AVAIL Intelligence: The store with no walls - Online Retailer Conference Sydney Sept 2011
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AVAIL BEHAVIORAL MERCHANDISING The store with no walls
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Transcript of AVAIL Intelligence: The store with no walls - Online Retailer Conference Sydney Sept 2011
AVAIL BEHAVIORAL MERCHANDISING
The store with no walls
E-tailing is different!
E-tailing and Retailing are the same!
Same objective: Sales
What is a successful interaction in retail?
1. A purchase - sales today
What do they have in common? SATISFACTION - ENJOYMENT
2. A repeat customer - sales tomorrow
Where retailing still beats e-tailing
30% prefer shopping on ”high street” over e-tail.
49% think retailers offer better customer care and advice while shopping.
36% says if e-tailers improved, they’d buy more.
What can e-tailers learn from retailers?
QUESTION 1
What are the cornerstones of
traditional "corner shop"
merchandising?
QUESTION 2
How can they be applied
in e-tail merchandising?
Best practices in “traditional retail”
Customer enters
Successful sale!
Observe shopper behavior
Offer advice
Impulse offer at checkout
Offer more items of interest
Learnings for e-tailing: Customer enters – on category page!
Help shopper find most relevant products based on
interest expressed
What may happen “Corner store” learning
Too many choices!
Learnings for e-tailing: Customer enters – on product page!
Help shopper feel they are making “right choices” by
proposing alternatives
What may happen “Corner store” learning
Shopper leaves in search for more
options
Learnings for e-tailing: Customer puts item in basket
What may happen “Corner store” learning
Help shopper discover more products and new categories to
explore while they are in the store
Sales lost to competitors
What may happen “Corner store” learning
Learnings for e-tailing: Customer at the checkout
Help shopper by highlighting relevant specials & items they
may have forgot
High-margin items never sold
Achievements if you get it right!
Evans Cycle • Doubled relevancy of search results
Avail customer – department store • Uplift 2011: +13,0 %
Direct Golf • Average order value: + 10 GBP • Higher conversion rate • Increased staff productivity
Avail customer – furniture • Uplift 2011: +18,5 %
What happens when a potential customer is not offered a pleasant experience?
BIG MISTAKE!
Key Takeaways
1. Did I say anything revolutionary? The dynamics of merchandising apply online and offline
2. Then why are so few retailers applying it? Do it – and adhere to merchandising dynamics
3. The challenge of “recommendations” is not technology, it is the merchandising logic
Do you want to discuss Merchandising?
Please join as at our stand D2 after the presentation.
Thank you for the attention!
Phone: 02 8024 5400 [email protected] Mobile: +46 703 13 26 26
