Web 2.0 Optimization Improves Online Sales

Web 2.0 Optimization Improves Online Sales

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For decades, merchants and manufacturers have collaborated to engage and entice shoppers with compelling stories of product features and benefits. From packaging and point-of-sale signage to sales training days and end cap placements, retailers and their vendors have worked together to refine the art of merchandising products to drive sales.

Shopper behavior has fundamentally and forever changed. With the overwhelming popularity of online social networking and ubiquitous online video, it’s no surprise that most shoppers, particularly in the high disposable income demographic segments so important to merchants, are looking online first to research products and form their purchase decision. And they are expecting the same engaging and rich content they see in other online venues.

When shoppers search online, they are directed to retail sites, making the retail product page the main influencer for driving purchase decisions, and the quality of that experience dramatically impacts online and in-store sales.

Fortunately, new online merchandising solutions allow retailers to present shoppers with the online equivalent of a well-merchandised end-cap featuring an active demonstration by a trained salesperson, and a full complement of sales collateral on every SKU.

In much the same way that wish lists, loyalty programs, one-click checkout,

online promotion codes, cross-sells, “also bought” selections and product reviews are now check list features for online retailers, engaging, rich-media product tours are ‘must-haves’ to attract shoppers and increase conversion. And in today’s multi-channel environment, the new shopper will search out engaging product information online, then head for the store with a decision in mind. Circuit City is an example of today’s forward-thinking retailers who recognize the importance of giving online shoppers the most compelling product presentation possible.

The impact of this content conversion was captured by a Coremetrics study of online shopping behavior. It showed that rich-media product tours boosted consumers’ online purchases by an average of 20 – 35%. This study measured completed purchases, not just add-to-carts, and tracked over 1 million shopping sessions.

Just as with traditional in-store merchandising, merchants and their suppliers must collaborate to take advantage of the new shopper behavior. Since retailers remain inherently closer to the shopper’s online experience than manufacturers, it behooves them to encourage their vendors to provide rich content through an aggregated source that can deliver the key criteria retailers need, such as:

– Engaging Content. Move beyond low-resolution JPEG images to the latest rich media such as Flash and 360 degree views. Include a full compliment of easily printable user guides, owners’ manuals and other materials to guide shoppers to the right product choice. Don’t settle for a “picture and a paragraph.”

– Customizable. The integration of rich media product tours should be seamless for your shoppers. Content this effective at increasing conversion should be showcased, so make sure your method for presenting video product tours is prominent on your product page. Place your graphical ‘View Tour’ button next to the main product image.

– Aggregated. Favor those solutions that can bring your site rich product content from a variety of product manufacturers through a single aggregated source. If key vendors haven’t yet produced rich product content, let them know this is important, and address the subject in your vendor-specific marketing and communication efforts.

– Hosted. You already know how complex the management of product data can be. For rich-media online merchandizing solutions, external hosting and management of the content is critical. Rich product content requires considerable file storage and network bandwidth, so a proven, hosted solution is a must.

Clearly, shoppers need more – and better – product information than the typical “static” online product page can convey. SellPoint works with product manufacturers to provide retailers with hosted video and rich media product demonstrations called ‘Active Product Tours.’ In addition to dynamic video, they include printable manufacturer sales collateral, such as brochures, user manuals, and FAQ’s. Ritz Interactive is a SellPoint retail partner, and has integrated Active Product Tours to four of its online stores, including CameraWorld.com, Photoalley.com, WolfCamer.com and RitzCamera.com. SellPoint’s network of product content is free to retailers. Manufacturers like Panasonic, Canon, Tivo, and Leapfrog have chosen SellPoint to provide Active Product Tours.

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