MSI Commerce recently attend the above event organised by Drapers - the
leading fashion retail magazine. In order to add value to our partner's businesses we look to attend ecommerce industry events to keep up-to-date on the latest trends and issues.
The event was organised over a full day and included some major ecommerce companies including; M and M Direct, N Brown Group and ASOS. It also gave the audience the opportunity to interact with the speakers and gain their insight on key issues.
What follows is a summary of some of the key issues that came out during the day.
One factor that came up again and again throughout the day was the trend in social sites and the impact it can have on businesses. Leading the talk on this was Dawn Bebe from
fashion network site OSOYOU.com.
Previously when customers didn't like something, theory went that, they would tell 10 people and when they did like something they would tell 2. The problem is that the web now allows people to tell 10 million people. More and more people are now taking the advice of like minded consumers. What's more there are more and more outlets for customers to express their likes and dislikes through sites and blogs.
It is therefore vital that businesses take control of the situation and ensure that they are dealing with any bad publicity on the web. Consumers can publish bad comments but as a company you still have the opportunity to respond in the same channels.
Steve Robertson of M & M Direct spoke of ensuring your relevant to customers, noting that reviews and forumns are an excellent means of gaining this vital feedback. Relevancy is not just about offering the right products but also about making sure all the other aspects that make up your brand are relevant to your customer base.
Web 2.0 has empowered users to generate content themselves, it is vital that businesses take control of this channel and creates a positive image from what could otherwise be detrimental situation. A good example of this is the Car Phone Warehouse
Talk Talk Forum.
eCommerce allows companies to achieve relevancy on new heights compared to other channels. The sheer volume of data that can be collected on sites users is enough to drown even the most hardened analysts. It is with this data that improved levels of relevancy can be achieved.
As well as gathering user data, ecommerce businesses need to analyse it, gain insight and turn those insights into actions. The data from your ecommerce site will allow you to segment your customers into groups and provide relevant products and/or service to those groups.
Segments can be targeted on the site, through
personalised pages, in emails and other though other marketing activities. Consider the situation where a customer buys a fridge freezer from a site and the following week the emails start flooding in announcing offers on fridge freezers.
There is of course one note of warning with relevancy, the more relevant you want to be the more complex it will be.
Delivery & returns
Delivery and returns was a hot topic throughout the day, especially with the cost of oil rising rapidly. The larger organisations with larger revenues to play with, can absorb some of the costs, smaller businesses are definitely concerned.
Should delivery be free and how quickly should it get to the customer. The main theme across delivery and returns was "is it relevant to your customers". Starting with speed of delivery - Net-a-Porter have pioneered the same day delivery in London. As a ecommerce company selling high end fashion it would seem appropriate to have same day delivery at up to £19.50. However if you are selling low end dresses at £20-£25, a £20 delivery charge would be inappropriate. Free delivery? Is it appropriate to your market? If you are selling low order value products then probably not, unless you are making very high margins. Just remember is it appropriate and be aware of what your competition is doing?
Free returns were also mentioned. Common place in the states it has been slow to take off in the UK and retailers aren't complaining. Again, if it is appropriate for your business and market then it may be a requirement. It is worth noting that it can help to develop trust with consumers especially in the early days of your relationship. It could be worth considering as a promotional offer, especially to first time customers.
On the topic of free returns - "Don't be afraid to get tough". Debbie Major, MD & Co founder of Petite Affair recalled the situation where a lady ordered 8 pairs of jeans with the option of free returns. Debbie actually called the customer before dispatching the goods to understand better understand the situation. If it is just down to sizing as a company you should be able to help customers understand what will fit. The other side of returns are the damaged or worn goods, don't be afraid to send items back to the customer and refuse a refund. As long as the rules are clearly stated in policy documents you are within your rights.
General points on ecommerce
Beware of offering discounts all the time as customer come to expect them. If you follow a set partern for discounting products people will learn and wait for the lower price.
Offer customers a list of options on what they would like to hear about. This will help you maintain relevancy.
Fashion ecommerce requires more trust than a lot of other products, so do as much as possible to improve this, include more image shots, show close ups, offer free returns to help overcome initial purchase concerns, display your postage and packing charges and ensure your site promotes credibility.
60% of people doing a search click on one of the first 3 results, meaning a combination of SEO and PPC are vital to being found in a search engine.
Consider using focus groups to ensure your site works for your customers. Questioning 4 people can resolve 80-90% of site issues.
Younger audiences are happy to buy everything online.
Online fashion retailers expect somewhere between 15 and 35% returns.
If you would like to discuss any of the issues raised here and what they mean for you business call Michael Bates on Tel: 01483 901 923.
 |
|
