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Zendor Provides Top Ten Tips For Online Retail Success

Press Release

By: Zendor
2 September 2004

The online retail industry is booming, with online spending growing 36.1% in 2003, which is almost twice the rate of 2002. The number of online shoppers in the UK is estimated to double in the next 5 years from 10 million to nearly 20 million (Verdict on e-Retail 2004). There now has never been a better time for retailers to consider moving their proposition online, if they have not done so already. Zendor, the leading provider of total distance shopping solutions, provides the following expert advice to retailers on how to make a success of online selling:

1. Develop a realistic business plan - Fundamental to online success is a good, realistic business plan which answers the question ‘why am I doing this?’. It is important to understand the strategic fit of online selling within the rest of the business and be clear about overall objectives, and how they are going to be measured. For one retailer the objective may simply be to generate online revenue, for another improved customer service, for another maintaining market share.

2. Choose simplicity of the website - It is well accepted that simplicity of websites should be the goal for retailers transacting with customers online. Experimenting with the latest website features is less important than ensuring that customers can buy in as few clicks as possible. Do not be distracted by technical wizardry or gizmos. Ask instead whether changes to the website will increase sales, improve the customer journey through the website or meet a legal requirement. If the change does not meet these simple benefits, reject it.

3. Involve customers in the design of the website - Ensure that the website is easy to use and understand, by involving customers in the design process. By conducting a ‘usability lab’ (a user testing programme which assesses how customers interact with the website), customers can pick out the flaws in their online experience. Eliminating these flaws will reduce the number of customer who leave the site dissatisfied, which will, in turn, increase the number of orders taken through the site and average order values.

4. Choose the right technology - Not all retailers will benefit from implementing the same software solutions and fulfilment systems and so choosing the right technology for the size and needs of the business is vital for online success. For example, one retailer may find that a ‘till’ system, which provides a basic standalone Internet presence is adequate for their needs whereas another retailer may require an integrated solution that links into other areas of the retailer’s business including back office systems.

5. Use online marketing tools - Take a proactive approach with customers by using online marketing tools that recommend products that a customer is likely to be interested in and predict when a customer is most likely to buy. And you do not have to be an ‘Amazon’ with an Amazon-sized budget to afford the technology. Software solutions tool kits can be bought relatively inexpensively and incorporated into the website.

6. Make the most of customer data - An online shopping channel provides extensive data about customers and their shopping habits. By segmenting this data (grouping it into ‘types’), customers can be targeted more effectively in terms of timing and personalisation of marketing activities. Improvements to the content, personalisation and timing of marketing material will ensure increased loyalty and maximum return on investment.

7. Be aware of legal obligations - There are numerous regulations surrounding retailers trading online. For instance, the new Electronic Communications Regulations 2003 mean that a business can now only send marketing emails or text messages to a person that has been given the opportunity to ‘opt out’ or has proactively ‘opted in’ to receive marketing emails/SMS from that business. Retailers also need to be aware that the Disability Discrimination Act (1995) is pushing online retailers to make ‘reasonable adjustments’ to their websites so that they are accessible to disabled people (primarily the visually impaired). Companies who do not make ‘reasonable adjustments’ will be liable for prosecution.

8. Integrate the online channel - When developing an online channel, as an extension of your retail business, it is imperative that it is fully integrated into the rest of the business systems including store, catalogue etc, so that customers receive the same experience and message irrespective of the shopping channel they use. If the online channel is treated in isolation from the rest of the business, customers will receive confused, mixed messages and this will ultimately damage the brand.

9. Consider an end-to-end solution - When developing an online strategy, the full customer experience needs to be considered- from initial order through to delivery and, if necessary, returns. If one stage of the process provides poor customer service, the retailer’s entire proposition and brand will be detrimentally affected.

10. Establish the right relationships - If the right skills, knowledge and resources to ensure a successful and integrated approach to online retail do not exist in-house, establishing relationships with the right partners is vital. Third-party distance shopping professionals know how to make e-commerce a success and have the skills, expertise and infrastructure to do so.