Archive for the ‘E-commerce’ Category

What’s Next in E-Commerce

Monday, February 4th, 2013 by Sarah Mitus

Last Friday I attended the MITX “What’s Next? E-Commerce Summit” which featured many local Boston-area brands and how they’ve adapted to the changing e-commerce landscape. The speakers represented a variety of small and large players, including in-store retail brands that had to bridge the gap to online, e-commerce only companies, breakout retail brands and a few new e-commerce startups.

While topics ranged from omnichannel to social to metrics to what’s next in e-commerce, I found the following three topics to be ever-present over the day’s talks.

1. We all have a lot of data and want to make sure we’re using it.

Everyone knows that engaging in the online marketing ecosystem brings about a lot of data. We know a lot about our customers and how they act online. But everyone worries, are we really taking this data and using it to learn to better parts of our overall business? And how can we get at this data easily, and bring it to places that matter?

While this wasn’t discussed here, I think the big data question is one that a lot of people face when making business decisions. There is a LOT of information that you can have access to, but what data should impact your decision? The problem here is determining what it is that would help you- which is hard to know until you have it!

Organizations want to better understand the qualitative data around their customers as well. Whether it’s to learn more about the customer’s experience or what people most enjoyed interacting with on the site, this knowledge is helpful. One of the panelists from the Upstarts and Startups panel, I believe Oisin Hanrahan of Handybook, explained that at the end of every purchase, he has customers write about why they purchased that day from his site. Some people write a lot, some just a little, but each day he gets a word cloud of the responses from the day before. For him, seeing this qualitatively lets him know explicitly how customers reacted that day.

2. The mobile world should be treated differently.

We all know that mobile is the next wild frontier. Consumers may not be purchasing on mobile as much as they are on desktop, but they are searching on mobile and doing a lot of research before purchasing somewhere else. We live in a multiscreen world, and your e-commerce has to adapt.

One fact thrown out during Akamai’s “Improving the Quality of the OmniChannel Digital Experience” was that if dissatisfied with website performance, 33.1% of tablet users and 26.8% of smartphone users are LESS LIKELY to purchase from that company ACROSS ALL CHANNELS.

Let me say that again: your mobile and tablet site performance has an impact ACROSS ALL CHANNELS.

Different companies had different viewpoints on how to improve the mobile experience, none of which are right or wrong, but really focus on the fact that you need to create a mobile solution based on what’s good for your consumer. Think about how they use mobile before you decide what you need.

While creating a mobile version of your site is a good option, Joss and Main created a mobile app to better tailor to its consumers. They found that because their business was so time sensitive, it made better sense to create something specific customers could open and that they could better tailor to their needs. Gemvara, on the other hand, explained that as they improve their mobile functionality, they might not even ALLOW the ability for a user to purchase because they know that the user needs to build up trust with the brand and won’t want to make a purchase on mobile.

So the moral of the story here- don’t ignore mobile- but don’t believe there is one set solution that is perfect for everyone.

3. Consumers should be the star.

It has always been that companies need to focus on the consumer, but now, the consumer has to be the star.

One way to do this is through social media. While no company said that social media was the true driver of their e-commerce experience, many noted that it was important to the overall ecosystem. Social is a great way to have a conversation with your consumers and to give them the tools to become great fans and brand advocates.

One example of this was from Gemvara, when Brian Kalma said how he has to work to arm customers with the right words to say. Their jewelry is made to be completely customized, so what one person created and thinks is beautiful, another person could find ugly. Gemvara has to work on getting the consumer to say, “I created this at Gemvara.” – NOT – “I bought this at Gemvara.”

Lastly, I think this conference shows that no matter what your business, e-commerce shouldn’t be a second thought, but something built into your business every day from the ground up.

The American Magazine is Dead

Tuesday, December 4th, 2012 by David Gibson

Interactive magazine

Well, maybe not dead but it isn’t feeling very well.

Magazine circulation has been declining for many years which means that magazines are caught in a downward spiral of smaller subscription revenue, rising costs for production, and lowered ad spend as advertisers increasingly move to the digital world.  In 2011, the average circulation for the Top 100 US magazines was down by 1.1%.  Like all averages, this figure is somewhat misleading.  The Ladies Home Journal lost 15.3% of their circulation while Car and Driver lost 7% of theirs.  Even AARP, the top magazine in the country dropped more than 5% of their circulation.  How this will play out is pretty clear – Newsweek recently announced that they will cease print publication at the end of the year and only offer an online version of their magazine.

So, perhaps digital replicas of magazines are the wave of the future?  Probably not since digital replicas of magazines currently account for only 1.7% of the overall circulation for the top 100 US magazines.

Publishers are trying various methods to create interest in their magazines and to boost subscription and advertising revenues.  Some publishers have developed websites with both free and gated content that is only available to subscribers.  Some magazines publish more interactive versions of their content for tablets or phones while others embed QR codes that lead viewers to rich media advertising.  None of these enhanced versions can be declared a clear winner – at least not yet.

But what if you could make the entire magazine interactive?  And this interactivity was only available to subscribers?  This is the approach taken by a start-up called NetPage.  Working with Esquire magazine they have, through the use of their “Digital Twin” technology, made the December issue of the magazine completely interactive.

Want to see more of Bradley Cooper?  Point your iPhone (sorry – no Android version yet) at the cover, click, and you get a short video of Mr. Cooper welcoming you to the magazine.  In the market for a new car?  Click on on the Lexus two page ad spread and you’ll soon be watching the latest Lexus commercial.  Need a new football?  Click on the football on page 95 and you’re taken to an order page for the item.

But it’s not all about shopping and e-commerce.  Suppose you want to send an article to a friend?  Unlike other apps where you need to painstakingly screen shot each page of an article, NetPage is able to look at the first page of an article and then send you a nice crisp PDF of the whole article that you can pass along to your friends.

And the platform appears to be very user-friendly.  NetPage’s “Digital Twin” technology serves images and videos from the cloud to your smart phone in near real-time.  Movement from the app to shopping sites happens quickly and sending out saved articles is seamless as well.  All of this presents digital marketers with a new opportunity for integrating and tracking online campaign and print advertising as NetPage doesn’t require digital watermarks or QR codes.

Will this save the American magazine?  Hard to tell since there are two barriers to entry: (1) having a valid subscription to a magazine and (2) downloading the app.  But this does make magazine content more shareable as well increasing the interactive experience for the user.   Since the world seems to be moving to a mobile platform this app is certainly an interesting approach to solving the two problems facing magazines: declining subscriber base and lowered ad revenues.

NetPage says more magazines will be using their technology in 2013 so it will be interesting to watch how quickly they are able to become ubiquitous in the magazine world.

Amazon and Mobile Score Big in Black Friday Shopping Results

Thursday, November 29th, 2012 by MShinnick

Over 57 million people visited online retail sites on Black Friday, which was up 18% from 2011. So as you start your shopping this holiday season, consider the recent findings of a Harris Interactive poll that highlight the top destinations for online shopping.

Amazon.com, the most visited online retail site on Black Friday,  tops the list, which criteria includes value, selection and ease of shopping. Somewhat surprisingly, Costco came in second to Amazon in terms of value, with Walmart and Target close behind.

Retailers that seemingly have some work to do include Nordstrom, particularly with regard to customer service.

Kohl’s was the top-rated department store for perceived value, with LL Bean and Zappos the top clothing and apparel sites for the same category.

On a separate note, mobile shopping soared on Black Friday, with 24% of retail site traffic coming from mobile, up from 14% in 2011. As a result, mobile sales were up over 16% from 10% in 2011. The iPad accounted for 10% of online shopping.

Check out the results of the survey here, and happy online shopping!