling
channels 9.Assess if wish list functionality is appropriate for
your site and your customers 10.Make delivering best-in-class
customer service a priority year-round
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Thank You Lauren Freedman President, the e-tailing group
[email protected] 773-975-7280
