This video examines a specific aspect about showrooming – the consumer trend of entering a retail store and comparing in-store products prices on a competitor’s site. I noted at the time that retailers feared the practices reduce sales, but signs indicate that it does not have the impact as first imagined. Good customer service has been one tactic to counter the practice, but so are other digital tactics such as remarketing.
For years, specialty Nike basketball shoes, such as Air Jordans, are introduced during the NBA All-Star break weekend. “Sneakerheads” – show enthusiasts – line up at local athletic retailers, creating a high demand. But in the age of social media, is this tradition really necessary? There have been instances where customers have been too violent in acquiring a limited edition shoe. While this means attention for Nike, one has to ask if this is the right attention given that social media provides a means to have a conversation with a specific audience.
Watch this video, recorded in 2012 just after the All Star break, and share your comments on the site below.
Thinking of an eCommerce business? Select a cart that makes digital analytic measurement easy to plan first!
I’ve made this chart of eCommerce shopping cart solutions available. Each offer different capability to integrate an analytics solution. Although some coding effort is needed in general, some solutions provide a plug-and-play capability. The chart includes a consideration of which kinds of banking/payment options are available, whether the sites include Facebook commerce option, and if analytics integration is available. Having these features in place makes sales easy to manage, and to permit an analytics tools to reveal when customers are dropping out of a cart…and not purchasing your product.
For retail or e-commerce paid search, look at the full picture.
That’s the concept Meghan Danielson of Adlucent presented in one of the mini-sessions at the 2012 Search Engine Strategies New York expo. She was speaking about product analytics, identifying words that lead to specific conversions.
Three ideas she mentioned in a short presentation are worth checking if you having some difficulty attributing conversion for your retail or e-commerce site. Meghan summed it up – “If they came in and bought something else, what does that tell you about the keyword and the page their landing on“
Because of a strong consistent presence in search traffic, branded keywords can mask seasonal trends. If a keyword led to a product purchase, then you have a starting point for a bid strategy – that keyword can be enhanced with a paid search program (Pierre’s note: eMarketer noted that a study indicated that people were more likely to act on a keyword result that appeared in organic and paid search).
Visitors brought to a site by one keyword may purchase a different product. Such purchase may be an indicator to bundle products together. Businesses should consider what backend processes would be affected with this kind of retail offer. (Pierre’s note: This may be a good coupon/ad and landing page strategy to use)
Another factor similar to the bundled amount is price. Meghan says sometimes people decide to select another product shown on the site when the price of their original intention was not the amount expected. “Am I price competitive to let people get what they came for?”
For these last two points: Consider planning an A/B test on products offered or on price (multi) to see what is an actual factor.
Some posts have criticized Microsoft for not having the same number of stores as Apple. But is that really necessary? It’s worth a case study, but so far Microsoft needs to provide distinguishing experiences that galvanizes its loyal customers first. That focus can help create the right buzz, essential against daily posts on Apple and Google.
Many small businesses run into the similar choice of how to run online and offline. How fast show we be growing? What do we offer online? A few following points put in context being online vs. offline.
1. There’s been some criticism that Microsoft is expanding too slowly. In comparison Apple did not place stores everywhere, either. I spent nearly three years in Alabama, and no official Apple retail store existed in the state ( Apple certified retailers in Alabama existed, however). You had to drive to either Atlanta or Nashville to see one. Apple eventually came to Huntsville and Birmingham. But my point is that the need to scale is relative to a business model, and a slow role out is not a bad one if the stores are being managed well to satisfy customers.
2. Despite the fact that people do research companies online, what is most essential is what connects to the business model. Amazon proved that its model of retailing online was scalable. Apple uses its stores to create an experience for new and old buyers alike.
In short there are different ways to retail. It’s up to you to determine what channel fits your business model. A business model is not a list of products or services. A business model is planned by the way the service or product is delivered to the customer.
3. Do not think of offline and online as strictly being separate activities. What you can do is figure out what syncs well between the experience online versus in store, and execute these syncs with social media where applicable. Facebook can be a source of updates. Combined with Meet Up, Facebook can be used to gather people for special events, be it a fund raiser for a non-profit or a panel on an industry subject at your location. Twitter can be used to share updates around a particular hashtag — for hashtag inspirations, see the post on using Twitter at a trade show at Allbusiness.com
There’s debate about having a Facebook page to retail a product or service – in short, whether people will purchase on Facebook rather than a site. IMHO I don’t believe that it will replace a website, and you should not eliminate a website entirely. Think of Facebook as a channel on which you need to understand if you customer is willing to purchase. Do they spend so much time there that a website is not? What would drive people from Facebook — as popular as it is, there are still things that can happen that can reduce a business’ chance of success. And what about search engine optimization advantages from having your own website? Gone if there’s no website.
5. Notice that when I stated the locations, I said Microsoft is near Chicago, Phoenix, LA, and Seattle. Even a cash-flush company like Microsoft selected locations that had visibility but did not jump into lavished locations. For a small business, there’s a great takeaway: No one said you have to be downtown for the first store. If you choose to be downtown, just make sure the location advantage is clear and can be quickly applied to the bottom line.