etailology

Surprisingly, there’s not much in the way of a mature strategic framework for online retailers out there on the web, so I’ll provide some of the key concepts we share with our customers. Since it’s online (and it’s retail) it’s important to remember that these thoughts and practices are constantly evolving in response to consumer needs and trends, but I hope to abstract them enough here that they’ll remain in fashion for at least a little while.

Build a Solid Store: Seems obvious, right? Well, in practice, a solid store is (apparently) an elusive concept for many online retailers. Ever experience an eight-click checkout? We all have. Cover the basics well and you’re already ahead of the curve.

Create Qualified Traffic: No kidding, there are three key concepts in this item. “Create” means just that: you can’t find new customers from behind your desk while running Excel regressions… you have to get out there.

“Qualified” is another seemingly obvious concept which is oft-forgotten. The use of tools like Wordtracker can go a long way towards improving search results, but you’d be surprised just how few organizations use them.

“Traffic” is a key concept simply for the fact that most retailers think they’re buying conversions from Google and Overture. You’re not buying conversions. You’re buying traffic. Only your store can convert. Think about it.

Lastly, it’s important to realize that most of the shiny concepts and products used to optimize return on PPC are not remotely as effective as good copy in your ads. Free, new, special, etc. still hold power. David Ogilvy is still the king of copy.

Service the Customer by Servicing the Order: Offline retailers get a big break: customers drive by their store every day or so. For online retailers, no such constant reminder exists — indeed, the web is constantly serving up new storefronts and purchase options to your customers. For web customers, the memory of the last order is the most important reminder of their experience with your store, the strongest prompt of a re-order or referral, and the ultimate reason why you will win or lose their business. Offline retailers get return visits even from irate customers — their customer base victimized by “convenience geography.” For online retailers, the landscape is less influential in customer retention.

Servicing the order is information, logistics, partners, packins, and packaging. It’s responsiveness, courtesy, and anticipation. And (save strategic planning) it’s the hardest part of online retailing, make no mistake.

Manage the Customer Life-Cycle: You need to realize that many people will never shop in your store, introduce your product to those who will, promote conversion (and reconversion), build customer/brand loyalty, and develop evangelists. Focus on the ones that will. Focus on cultivating them through each of these customer lifecycle stages.

Now, the bad news: customers move continuously between these five “stages” in terms of their needs.

Many organizations view their customers’ lifecycle (funnel stage) as static: move the customer up one level and they’ll stay there. Baloney. Customer’s CONSTANTLY move from one lifecycle stage to another — backsliding when the experience is bad, and jumping quickly to evangelism (for a day) when things go better than expected.* Every interaction is an opportunity to move the customer up the ladder to evangelism — or to drive them happily to your competitor.

Other Things: There are several other directives which I’ll save for a future post:

• Don’t Stop at the Website.. Think Warehouse.
• Use Pricing as a Tool
• Choose Products for your Catalog Wisely
• Join the Gift Market
• If You’re a Multi-Channel, Use It
• Be a Leader

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* My wife actually sent out an email today to her friends list to share her excitement over the Mr. Clean Magic Eraser. It easily removed crayon from some playroom furniture. Many replies ensued and it was the talk of her group. Tomorrow she’ll put the product back in the cabinet… and forget about it forever.