eMerchandising Enhancing the Online Shopping Experience ____________________________ part 2 of 3

1. eMerchandisingEnhancing the Online Shopping Experience____________________________part 2 of 3 © 2002 Novator Systems

2. Presentation Overview Part One • What is Online Retailing • What is Online Merchandising? • Aspects of Online Merchandising • The Internet as Retail Channel • Merchandising Drives Revenue _________________________________________________________________ Part Two • Customer is Key • Design Strategies Part Three • Online Merchandising Tools • Online Merchandising Techniques • Net Take-Aways

3. Customer is Key: Impacting AOV Better product presentation online would increase purchases. -- say 35 % of online buyers

4. Customer is Key: Impacting AOV In response to prevailing customer preferences, de facto design standards are beginning to emerge among e-tail sites

5. Customer is Key: Develop a Customer-Centric POV Think like a customer: • What’s Appropriate : The Dialing Dilemma

6. Customer is Key: Develop a Customer-Centric POV Think like a customer: • Quality Assurance

7. Customer is Key: Use Customer-Friendly Technology

8. Customer is Key: Use Customer-Friendly Technology

9. Customer is Key: Music Industry Profile What Customers Want • Design Efficiency • Search • Sampling/Downloads/Demos • Shopping Cart • Product Reviews • Value-Added Content

10. Customer is Key: Music Industry Profile • Help Desk • First-Time Visitors Welcome • Reviews & Recommendations • Cross-Selling • Product Shots • Track Listing

11. Customer is Key: The Physical Experience Customers prefer to physically experience the products cited before buying them. Some products, like clothes and homes, are better suited for interactive presentation than other items, like books or travel. -- Stacey Herron, Jupiter Analyst

12. Customer is Key: The Mechanics of Online Shopping • There are certain physical and anatomical abilities, tendencies, limitations, and needs common to all people. • The online environment must be tailored to meet these characteristics.

13. Customer is Key: The Dynamics of Online Shopping • See Me • Feel Me • Touch Me • Buy Me

14. Customer is Key: The Dynamics of Online Shopping • See Me • Feel Me • Touch Me • Buy Me

15. Customer is Key: The Demographics of Shopping Women: • no longer think that a shopping trip is “the great escape.” • feel that shopping is still a social activity. • demand more from their shopping environments than men.

16. Customer is Key: The Demographics of Shopping Women: • no longer think that a shopping trip is “the great escape.” • feel that shopping is still a social activity. • demand more from their shopping environments than men.

17. Customer is Key: The Demographics of Shopping Men: • don’t like asking where things are. • take no apparent joy in the process of finding items. • are more easily “upgraded” than women shoppers.

18. Customer is Key: The Demographics of Shopping Study of Actual shopping time at a housewares chain: • •Woman shopping with female companion: 8 min 15 sec •• •Woman with kids: 7min 19 sec •Woman alone: 5 min 2 sec ••Woman with man: 4min 41 sec Men: • don’t like asking where things are. • take no apparent joy in the process of finding items. • are more easily “upgraded” than women shoppers.

19. Customer is Key: Geography Geomarketing is a phenomenon geared to the increasing diversity in tastes and preferences. • Retailers are attempting to develop offers that appeal to consumers in different parts of the country. • Online, the focus is on other factors such as age, income, education, and lifestyle. • English/FrenchCAN$ • English/SpanishUS$

20. Customer is Key: Psychographics In life, people are motivated by many different things. • Certain attitudes and beliefs can be grouped together to develop key profiles of individuals who think and behave similarly.

21. Customer is Key: Price Promotions Merchandising must place: • greater emphasis on developing the appropriate image to match consumers’ lifestyle. • less emphasis on price promotions.

22. Customer is Key: Product Characteristics Some products are difficult to sell online (i.e. gas, food). Others are easier due to: • Convenience • Shipping Costs • High Value • Profitability • Suitability

23. Design Strategies: Principles of Effective Web Design Fundamentally, Web sites must: • be visually appealing. • let users figure out where they're going, then get there logically.

24. Design Strategies: Principles of Effective Web Design • Design Basics: • • Simple • • Easy to Read • • Line Lengths Short • • Paragraphs Short • • Sub-Heads • • Load Fast • • Communicate • • Accommodate • • Organize • • Sections. Departments • • Site Map

25. Design Strategies: Employ Online Business Strategies Good design is good business

26. Design Strategies: Employ Online Business Strategies • Effective Marketing Strategy • Remove Obstacles • Privacy Policy • Tracking System • Incentives • Shopping Basics • Submit Pages to Search Engines Properly • Learn About Your Customer: Hits, PagesViews, and Unique Visitors Good design is good business:

27. Design Strategies: Strategic Values of Effective Web Design • Brand Awareness • Merchandising • Audience. Community • Information. Impact. News

28. Design Strategies: Tactical Values of Effective Web Design • Content • Design • Production • Usability

29. Online Merchandising Tools: Content Remind customers of brands and stimulate sales: • Text • Graphics • Product Photos • Product Information

30. Online Merchandising Tools: Content

31. Online Merchandising Tools: Content Signage: • Location • Concise • Single-Minded • Communication Overload

32. Online Merchandising Tools: Functionality • Rich Media • Demonstrations • Interactivity: Sign Up, Loyalty Programs • Functionality: Product Updating • Ability to Purchase • Customer Service

33. Presentation Overview Part One • What is Online Retailing • What is Online Merchandising? • Aspects of Online Merchandising • The Internet as Retail Channel • Merchandising Drives Revenue Part Two • Customer is Key • Design Strategies _________________________________________________________________ Part Three • Online Merchandising Tools • Online Merchandising Techniques • Net Take-Aways • Online Merchandising Checklist

34. eMerchandisingEnhancing the Online Shopping Experience____________________________end of p art 2 of 3 © 2002 Novator Systems