January 19, 2012
By the ZippyCart Content Team
January is always a great time for merchants to plan their strategy for the coming year, so it makes sense that they would want to gain some insight as to what type of trends could impact their business in 2012. We recently had the opportunity to discuss some of these trends with Senior Vice President of Marketing for Shopatron, Mark Grondin, and asked him some questions about eCommerce in 2012.
What ecommerce trends do you see being most important for merchants in 2012?
Broadly, the impact of the web on how people shop is really going to take hold in 2012. Retailers are going to see the web impact all sales—not just online, but in-store and catalog as well. Now people are going online to research products, compare pricing, read reviews, share information and even find retail locations. It’s old-fashioned to think merchants can compete without a solid eCommerce strategy. And with the growth in mobile browsing and shopping, a pervasive and comprehensive web presence is even more critical to merchants. Mobile traffic to Shopatron brand websites increased from 6.5% to 12.2% of visits over the course of 2011, and is expected to grow to 18% – 20% in 2012.
Merchants need to work toward expanding and integrating their sales channels. This is a key topic of our recent whitepaper and webinar, which target how the web will change the way brands and retailers do business in 2012. It is imperative that merchants focus on presenting a well-rounded, convenient and united front across all channels to build consumer confidence and produce more sales overall. Focusing on just one channel is going to result in lost sales.
Any other trends to pay attention to?
We see strong indications from retailers that they will move away from brands that sell aggressively online. As eCommerce plays a more prominent role in sales, retailers are revolting against competition from their supplier brands that are supposed to be working with them, not against them. In a 2009 survey of Shopatron retailers, 51% of respondents said they would reduce or cease buying from brands that decide to sell online direct to consumers. That number went up to 64% of retailers in the same survey of Shopatron retailers in 2011. Brands will need to find a way to integrate their online sales with their retail partners, or else suffer a reduction in sales in their core sales channel.
Where do you see in-store pick up going in 2012? Do you think more businesses will adopt this into their strategy?
The number of merchants offering in-store pickup is going to continue to grow in 2012. In-store pickup will become another customer expectation, much like once rare features like free shipping or PayPal. For consumers, it’s often the preferred delivery method based on convenience, in-store support options and reduced shipping fees. For the retailer, it’s an opportunity to draw more shoppers into their store for add-on sales. For the brand, it lets them serve their customers how they want to be served. It’s a win-win for all.
The emergence of federal online tax legislation will also drive growth for in-store pickup. A universal eCommerce tax will reduce the price incentive to buy online from out-of-state retailers, giving local brick-and-mortar retailers an even playing field. As a result, merchants that can pair an online purchase with the convenience of local in-store pickup are going to capture more sales. Shoppers are no longer going to have to choose between convenience and a “no-sales-tax” online discount.
And big retailers like Walmart, Ace Hardware, Toys “R” Us and Home Depot did not launch in-store pickup solely for customer convenience. Early reports by Walmart noted that 60% of orders picked up in store resulted in additional sales at the store. Another report by Internet Retailer revealed that of the 73% of Ace Hardware’s online orders that were fulfilled through in-store pickup, 33% purchased additional merchandise.
At Shopatron, we have hundreds of brands that now offer in-store pickup through their retail channel; in some cases in-store pickup is the optimal delivery channel for their online orders. For example, Alpine uses local dealers who also can handle installation and Raleigh uses local bike shops in order to have new bikes properly assembled and configured.
“The Shopatron service adds a new dimension to Alpine’s retail strategy,” said Mike Anderson, Assistant VP of Sales for Alpine Electronics of America, Inc. “The ship-to-store model offers the convenience of an online shopping experience, while providing consumers with the in-person customer service and installation expertise that can only be delivered by our authorized Alpine retailers.”
What tips/advice do you have for merchants in January? What types of things should they be doing to prepare for the rest of the year?
Merchants are going to want to establish continuity between all sales and marketing channels in 2012. There have been growing pains, with merchants trying to keep up with constant evolution of technologies. It’s going to be critical to refine initial efforts into something more elegant.
That means integrating consistent messaging and pricing to customers across all channels; from your website, your retail stores, and your customer call center. It also means having all of those channels open to begin with. If a customer’s search for you online, on their mobile phone, or on Facebook leads to a dead end, they can (and will) easily find another store that accommodates their query.
Do you think merchants will put a bigger emphasis on customer service in 2012?
I think customer service, convenience and simplicity will become more significant factors in retail buying. Merchants need to be at the top of search engine rankings, provide a secure and easy-to-navigate shopping experience, and offer delivery options that make life easier for their customers.
Merchants should focus on their unique value proposition. When online tax legislation settles in, competition is going to get even more intense. When prices are equal, convenience and service will be the deciding factor for shoppers.
Brick and mortar retailers should leverage their place in the local community to strengthen relationships and market their personal service. Then they can support those physical locations with an online presence that allows local customers the convenience of searching, browsing and even shopping online.
What marketing techniques for 2012 do you recommend to merchants wanting to drive more traffic to their online store?
Every day there are tons of companies, platforms and websites giving online merchants new ways to reach out to shoppers. Some of them are great; some are unproven. But it’s important not to get caught up in all of it. Start with the proven standbys and make sure you are doing them well—email marketing, search engine optimization (SEO), pay-per-click (PPC) advertising, affiliate marketing, press relations and social media.
If merchants are still on the fence about social marketing, now’s the time to jump in. The two-way conversations with customers provided by Facebook and Twitter are becoming invaluable. Not only do these channels foster customer loyalty, they provide insights into shopper preferences and behavior you would normally pay an arm and a leg for. No other platform allows you to geographically and behaviorally target and personalize your marketing the way Facebook does.
Another trend to watch is location-based mobile marketing—also another reason to make sure you have continuity between marketing channels. Being able to send product or promotional alerts to customers when they are near one of your retail locations could become very powerful as marketers refine what works and shoppers get more comfortable with letting this type of marketing in.
And lastly, don’t forget about your packaging and in-store merchandising. One of the many benefits of integrating your online channel with your retail partners is that it opens up more marketing opportunities. If your retailers are fulfilling your online sales, they will be happy to help you promote your website in their store This will allow you to reach more shoppers and expose those shoppers to your whole product line, not just what is on the shelf in front of them.
About Mark Grondin:
Mark has over 15 years of experience in eCommerce, web and mobile technology, having provided eCommerce consulting to organizations like the German Stock Exchange, Swissair and Johnson Outdoors, and managing web agency relationships with Hewlett-Packard, Disney, and Apple. He is currently Senior Vice President of Marketing for Shopatron, responsible for business development, PR, demand generation and outbound sales for the #1 retail-integrated eCommerce solution in the world.
Nick was born and raised in California, but has been working the dot com scene in Seattle for many years. He co-founded ZippyCart back in 2009, and now works here full-time. Nick wears many hats at ZippyCart, including producing content for our Ecommerce News blog. Nick loves photography and the outdoors, so when not working on ZippyCart you can find him out and about in Seattle.
