WHITE PAPER
strategies to maximize
the effectiveness of your
online merchandising and
promotions plan
Executive summary
Now, more than ever, the lines between corporate sites and online stores are blurring and online stores are becoming
a true window into your brand. When designing a merchandising program, it is important to know your end customers
and the levers that influence their purchasing decisions—whether premium product, pricing or brand loyalty—and
then think about how to increase either close ratios or order value. Readers of this paper will gain insight into
some of the best practices they should consider when looking to create an online purchasing experience that is
relevant, dynamic, and personal to the consumer.
Best practices
Acquisition
Retention
1
Capitalize on seasonal traffic spikes via name capture.
3
Treat your customers like VIPs.
2
Keep products and promotions front and center.
4
Offer online exclusives.
Conversion
conclusion
5
Use shipping as a lever.
Conclusion
6
Give customers control of their basket.
About Digital River
Best Practices for
Customer Acquisition.
The more eyeballs on your site, the better. By casting a wide net when
spreading the word about a new promotion and aligning your acquisition
channels, your business has a much greater chance of getting those
eyeballs to move beyond a fleeting glance. Driving a consistent message
everywhere consumers are online through paid search, SEO, and your
homepage, helps entice visitors and turn them into customers.
1. Capitalize on seasonal traffic spikes via name capture.
With the holidays comes an influx of first-time visitors to your site. While
some may only be interested in purchasing gifts for friends or relatives,
others have the potential to be long-time customers. Make the most of
the spike in traffic by capturing as many names and email addresses as
you can so you can include them in your marketing plan.
One of the easiest name-capture strategies to implement is to add a
visitor overlay message to your homepage. The moment a new visitor
lands on your site they are presented with the option to quickly enter
their name and email address, or are directed to a branded landing
page that enables them to opt in or opt out of follow-up
communications. Leading commerce platforms provide custom
integrations to support the data flow from the visitor overlay module or
landing page to your contact database.
Leading commerce
platforms provide
custom integrations
to support the data
flow from the visitor
overlay module or
landing page to your
contact database.
Should a new visitor bypass the initial overlay, another best practice
is to stripe the name capture module across the top of the homepage
and landing pages, presenting a constant visual cue for the visitor. Or,
by tying the name capture to a specific offer, a site visitor might be
compelled to enter his/her name.
Once you capture a new customer’s email addresses, one way to
instantly engage them is with a discount or offer for joining your
customer base. A “welcome” discount is a powerful tool to help
business instantly build a relationship with a customer and make
them feel special. Additionally, it is an opportunity to open up your
email preference center or capture additional demographic or
preference information to help tailor future marketing activities
and serve up the right content to meet their needs.
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2. Keep your products and promotions front and center.
Most shoppers have short attention spans. If they can’t find content
that’s compelling or products that spark their interest instantly, they
move on to the next store. And, according to a Shop.org study conducted
by Forrester Research (“The State of Retailing Online 2013”), more than
50% of those online shoppers use mobile devices like tablets and
smartphones to research products, compare prices, and make
purchases, .
So, it’s no surprise that businesses spend a lot of time perfecting the art
of product and promotion placement on their sites and landing pages,
and making sure that content is easily consumable across all devices.
Another statistic of note from Forrester’s survey is that 72% of retailers
have earmarked product detail page enhancements as one of the top five
merchandising priorities for the year.
One way that businesses are adapting their online stores to meet the
demands of omni-channel commerce and enhance shoppers’ sensory
experiences is by shifting to a flat site design. This type of site design
offers a simple and clean look and feel, and enables product photos
and graphics to take center stage. Combining amplified visuals with
the use of video and 360-degree product experiences also helps
create a sensory-focused experience for the buyer, helping them
connect to a product like they would in a brick and mortar store.
72% of retailers
have earmarked
product detail page
enhancements as one
oftheir top priorities
for the year.
- Forrester, “State of Retailing
Online 2013”
In addition to an optimized site design, a report published by
Gartner, “Effective Use of Online Personalization can Increase Digital
Profit,” cites that the customer shopping experience is optimal when
consumers have the ability to see what other shoppers have purchased
or viewed.
Consider creating a section on your homepage that highlights your
top five products. Some multi-tenant SaaS commerce platforms have
built-in technology that uses purchasing data to automatically pull in
products that are purchased most frequently. These types of platforms
have settings that enable you to dictate the products that appear within
the module, so that you are highlighting those that offer the highest
margins.
With the right predictive analytics program in place, you can serve
up complementary products based on past purchases from other
shoppers or based on the individual shopper’s past purchases.
Gartner further asserts that the customer experience is enhanced
when a business offers recommendations specifically designed for a
customer, because the “buyers start believing that the seller really
knows and cares about them.”
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Best Practices for
customer retention
After capturing the attention of your new customers, keeping them
engaged becomes the next challenge to overcome. The trick is to
provide them with the right mix of communications and offers that help
deepen your relationship and keep them coming back. By providing
your customers with the opportunity to self-select into an elite group
of shoppers—and creating demand for a special set of products only
available online—you can keep them wanting more.
3. Treat segments of customers like VIPs.
Consumers have come to expect a personalized shopping experience
no matter what device they are using. According to Forrester, online
retailers are spending time integrating the commerce capabilities
needed to create site modules that are dynamic and tailored to
information gathered about a customer (“State of Retailing Report
2013”).
Using data associated with purchasing or browsing history, via name
capture, businesses can create dynamic site elements; programs that
are customized for a specific set of customers.
Making it easy to
enroll in your VIP
program helps build
your base, and makes
your brand more
approachable.
One way to cultivate strong relationships with customers and provide
another layer of personalization is through the development of a VIP
program. This type of program enables you to give your best customers
early access to your key promotions and reward them for their
business. Not only does this provide an air of exclusivity and connection
with your brand, but you have the ability to serve your VIP audience a
select set of products and preferred pricing. Consider the creation of a
landing page tailored to your VIP audience. Today’s leading commerce
platforms provide functionality to help you create a unique shopping
experience that is not searchable on the internet, and enable you to set
business rules regarding price and quantity restrictions, custom
discounts, and authorizations. You can set by email address, IP address,
or friends/family contact information, depending on the model you have
set up for your program.
While a VIP program is a great way to deepen your relationship with
your best shoppers, it can be a delicate balance not to alienate other
segments of shoppers. That said, making it easy to enroll in your VIP
program helps build your base, and also helps make your brand more
approachable. Add a name-capture opportunity right on your homepage
or as an overlay to keep the program top-of-mind and easily accessible
to all site visitors.
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4. Offer online exclusives.
When your products are available at brick and mortar stores and other
online properties, you need to look for ways to differentiate your online
store. One of the ways to draw buyers to your site is by offering a distinct
set of products that are unavailable through those other channels.
Many companies in the gaming, high-end retail, and entertainment
industries have used this approach quite successfully. Whether it’s a
completely new product, new color, or new bundle, you can use that
point of differentiation as a draw to your site. For instance, you might
offer a game that is not available in stores or throwing in a unique
colored controller with the purchase of a console.
Making it easy to
enroll in your VIP
program helps build
your base, and makes
your brand more
approachable.
Around the holidays, in addition to exclusive product sets, consider
providing service offers only available online, like signature gift wrapping
or personalized engraving. This creates the perception that your
products and offerings are unique—one more reason for your shoppers
to stay on your site instead of going to the brick and mortar store down
the street.
Additionally, you can use online exclusives as a way to test out a limited
quantity of products on your buyer base before committing to the
production and fulfillment of large quantities of product.
Best Practices for
Driving conversion.
.
Lastly and most importantly, how do we make the purchasing process
easy for the consumer so that it they purchase your products again
and again?
While your online store is a window into your brand, it also is a
significant source of revenue. Once you’ve gotten visitors to your site
and convinced them to return, it is key to turn a browser into a buyer.
The purchasing process needs to be simple and compelling for your
customers, so that they buy your products, Use meaningful offers
as a tipping point, and give your customers the autonomy to customize
their basket of goods.
5. Use shipping as a lever.
40% of respondents
picked free shipping
as the number one
reason that they
spent more than
they’doriginally
budgeted for holiday
purchases.
- Shop.org, “Strategies to Help
Retailers Win the Web’s Free
Shipping War”
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Customers tend to spend more when they receive free shipping. A Shop.
org survey of spending in Q4 2011, “Strategies to Help Retailers Win the
Web’s Free Shipping War,” showed that close to 40% of respondents
picked free shipping as the number one reason that they spent more
than they’d originally budgeted for holiday purchases.
When you create a shipping offer, make it sticky by promoting it sitewide. By incorporating the offer within the header of your product and
landing pages, as a static placement on the left navigation, on the
product page, and within the cart, consumers are constantly reminded of
it. Leverage promotional space, email, landing pages, and social media
to further communicate shipping timing and expectations to your
shopper base. This is especially crucial during holiday time, when arrival
times are critical.
Not only does a shipping offer need to be well-placed, but it also needs
to be compelling and differentiated. For instance, Saturday is the day
that residential customers are most likely to be home to receive a
package. FedEx SmartPost®, which utilizes the U.S. Postal Service for
final delivery, delivers on Saturday. By tying that shipping method into
your offer, you have made a strong case for a consumer to purchase
from you, because it may be a more convenient option for them than
making a trip to a physical store.
When you craft the messaging around your offer, use language that
will elicit an emotional response or connection. That means knowing
your customer and what is most beneficial to them. For example,
many customers shop online because it is so accessible, but shipping
can often be expensive and returns can be complicated. Make it clear
that shipping and returns will be quick and easy. If you can get your
customers to sing praises about products that they ended up sending
back, you know you are doing something right. And you’ll have an
advantage over brick and mortar stores and other sites.
Because the discount
is striped across the
entire bundle, you can
not only streamline
your messaging, but
also avoid channel
conflict—keeping
your customers
happy, and your
channel happy
too.
6. Give consumers control of their basket.
One of the ways to drive up order revenue and provide customers with a
preferred set of products is to provide them with the ability to create a
custom bundle.
A custom bundle provides shoppers the opportunity to select products
from various groups that you have created within your offer. Depending
on how you configure the offer, you can provide shoppers with the
option to select a certain number of products, or require that specific
products be included within the bundle. You can also dictate the
minimum or maximum products that can be selected.
For example, if you are a branded manufacturer, your customers might
have the opportunity to purchase a television and DVD player, and with
that purchase, they can select two movies from a variety of titles for a
discounted price.
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Leading commerce platforms provide you with the technologies and
tools to help you easily configure combinations of products and pricing
specific to the offer. Ultimately, you have control of the restrictions set
on the products but you provide the consumer with enough autonomy to
create their own shopping basket.
Because the discount is striped across the entire bundle and not
attributed to a specific product, you can not only streamline your
messaging, but also avoid channel conflict, keeping both your
customers and your channel happy.
Once the shopper has fulfilled the requirements for the offer, they can
check out and complete their purchase as usual. And they will have
likely purchased a few more products than they originally intended.
conclusion
While these best practices work for many businesses, every
company and consumer set is unique. It is important to know
what your customers want, and also important to test any new
program that you put in place to make sure that it is resonating
with your buyers. By building a robust analytics program that spans
each phase of the customer journey, including A/B and multi-variate
testing, you can better measure and manage the effectiveness and
understand the true ROI of your merchandising and promotions
efforts.
about digital river
Digital River, Inc. builds and
manages online businesses for
software and game publishers,
consumer electronics
manufacturers, distributors,
online retailers and affiliates. Its
multi-channel commerce solution,
which supports both direct and
indirect sales, is designed to help
companies of all sizes maximize
online revenues as well as reduce
the costs and risks of running a
global commerce operation. The
company’s comprehensive platform
offers site development and
hosting, order management, global
payments, cloud-based billing,
fraud management, export controls,
tax management, physical and
digital product fulfillment, multilingual customer service, advanced
reporting and strategic marketing
services.
Digital River is headquartered in Minneapolis with offices across the U.S., Asia, Europe and South
America. For more details about Digital River, visit the corporate website, follow the company on Twitter
or call +1 952-253-1234.
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