This is an article I wrote for the symposium -"Internet Retail Vision 2010" organized by Wirefoot Consulting to be held on 28th Jan in Delhi.
Consumers’ decision-making process has considerably changed with the introduction of the Internet as an alternative channel for shopping. The new wave of consumerism coupled with increasing urbanization and burgeoning middle class with paradigm shifts in their demographic and psychographic dynamics have driven consumers frequently to use retail websites to search for product information and/or make a purchase of products. A report by Euro-monitor ratified the ever increasing importance of electronic retailing as an additional channel for shopping. The electronic retail growth of Indian market as estimated by Euro-monitor report stands close to 48% CAGR and in value term it is going to touch INR 27 billion(Rs 2700 crores) in 2010. The report also predicted that the contribution of internet retailing to non-store retailing is likely to be 46% this year. However, all these predictions have inherent assumptions which I feel do not reflect the reality. Amidst all the hype and hoopla about ecommerce, the reality is stark and hits straight onto your face – internet retailing has not yet taken off in India in a big way. Case in point: Out of 50 million online Indians, only 7 million have ever purchased stuff online. Here, I am not even considering the bigger issues that plague the ecommerce landscape in India. If one takes those into account the picture turns grimmer.
In the last few years, the belief that building Internet retail sites will automatically trigger customer patronage has been questioned and considered more a myth. This new medium of commerce has its own drawbacks such as reduced opportunities for sensory shopping, social shopping, face-to-face interactions with sales personnel, and the postponement of the consumption or enjoyment of tangible goods. The inherent limitations of the Internet have been compounded by poorly designed online storefronts, limited product selection, impersonal product descriptions, tedious checkout procedures, security lapses and privacy invasions. In this article, I would provide few tips to the online retailers which would help them bridge the ever increasing chasm between offline and online shopping experience.
1. Dynamics of online storefront - Few factors such as responsiveness of the websites, load time, navigability, interactivity, aesthetics and relevancy of search results play imperative roles in the complete “Online Shopping Experience”. Excitement and joy associated with shopping online because of attractive layouts and designs lay emphasis on the hedonic pleasures of a consumer which an etailer should definitely cash on.
2. Product views – To provide for an engaged shopping experience, all the products featured on the etailing site should have multiple product views, 360 degree views, views with clear dimensions and a provision to zoom in or out. In doing so, the etailer is reducing a user’s fears, uncertainties, doubts and dealbreakers (FUDDs). In the United States, companies such as Pixazza and LiquidPixels provide this kind of facility to a host of online retailers.
3. Product description - Most product descriptions are impersonal in nature. Hardly, they say anything about why someone should buy a product. Moreover, the descriptions don’t even try to create an ever-lasting bond by telling customers why they are going to love this product and how the product differs from the competitors’ substitutes.
Typical product description - Iceman Crewneck Sweater
The Iceman crewneck sweater is 100% Cashmoore® and great for casual or dressed-up occasions. It includes shark tooth detail at neck, color blocking on raglan sleeves and spandex binding at cuffs.
Personalized product description (HornyToad.com) - Iceman Crew Sweater
For the guy who cares but doesn’t want to work too hard to look good, the low-key Iceman crew has just enough spice in the sleeve stripes to inspire confidence without distraction. Guaranteed chill defying, the Iceman is comfortable, made from our gift-to-mankind, soft Cashmoore®. Easy-does-it details: shark’s tooth detail at crew neck, color blocking on raglan sleeves and spandex binding at cuffs.
4. Replicating offline shopping experience – An etailer should provide social shopping widgets for popular social networking sites such as Facebook or MySpace in order to supplant for offline social shopping experience. Technologies such as “Horizontal Sliders”, “Clickstream Tracking”, and “Proactive Chat Widgets” should be incorporated to replicate the personalized flavor of offline shopping experience. BoldChat.com - the company which pioneered the “Clickstream Tracking” technology - would be an apt mention in this regard.
5. Augmented reality – We all are aware that lack of tangibility is one of the main reasons for non popularity of online shopping. Inability to try a product (Touch-Feel-Try Experience) before buying acts as a barrier for some internet users. To that end, presence of an Interactive website facilitates two-way communication and evokes favorable effects on the overall consumer purchase decisions. Using technology such as “Augmented Reality”, a streamlined two-way communication could easily be established. A pertinent mention here would be a marketing agency called Zugara – It offers a webcam facilitated technology which enables the user to try her clothes online.
6. Security - It is the need of the hour for all e-tailers to adopt security measures and inculcate a sense of trust among online shoppers that data provided during online transactions would not be misused. Even a trivial thing such as the presence of a “lock sign” on the webpage evokes a sense of security.
7. Post transaction elements - Adequate attention needs to be paid towards customer service and distribution & logistics and these should be integrated seamlessly not only with the company’s existing website, but also with the company’s entire operations, online and offline. Importance should be paid on “Post-transaction” elements such as delivery schedules, warranty services, return and exchange policies, post-sales services and related technical support.
The etailers following these points religiously would certainly witness an increase in the customer conversion rate and a decrease in the customer acquisition cost. On a macro level, an adherence to the above-mentioned points would invariably facilitate the reduction of “skepticism of online retailing” to a large extent and bridge the increasing chasm between offline and online shopping experience.
Consumers’ decision-making process has considerably changed with the introduction of the Internet as an alternative channel for shopping. The new wave of consumerism coupled with increasing urbanization and burgeoning middle class with paradigm shifts in their demographic and psychographic dynamics have driven consumers frequently to use retail websites to search for product information and/or make a purchase of products. A report by Euro-monitor ratified the ever increasing importance of electronic retailing as an additional channel for shopping. The electronic retail growth of Indian market as estimated by Euro-monitor report stands close to 48% CAGR and in value term it is going to touch INR 27 billion(Rs 2700 crores) in 2010. The report also predicted that the contribution of internet retailing to non-store retailing is likely to be 46% this year. However, all these predictions have inherent assumptions which I feel do not reflect the reality. Amidst all the hype and hoopla about ecommerce, the reality is stark and hits straight onto your face – internet retailing has not yet taken off in India in a big way. Case in point: Out of 50 million online Indians, only 7 million have ever purchased stuff online. Here, I am not even considering the bigger issues that plague the ecommerce landscape in India. If one takes those into account the picture turns grimmer.
In the last few years, the belief that building Internet retail sites will automatically trigger customer patronage has been questioned and considered more a myth. This new medium of commerce has its own drawbacks such as reduced opportunities for sensory shopping, social shopping, face-to-face interactions with sales personnel, and the postponement of the consumption or enjoyment of tangible goods. The inherent limitations of the Internet have been compounded by poorly designed online storefronts, limited product selection, impersonal product descriptions, tedious checkout procedures, security lapses and privacy invasions. In this article, I would provide few tips to the online retailers which would help them bridge the ever increasing chasm between offline and online shopping experience.
1. Dynamics of online storefront - Few factors such as responsiveness of the websites, load time, navigability, interactivity, aesthetics and relevancy of search results play imperative roles in the complete “Online Shopping Experience”. Excitement and joy associated with shopping online because of attractive layouts and designs lay emphasis on the hedonic pleasures of a consumer which an etailer should definitely cash on.
2. Product views – To provide for an engaged shopping experience, all the products featured on the etailing site should have multiple product views, 360 degree views, views with clear dimensions and a provision to zoom in or out. In doing so, the etailer is reducing a user’s fears, uncertainties, doubts and dealbreakers (FUDDs). In the United States, companies such as Pixazza and LiquidPixels provide this kind of facility to a host of online retailers.
3. Product description - Most product descriptions are impersonal in nature. Hardly, they say anything about why someone should buy a product. Moreover, the descriptions don’t even try to create an ever-lasting bond by telling customers why they are going to love this product and how the product differs from the competitors’ substitutes.
Typical product description - Iceman Crewneck Sweater
The Iceman crewneck sweater is 100% Cashmoore® and great for casual or dressed-up occasions. It includes shark tooth detail at neck, color blocking on raglan sleeves and spandex binding at cuffs.
Personalized product description (HornyToad.com) - Iceman Crew Sweater
For the guy who cares but doesn’t want to work too hard to look good, the low-key Iceman crew has just enough spice in the sleeve stripes to inspire confidence without distraction. Guaranteed chill defying, the Iceman is comfortable, made from our gift-to-mankind, soft Cashmoore®. Easy-does-it details: shark’s tooth detail at crew neck, color blocking on raglan sleeves and spandex binding at cuffs.
4. Replicating offline shopping experience – An etailer should provide social shopping widgets for popular social networking sites such as Facebook or MySpace in order to supplant for offline social shopping experience. Technologies such as “Horizontal Sliders”, “Clickstream Tracking”, and “Proactive Chat Widgets” should be incorporated to replicate the personalized flavor of offline shopping experience. BoldChat.com - the company which pioneered the “Clickstream Tracking” technology - would be an apt mention in this regard.
5. Augmented reality – We all are aware that lack of tangibility is one of the main reasons for non popularity of online shopping. Inability to try a product (Touch-Feel-Try Experience) before buying acts as a barrier for some internet users. To that end, presence of an Interactive website facilitates two-way communication and evokes favorable effects on the overall consumer purchase decisions. Using technology such as “Augmented Reality”, a streamlined two-way communication could easily be established. A pertinent mention here would be a marketing agency called Zugara – It offers a webcam facilitated technology which enables the user to try her clothes online.
6. Security - It is the need of the hour for all e-tailers to adopt security measures and inculcate a sense of trust among online shoppers that data provided during online transactions would not be misused. Even a trivial thing such as the presence of a “lock sign” on the webpage evokes a sense of security.
7. Post transaction elements - Adequate attention needs to be paid towards customer service and distribution & logistics and these should be integrated seamlessly not only with the company’s existing website, but also with the company’s entire operations, online and offline. Importance should be paid on “Post-transaction” elements such as delivery schedules, warranty services, return and exchange policies, post-sales services and related technical support.
The etailers following these points religiously would certainly witness an increase in the customer conversion rate and a decrease in the customer acquisition cost. On a macro level, an adherence to the above-mentioned points would invariably facilitate the reduction of “skepticism of online retailing” to a large extent and bridge the increasing chasm between offline and online shopping experience.
Your blog focussing on mcommerce are really impressive.
ReplyDelete-- Srikant Rawat, Head Channel development at Reasoning Global eApplications
Excellent article. What's your take on the high vs low design approaches for an eCommerce website in India? Rediff, for instance has moved to a low design approach of late but many others have not. It'd be interesting to see a matrix that one can refer to while making a decision to use a high or a low design approach.
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