New Rules for On-line Retail
I was not at the event, but I want to pass along some very useful information from a Shop.org keynote regarding the importance of innovation, and the new rules on-line retail. In her speech, Sucharita Mulpuru, Senior Retail Analyst from Forrester Research, discusses some key strategies that e-retailers should use for future success.
The new rules of online retail
- The web is no longer the underdog. Ecommerce now has a significant foothold in several retail categories.
- Merchants are no longer the taste makers. Social networking has turned the old rules on their head.
- YouTube is the new Google. Video provides the ability to communicate more emotion and the rich information that consumers want.
- Green is the new black. 38% of consumers say they are willing to pay more for environmentally sustainable products. 31% of consumers are now shopping online more often due to high gas prices.
- Cash is still king. Consumers like having options – such as echeck, PayPal and Bill Me Later – in how they pay for products.
- 3G is the new T3. iPhones are “a religion.” Gen Y is more than twice as likely to go online from somewhere other than home or work than BabyBoomers or Gen X.
Recommendations on how retailers should incorporate these rules into their multichannel marketing strategies.
- Multichannel retailers need to think big picture. Rather than only trying to grow online sales, think of ways your ecommerce channel and brick and mortar stores can work synergistically for mutual benefit.
- Pure plays can’t rely on being the cheapest game in town. If web sales taxes grow, sales will suffer. Price point can’t be your only strategy.
- Embrace social computing. But first, figure out what your objectives are. This will help guide you to the best modes of social networking for your company. For example, if you want to energize your customer base, incorporate customer reviews into your site.
- Prioritize content creation. Better content is key for increasing conversion. Content is often the last priority for retailers, but Mulpuru recommends rethinking this. Adding embedded zoom or videos are some options.
- Consider the environment. Some ways to do this are embracing carbon footprint offsets and reducing paper mailings.
- Embrace mobile. While ROI is still to be seen for the most part from mobile marketing, retailers should embrace this channel now. Some ways to do so include creating a unique mobile interface, making best-sellers easily accessible, incorporating easy-to-use address book integration, GPS capability to locate nearby stores and offering alternative payment options.
View the entire article at the Shop.org Blog