Web 2.0 Optimization Improves Online Sales

Videos and other online tools help retailers drive sales, increase customer loyalty

July 2008 By Rick Martin, CEO Of SellPoint

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For decades, merchants and manufacturers have collaborated to engage and entice shoppers with compelling stories of product features and benefits. From packaging and point-of-sale signage to sales training days and end cap placements, retailers and their vendors have worked together to refine the art of merchandising products to drive sales.

Shopper behavior has fundamentally and forever changed. With the overwhelming popularity of online social networking and ubiquitous online video, it’s no surprise that most shoppers, particularly in the high disposable income demographic segments so important to merchants, are looking online first to research products and form their purchase decision. And they are expecting the same engaging and rich content they see in other online venues.

When shoppers search online, they are directed to retail sites, making the retail product page the main influencer for driving purchase decisions, and the quality of that experience dramatically impacts online and in-store sales.

Fortunately, new online merchandising solutions allow retailers to present shoppers with the online equivalent of a well-merchandised end-cap featuring an active demonstration by a trained salesperson, and a full complement of sales collateral on every SKU.

In much the same way that wish lists, loyalty programs, one-click checkout,

online promotion codes, cross-sells, “also bought” selections and product reviews are now check list features for online retailers, engaging, rich-media product tours are ‘must-haves’ to attract shoppers and increase conversion. And in today’s multi-channel environment, the new shopper will search out engaging product information online, then head for the store with a decision in mind. Circuit City is an example of today’s forward-thinking retailers who recognize the importance of giving online shoppers the most compelling product presentation possible.

The impact of this content conversion was captured by a Coremetrics study of online shopping behavior. It showed that rich-media product tours boosted consumers’ online purchases by an average of 20 - 35%. This study measured completed purchases, not just add-to-carts, and tracked over 1 million shopping sessions.

Just as with traditional in-store merchandising, merchants and their suppliers must collaborate to take advantage of the new shopper behavior. Since retailers remain inherently closer to the shopper’s online experience than manufacturers, it behooves them to encourage their vendors to provide rich content through an aggregated source that can deliver the key criteria retailers need, such as:

- Engaging Content. Move beyond low-resolution JPEG images to the latest rich media such as Flash and 360 degree views. Include a full compliment of easily printable user guides, owners’ manuals and other materials to guide shoppers to the right product choice. Don’t settle for a “picture and a paragraph.”