I’ve talked to very few companies that are really, really good at analytics today. Web analytics is hard. – Eric Peterson, Nov 27, 2007 (http://www.e-consultancy.com/news-blog/364547/interview-eric-t-peterson-on-web-analytics-2-0.html)

Eric Peterson is one of my top five ‘must reads’ on the subject of ecommerce because of his logical and accessible approach to the concept of conversion optimization. I do have to say that it is odd to state in an article about ‘Analytics 2.0′ that the vast majority of eMarketers still haven’t gotten value from ‘Analytics 1.0′. This contradiction leads to a pretty scary and obvious question:

Web analytics…

• Is running on every one of the thousands of successful eCommerce businesses
• Is a software (and consulting) industry worth hundreds of millions of dollars a year
• Is a number one priority and discussion point for any eMarketer
• Is fairly intuitive to use

……so why is almost everyone using it for nothing more than a dashboard, or to track their keyword ROI???

From what we hear in our ongoing dialogue with marketers, they don’t use analytics because they don’t have the time/budget/incentives to action on the things that they are learning (if they have the time and desire to learn in the first place).

Quick example: Most of the prospects/customers I speak to who use Coremetrics or Omniture never take the product out of first gear. They are running entry level deployments, no custom reports, no advanced reporting on campaigns or content. This is because most of their marketing departments are understaffed, and overworked with trying to keep up with keywords, email and a functioning website. Why aren’t they using Google analytics then? Finance wants an SLA in place against the basic revenue reports. That’s it.

Let’s say Joan Smith in Marketing ran a basic custom report and found out that:

• 6 percent of her visitors were from Canada,
• Canadians convert a whole percent lower than their average site conversion.

That’s a lot of money being left on the table. Good analysis at work right?

Joan will examine the options around actioning on this data (.ca website, custom Canadian landing pages, picture of Wayne Gretzky on the home page) and quickly realize that the planning/development/deployment opportunity costs aren’t worth drowning under her already huge workload of tactical marketing work. Report will be dismissed as ‘neat to know’.

Before we whip ourselves into a frenzy over using web analytics to understand interest/intent/desire, perhaps we should figure out the best practices around using analytics to make more money.

-Jim Cain – Sitebrand Sales

This weeks call to action: Do you use your analytics? What reports do you pull, and what do you use those reports for? Inquiring minds want to know.

The Internet is not a fad and when retailers embrace it for being the unique channel it is, the rewards (aka $) are undeniable. For those who really understand consumer needs, the rewards are even greater!

In an article posted by Retail TouchPoints, I came across 5 key ways to keep up with the competition this holiday season (think of these as e-commerce tips really). They actually apply throughout the year so I’m glad you’ve taken a moment to procrastinate on that important report you’re supposed to be writing. 

Before I share these 5 tips, let’s dig a little deeper into the mindset of our beloved online shoppers. 

I want to dig because one dominant theme in these 5 tips relates to the need for “retailers to realize the differences between brick-and-mortar and online retailing: it’s not enough to transfer the same promotions, signage and communications from the b-and-m store to the web site. A completely difference channel, the web site needs to be treated as such.”

This is all true, but don’t some basic consumer needs apply in both b-and-m and online environments? You better believe it…

Take the traditional b-and-m store: we walk in anticipating acknowledgement from a sales associate. If we’re a “regular” repeat customer, we expect an expecially warm welcome that includes a little bit of the “I know what you like type of chatter…you have to see our new line of winter suits!”  No acknowledgement = no likey and we leave. And we leave. Or imagine those first time visit to a store. The approach here would be different – probably more all encompassing to help qualify my specific shopping intentions – i.e. am I browsing vs. looking for something specific.

Or take the times you’re “just looking” but reach a point where with a little eye contact, the sales associate clues in and offers some help. Phew. No help = no likey and we leave.

I would argue these basic b-and-m consumer needs are also very much required online. And it’s web personalization that can bring the exceptional customer experince online.

You would think this might be one of the 5 tips I’m about to reference, but surprise – it’s not! So allow me to take the liberty of updating point 2 of this article. It currently reads what you see below and the point that really gets me is the part that says “REI is equipped to make daily changes to the site, as necessary, if they determine a certain page or area of the site is not converting to sales or meeting customers’ needs.” 

The part that blows me is DAILY CHANGES! With today’s technology, specifically web personalization, these changes should happen in REAL-TIME. Hello!!!!!

And all that jazz I mentioned about consumer expectations in b-and-m stores…whether we’re a repeat, loyal shopper vs. a first time shopper, well those same expectations can me met online with a little web personalization to the rescue!

Point 2 is below but all 5 of the key ways you can stay ahead of the competition online, go to: http://www.retailtouchpoints.com/beta/location2A1.htm

And don’t forget to finish that report you’re supposed to be working on!

–>Use customer activity data to make site changes often, even daily during the busiest seasons. REI has taken this concept to heart and practices it as the basic component of its go-forward strategy. “Particularly from a multi-channel standpoint I find it essential to use the information that is fresh in our minds to prepare for next year,” notes Ben Viscon, online merchandising manager, REI. “We constantly take the pulse of what customers are buying, where they are clicking on the site, which articles they are reading and, in general, which pages are converting them into purchasers.” This strategy works across channels, as the company tracks registered members to find out if they are purchasing online, if they are just researching online and purchasing in the store, or if their online research does not translate to a purchase. REI is equipped to make daily changes to the site, as necessary, if they determine a certain page or area of the site is not converting to sales or meeting customers’ needs. Using search analytics, REI can determine if customers are searching for keywords such as “stocking stuffers” and respond by putting up a “stocking stuffers” page.

Lately there’s been talk of a new breed of online shopper – the social shopper, someone who looks to combine online shopping with social networking. These people look to, and even base buying decisions on, user-generated reviews of products and companies.

The e-tailing group released a report, commissioned by PowerReviews, the ‘Social Shopping Study‘ provides some compelling arguments for implementing reviews on your eCommerce store. For example:

• An amazing 82 percent found reading reviews better than researching a product in-store with a knowledgeable sales associate.
• Currently, 81 percent of consumers use customer reviews to decide between two or three products or to confirm that their final selection is the right one.
• 64 percent of Social Researchers research products online more than half the time, no matter where they buy the product (store, Web, catalog, etc.)

There are a few ways you can ‘hook’ the social shopper, but ultimately your best marketing is in the hands of your customers! To succeed with the social shopper, the first thing you need is to offer great products and exceptional customer service. It’s unrealistic to think everyone will have a fantastic shopping experience – so ensure you have a fool proof process for dealing with customer complaints or potential errors with your eCommerce page.

While implementing customer reviews on your eCommerce site is a great way to encourage reviews while keeping visitors on your site, it may not be feasible right now – especially so close to the holiday season. However, social shopping networking sites are exploding and savvy e-commerce marketers are monitoring what customers are saying about them (but NOT planting false reviews!)

One site I was recently discovered is Shoeboxed.com. This is a site where users can have all online purchases tracked through their own shoeboxed.com email address. (Which, BTW also acts as a filter for unwanted marketing messages – just another of many reasons to explicitly ask for an opt-in!) Also, you can scan in-store receipts and track off-line purchases as well. The social component is users can share their purchases with other users, and ’stereotype’ certain purchases. (Putting a fun twist on social tagging)

The opportunities for e-tailers here is that each store has its own profile, where the good folks at Shoeboxed.com actually invite you to edit details about your store. While this site is still quite new, I see lots of potential. (From a shopper’s perspective, this site is really fun, I don’t buy a lot online, but I’m already hooked!)

This trend is only going to get bigger, and the ’social shopper’ segment will continue to grow. Tap into these opportunities early and reap the rewards!

I just read a great article by Bernard F. Brennan and Edward P. Foy Junior who are Chairman and CEO, respectively, of eFashionSolutions (www.efashionsolutions.com), an e-commerce service provider that designs and manages profitable flagship web-stores for luxury, lifestyle and celebrity-brand apparel including DKNY, Oscar de la Renta, Judith Leiber, Baby Phat, Rocawear, Dereon by Beyonce and many more. 

Since they include middle initials in their names, I think they’re seriously smart! All kidding aside, I do think they have some excellent points…and by the way this is Carolyn L. Gardner posting…

The article titled “The 365-Day Way toward E-commerce Success” offers retailers a ton of insight on how to optimize online operations, while driving growth and profit. Much of the insight hinges on ensuring positive visitor/customer experiences. Here’s one little excerpt for your immediate consumption:

“Because the e-commerce market has become increasingly competitive, we need to respond to customer demand by delivering the right merchandise and a positive shopping experience. Constantly refreshing merchandise will impact the customer experience, encouraging repeat visits, higher conversion rates and customer loyalty. It will also strengthen your brand position.”

That’s all true but how do you know if you’re refreshing the right merchandise to the right person at the right time?  Seriously, refreshing with the wrong new merchandise to the wrong person at the wrong time could seriously backfire. Unless, of course, you address the “refreshing merchandise” dilemma through web personalization…

As I mentioned, the article talks a lot about customer satisfaction and experience. So let me share another thought (me being Carolyn L. Gardner). Beyond having superior customer service PEOPLE, why not create an online environment that offers the VIRTUAL equivalent? For example, if someone was browsing your regular brick and mortar store…unable to find what they were looking for…odds are your customer service person would reach out to them. Right? Well why is the web experience different? For example, if someone’s been browsing your site for longer than they should be without making a purchase (aka: the lost shopper), shouldn’t they get the same level of service and assistance? Once again web personalization can come to the rescue!

And then there’s the need to be flexible and ready to change plans thanks to real-time data that tells you what promotions are working/not working. The ability to turn on a dime, as they say. I hate to say it, but once again, web personalization can come to the rescue. 

I think you see a theme here. Web personalization needs to be mainstream for e-commerce to be successful. I know that sounds pretty heavy, but it’s true.   

Personally, I’m still trying to figure out why there isn’t more buzz on web personalization. Could it be, gasp, that retailers don’t know of it? Oh dear. I now think it’s my moral obligation to start asking this very question. Wish me luck! And send me your comments. I’d love to know what you think!

Carolyn Gardner of Sitebrand (and this blog of course!) is co-hosting a webinar on Thursday, Nov. 8 at 12 pm EST with eCommerce software provider Elastic Path. Here’s a quick overview:
According to a Forrester report released this year, consumers who buy products featured in email marketing messages spend 138% more than consumers who don’t receive those emails. Helping consumers feel an irresistible love for what you sell or service is the email dream. Making it a reality is the challenge. Learn how to transform tactical email guessing games into strategic email marketing initiatives that keep consumers clicking and converting.

Some of the things we will cover:
• Designing emails so they have impact even when images are turned off
• Motivating customers/prospects to give it up (their email address, that is)
• Making the call to action easy and actionable
• When to send emails and why
• Email content – emphasize what’s new or push the promo?
• Why e-newsletters are DEAD!
Register Now…