Developing a dynamic storefront

August 31, 2010

Katrina Gosek, director and product marketing manager of e-business solutions at Endeca says that personalised marketing in the online store can close the gap between shopper needs and e-commerce technology

E-commerce teams today are faced with the difficult task of selling effectively in a rapidly changing environment, according to Gosek from search applications specialist, Endeca. Consumers’ expectations are changing rapidly and becoming increasingly sophisticated. It is vital that e-commerce teams invest in content and technology, to optimise their user’s experience, she said.

The series of Forrester Research reports, entitled “The State of Online Retailing,” illustrate investments are made in the following areas to convert more browsers to customers:

• Videos, reviews, articles, and in-depth product information

• Web content management systems (CMS) and product information management (PIM) tools

• E-commerce platforms

• Recommendation engines and services

• Advanced search and navigation sort and refinement capabilities

The Forrester research demonstrates that companies who differentiate themselves with a superior online experience achieved revenue increases between $260 and $311 million (£167 and £200m) in the first year. In contrast, online retailers who don’t make customer experience a priority saw high session abandonment, low order values and low rates of repeat visits and purchases.

Developing a dynamic storefront

“A new strategy, called a dynamic storefront, is required to effectively incorporate rich content into the user experience,” Gosek continued.

“A dynamic storefront is a combination of best practices for improving the relevancy and context around which customers make their purchasing decisions. To increase conversions, it leverages the principles of search and navigation technology, recommendation engines, and campaign-driven promotions.

“The challenge is to determine the needs of each shopper, on each site visit, with every changing goal – and then only presenting the most relevant information given the particulars of that time, place, and person.

“Retailers designing a dynamic storefront experience should first focus on sections of their website where, (1) they have received enough customer information to understand what is relevant; and, (2) they have the biggest opportunity to influence customer purchase decisions.”

Going back to basics

This, she added, is revealed once customer’s shopping experience is broken down, by thinking of an e-commerce site as a collection of different types of page:

• Home Page – Should profile well-known products and deliver time-based promotions based on past behaviour and purchases

• Dynamic Pages – Shoppers’ indicate their needs by specifying categories, search terms and product attributes. At this stage a customer’s decision can still be influenced, so it is important to present relevant content that will guide customers quickly to the right type of product

• Product Detail Pages – Shoppers’ indicate that this product might be a likely purchase. Retailers should offer assurance of the right choice and similar alternatives

• Shopping Cart – The shopper’s decision is made and the retailer needs to encourage purchase with relevant offers that inspire immediate action

• Purchase Process - Interaction should be all about speed and ease

• Static Pages – Shoppers’ who want to know more about you or contact you will look for pages that contain current content

“It is the dynamic pages that stand out – here is where the customer is still trying to make a decision, and where the retailer has enough information to deliver content that can influence that decision,” Gosek continued. “This is where customers spend the bulk of their time, and where the critical evaluation process occurs. The experience within these dynamic pages can make the difference between a sale and an abandoned session.

“By delivering the most targeted and contextually relevant content to every potential customer throughout the dynamic pages, retailers can better learn what’s motivating each unique customer visit, turning every shopper interaction into a conversion opportunity.”