October 30, 2009

B2B Approach to E-Commerce is Evolving

Lately, we've been doing more work here at Fry for companies looking to use the Web better for their business-to-business channels.  It seems like we're at the front of an evolutionary step in how businesses approach B2B e-commerce.  So, I wanted to write a bit about that.

One reason these companies are seeking our help is that they want their Web sites to be as effective as the ones we build for our retail clients.  They see retailers succeeding online, and they want to know how they too can use the web to grow their business.

Well, actually they don’t always start out thinking like that.  Often our discussions start with something much more tactical like improving the performance or usability of their B2B Web sites.  But, there does seem to be more traction now for the idea that B2B marketers can learn from the successes of online retailers and that their Web sites can serve more strategic purposes.

The trend I find promising is that some of these clients are starting to think more like retailers.  Where they may have initially focused efforts on complex transactions they wanted to support online, now I see them exploring how to merchandise and market better.  A few years ago it was all about shifting customers to a lower cost self-service channel.  Now it’s more about how to provide a great online experience for B2B customers.

Something interesting happens when we start talking about who their business customers are.  They realize that their customers are people.  The same people who shop the Web as consumers (when they’re not at work, of course).  We talk about B2B customers who also shop Eddie Bauer for holiday gifts.  People who are very comfortable with, even enjoy, online commerce.  But who are frustrated with their online experiences at work when they use the B2B "portals" provided by their vendors and business partners.  And we talk about the expectations these B2B users have, which are influenced by their personal online activities.

That’s not such a big leap, to think of B2B users as people.  But I see that leading to a new design philosophy for B2B sites.  Less focused on complex transactions, more focused on experience.  On brand.  On merchandising.  In other words, on the things that retailers have been doing well online for years now.

That’s not to say that a B2B Web site is the same as a B2C one.  There are some unique aspects of the online experience for B2B.  And even some areas where B2B marketers have a leg up on retailers.  Ways they can use their Web channel to expand into new markets.  To move inventory through the supply chain more efficiently.  To provide better customer service.  To personalize offers based on business account information.  To directly reach business partner employees as potential consumers.  As well as some unique challenges for in the areas of pricing and product availability.

If these B2B challenges and opportunities are relevant to your business, you can find out more in the B2B white paper available on our Web site.

Andrew Krasner is a Director of Consulting Services for Fry, Inc.


October 26, 2009

OCP 3.1.2 introduces an integration with Google Analytics

In September, Fry's Product Development group released Open Commerce Platform (OCP) version 3.1.2. While primarily a maintenance release, we took the opportunity to "sneak in" a new feature or two so as to make them available to our clients sooner. One such feature was an integration with Google Analytics.

Google Analytics is a free web analytics solution (from Google, obviously) that collects data from web sites and provides insight into its traffic and e-commerce performance through advanced segmentation, custom reporting, dashboards, and other features. In this release, we’ve tagged our "Starter Store" reference implementation for Google Analytics so that all future OCP-based sites are set up to collect data for some standard metrics that will provide us with valuable information about what’s happening on the sites.

In addition to standard metrics like page views, browsers used, keywords, etc., the tagging will allow Fry and its clients to report on the following additional key performance indicators:

  • Average Order Value (Total Revenue / Orders)
  • Average Number of Items per Order
  • Site Conversion Rate (Orders / Unique Visitors)
  • Revenue / Visit
  • Shopping Cart Abandonment Rate
  • New vs. Returning Visitors
  • Bounce Rate
  • Time Spent on Site
  • Top Entry and Exit Page

Chris Barlow is Fry's OCP Product Manager.

Good Search Abandonment: Delivering Content without Clicks to the Cross-channel Customer

In July, Googlers Jane Li, Scott Huffman and Akihito Tokuda proposed to their peers in information retrieval at SIGIR 2009 that there might be such a thing as good abandonment, or:

An abandoned [search] query for which the user’s information need was successfully addressed by the search results page, with no need to click on a result or refine the query.

Their conclusion was based on an analysis of thousands of Google queries in the U.S., China and Japan, in which it was observed that when the answer to the searcher's query was successfully retrieved and displayed in a snippet of information on the search engine results page (SERP), the user clicked through at a much lower than expected conversion rate for a successful search.

An example of good search abandonment would be to google a business with the intention of finding the address. The Google result returns the street address, the business telephone number, and even a summary of starred reviews when applicable -- all the information the user needs to make a reservation and find the location on a map. This user won’t be clicking through to the website, but that doesn’t mean that the search has failed.

Topo

The concept of good abandonment flies in the face of “capturing the click” and suggests that there are times, chiefly when the user is searching for quick hits of information like stock quotes, weather forecasts, locations and telephone numbers, when the search query is successful even if the user doesn’t click through on a valid hit. In fact, if a user can acquire the information without clicking through, then the search query could be considered more successful than a search in which a user clicks through to the site but must browse through several screens before he acquires the information he seeks.

At first glance it might appear that good abandonment has no applicability for e-commerce where success metrics hinge on the number of transactions that are driven through the site, and where attracting qualified traffic has long been (and should remain) the goal of the online marketer.

But given that conversion is measured as a ratio of completed transactions to visitors, along with the fact that the holidays are upon us and servers are already starting to groan with an onslaught of seasonal traffic, it's worth considering whether there may be times when your customer is better served by a snippet of information rather than a click and a full page download.

Good abandonment is an option in those cases where 1) the customer already knows your brand and 2) she needs to know something straightforward and essential about your business: like your 1-800 number or your holiday store hours. It would never be wise to turn away customers who are seeking your goods and services -- those are the clicks you must capture -- but for the customer who simply needs to contact Customer Service? Receiving that information within the Google result, rather than requiring them to click through and ferret it out, puts them in touch with your business much more quickly -- and that’s good customer service.

So what do your customers want to know?

1. Check your search logs for informational queries as well as aggressive browsing to and departures from informational screens like Contact Us and Return Policies that might indicate the customer found what she needed and moved on. Each nugget of information that your customer seeks on your site presents an opportunity to serve your customer better.

Once you’ve identified the top informational hits, misses, and pages:

2. Optimize the information so that it indexes well and presents the relevant snippet of information directly within third-party search engine results.  Information that attracts sizable traffic deserves its own page with the answer to the often asked question near the top of the screen, along with significant keywords and descriptive phrases in the body of the text and tucked away in the metadata.

While you’re at it:

3. Create a more effective landing page. Not all customers will abandon the query -- many will still click though, and you’ve just identified the pages that they will hit the most frequently in this context. Make the most of the opportunity by shoring up the page with additional supporting information, relevant links and even some cross-sell merchandising to your top-sellers or new arrivals. If you haven’t yet set up a keyword redirect to ensure that your product-centric on-site search engine is redirecting to the informational page, now would be a great time to do that too.

Paying attention to good search abandonment isn’t about new customer acquisition -- it's about bolstering retention and reciprocity in cross-channel customers who know you by name, and simply need a quick point of reference to help them plan their task -- which may well include a visit to your brick and mortar storefront, the address of which they just acquired in a swiftly executed, and then quickly abandoned, search.


Dayna Bateman is a Sr. Strategic Analyst for Fry, Inc.

For more on good abandonment see: Good Abandonment in Mobile and PC Internet Search, Jane Li, Scott Huffman, Akihito Tokuda, 32nd Annual International ACM SIGIR Conference on Research and Development in Information Retrieval, 2009, pp. 43-50. In their paper the Google team points out that good search abandonment will become increasingly important to U.S. mobile search users whose search context is considerably different from desktop searchers.

October 19, 2009

Going Mobile, Things to Consider

Mobile websites. Mobile applications. Mobile marketing. It’s a little tough to know where to begin.

As more and more people browse the Internet with their mobile devices, every company is faced with the question of what, if anything, they should be doing about it. The timing seems early, the opportunity seems large, and the ”cool factor” is through the roof. But prudence suggests that thoughtful entry into this market will deliver the best results.

Here are some things to consider when discussing mobile strategies in your organization.

 1. How much of your current customer base is actively using mobile devices?

Regardless of whether you service thousands or millions customers, knowing the potential size of your mobile market within your customer base is the first place to start. Reviewing your site analytics is a good place to start, but that number might be low as some of your customers might not yet have had a reason to access your site on their mobile device. Conducting online surveys and polls will help quantify the number of customers that could interact with you using mobile devices. Remember to grab demographic data as well so that you can anticipate growth in your mobile customer base by watching how quickly the various demographic groups adopt mobile devices in the future.

 2.  How many of your customers are in the mobile demographic “sweet spot”?

Owners of smartphones, such as the iPhone, Blackberry, and Palm Pre, are driving mobile growth. They are accessing the web and interacting with brands in ways that were not even conceived of a few years back. Who are these people? They are predominantly male, between 25-34 and make more than a $100,000 year. (Nielsenwire, September 2009) As prices drop and older audiences adopt smartphones, look for this sweet spot to widen. But in the meantime, if a large potion of your customer base is within this range, you are at an advantage with your mobile initiatives.


Mobile_demo

3. What do your customers want to do on your mobile presence?

Even if many of your customers use mobile devices, success of your mobile initiatives is not guaranteed. It is one thing to know that they will come; it is another thing to know how to serve their needs . Similar to your main website, success in mobile means learning directly from your customers what they want from your mobile presence, including what they would want to do and how they want to do it. Building a mobile site or application that does not contain the content or features that your mobile audience needs or desires results in more than a loss of time and resources. Poorly conceived and executed mobile initiatives could also damage the brand image, and leave your customers with no desire to try the next iteration of your mobile initiatives. Conduct interviews and surveys with your customers to learn what they would like to do on their mobile devices. Such research activities should be considered as “insurance” in your mobile investment.

4. How important is it for you to be seen as a leader?

Sometimes image is more important than ROI. If your organization can generate revenue by enhancing its image, perhaps you should consider mobile even if some of the above guidelines do not apply. Being a leader in your industry, or demonstrating that your organization is part of the future today, can be enough of a reason to jump into mobile and get your presence known. Remember that you should still discover what your customers might want in order to protect your brand from a mobile destination that your customers do not want to use.

Notice that determining how much to spend, which technologies to use, and whether to build in-house or outsource did not come up in my initial list of questions that companies should ask themselves before beginning mobile initiatives. There are numerous partners that can help with the “what” and “how” of building a mobile presence, and budgets can be adjusted for the relative priority of mobile within the organization’s overall marketing strategies. However, even with the right technologies and the right funding, mobile initiatives will only be successful if they resonate with your customers. If they don’t, you are risking your investment, your brand, and possibly their attention the next time around.

Matt Rehkopf is a Sr. Information Architect for Fry, Inc.


Sources:

http://blog.nielsen.com/nielsenwire/online_mobile/with-smartphone-adoption-on-the-rise-opportunity-for-marketers-is-calling/

 

October 12, 2009

What are you doing unto others? The importance of reciprocity on the social web.

Guy Kawaskai is on record: He doesn’t care if your cat rolled over.

Catroll 1467

Kawasaki, an entrepreneur and aggressive Twitter user (so aggressive that he works with four ghost writers), cites the cat example often as a way to explain how he feels Twitter should and should not be used. It gets a big laugh from every assembled audience I’ve heard it delivered to, probably because it speaks directly to the bafflement many folks feel about the activity that takes place on social networks like Twitter and Facebook where millions of people share the mundane details of their day.

Twitter asks only one thing of its users: What are you doing?

There is, of course, a good share of the global population who simply doesn’t care what strangers are doing and are incredulous that anyone would.

Yet millions of users respond daily with details about how they’re commuting to work or making dinner or brushing their teeth. Some respond up to 20 times a day. (According to HubSpot 22 tweets per day might be optimal.) Some more.

Social media coach Leah Jones identifies these seemingly meaningless posts as phatic conversations -- small talk that keeps the door open for more conversation -- and argues compellingly that they possess value in part because they provide a bridge to subsequent, more meaningful exchanges.[1]

Not all tweets are mundane, of course: Twitter has been broadly recognized as a hub for distributing news and information in a hurry. Twitter’s VP of Operations, Santosh Jayaram, recently told c|net of being in Twitter’s San Francisco offices when engineers noticed that the word "earthquake" started trending upwards in the tweetstream. Several seconds later the building started to shake. “The earthquake had been in Morgan Hill, 60 miles south of San Francisco, and the tweets about the shaker reached the office faster than the seismic waves themselves.” [2]

Regardless of whether or not we understand why, many of us are drawn to social networks like Twitter and Facebook (full disclosure: I tweet as @suttonhoo); so many in fact that the predictable tide of online traffic patterns has undergone a profound behavioral shift that we’re still trying to map and measure.

According to Nielsen Netratings, “Americans have nearly tripled the amount of time they spend at social networking and blog sites ... from a year ago.  In August 2009, 17 percent of all time spent on the Internet was at social networking sites, up from 6 percent in August 2008. Tellingly, Jon Gibs, Nielsen’s VP of Media and Agency Insights, attributes a strong component of this growth to “the desire of online consumers to connect, communicate and share.” Not unexpectedly, advertising dollars on social network sites have climbed 118% during that same time frame.


Year-over-Year % Change in Online Ad Spend by Industry (U.S., August 2009)


Estimated Spend on Top Social Network Sites Year-over-Year Percent Growth
Industry Aug-08 Aug-09 On Social Network Sites* On All Sites
Entertainment $1,097,700 $10,012,800 812% 40%
Travel $473,700 $2,198,200 364% -11%
Business to Business $683,400 $1,941,700 184% -8%
Automotive $1,110,200 $3,085,800 178% -26%
Health $1,131,500 $2,754,900 143% 8%
Web Media $11,231,800 $26,855,700 139% 30%
Software $526,400 $1,202,500 128% -29%
Financial Services $3,233,900 $6,415,900 98% -10%
Public Services $6,836,500 $13,203,100 93% 13%
Telecommunications $12,449,500 $23,550,300 89% -1%
Consumer Goods $1,913,400 $3,349,200 75% 8%
Hardware & Electronics $654,000 $1,022,900 56% -47%
Retail Goods & Services $8,101,400 $12,556,800 55% -12%
Source: The Nielsen Company

*Estimated spend on social networking sites is based off of data for the top ad-supported member community sites ranked by unique visitors in August 2009. Read the full press release.




Won't you be my neighbor?
Research has revealed that our self-selected network neighborhoods have a particular potency, because site visitors are more likely to browse and comment on the content offerings of their known associates (friends, followers, contacts) than they are to browse other available content on the site. This activity has come to be known as “social browsing” [3]. We are also three to five times more likely to be influenced by individuals within our chosen network neighborhood than we are by folks who are simply like us demographically because they share our age or lifestyle. [4]

Anyone can set up an account on a social network: the real goal is to make the most of these powerful associations by developing a social graph that commands a meaningful following and deepens reciprocal relationships over time.

Your Social Graph
Simply stated, your social graph describes who you know and how you’re connected to them. This term has long been used in the offline world; online it’s grown to mean the aggregation of your activities and relationships across social network sites. It’s through your participation on social networks, whether personal or professional, that you convey your values, tell your story and build a network neighborhood.

Comment-flow-in-social-networks Illus: Greg Kolb, New maps of influence – 10 visualisations of the social graph

When you post photos to Flickr, tweets to Twitter, videos to YouTube, or links to your Facebook page you are making a contribution to your social graph and telling the world about what matters to you. But the act of posting doesn’t end with sharing content to your social streams or through your profile -- at least it shouldn’t.

When you indicate that you like a friend’s post on Facebook or use the @reply syntax on Twitter to have a conversation with another individual on the network, you’re still posting content and contributing to your social graph. You’re also giving something away: your opinion, your appreciation, your time.

Research suggests that these points of participation -- when you stray outside your stream and engage with others one-to-one to deepen online relationships -- may be one of the most important factors in developing an influential social graph. That is: In order to become an online personality that others look to for compelling content to act on and share with others, you also need to appreciate the content posted by others.

You need to share the love.

The Reciprocity Principle
Sociologists call it the reciprocity principle: The feeling of obligation that accompanies a favor, and the compulsion to repay that kindness with an act in kind. This compulsion to repay the debt is so pervasive among we humans that the sociologist Alvin Gouldner has concluded “there is no human society that does not subscribe to this rule.” [5] The rule of reciprocity is so powerful that individuals have been shown to reciprocate out of obligation even when they didn’t request the initial favor that was granted, or found the favor that was done for them to be undesirable.

BJ Fogg put the reciprocity principle to the test in his Stanford captology lab studies and concluded that human beings feel the same sense of obligation toward “helpful” computer systems that they do toward helpful people, and in return feel compelled, almost unfailingly, to “[repay the] favor the computer had done for them.” [6] In the exchange between the human and the computer, repayment generally translates to responding favorably to requests that are made of them. (This research may also explain why some highly usable websites can perform shockingly well: not only are barriers removed but assistance is offered by the user interface, and in exchange the user is more responsive to requests made of them. In short: they are more inclined to convert because of these combined factors.)

Social networks are fueled by countless acts of reciprocity -- you comment on my status and I'm prompted to visit your stream and gush over the adorable pictures of your children. My gushing is genuine but it was driven, at least in part, by my sense of obligation to return your kindness. This behavior is hardwired in human beings, but it’s utterly unfamiliar for a business to behave this way. For example, it would be highly inappropriate for an apparel brand to visit your stream and comment on the skirt you wore to your high school reunion. Or even worse: to recommend a more flattering one.

And this is where many brands working to establish a presence on the social web are falling down. No: they’re not trolling the networks and making inappropriate remarks to poorly dressed fans. But many are representing themselves in the social network space as a brand entity, rather than putting their people forward and bringing a human face to the exchange. In effect, they’re using social networks like the bullhorn of email marketing to convey broad messages, rather than lowering the pitch to the more conversational tone that dominates the networks, and engaging in one-on-one exchanges in the public sphere.

The kinds of exchanges that open the door for reciprocal actions are the ones that succeed in the social network space.

Tony Hsieh’s management of the Zappos Twitter stream is an excellent example of a brand with a human face. His twittering is pitch perfect, and even though his icon is the Zappo’s logo, his Twitter wallpaper background includes his photograph, so everyone can connect a flesh and blood person to the narrative that unfolds in his stream. He sprinkles business news with personal thoughts and encounters -- at this writing he’s just returned from Calgary where he met the Dalai Lama.

ZapposTwitter 1466


PacSun is an example of a retailer who has navigated the human facet of the social network space beautifully. Engaged across several different networks and attentive to the different kinds of individuals those networks attract, PacSun has introduced a simple but powerful convention into their tweeting. Staffers share responsibility for the stream and when a new staffer takes on her shift, she replaces the avatar of her predecessor with her own. Each avatar shares the same PacSun logo backdrop to identify the brand and establish continuity, but it also identifies the individual by name. The team reports that followers have their favorites and will inquire after staffers that they haven’t seen for a while.

PacsunTwitter 1464


So what's a brand to do?

Get real. As you build out the social graph for your business consider carefully how you’re representing your brand. Is yours a faceless robot like Amazon’s presence on Twitter, sharing links and information that are all about me me me? Or are you shaping out a more human representation for your brand, like PacSun’s healthy mix of marketing links along with the retweets and @replies that build relationships. Etsy and American Apparel also provide excellent examples of brands that participate like human beings.

Empower your people. The brands that thrive in the social network space are the ones that trust their employees to be brand ambassadors, speaking directly with customers to troubleshoot problems or share news and information about the merchandise assortment.

Draft a social media policy. A solid social media policy makes it clear to all employees what their responsibilities are when they’re participating in the online space -- whether on or off the clock. It sets boundaries about information and behaviors that should be kept under wrap, and provides them with permission to evangelize about the brand they care about.

Engage. When appropriate reply to customers who comment on your Facebook page and in your Twitter stream. Don’t be shy about replying to product reviews directly on the site when a customer raises an issue -- reviews are another form of social network and another point at which to engage with your customers. Seek out new followers who have an affinity for your brand but haven’t discovered you yet -- Leah Jones calls these people “comps” or “comparables” because they like things that are like you, but just don’t know about you yet. Whatever you do, don’t just blindly follow anyone -- that’s called spam. Have a reason for adding someone new, especially if you’re initiating the invitation.

Since e-commerce first came online in the mid-90s the rule of the game has been to attract visitors to your site and keep them there until they convert. Shopping cart abandonment has been a core metric for just that reason: because we’re concerned that once they’ve left we’ve lost them. But smart marketers have known for a long time what recent research has confirmed: Just because they’ve stepped away doesn’t mean they’ve forgotten us. If we manage the relationship right they’ll be back. Social networking provides one more tool to ensure that your brand and your offering are unforgettable.

Dayna Bateman is a Sr. Strategic Analyst for Fry, Inc.


[1] For more on phatic conversations and Twitter see Leah Jones' post: Pretty Hot and Tweeted.

[2] Twitter Search to dive deeper, rank results, Rafe Needleman, cnet, May 6, 2009

[3] Social Browsing on Flickr, Kristina Lerman and Laurie A. Jones, submitted to the International Conference on Weblogs and Social Media, 7 Dec 2006.

[4] Network-Based Marketing: Identifying Likely Adopters via Consumer Networks (PDF), Shawndra Hill, Foster Provost and Chris Volinsky, Statistical Science 2006, Vol. 21, No. 2, pp. 256–276

[5] Influence: The Psychology of Persuasion, Robert B. Cialdini, Collins 2007, p.18.

[6] Persuasive technology: using computers to change what we think and do, BJ Fogg, SF: Morgan Kaufmann 2003, p.109. Captology is used to mean "computers as persuasive technology."

September 29, 2009

Cross Train Your Site And Other Design Lessons From The Sports Pages …

Heisman Trophy winner. Poetry lover. Ballet dancer. NFL star. Olympic bobsledder. And now, at the age of 47, a mixed martial arts fighter.

The e-commerce world could learn a lot from Herschel Walker, one of the top running backs in NFL history. Namely, we could learn that sometimes the best way to become better at what you do is to do something completely different.

 For starters, maybe we should approach our redesign process a bit differently. Most companies embark upon a redesign by looking inward – and then not too far outward. They examine their own data. They look at what their competitors are doing. They read the same industry news and analyst reports that all the other companies are reading. These are all worthwhile, important endeavors – but at the end of the day, they don’t lead to anything truly different.

Walker did not break records by simply going to practice, running, and lifting weights like all of the other players. He added something new to the mix. He did calisthenics, body conditioning and he danced. The result? A lower body fat and a better game than his rivals at the time.

The lesson for e-commerce executives? If you want to perform like others, do the same things they are doing. If you want to perform differently, look beyond your competitors, outside of your vertical markets, and even outside of your medium for inspiration.

When working with apparel retailers, I encourage them to look at a range of sites – not just other apparel sites – and not just other e-commerce sites for that matter. For example, we can learn from You Tube’s design and feature set. We can see how the site creates a sense of “here and now” and provides serendipitous navigation opportunities with the “videos being watched right now” feature. Yet, no e-commerce site has a “products being viewed/purchased right now” feature. Very few have an extra navigation element that introduces a sense of surprise.

Of course, it’s an easy, natural first step outside of e-commerce to follow the popular kids like You Tube, Facebook and Flickr. After all, that is where your customers are spending a lot of time too. So the next step is taking a look at some unusual suspects. Science and non-profit sites can provide a unique perspective. Although a sobering topic, Amgen’s site about angiogenesis is one of the most visually striking sites I have seen in a long time. Its bold use of horizontally scrolling photography and embedded video creates a sense of being on a journey through the human body – one almost forgets they are on a Web site. How can your site go beyond “appealing” and actually draw people in? How can it make people forget they are sitting in front of a monitor?

Speaking of monitors, it’s a good idea to step away from them every now and then. Not just for the sake of your eyes, but for the sake of your creative vision. On a recent visit to the California Academy of Sciences, I was very impressed by the fact that some exhibits had a “call or text for more information” feature – a true multi-channel experience. The museum also enables visitors to view scientists at work in the lab through a large window. This window appeals to our natural human tendency to want know what’s going on behind the scenes – AKA, spy. Yet very few sites share much information about product fabrication or new products in development.  This type of “open window” into your company could forge a deeper relationship with customers.

If the thought of doing all of this legwork is giving you a headache, I suggest you try taking a pill from Help Remedies. Their simple approach (“Help I Have A Headache” and “Help I Have A Stomach Ache” pills etc.) is a reminder that our sites should have a voice that speaks to customers in a fresh, engaging way. And their completely biodegradable packaging (you can view pictures of it slowly decomposing in a compost pile on their site) is a reminder that we should also be doing good things as well as good design.

While competitive benchmarking and standards are important, they need to be balanced with fresh, original approaches if you are looking to your distinguish your site. After all, if we simply try to keep up with the Jones’s, the best we can do is become the Jones’s. But if we look around our whole neighborhood, our whole city, our whole world, we can become more complex – more evolved – under diverse influences. Kind of like a poet-ballet-dancer-football-player who is about to go into a sport that’s a whole mix of things in and of itself … 

September 20, 2009

Looking back, Looking forward: Major lessons from 15 years of running Fry Inc.

You may have already heard the news, but this week marks a change for me. Fifteen years after its launch, I'm stepping down as the President of Fry, Inc. I am continuing on with the company in a strategic role as Founder while Rudy Pataro takes on the day-to-day responsibilities of the running the firm. I don't have concrete plans for how I'll be spending the rest of my time, but I expect to be more involved with my family's printing business, which gave birth to Fry in the first place back in 1994.

As you can imagine, the last few weeks have brought me a surge of memories. I was lucky enough to be here for the start of the e-commerce revolution. But it's depressing to realize that some of the people I work with now were in elementary school when we launched the first Godiva.com. They don't remember handcrafting GIF images (GiF images? What are those??) to render quickly over a 28k baud modem. They don't know that all Web site backgrounds were gray in the early days. They don't remember carrying a 20 pound projector on the plane to go make a new sales pitch. Yes, I feel old.


Godiva


This is one of those moments when you're supposed to sit back and take stock. If you have to be old, at least you can be smart. So, what have I learned in the last 15 years? 
  • Well, I learned that "build it and they will come" only works in the movies. We launched that first Godiva site in time for Christmas 1994, and we averaged three orders a day that holiday. I would excitedly call Adam Rockmore at Godiva every time we got one. There was very little in the way of online marketing back then, but even today too many of our customers put too much of their budget into site construction, and too little into plans to get people there. Just as a young couple can get themselves in trouble by buying a home outside their price range, small businesses need to start conservatively online and put more effort into marketing and customer acquisition. Take $75,000 out of your development budget next year and put it towards a Facebook campaign and you'll be better off.
  • I learned that some questionable ideas come around every few years, like a bad flu season. How many times have I heard a retail exec say he wants to hear streaming music when he opens his home page? Well then put on a pair of headphones because your customers don't! One bad but expensive idea is to combine commerce and content. "Content is King" was the rallying cry of the late 90s and many retailers decided they should be destination sites. Housewares commerce sites were filled with information about cooking, outdoor apparel sites developed travel and hiking content, and fashion apparel sites had more pages than Vogue. It quickly became obvious that the customers weren't reading this content and the immense cost to produce it generated little return. There are already too many sources of free content online (as the print media have discovered) and your customers will never see you as an authoritative source (except for a few special cases). Yet this concept keeps being reborn every five years.
  • I learned that if the customers don't trust your too-expensive-to-produce content, then it's better to get them to make it for you. One of the principles of the Web 2.0 revolution is that online customers want to participate on your site, they want to share their experiences, they want to communicate with their cohorts. The most obvious examples are user-generated product reviews, which started exploding in 2006. These are hugely important to establishing credibility with your customers and should be considered a must for most sites. But you should look for other opportunities to involve your users on your site. Let them help you by tagging products, submitting photos, writing merchandise content, posting tweets, or any other way you can get them involved with your products and your brand. The youth apparel retailer Wet Seal, for instance, has had huge success with its Runway. Customers mix and match products to make their own outfits which they save online for rating and comments from other users. Each outfit becomes an ensemble ready for purchase by other customers. 

Wetseal

 
  • I learned that you don't have to dance with the one who brought you to the prom. Well, more specifically, you have a great opportunity online to expand your product inventory beyond anything you could hope to accommodate in your bricks-and-mortar store locations. Amazon has had great success diversifying its product assortment through partnerships and brilliant strategic planning. You can follow suit by exploiting a "supplier direct fulfillment" model. After carefully looking at who your customers are, and what other things you might be able to sell them, develop a list of potential new suppliers. Launch new categories on your site (get the new vendors to provide the product content for you), and route the orders directly to your new partners for direct shipping straight to the customer. It takes a bit of work to model exactly which products to carry and to establish the right supplier partnerships, but this technique boosts the gross margins for many of our customers.
  • Mealbox

    Lastly, I learned that you have to always be experimenting. If you're not evolving, you're dying. Our e-commerce industry is fifteen years old but it's not done innovating yet. Next year you could try out a wonderful new idea that changes the way you view your online business. If you don't, chances are good that your competitor will. One of my favorite examples is the general merchandise retailer Meijer. A large family-owned business from Grand Rapids, Michigan, no one would confuse Meijer with a sexy Silicon Valley startup. Yet from their first e-commerce site, launched with Fry in 2007, they have tried one innovative idea after another. From a supplier direct fulfillment business model, to coupons delivered via widgets and iPhones, to in-store grocery pickup, to marketing with laser beams on skyscrapers on the Magnificent Mile, Meijer has been aggressive about regularly trying new ideas. And I can tell you, it's a real joy to work for a company like that.

Thanks for joining me on this trip back through time. I have been so privileged to work with both the amazing people of Fry and the fantastic companies who chose to partner with us. I am proud to have been there at the birth of an industry. More importantly, I am still excited to see where this whole thing will go. Fifteen years from now, we'll look at our RFID-equipped mobile devices, receiving promo offers as we walk the aisles at Meijer, and wonder how we got there. I can't wait!


September 08, 2009

SEO and Fry’s Open Commerce Platform

What’s the use in having a great site if nobody can find it? That’s the value of SEO, which we take pretty seriously here at Fry.

And we’re not the only ones. Forrester Research projects spend on paid listings, which includes paid inclusion, and search engine optimization (SEO) to grow at a compound annual growth rate (CAGR) of 15% to $32 billion by 2014.

 

Forrester_SEO_Spend

Sure, engaging with a knowledgeable Search Engine Marketing firm for paid search is almost a necessity, but what about what you can control from a search optimization standpoint on your Web site? Fry has worked diligently over the years to enhance the search engine optimization capabilities of OCP to give our customers control of a few things and automate quite a bit more to make their jobs even easier.

Fry’s Open Commerce Platform Innate Search Engine Optimization Capabilities:

  • Readable and Configurable URLs
    Our URLs include the category or product name, which increases the relevance of the page by displaying searchable text. OCP provides a tag library to easily create readable URLs such as the following, which reads a lot nicer than a bunch of numbers and illegible letters: http://www.sitename.com/Product/Apparel/Womens/Pants/Denim-5-Pocket-Capris/
    Our URL format is configurable too so as search engines continue to modify their algorithms, Fry will adjust the format of URLs.
  • Alt Tags for Products
    Alternate text that displays before images load or in lieu of images if there is a problem loading. Testing has shown that Google counts Alt tags as an occurrence of the keyword on the page, which contributes to establishing higher rank when that keyword is searched. OCP dynamically creates alt tags for product images using the product name that is administered in the Site Manager, though users of the management tool can override the alt tag if they would like.
  • Consistent Link Structure
    OCP avoids duplicate pages that can hurt search engine rankings.
  • Site Maps
    Major search engines have standard formats for listing all the pages on a site. Our auto-generated (and regularly updated) site maps help search engines find every current page on the site.
  • Elimination of Broken Links
    Getting indexed by the search engines can take time and changes to the product data can cause broken links and as a result, a search engine links to a page that does not exist. Fry URLs include the category or product system identifier to ensure all links still work, even after a name or key has been changed.
  • Product Description Text
    Product descriptions are stored and displayed as text (instead of images or Flash files) making it easier for search engines to read.
  • User Generated Text
    Product reviews, such as Bazaarvoice or PowerReviews, add additional text to each page that may also be indexed by search engines. This user generated text also expands the keywords that apply to the page. In addition each user comment contains a date stamp which contributes to the freshness factor that Google uses to elevate page rank.
  • Javascript
    Javascript has been moved farther down in the page code since it is not of importance to search engines which are looking for information at the top of the page.

User Controlled Search Engine Optimization Capabilities Within the Open Commerce Platform’s Site Manager:

  • Content Page Meta Tags
    Users can manage title, description, and keyword meta-tags associated with each page.
  • Product Meta Data
    Users can manage description, and keyword meta-tags associated with each product.
  • Alt Tags for Product Images
    As defined earlier these are auto-populated but can be overwritten by users.
  • Alt Tags for Content Images
    Users can create alt tags for content images of various formats.

Do you currently have the automatic and manual search engine optimization capabilities listed above? If not, we’d like to show you what our Open Commerce Platform can do to help your site get higher rankings on the search engines and found by the people looking for it.

August 31, 2009

A Simple Way to Evaluate Creative

When it comes time for the creative review, everyone has an opinion. Unlike the work of any other discipline (except perhaps user experience), the realm of visual design is open to criticism by anyone. While this phenomenon is potentially flattering to designers ("hey, you were paying attention!") it doesn't necessarily leave you with the best creative results. While your art director is busy reconciling various comments and Frankensteining together a "best effort" comp, you could be streamlining the process and ending up with highly effective visual design.

Planning for measuring your creative is actually quite simple, and it's probably already part of your design process--almost. At the beginning of your project, you probably specified certain requirements, and hopefully you also determined certain goals. These might have included revenue targets, increased newsletter signups, or other quantifiable transactional metrics. But if you're an organization concerned with your brand, you might have articulated some other goals related to the perceptions of your brand: "we want to look more delicious" or "we want to be seen as more of an innovator," for example.
When I work with clients to figure out what they need on the creative front, I ask various questions to help my team understand the client's brand. The answers to these questions can help you articulate your goals for the creative design. Here are a few:

1. How should your customer feel when she purchases from your site?
2. What benefit will this brand provide to the buyer?
3. How would you like the customer to feel about being your customer?
4. Will this brand appeal to the logical side of your buyer (and is this what we want)?
5. Is there potential for a culture of buying this brand? Why?

There are many other questions we ask, and exercises that we go through, during our discovery workshops, but these are a great starting point for articulating some actionable goals. For example, the first question is experiential--how will she feel? Let's say it's a site selling spa-style products. If we say "we want her to feel pampered," then the goal is for the creative to give the impression of pampering the user.
Here are some more answers, again using our fictional spa site:

1. The user should feel pampered when she purchases from our site.
2. The benefit the user gets is that the products are of the highest quality.
3. The customer should feel like she's part of an exclusive club.
4. The customer will rationally feel smart about being able to purchase the products in packages and thus save money.
5. We hope that the users will spread knowledge of the site through word of mouth because of the unique experience of shopping here.

This next step is the most important: once you've answered these questions, and any others that will help shape your creative goals, take these goals and form them as questions.

Here are some examples from our fictional spa site:

1. Does the design help the user feel pampered?
2. Are the products displayed to their full potential?
3. Does the site "feel" like an exclusive club?
4. Is the value message communicated?
5. Does the design support a unique experience worth sharing? Are there elements of social networking ("share" links) without detracting from the brand?

Use these to evaluate your creative. Print them up on a board and post them where you're showing the new creative. Be brutally honest if necessary. If you are not honest, you're approving creative that doesn't meet standards you've set for other aspects of your project. You're basically saying that the design of your site doesn't matter.

Best of all, you have concrete stuff to discuss with your team. By structuring your feedback around these questions, you've elevated your creative discussion far above "I don't know what I like, but I'll know it when I see it." And your designers will be empowered to design to very real criteria that maps directly to business requirements.

If you have any questions about this or any other aspect of Fry's creative discovery process, please leave a comment!

August 24, 2009

Creating a Site to Be Savored

I just came home from the Farmer’s Market, my senses piqued with the smells and tastes of summer: heirloom tomatoes beckoning to have their stories told, fresh basil portending to the finishing touches of a dish, and honey reflecting the compilation of a bee’s journey. My mind still replaying interactions between friends catching up and talking about the best place for peaches this day.

I’m passionate about food. I think about it a lot. How it unilaterally calls upon all the senses. How it mandates the interaction between a broad array of disciplines and jobs ranging from farmer to banker, from science to philosophy, from home cook to professional chef. How it translates possibility into something tangible.

Exactly what we strive to do with our site experiences.

So, using food as an analogy, how can you create a site that both feeds your consumers and also gives them a meal to remember? A site that is more than just useful and usable. Because when it’s all said and done, it’s this Experience Story that drives word of mouth (the good kind), increases loyalty, and turns your brand into a necessity.

More than Just the Sum of Ingredients

Branding, usability, technology, content, and the products you carry each contribute equally to the overall site experience. Like when I put together a salad caprese, the individual components of tomato, mozzarella, basil, extra-virgin olive oil, salt, and pepper each matter, bring a unique “function”, and play a critical role. Just as how I choose to present the dish matters. If the tomato isn’t ripe and flavorful, if the basil is soggy from sitting in the oil too long, or I haphazardly assemble the dish, the salad is still nutritious, but I’ve lessened its potential for transporting the person. And, I’ve lessened the likelihood the person will want to try it again.

The marriage of all these ingredients, each good in their own right, is what makes the dish complete. The combination is what establishes the scene for the first bite as well as the lasting memory when it’s over.

In creating the online experience, it’s likewise paramount for each discipline supporting the site to collaborate. Branding, technology, and content can be great on their own but can only be transcendent when they are in complete harmony with all the other ingredients feeding into your site. Additionally, it’s critical for each discipline supporting the site to understand what the experience story is.

Establish Your Experience

When you’re designing, maintaining, or redesigning your online presence, you need to keep coming back to the experience story you want your customers to tell their friends, co-workers, and family. In his recent blog post, Fast Company contributor Steve McCallion suggests creating the experience story through metaphor like the Apple Store does through its learning center or as Whole Foods executes its outdoor bazaar experience. Through the use of metaphor, each retailer has successfully produced a context that is at once familiar and also newly evocative for its consumers. McCallion also notes the value it brings: double the annual sales per square foot from what other stores in their category see.

Having a clear experience story also provides you with an easy filter for decision making. For example, while drawing inspiration from “best of breed” sites and site experiences is beneficial, with a clearly articulated experience story, you will be able to better assess which features, functionality, or design elements truly fit for your site. Would a 24-hour breakfast diner that introduced $30 plus entrees and started building out an exclusive wine list still be a diner? Would its customers walk away from that experience feeling like their expectations had been met?

Adapt

While you need to give your attention to establishing and maintaining a clear experience story, you also must be willing, ready, and able to adapt. My mom always tried out her dishes with us before she served them at a dinner party. In a restaurant, customers are constantly letting servers know both subtly and directly about their meal. Conversely, servers are constantly asking customers how their meals are in order to let the cooking staff know what needs to be finessed, altered, or altogether removed from the menu.

Providing memorable experiences on your site is an on-going learning process, and, it’s often far too easy to forget this piece.

Usability testing, analytics, customer surveys, focus groups, heuristic evaluations, customer observation, and the simple, yet important, act of just asking your customers questions are all activities that give you insight into and measurements for the experience and the enjoyability of the experience on your site. They give you the roadmap for how you need to adapt to continue achieving the most memorable experiences. And, they need be part of your day-to-day process rather than add-on activities at various points.


So, what kind of experience story will you cook up for your site to transport your customers beyond monitor, laptop, or mobile device and ensure your customers keep craving, sharing, and savoring the time spent at your table?

Dana Hawes-Davis is a Sr. Information Architect in Fry's User Experience Group, when she's not off cooking or enjoying a good meal.