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Tuesday 17 March 2009, 6:55 PM
Getting 'Close & Personal' Is Key To Online Retail
Research released today by Hybris, a commerce & communication software vendor, claims that taking a ‘one size fits all’ approach to retailing is no longer relevant in a highly competitive environment where the mass market has been replaced by increased fragmentation amongst consumers. It seems that providing a standardised retail offering to large numbers of people is no longer appropriate for consumers who are increasingly demanding a more tailored and individualised service.
According to the research, this is particularly true in the management of large product ranges where consumers only want to be offered products and services that are relevant and appropriate to them, as an ‘edited choice’, in order to benefit from a more personalised online shopping experience.
In its report, ‘Personalisation and Range Management’, Hybris points out that while online retailers are not exempt from this trend, Internet retailing has one major advantage over its physical retailing counterpart. As a virtual experience, it is far more capable of responding and changing to suit the individual needs of consumers. To harness this power, online retailers will need to understand the different groups of customers they serve and what they want from the online experience. They must be able to identify these customers when they log into a site and then present them with an experience tailored to their needs. Tailoring does not mean providing as many variations of the site as there are customers. It means building sites that are able to adapt slightly to the taste preferences of groups of consumers.
Internet retailing removes any restrictions on selling-space and logistics experienced in physical retailing, which means that it is much easier to carry an extensive range, but the report stresses that only a very small number of consumers choose websites simply because of the quantity of products for sale. Convenience, ease and speed of purchase are far more important features, as is separating product into ‘departments’ or ‘brands’. Online retailers do not necessarily have to stock less but they do need to be more careful about how those ranges are managed and how they are presented to the consumer.
Personalisation has a key part to play in online success, retailers should aim to highlight products that are most relevant to consumers as soon as they enter the site. The right product selection can be made by analysing demographics, understanding customer segmentation and by a thorough examination of purchasing history. Successful online range management does not necessarily mean limited choice, but it should absolutely be the most relevant. Less really is more.
Successful online retailing is all about delivering an excellent customer experience. Providing a personal service is possible for online retailers, but interactive Web sites that use the latest Web 2.0 technology and sophisticated ecommerce platforms that make it possible to offer an ‘edited choice’ for each customer, will be critical going forward.
Hybris has identified six key challenges that retailers must address if they are to get it right online and emerge from the current downturn primed for growth:
• Robustness
• Speed to market
• Personalisation
• Range management
• Communications
• Integration
According to the research, this is particularly true in the management of large product ranges where consumers only want to be offered products and services that are relevant and appropriate to them, as an ‘edited choice’, in order to benefit from a more personalised online shopping experience.
In its report, ‘Personalisation and Range Management’, Hybris points out that while online retailers are not exempt from this trend, Internet retailing has one major advantage over its physical retailing counterpart. As a virtual experience, it is far more capable of responding and changing to suit the individual needs of consumers. To harness this power, online retailers will need to understand the different groups of customers they serve and what they want from the online experience. They must be able to identify these customers when they log into a site and then present them with an experience tailored to their needs. Tailoring does not mean providing as many variations of the site as there are customers. It means building sites that are able to adapt slightly to the taste preferences of groups of consumers.
Internet retailing removes any restrictions on selling-space and logistics experienced in physical retailing, which means that it is much easier to carry an extensive range, but the report stresses that only a very small number of consumers choose websites simply because of the quantity of products for sale. Convenience, ease and speed of purchase are far more important features, as is separating product into ‘departments’ or ‘brands’. Online retailers do not necessarily have to stock less but they do need to be more careful about how those ranges are managed and how they are presented to the consumer.
Personalisation has a key part to play in online success, retailers should aim to highlight products that are most relevant to consumers as soon as they enter the site. The right product selection can be made by analysing demographics, understanding customer segmentation and by a thorough examination of purchasing history. Successful online range management does not necessarily mean limited choice, but it should absolutely be the most relevant. Less really is more.
Successful online retailing is all about delivering an excellent customer experience. Providing a personal service is possible for online retailers, but interactive Web sites that use the latest Web 2.0 technology and sophisticated ecommerce platforms that make it possible to offer an ‘edited choice’ for each customer, will be critical going forward.
Hybris has identified six key challenges that retailers must address if they are to get it right online and emerge from the current downturn primed for growth:
• Robustness
• Speed to market
• Personalisation
• Range management
• Communications
• Integration
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