Three examples really stand out. Robins Kitchen, K-mart and Cotton On. And the standard of packaging I received from all three were vastly different.

With so much [...]]]> In the last two weeks I’ve been reviewing the packaging of orders sent from online retailers in Australia. And let’s just say it’s been a mixed (shopping) bag.

Three examples really stand out. Robins Kitchen, K-mart and Cotton On. And the standard of packaging I received from all three were vastly different.

With so much focus on online shopping and the influx of International retailers targeting Australian online shopping dollars, you would expect local retailers, especially the big ones to be trying to get it right.

The first package to arrive was from Kmart. We got the kids toy shopping for Christmas out of the way early and spent up big on a large order. I’m happy to say that the approx. 20 odd toys arrived 2 days later, extremely neatly packed in a large branded box that really did make it feel like Christmas. No bells and whistles, just a well-packed, clean box, with an invoice and con note stuck neatly square on the box rather than just slapped on any old how. All in all, a positive “packaging” experience.

Next, were Robins Kitchen, and a new pizza stone and pizza cutter. I have to say that the Brisbane based retailer did a fantastic job of “dishing up” their order ensuring it arrived within 2 days. Both products were neatly placed in a box that had been cut down to size and packed out to ensure nothing moved in transit. To top it off my invoice had been placed in a bright red (company colours) envelope on the top of my order. It was a nice touch and one I consciously noted when I opened the box. It made me feel confident that I had made the right decision to buy from Robins Kitchen online.

And the last package to arrive was from Cotton On. One of Australia’s most prominent fashion retailers, who have recently made the jump to selling online. I figured that, since it was starting to heat up, some new shorts were in order. My order was simple, 2 pairs of shorts, same style, same size, just different colours.

Simple right?…………

8 days later a beaten up plain white satchel was shoved under my front gate. To be honest, when I saw it lying there, I had no idea what it could be as so much time had elapsed that I had forgotten I even placed the order. I did get a little spring in my step though when I read the con note on the package and saw the name Cotton on. You beauty….new shorts for the week-end. I have to say that my enthusiasm was short-lived. When I sliced open the satchel and reached inside I found my shorts screwed up in a ball in the bottom of the bag. My invoice was also just chucked in and looked like someone in their warehouse had been practicing origami with it. The whole experience was deflating. Something that should have conjured thoughts of the beach on the week-end, simply left me thinking, who the hell at Cotton On thinks that it’s OK to send parcels out like this.

The one thing that I had purchased that was just for me was the one thing that didn’t impress me on any level. Not to mention one of the products was faulty, but that’s a topic for another article.

If you are selling products online my advice is simple. Buy something from your online store. Do it anonymously so you don’t get any special treatment, and when the package arrives make an honest assessment of your satisfaction levels. If you’re not completely chuffed, it’s time to review your packaging. It may just be the one thing that gives you a competitive advantage over other retailers who are targeting your loyal customers.

Because when we fork out good money for anything, we all care what it looks like.

Most businesses [...]]]> Technology has pervaded our lives faster than we thought in the last decade or so. With wireless connectivity getting faster, mobile phones getting smarter and most of the networking happening online, the norms of shopping are undergoing a rapid change. And this rapid change has resulted in a disconnect between businesses and consumers.

Most businesses treat e-mail, social media, stores, catalogs and other sales channel as separate. But there are enough results to prove that consumers are increasingly adopting a cross-channel shopping strategy to buy products and services. Contrary to popular thinking, cross channel is very different from multi-channel. If latter was the case, then the disconnect between various sales channel wouldn’t have been a concern. Multi-channel is shopping across different channels; cross-channel is jumping from one channel to other to make a single purchase.

If you are selling products and services in the wirelessly connected world of today, here are 10 things you need to know about cross channel consumers in order to survive.

1. 1. More people are using two or more channels to research and buy products- According to a recent survey done by ATG, reputed research firm, more than 70% of the people said they use more than one channel to research and buy products or services online. Only 20% people said they use a single sales channel to make a purchase. Out of the 70%, most of the respondents said they start off with the web or a mobile platform and end up at  store or call up a customer care executive
2. 2. Lack of information prompts them to switch channels- When asked for the reasons for switching from online to offline, most of the respondents said that they couldn’t find relevant information for the product or service online. 36% of the respondents also said that they like to get a feel of a product before buying it online while another 19% said they found the process of buying online complicated. There are enough clues out there to offer a better experience to the consumers.
3. 3. More than 40% of young consumers accessed product information through mobile- Although mobile commerce is at a very nascent stage, more than 40% people in the age group of 18-34 years said they used their mobile to access research about a product or a service. Although only 17% used mobile to make a purchase, that number is set to grow fast with the increasing pervasion of smartphones.
4. 4. Catalogs are less effective but still relevant- Not many people base their buying decisions on what they see in a catalog. Although more than 75% consumers still use catalogs to know about products or services, more than half of them aren’t inclined to buy based on what they see in a catalog. Most consumers visit a brick and mortar store after seeing a catalog to compare products and get detailed information from a sales representative. For brands, it may be a good idea to cut down on printing of brochures or have specialized brochures meant to target very niche audience.
5. 5. Social Media is here to stay- When the respondents were asked about their buying habits and how they used social media, a predictable yet interesting trend emerged. More than 40% people in the age group of 18-32 said they used social media in one way or the other while buying. This could be in the form of asking for feedback from friends online, getting directly in touch with a company executive or giving feedback on a product or service. The lesson- businesses need to stay vigilant in the social media world and respond promptly to consumer queries. A seamless integration of social media data and sales data through various channels is paramount to effectively track conversions through social media.
6. 6. Emails are in no way down and out- This is the most interesting aspect of the research. Most businesses have written off directing e-mail marketing. They best use it to bombard consumers with newsletters or a one-way dialogue. However, according to the research, more than 50% respondents said they are influenced by e-mail. Most people said that if they received a promotional offer in their inbox, they would go and check other products and services offered by the brand. For businesses, they key here is a two-way dialogue. Don’t look at e-mails as just a single point of contact. Establish a dialogue with them through email which ends up with a sale on some other channel.
7. 7. Cross channel consumers hate monologues- Today’s consumers expect text messages, e-mail messages and updates on Twitter and Facebook as a two-way dialogue. Most businesses are failing to do that. For example, mobile companies often send out automated messages which tell us about insufficient balance and the need to recharge. But there’s nothing more to it. It is left upon us to look for a better plan or to recharge. Businesses could look at ways to establish a two-way dialogue through the same text message. An opportunity to chat with a customer care executive through text about various plans available and an option to upgrade is just one of the many ways. Utilize the cross-channel behavior of consumers in the best way you can.
8. 8. Consumers are looking to co-create- Social media has given unlimited amount of power to the consumers. They want to use this power to engage with the brand and to co-create. A common example of co-creation is deciding the flavor or a new product a food brand is going to launch. In the old days, television was the only channel to run the campaign. But cross channel promotions throw up a lot of interesting possibilities. The campaign could be integrated with Facebook and Twitter, with the best recipe winning 15 seconds of fame at an offline store. Integrating various channels is the name of the game.
9. 9. Consumers are looking for a seamless experience- Consumers are looking for the ability to shop across any sales channel without going back to a previous one. A great example of this is Facebook. Facebook allows you to receive updates on your mobile and chat through mobile itself, without the need to log on to the website. Most online businesses fail to do that. They consider their website as the only source of sales and everything else as a medium of promotion.

10. A large portion of consumers jumped channels to buy the product or service immediately- In the survey, more than 20% respondents said that they jumped channels because they wanted the product or service immediately. That’s a vital clue on how to give a sticky experience to consumers across all the channels.

Everything that has online access today can be used a sales channel, and that by no means puts the offline stores out of the question. Delivering interactive dialogues and giving consumers the ability to engage with the brand across different channels are the basic rules of the game. The brads which master those rules the fastest will be the winners.

In essence, on-line retail is about product, price and customer experience!

That sounds familiar doesn’t it?  Same as in physical stores, right?
Well, yes and no.
Yes, consumers crave great products at a great price and want an awesome retail experience, [...]]]> Why is my supply-chain critical to the success of my on-line channel?

In essence, on-line retail is about product, price and customer experience!

That sounds familiar doesn’t it?  Same as in physical stores, right?
Well, yes and no.
Yes, consumers crave great products at a great price and want an awesome retail experience, that is true but with the power of internet search, shopping comparison sites and smartphone bar-code readers such as Red Laser, today’s consumer literally has the power at their finger tips to price compare and purchase instantly online or find the nearest retailer located to where they are located.

So, providing the consumer with the best-priced product should be an absolute priority as consumers become more sophisticated and savvy to price comparisons and the means by which they can purchase become simpler and more convenient.

How do you provide the best price?

1) Focus on reducing waste in the supply chain i.e. speed and accuracy of picking stock, minimise double-handling , minimise transportation between sites, engage cost-effective packing processes and packaging.  As a fringe benefit, this will also speed up the dispatch process, so the customer gets their purchase quicker.

2) Alternate shipping methods such as Drop Shipping should be considered.  Drop Shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer. As in all retail businesses the retailers make their profit on the difference between the wholesale and retail price.

3) Getting the best deal from your carrier is important in order to keep your shipping fees low or the impact on your margin reduced to a minimum.  There are organisations that can provide you with logistics solutions that monitor and provide you best price options for your carrier requirements.

4) Consider alternatives to shipping such as buy on-line, collect at your store or buy on-line and collect from another location.  Innovative solutions may reduce your supply chain costs whilst providing new and flexible ways for your customer to interact with you.

5) Are you keeping your packaging costs at a healthy level – how much does each size point of packaging cost you?  Can you get it cheaper?  How regularly do you check?  How much does it cost you to pick/pack and dispatch your average transaction package?  Do you know the answers to these questions, if not, you owe it to your business and your customers to find out!

The retailer with the lowest operating costs will be able to pass on the savings and services to their customers without destroying their margins.   Imagine if you can save so much in your supply chain that you can afford to offer free shipping and returns forever???

1. Call [...]]]> Last month, Chris and I were asked to present at Interactive Minds in Brisbane on the topic of Conversion Optimisation.  To make this subject more manageable we decided to present a Top 10 list of do’s and don’t's to help improve conversions on your site.  Here’s what we came up with:

1. Call to Action – eg Shop Now, Buy Now, Sign up Now! – Make the call simple, clear and unambiguous, so that your customers are in no doubt as to what you want them to do.

2. Minimise links taking traffic off your site – You have probably worked or paid hard to get qualified traffic to your site, don’t make it easy for them to jump off somewhere else.

3. Product/Promotion/Price – It’s all about the deal, on-line consumers are driven by great products at fantastic prices – even if they don’t buy, the promotion will hook them into your site.

4. High Quality Imagery – Ensure your product photos are the best quality you can afford with good “zoom” functionality.  It reduces the consumers fear of uncertainty.

5. Personal Recommendations – Consumers are influenced by product feedback, even more so if it comes from within their social network.  Ensure you use product review tools and your social network.

6. Easy Check-out – Ensure your check-out process is as simple, secure and efficient as possible.  This reduces “cold feet” during the cash extraction process!

7. On-site Chat – On-line customer service provides the opportunity to answer queries and cross and up-sell.

8. Cross Sell/Up Sell – e.g. People who bought this also bought, complete the look and get 10% off your total purchase – use your site to maximise sales for you.

9. Customer Feedback – use tools like Kampyle.com and Facebook to get feedback from your customers.  They’re always right, right?

10. Search and filter easily – implement a great category structure and search facility to allow customers to quickly find what they want.

Some Health Warnings – this is not The Top 10, it’s a Top 10 of things that you can take action on now, today, instantly to help improve your conversion rate.

Enjoy!