Probably the Smartest Thread You’ll Read on (Social) E-Commerce…

March 13, 2013

Found this little gem at Social Commerce Today. Some really interesting ideas taken from the comments of 117 thought leaders. Some are listed below:

And for the time-pressed, here’s the speed summary of key insights/takeaways.  Brilliant.

  • The future is e-commerce; offline commerce will serve only two purposes:immediacy (stuff you need right away), and experiences (showroom, fun venues).
  • But immediacy may no longer a promise for offline commerce companies as both Amazon and eBay have announced same day delivery.
  • The role of offline lies in the value of the “showroom” and “entertainment” aspects to places like Williams Sonoma. The future of commerce is a hybrid model with (entertaining) showrooms + online fullfillment
  • The future of e-commerce is combining online and offline experiences in disruptive ways. (Chloe + Isabel, Warby Parker, Everlane, and Stylemint)
  • There is no such a thing as e-commerce any more. There’s just commerce. You can innovate in commerce with technology, but the e-commerce silo is dead/dying (mobile payments are disrupting/removing the online/offline divide).
  • The future of e-commerce is vertical integration in markets where there is significant markup in both wholesale and retail (think Shoedazzle, Bonobos, J Hilburn, Warby Parker, IndoChino).
  • Few successful e-commerce companies were started in the early 2000s, although a slew of recent new entrants appear to be getting traction - flash salessocial commercesubscription commerce and other new “content + commerce” models
  • The first wave of e-commerce was about commoditization this wave online and offline is about being a “merchant” (point of view, authority, experience etc).
  • The key equation driving e-commerce is: profit = lifetime customer value minus customer acquisition costs
  • If it has a UPC code, Amazon will beat you.”
  • Before you enter the e-commerce game, visit an Amazon warehouse.
  • E-commerce is good for two things – price and exclusives. Amazon will beat you on price, so you have to beat it on exclusives.
  • The only way to escape commoditization and catalogue commerce dominated by Amazon is to a) sell used stuff, or b) make your own products (or provide a marketplace for those things), or c) (possibly) offer customisation
  • Be wary of e-commerce businesses based on customization – they’ve  existed for a decade (cafePress, Shutterly, Vistaprint) and yet none are thriving. Customers don’t want customization, they want great brands and great design, and they want to be told what they want.
  • The e-commerce opportunity is to contribute to the e-commerce ecosystem rather than sell directly yourself; four opportunities – 1) supply chain innovation, b) marketplaces, c) e-commerce solutions for small businesses, d) mobile payments
  •  There’s room for innovation in the space as long as the ecommerce company creates value for all participants – the retailer, the supplier and the customer
  • To make money in e-commerce, you need to sell in emerging markets where there are no huge incumbents
  • Compete in an industry with a grey market, where consumers are willing to pay higher prices for reducing risk, for authenticity, and warranties
  • The opportunity is to venture into segments where Amazon won’t go (adult, arms… !)
  • The opportunity for e-commerce success is a) sell to iPad owners (iPad owners are 10x more valuable than non iPad owners), b) mobile commerce (nobody owns this yet), and b) target your customers who use social features  (3 to 4 x more valuable)
  • You can’t sell to people who know exactly what they want – Amazon owns that; focus instead either a) ‘discovery‘ (“the best place to discover the stuff you don’t know you need”) or b) deep domain expertise
  • to succeed in e-commerce, you need to sell exclusives. You can’t sell stuff that Amazon sells, Amazon will crush you
  • Amazon is not a store, it’s the world’s best supply chain and logistics company. Amazon is transforming from a retailer to a marketplace+services provider over time.
  • Domain expertise, live assistance, and overall experience are the critical success factors for success in a market where price-competitiveness and scale rule
  • Necessary (but not sufficient conditions) for e-commerce success are a)remarkable,  unique and branded experience and remarkable, unique and branded service; do what Apple, Tiffany & Co., Coach, Lululemon do in bricks and mortar commerce, but online

The Optimized Mobile User Experience: Convergent Commerce Series

October 5, 2011

Mobile commerce has quickly advanced past a cut-and-paste of a retailer’s ecommerce site—it is a viable, independent channel that needs its own strategy, unique capabilities, and personality if it is going to be a valuable part in a retailer’s cross-channel commerce strategy. In the first Convergent Commerce Series Article, Cross-Channel Plan for Mobile Engagement, the growing reasons to integrate a cross-channel strategy incorporating online, mobile, brick-and-mortar and social were highlighted with a specific focus on mobile. The most effective mobile platform consists of a mobile optimized website, downloadable rich app, and in-store mobile engagement. Incorporating mobile into the overall marketing strategy is an effective means to increase consumer awareness of a retailer’s various channels. In doing so, retailers can attract more visitors, generate more sales, leverage their marketing and merchandising spend, gain insight into customer purchase decisions, and heighten customer relations.

It is important to recognize that while mobile is its own channel wherein consumers interact in a very different way than they do other mediums, it simultaneously links all commerce outlets between the customer and the retail brand. While on the go, consumers use their phones to browse products, perform research through ratings and reviews, video demonstrations and detailed product descriptions, share an item to Facebook and Twitter or email it to friends and family, and ultimately, purchase in as little as sixty seconds. In store, the mobile device and rich apps act as a store loyalty card and personal sales associate providing product details, demonstrations, consumer opinions, and special product and store offers.

There are many important features and functionalities that need to be enabled on a mobile optimized website and rich app in order to provide a convergent commerce platform that enhances the customer shopping experience both in and out of the store. These include:

Rich Product Images and Detailed Product Descriptions: A key feature of an optimized mobile web site and rich app is the ability to view rich and large product images from anywhere at anytime. Consumers can visually see what they are about to purchase in a mobile optimized format, and multiple images per product allow for an interactive user experience from all angles. The product information should be detailed and include variants such as color and size and the price range, if necessary, can include was price, now price, and MSRP.

Product Search: The goal of a product search is to get the consumer to where they are going in as few steps as possible, and so the search function needs to be designed to move the consumer from the homepage to checkout in as little as six clicks. The product search results, whether accessed by searching for product name, category, brand, or item number, should be easy to navigate and have breadcrumbs in place so the customer can easily see the path to return to a previous page or result. Once the customer finds what they are looking for, they should be able to buy it directly from their mobile device or search for Find a Store so they can buy it locally.

Find a Store: Enabled through a geo/zip store locator implementation, Find a Store converges the mobile and in-store channels by enabling consumers to quickly and conveniently access a retailer’s products and information across channels. The store locator makes finding a retail store or merchant vendor quick, simple and convenient. For the retailer, it eliminates customer abandonment based on direction hassles, calling frustrations and time-intensive, unnecessary steps. A one-touch store locator enables a seamless transition from mobile to in-store shopping, further converging retail platforms. In addition, it is through the Find a Store implementation that retailers can enable weekly circular promotions and deals directly to consumers’ smartphones, which broadens their distribution and entices customers to visit the store. The weekly ads, only redeemable in-store, show users local product-specific discounts at stores near them.

Mobile In-Store Marketing: When a customer walks into a retail store with the retailer’s branded rich app installed on their smartphone, they can open the app and click to “check-in” to the store. If the retailer has set up a campaign to be triggered by a check-in at that particular store, a rich message will appear that may be a store announcement, a specific offer, or simply a welcome message. While in the store, retailers can push notifications to consumers based on in-store events or announcements. Upon leaving, retailers can send customers a notification within the branded app that could include an invitation to an exit survey, a loyalty promotion, or even a simple “thank you” for visiting the store.

In-Store Product Research: Barcode scanning via a smartphone’s camera is an integral part of the cross-channel retail strategy and is one of the driving forces between the mobile and in-store channels. The retailer’s rich app implementation of barcode scanning empowers customers to access additional information about specific products, such as complete product descriptions, additional product images, ratings and reviews, add to wish list and registry, and even see a product video demonstration or receive an instant coupon for a special product offer. Additionally, the customer can view up-to-date availability and can order directly and immediately from their mobile device if the store is out of the size or color the consumer wishes to purchase.

QR Code Scan: A customer’s ability to scan QR codes within the retailer’s branded app and have them link to any number of offers or responses unlocks countless possibilities for making a retail store mobile-aware. Scanning QR codes cannot only generate insights into product preferences, but can also create an opportunity to serve relevant promotions. QR codes can be used in catalogs, in-store signage and even advertisements, all to drive product and promotion awareness within the retailer’s branded rich app.

To determine which mobile platforms— web site, app or both—will bring the most ROI for a retailer’s investment, brands should look at their customer base and commerce outlets. It is through the mobile web that consumers will initially interact with a retailer from a mobile device. Mobile web allows customers to benefit from a fast, easy-to-use interface for browsing, searching and buying while on the go. The retailer can then engage and transform the customer from occasional visitor to loyal customer by having them download the app for faster, more frequent and higher value experiences, whether they’re in the store or on the move. In doing so, the retailer can drive incremental sales, increase customer loyalty and learn more about consumers’ buying behavior to serve them better in the future.

Article from mobile retail blog


Follow

Get every new post delivered to your Inbox.

Join 753 other followers