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The Mom & Pop Store: A Book Review, a Personal Perspective, and 5 Lessons for E-Commerce

Sally McKenzie — Mon, 09 Nov 2009 13:23:17 -0500

I'm just back from a 2 week vacation where finally, for the first time in nearly a year, I had time to read books. While I promised myself ahead of time that those books would not be related to e-commerce or retail, one of them was, and I am thankful that I allowed myself to break the "no working on vacation" rule.

Robert Spector's book " The Mom & Pop Store: How the Unsung Heroes of the American Economy Are Surviving and Thriving" is well worth reading by anyone in e-commerce, retail, marketing or customer care. While the book centers on the challenges and triumphs of small local brick and mortar businesses, there are lessons to be gleaned for anyone who interacts with customers in any channel (especially e-commerce, where personal connections with customers are unfortunately rare).

Drawing from his own personal experience working in his family's "Mom & Pop" meat business, Spector explores the history and perspectives of dozens of small merchants from grocers to jewelers to booksellers to restaurateurs. They range from century old legacy family businesses to 1st generation entrepreneurial ventures.

These business owners are passionate, innovative, resilient, service oriented and deeply involved in their communities. No strangers to change, many of them are operating successful e-commerce stores in addition to their core brick and mortar businesses.

This book resonated for a personal reason. While I was away, I periodically checked the news. The headlines of the recession continued. Last week's big news was the unemployment rate, now topping 10%. The last time that happened was in the early 1980's, which coincided with my graduation from college. Broke and discouraged by the lack of "real" jobs for new college graduates, I took a part time retail job in what could easily be described as a "Mom & Pop" store. Without expecting to, I became a merchant. I checked in the new merchandise. I decorated the store windows. I helped customers (many I knew by name) and rang up sales. And most surprisingly, despite the low wage, sore feet and weekend hours, I loved it. That "Mom & Pop" experience was the foundation of my retail (and later e-commerce) career, and it taught me life long lessons about customers, communities and the importance of humility, whether you're selling in a store or selling online.

As I read Robert Spector's book, I realized how much these successful Mom & Pop stores have in common with one another, and how much the e-commerce community can learn from the guiding principles of successful Mom & Pops. Here are my 5 favorites:

1) The store is uniquely yours: I've written in the past about the importance of a compelling and unique value proposition. Mom & Pops continually face stiff competition from national big box stores and e-commerce giants that under cut them on price and over do them on selection. The smart Mom & Pops have done their homework and found their niche; the thing that they can offer that no one else can. Read the story of a small urban grocer who had the nerve to get rid of Coke and Pepsi in order to carry an exhaustive selection of old fashioned bottled soda pops. He's no longer slugging it out on price with big grocery chains, he's the long-tail merchant of soda pop and his customers love it. Read about a tiny ice cream shop in Philly that still sells ice cream from a 5 generations old family recipe that defies the science of frozen desserts and keeps customers coming back for more. And read about the small hardware store in Washington, D.C. that's just blocks away from a Home Depot and takes care of customers with a well edited assortment and over the top service. Whether it's a unique product, a unique experience or a level of service that can't be matched, these retailers (like good e-commerce merchants) have something special that is theirs alone.

2) It's personal: E-commerce sites take pride in offering algorithmically driven personalized product recommendations. Great, but is there a human touch to the site, to the service? Read about the jeweler who visits a long time customer in the hospital. Her terminal illness has caused her fingers to swell, so he gently cuts the ring off of her finger and has it re-sized so that she can wear it during her final days. Read about the florist who reaches out to customers who have lost a loved one with a bouquet and a hand written note after the funeral and visitations are over. On a brighter note, I recall buying swimwear from Landsend.com last year and receiving a friendly phone call the day after the package arrived to see if I needed to exchange a size. Sure, e-commerce thrives on automation, but a true human touch at the right time is something your customers won't forget.

3) It's the community, stupid: In the world of e-commerce, social networking and community are things we treat as somewhat novel and new. Ask any successful Mom & Pop store and they'll tell you that the community is the essential foundation of their business and always has been. Your reputation is all you've got. Of course people talk about you. When people shop, they connect with others, keep on top of community news and gossip and exchange information about who's got great products, who's having a sale, who sold them lousy meat last week. Mom & Pops donate to local causes, sponsor Little League teams, hang banners out to congratulate high school graduates, take up collections for a local business or family in need. They do it not as a means of promotion, but as a way of life. They know that the community will be what pulls them through their own tough times. Read Spector's example of a florist who lost everything in a fire and was back in business within 6 hours, thanks to the outpouring of support from the community (including supplies and resources from competing florists!). Read the example of the grocery owner who was shot in a robbery. The people of the community, including other local businesses, took up collections for the injured man and helped the family get back on their feet.

4) Invent, then re-invent. Staying in business is about change. Read about the ethnic grocer who introduces new items as the neighborhood shifts from European immigrants to Hispanic immigrants. Read about a long standing neighborhood bakery that now focuses on weekend business and smaller cakes and bread loaves for smaller families. Read about an upscale London butcher who now carries premium quality seasonal game since his neighborhood has become increasingly affluent. Your audience might change, their needs and tastes might change, but you can still be meaningful. You have to be.

5) Overcome adversity. Big adversity: Not every business survives recessions, fires, floods, death and destruction, but those that do teach us valuable lessons. Read the chapter about Hurricane Katrina and the passionate bookstore owner who managed to get the store re-opened within 6 weeks after the disaster (it took Barnes & Noble 6 months to re-open). Read about the beloved New Jersey deli that burned to the ground, only to re-open 9 months later to lines of customers wrapped around the block. Many of the businesses in this book have been around for nearly a century and have endured much more than the e-commerce industry's "bubble" or the current recession. They've taken the long view and weathered the inevitable hard times with dignity and perseverance.

Of course, I highly recommend reading "The Mom & Pop Store" in a beach chair with the sun on your back and a drink in your hand. If that's not in the cards, I still recommend that you read it. Every e-commerce leader has an inner-merchant, and this book should help you get in touch with yours.

For the record, the rest of the books I read on vacation don't have anything to do with e-commerce or retail. Unless of course you have a lot of nasty office politics to deal with, in which case I recommend Roderick Graham's "The Life of Mary: Queen of Scots: An Accidental Tragedy". Nothing quite like imprisonment, poisonings and be-headings to help you keep things in perspective.

Webinar Replay - More for Manufacturers. What is the Meaning of Your E-commerce Life?

Sally McKenzie — Wed, 02 Sep 2009 14:15:54 -0400

If you missed last week's webinar with Elastic Path, From Manufacturer to Retailer: Expanding Your Brand Through E-commerce, you can view a recording of the webinar here

You can also check out my guest blog post on getelastic.com highlighting a portion of the webinar: Getting Your Product Content Ready for the Consumer

Still hungry?

A critical decision manufacturers face when establishing their e-commerce presence is "What is the meaning of life?", or more practically, "What is our site's role in e-commerce?" The obvious answers of "we want to sell more product" and "we want to build our brand" immediately surface, but the subtleties of how you choose to do that can be much more interesting and complex.

While manufacturer websites are cited as one of the first places shoppers go to get product information (source: Forrester Research), these sites, while growing, aren't getting a lion's share of the online sales. See the below chart from e-Marketer:

It may be that the commerce capabilities on these sites are limited. It may be that consumers simply want to research on manufacturer sites, then go to the retailer (bricks or online) to buy.

Whatever the case, manufacturers can win by determining where they can add value to the shopping experience and how they can best facilitate the transaction, even if it's on a retail partner's site instead of their own.

Here are a few note able examples from the webinar showing distinct approaches to handling the transaction:

First, online powerhouse Nike. Great site, well executed shopping process with extensive imagery and product information. This is all about Nike capturing the transaction and customer relationship themselves, and they do it well. Note that access to retail partners is hardly noticeable at the bottom of the page and the store locator is utilitarian at best, no indication of whether or not those stores even carry the product I'm looking at.

Contrast the approach above with Patagonia, who offers a choice of seamless options to purchase, either on their own site, or at a retail partner. They let me know that the item I'm looking at is available from a variety of partners, and take me right to the appropriate product page, with identical product descriptions to assure me that I am indeed getting the item I want.

Callaway Golf offers a good shopping and transactive experience, but then passes the order to a nearby retail partner for fulfillment - a nice way of servicing the customer and adding value for retail partners:

Samsung does the ultimate in combining great decision tools for both product selection and retail selection. The shopping tool helps me choose the dimensions, price and specifications of my TV. Then, I can see what retailers have the item in stock and even do a price comparison.

Whether it's one of the above or somewhere in between, the options for taking or transferring the transaction should be carefully considered, factoring in:

Your brand's pervasiveness online and offline - how easy is it for customers to buy your product somewhere else?
The size/scale and capabilities of your retail partners
Your relationship with your retail partners
Your own capacity/infrastructure for handling fulfillment, service and direct customer relationships
Your brand and business objectives: is it about building a direct customer relationship? Or helping your retail partners sell more of your product? Or both?

Above all, think creatively: where can you add unique value in the customers research and purchase process? And, where can you bring value to your retail partners?

Webinar: From Manufacturer to Retailer: Expanding Your Brand Online

Sally McKenzie — Mon, 24 Aug 2009 00:07:33 -0400

Just a quick note that I'll be doing a webinar on Tuesday, August 25 at 9am Pacific, noon Eastern with the great people at Elastic Path. We'll be covering the unique opportunties and challenges manufacturers face when they venture into e-commerce, and the 5 things critical to manufacturer e-commerce success.

10 Reasons Why Some Manufacturers Still Ponder Selling Online

Sally McKenzie — Thu, 25 Jun 2009 14:09:34 -0400

Earlier this month, I read a blog post from E-consultancy titled "Why Not Selling Online Can Damage Your Brand". The piece covers many of the key reasons why e-commerce has become a must have for brands, and why not selling online can be more than a missed opportunity; it can actually damage the brand.

As a long time veteran and advocate of e-commerce, I agree with all of the points in the article. Yet, having worked with some notable manufacturer brands who have yet to take the plunge into online selling, I can offer that for many of these companies, the decision to sell online is not the "no brainer" that it might appear.

Manufacturers who sell online don't just need to become web merchants, they need to become retailers, and that presents some interesting and often sticky strategic issues.

Lack of in-house retail or e-commerce talent. This means that manufacturers may not know what questions to ask or understand the complexity of what they are getting into. It also means that there may not be a logical choice for a leader of the strategy, planning and execution of an e-commerce initiative.
Concern about disruption to retail relationships. This typically tops the list of issues, as manufacturers attempt to walk the delicate line between building their brand through direct to consumer sales and cannibalizing their retail partners. Every manufacturer selling online has faced it, and there are many flavors of potential answers to striking the balance.
Product offering and pricing decisions can be mired with complexity. Manufacturers' product lines many not be "retail ready", meaning they have been assorted for the retail buyer, not the consumer. Thus, there are key decisions to be made around the online offer. The whole assortment? An edited version? Exclusive products? Clearance items? New test products? And then there's pricing. There's a need to offer the consumer a competitive value, yet the need to be sensitive to retail partner margins and not undercut.
Product information and assets are not e-commerce ready. Manufacturers have a unique opportunity to showcase their products online, and consumers will likely have an expectation that the best and most extensive product information will come from the manufacturer's website. Yet, many manufacturers find that their product images and copy are geared towards product spec manuals for retail buyers vs. online shoppers. Re-purposing and enhancing product assets for the web can be a significant undertaking.
Fulfillment is not set up for single piece consumer orders. Separate processes and systems may need to be set up to effectively manage consumer shipments and returns. Ditto for new packaging. Outsourcing many need to be investigated and considered. Similarly, managing inventory for e-commerce can be complex if the manufacturer's systems are not set up to buy and reserve inventory for the online store, or allow for easy access to overstocks.
Customer service takes on a whole new role. As with fulfillment, discreet processes, systems and people will be needed for e-commerce. Whether or not to turn service over to an outsource partner can be a critical strategic decision. Build the team and infrastructure and reap the benefits of direct communication with your customers? Or hire experts with the people and systems in place to get you up and running quickly?
Marketing activities have been focused on B2B relationships and broad consumer branding. Digital direct response marketing may not be part of the company's DNA, so understanding search marketing, email, affiliate relationships, retail promotions, social media and the whole balance between traffic and conversion becomes a new skill set need.
E-commerce ecosystem components need attention. While the search for an e-commerce platform will likely be part of the manufacturer's path to online selling, equally important is the suite of supporting systems (many of them possibly in "legacy" condition) that will need upgrading or readying for integration. Order management, CRM, warehouse systems, the list goes on.
Resources, Resources, Resources (People, Money, Time). All of the above is a lot of work, and everyone has day jobs. Not to mention, this sounds like it could be a significant investment. Maybe we're just too slammed to deal with this now?
Lack of a deliberate process to work through #s 1-9. It's easy to get confused and overwhelmed by the decisions and intimidated by the potential costs, especially when you're busy running your core business. A host of manufacturers have made the transition to direct online selling successfully and profitably. If you have not yet taken the plunge, it's probably high time that you start the investigation process to wrestle these issues to the ground. None of them are insurmountable, but they do require some disciplined thought and decision making. Get some help from a knowledgeable, experienced expert to help you identify the issues and opportunties, and engage in a process to work through the answers. Your brand deserves it, and your prospective consumer customers are asking for it.

If We're so Smart About Multi-Channel Retail, Why Are Some Store Locators so Dumb?

Sally McKenzie — Tue, 09 Jun 2009 21:06:11 -0400

Getting multi-channel retailing done well is not easy. Good news for shoppers and retailers, a lot of companies are getting very good at it. Buy online, pick up at the store. Buy online, return to the store. Order from the web kiosk in the store. Check store inventory online. Read web customer reviews in the store on your mobile phone. There's no limit to the way customers use channels and devices to save time and get the information they need, and they are hopping across channels and devices like never before. A couple of quick stats, in case you need convincing:

69% of shoppers research products online before going to a store (Source: Business Week survey 2008)
With the economic downturn, 53% of shoppers say they use the internet more frequently to research products and prices (Source: NCR survey of U.S. consumers)

There's one multi-channel essential that's not that hard to execute, but can easily be ignored by e-commerce teams: the store locator. Done well, a store locator can be a great resource to help a shopper before she heads out to buy...it might even get her excited about the shopping trip.

Here's a quick glance at the store locators of a few well known multi-channel brands, showing the best, and unfortunately the boring worst of what store locators can be.

REI: They've been a leader in multi-channel execution since the early days of e-commerce, and their approach comes through loud and clear with their online store locator. Shown below, I can get all kinds of information about upcoming events, the product categories carried in the store, and I can even set an appointment to get personalized shopping help. Love the GPS coordinates in addition to the directions, too.

Nike: While Nike's e-commerce site is frequently cited at the top of critics' lists as the pinnacle of balancing brand, engagement and utility, their store locator appears to be a long forgotten element. After a forced zip code entry, you get in return little more than a weak Yellow Pages listing. With an e-commerce site that's so vibrant and exciting, this makes me want to skip the store. Surely that's not the intent.

Apple: It's a bit of an effort to find the store locator on Apple's site (deep in the footer), but as you might expect, the info and experience deliver above and beyond once you get there. At the Apple locator, I can register for classes, schedule an appointment with a Genius, reserve a new item before it arrives in the store, even watch videos of past store events. I can sign up for email from my store to keep updated on upcoming events too.

Best Buy: This retailer has set many examples of the importance of involving store team members in just about everything. The Best Buy store locator shows promise but could be so much more. I love the personal note from the store manager and the ask for customer feedback, but the events area is blank (of course it should be coded so that the events header does not appear if there's nothing there) and I don't get the sense that there's much going on here.

Whole Foods: Ok, so this site does not qualify as an e-commerce site, but it's a great example of what a store locator can be when you let the employees take ownership. Note the store calendar, ability to download a PDF of the store's specials, get an RSS feed of events, and the Twitter feed of the store manager's Tweets!

Let's face it. I've lived in Seattle for 25 years and I already know where all of the stores near me are located. But there's something cool going on in just about all of these stores every week that I usually don't know about.

If you're not convinced that making your store locator worth visiting is worth the time, here are a few more stats you might want to consider:

46% of shoppers say that they want to receive product information, coupons, promotions and store sales information online. (Source: NCR survey of U.S. consumers)

26% of shoppers say the weak economy is causing them to make more frequent shopping trips to take advantage of sales and promotions (Source: NCR survey of U.S. consumers)

Film Review: In 'We Live in Public', an Internet Star of the Past Predicts a Disturbing Future

Sally McKenzie — Tue, 26 May 2009 22:42:23 -0400

Ever since there has been an internet, there has been a dark side to the internet. But, I'm a technology optimist. While some were warning early online shoppers of fraud and privacy concerns, I embraced e-commerce with enthusiasm, buying whatever I could online. While many feared that the internet would ruin personal relationships and de-humanize our social structure, I viewed digital communication as a new and effective way to connect with family, friends and and customers.

Not that I don't appreciate the whistle blowers. Some of them not only warn of the very real dangers of technology, they help us see what the future could be if we don't act responsibly and intelligently. Maybe that's why I liked this movie so much.

As regular readers of this column know, I am a passionate supporter of the Seattle International Film Festival, even though it takes place at just the time of year that the sun starts to appear in Seattle. Every year for the past several years, there has been at least one film in the festival focused on retail, e-commerce or internet technologies, and I always look forward to seeing and writing about the films. Even when they paint a picture of the internet's dark side like this one did.

This year's selection, We Live in Public, is thought provoking and well constructed. If you are intrigued by the dot com boom/bust, the fascinating people at the center of it and social media's impact on our lives (good and bad), don't miss this film.

We Live in Public is a documentary centered on a social outcast and internet pioneer that you've probably never heard of: Josh Harris. Those of you who've been around a while might recognize him as one of the founders of Jupiter Communications, and later Pseudo.com, a strange early days pre-cursor to YouTube, Facebook and other forms of internet broadcasting. Harris became a rich man at a young age in the dot com boom, but what happened after Jupiter and Pseudo is the real story.

The majority of the film focuses on two bizarre and sometimes disturbing events in Harris' life:

a) a social experiment called Quiet, which took place in 1999, in which Harris and dozens of fellow "artists" lived in an underground bunker commune while dozens of cameras recorded their every act, and

b) a subsequent experiment in which Harris and his girlfriend filled their New York apartment with over 30 cameras and streamed every intimate detail of their daily life over the internet 24X7 while observers chatted and commented on their every move. (Hardly shocking in today's world, but keep in mind, this was well before Facebook and YouTube.) No shock, the relationship crumbled on camera and ultimately Harris' fortune was gone too.

Footage in the movie spans 10 years of Harris' life and boils over 5,000 hours of film into a tight, fast paced 90 minutes. What you get is an intensely compressed view of Harris that will leave you wondering whether he's a visionary genius, a drama queen or a disturbed social misfit. You also get a glimpse of how Harris viewed the future, and how very frighteningly close to right he was.

Regardless of how you feel about Harris in the end, it is hard to watch this movie without seeing eerie parallels to the behaviors we see regularly on social sites today, a decade after Harris' online broadcasts of his life. As we watch Harris and his girlfriend withdraw from one another in favor of their collective online audience, we see Harris' self worth increasingly defined by the number of people watching him as he goes about the mundane activities of living. Anyone out there ever felt the addictive rush of Facebook updates or proudly watched their number of Twitter followers ratchet into the triple digits? If so, you'll squirm in your seat.

In the end, as I watched Josh disappear from the online world that he so passionately helped to build (he's now living in Ethiopia of all places, in just about as unplugged place as possible), I was reminded of the "too much of a good thing" cliche'. I wished that he had been able to find a balanced, productive way to channel what he had learned in order to keep going. But then, I also wondered if he had chosen to quit and go to Ethiopia for dramatic effect, knowing that the cameras and voyeurs would eventually find him. Like I said, you're never quite sure if you're watching a genius or a drama queen.

I'm still a technology optimist. I still love the internet, e-commerce and social media. But the 90 minute trip to the dark side was an entertaining reminder of how intelligence and practicality need to prevail. We can't let the bad guys win.

If you want to read more, there's a great interview with the director here.

Keeping up with Your Customers: 5 Fundamentals for Tackling the Multi-Channel Monster

Sally McKenzie — Mon, 27 Apr 2009 19:31:54 -0400

This morning, two very good articles about multi-channel retailing popped up from Twitterers that I follow. With way too much to read already, I hesitated to click but I am glad that I did. This is a topic I have long been passionate about; and with the changing dynamics of customer behavior in a recession and mobile moving like a high speed train, more and more retailers are becoming equally passionate about aligning channels and devices to capture demand. First, a bit about the two articles and then my take.

Both articles are well worth reading.

The first, in How to Fit Into Your Customers' Multi-Channel Lives, Peter Merholz of HBR does a great job of setting the historical stage for multi-channel services. Long before e-commerce or the Internet, Kodak helped customers and built loyal relationships by breaking up the process of taking pictures an developing film, letting each step be managed by the people and places best suited to the task. Apple followed suit with the iPod decades later by separating the music purchase and management from listening. Good multi-channel food for thought for any retailer or service provider.

The second, a new blog post at X-Channel Retail provides a good overview of recent multi-channel studies from Aberdeen and Retail Systems Research. You'll find plenty of stats indicating that multi-channel initiatives are alive and well in most top-tier retail organizations, with improved visibility to inventory across channels and coordinated marketing efforts high on the priority list.

It's hard to argue that investing and executing well on a multi-channel strategy is a smart thing to do. But achieving the elusive "seamless experience" is easier said than done. With mobile adoption on a fast and furious pace, the need for retailers to orchestrate the research, shopping and buying experience not only across channels but devices (and devices within channels) means that execution will be more complex than ever. While many retailers are doing it well, many are simply not prepared for the cultural, technical or organizational challenges that come with tackling the multi-channel monster. Having spent a good portion of my career and consulting life in the multi-channel world, here are my top 5 fundamentals for taming the beast:

1. Focus on the unique strengths and uses of each channel and device. Multi-channel is about more than having the website available in your store or on a mobile phone. It's about each channel bringing unique value to the customers' shopping and buying experience along the way. Think about the Sears curbside pickup program; customers receive a text message when their online purchase is ready for pickup at the store curb. The cell phone didn't process the transaction, but made it a more convenient experience.

2. The decision to integrate across channels and devices must be deliberate. Most retailers today are multi-channel in at least some sense. Most have some level of channel synergy, but often that synergy has happened organically or accidentally. Despite the clear customer demand for multi-channel convenience, many retailers organize and incent team members to behave like silo channel operators. According to the Shop.org 2008 SORO Report, 85% of multi-channel retailers say that their website's highest priority is to drive online sales and profit. If that's the case, multi-channel initiatives are unlikely to be at the top of the priority list, with online conversion drivers taking precedent. If the decision is to integrate (and it should be), giving it the appropriate priority and resources will leapfrog internal silos and organizational boundaries.

3. The technology essentials must be defined and planned. Those in the know on multi-channel will tell you that transparency to inventory and pricing across channels, centralization of customer data and flexible access to product content are key. None of these are small things, so a clear road map will need to be created based on priorities and anticipated ROI.

4. Multi-channel integration requires clear ownership and teamwork. An executive mandate to integrate is critical, but so is "on the ground" leadership. Often, multi-channel initiatives lack a clear owner or a dedicated cross-functional team to focus on execution. According to the SORO study, only 37% of companies surveyed reported having a cross-functional team to design and roll out cross-channel features. Consistent accountability for multi-channel programs vs. treating them as "side projects" outside of normal business will go a long way. You'll need a great knowledge source from each channel, someone from customer care, someone from IT and likely others, depending on the initiative.

5. Objectives and incentives must be aligned around customer scenario success. Teams tasked with multi-channel issues need to map the "end to end" customer experience, carefully planning how each channel or device will help the customer achieve their goals. If performance metrics are focused on customer success, the right decisions will follow. Chances are someone on your e-commerce team is skilled in scenario design: tap into them for multi-channel experience design.

Finally, pace yourself and don't expect overnight success. Most multi-channel initiatives by their nature are hard to do well. Be sure roll outs are carefully planned and tested before wide release, and have mechanisms in place to gather customer and employee feedback early. You're going to have a long relationship with the multi-channel monster.

E-commerce History as Teacher: The Brands Have Changed, but the Lesson Lives On

Sally McKenzie — Thu, 26 Mar 2009 11:14:13 -0400

I don't have a hoarding problem. But when it comes to e-commerce, I admit I am a pack rat. When I read a report or an article about selling online that hits the mark I tend to save it and refer to it multiple times over multiple years. Yes, this industry moves fast and changes frequently, so sometimes dumpster diving through old files is good for little more than amusement (about a month ago I found a box full of mouse pads that e-commerce companies used to send me as "gifts" when I ordered online in the mid 90's....almost all of the companies have since flamed out). But many times, I come across something that I'm really glad I kept.

Earlier this week, I re-surfaced a Forrester report from (get this) 2000. I saved it because I was working at Eddie Bauer at the time and was unbelievably proud of this statement from the report:

"Style-obsessed retailers like Williams-Sonoma and Banana Republic will continue to jump into online sales with sites that deliver flash over substance, exciting and then disappointing potential customers. Unable to resist force-fitting their offline branding campaigns into their Web boutiques, they will fall further and further behind retailers like Eddie Bauer that understand that the core of online branding is serving user needs"

Ok, so that was a long time ago. Williams-Sonoma, Banana Republic and Eddie Bauerall now have great e-commere websites that are a true pleasure to shop and reflect and enhance their brands. But it wasn't always that way. And for a good many brands today, it's still not that way. Top tier retailers and manufacturers frequently struggle with how to make the best of the e-commerce channel and strike the delicate balance between immersing visitors in the richness of the brand while still creating a focused shopping experience that results in a transaction.

Recently, I did an in-depth shopping audit across e-commerce sites at 15 brands (all recognizable names). It became clear early in the audit that this issue of balance between brand building and a useful commerce experience is alive and kicking, a good 9 years after the Forrester article first hit my desk. Only the names have changed. Here's a quick summary of some of the most common mis-steps:

Long, slow, heavy flash intros (yes, they are still out there!)
Links to my account, service , search and other critical functions are hidden in favor of gorgeous photography
Navigational categories that reflects the retailer's nomenclature instead of the customer's language (i.e. The Market Street Collection)
Search functionality that brings up null results for common terms like "suede shoes" or "hiking boots" (search was broken on just about all sites I visited!)
The ability to sort the category thumbnail page alphabetically by product name (who cares?) instead of basics like color, size, price.
Avoidance of customer reviews and ratings due to fear of a negative review (see my previous post on this one!)
Customer service, return policies and shipping information buried deep on a "FAQ" page instead of surfaced at critical decision points in the shopping process. Most service pages did not list call center hours or set expectation about when email inquiries would be answered.
Points of real value, like free shipping offers not surfaced until late in the shopping process instead of on a home or category page.
Product pages that "show" but don't "tell": great photos but little or no copy that answers real consumer questions or highlights benefits.

10. Overuse of icons and symbols for technical features that are hard to decipher and de-code.

So, how does this happen? Obviously any one of the above situations does not reflect well on any brand. Yet they occurred frequently across numerous e-commerce sites for top brands during my shops. I think it happens for a number of reasons:

Executives and employees at many companies rarely look past the home page of their e-commerce sites. Approvals and creative reviews are limited to visual appeal and adherence to a style guide vs. the delivery of critical shopping functionality.

Agencies hired to lead or assist with site design are hired for their experience with the brand's other media or for their ability to grasp the brand's visual essence vs. their expertise in e-commerce interaction design.

Brand managers and creative directors shy away from advocating helpful customer tools like reviews and sort/filter tools for fear of becoming to "sales" vs. "experience" focused.

Brand terminology (The Market Street Collection, etc.) works for store signage and print media (and even in e-commerce promotional space), but fails as navigational
nomenclature, something rarely thought about during product development.

Many companies under-invest in copy writing and content development specifically focused on web user goals.

I think Forrester said it best back in 2000, but I'll say it again. Enhancing your brand's image online means paying attention to more than the visual integrity. The nature of the e-commerce channel requires that we pay equal (at least) attention to the customer actions the site must deliver. Otherwise, the brand experience is eroded.

While many e-commerce sites have clearly figured this out and found the delicate balance between form and function, it's clear from my recent experience that as an industry, we're still seeking guidance and answers in this critical area. Good thing I'm a pack rat. But I don't have a hoarding problem! (Anyone want to buy a sock puppet mouse pad?)

From B2C to B2B and Back: 5 Tips B2B Sites Can Take From E-commerce

Sally McKenzie — Wed, 18 Feb 2009 21:41:43 -0500

Back in January, Brian Walker posted a short piece on some of they key cultural differences between B2B and B2C organizations, and how those cultural differences drive differing approaches to web site requirements and technologies.

Over the last year, I have seen an increase in the number of B2B clients seeking help with their web strategy, and I've had the opportunity to work with quite a few of them. While initially it might seem odd that a retail/e-commerce consultant can offer insights on how to make a B2B website work, I have found that there are many strategic concepts rooted in retail and e-commerce that can catapult B2B websites from the bland brochure-wear of the '90's into vibrant and effective marketing and selling tools.

First, it's important to acknowledge that B2B is a different animal. Sure, it's selling stuff to customers just like e-commerce, but the customers and the way they buy are dramatically different. The critical differences that need to be considered are:

The selling cycle is usually longer: Depending on the product, it may take weeks, months or longer from the initial research to the purchase.
The decision process may cross from online to offline numerous times: from initial web search to phone conversation to more web research to a sales call, etc. The information gathering and decision making takes many twists and turns and touches.
There may be many people involved: And, those people may float in and out of the decision process over time, gathering different pieces of information along the way.
Products and services (and their prices) are more likely to be negotiated and tailored to the client: this means that zeroing in on specifically what products and services to cover on the website may be a very complex undertaking.

These differences cause many B2B clients to ask "is my website even worth the investment?" I think the answer is absolutely yes. If you need convincing, download the Enquiro B2B Survey that was done in 2007 (it's free). Ok, it's a couple of years old, but I suspect that the findings have become even more pronounced. The entire study is worth reading, but most notably, across the entire B2B purchase cycle, from awareness through purchase, company websites and search engines are the most used resource by B2B buyers. That means if you're a B2B company and your website is bad (and, I must say, many of them are), you're likely missing significant opportunity.

So, here are my top 5 e-commerce concepts that translate well in making great B2B websites:

What's on the menu? E-commerce sites are typically very good at telling you what they sell. There's a defined product assortment, usually categorized. Not so with many B2B sites. In fact, many B2B companies don't think about their business in clean categories the way retailers do. Spend some time on this ; how do you expect customer to understand what you offer? What do they call it? If a lot of your phone calls start with "Do you do____?" , start there, and develop a framework for your products.
Show it off and make it move: Ask any top tier e-commerce leader and they'll tell you that video and interactivity, done well, can pump up the sales volume. Yet, most B2B sites are a sea of stasis. A nice video about your operation or a demo of how your product works can make it real and bring credibility to your company. Ditto for professional images and larger & multiple views (if applicable).
The power of proof: Customer reviews have become one of the key decision tools for customers on e-commerce sites. While there may not be a direct translation to your B2B site, especially if products are built to order or highly customized, testimonials can be a great substitute. Well placed testimonials from high profile clients can help the customer turn the corner and pick up the phone. Client lists and case studies are also great proof points. If you're worried about your competitors seeing who you do business with, get over it. They probably already know, and they're already calling them. Holding back info that your customer needs because you're afraid of a competitor is not likely to help your business. He who is transparent (within reason) and can prove (not just talk about) greatness will likely win.
Clear and ever-present call to action: On e-commerce sites this is the "add to cart" or "buy now", of course. Not so clear for B2B, particularly if the transaction takes place offline. So think about it. What do you want visitors to do? Most likely, you want them to call you or email you, or request a quote on a job. Sounds obvious, but I am amazed at how many B2B sites have the contact information buried in the "contact us" section vs. making it readily available on every page. Your customer can have that "moment of truth" on any page. Have the number there when they're ready to pick up the phone.
Tracking the transaction path: That phone number we just talked about that you're going to put on every page? Make it a track-able phone number so that you can measure how well your website is achieving it's goal of driving people to contact you. Bonus points if you add call recording as well, so that you can go back, listen to calls and coach your sales people on how to handle these important inbound leads. Be sure salespeople know that the phone number is on every page and that sending those calls to voice-mail is not an option. Tie phone activity to your web analytics to see the full picture of visit through "conversion", even if you define conversion differently.

The good news here is that in many industries, the B2B bar for websites is set very low. A few simple, and likely not too expensive changes can have you towering over your competitors and helping your customers get the information they need. And don't forget to track the results. Then, you won't have to trust me when I tell you that the investment is worth it. You'll know.

Why CRM Matters More Than Ever in Tough Economic Times

Sally McKenzie — Fri, 13 Feb 2009 21:54:58 -0500

Everywhere I go, someone is trying to save me money. The grocery store. The department store. Restaurants. And of course e-commerce sites. It's everywhere: coupons, signs screaming "sale", huge percentages off. It's like every retailer in the world is dolling out virtual dollar bills.

No question, we're in a nasty economic situation and no question, it's taking more incentive than ever to get the register to ring. As a retailer and as someone who has spent the better part of her life trying to crack the code on getting customers to buy, it pains me to no end to see these genuinely well-intentioned efforts by retailers executed in a way that is costly and ineffective in achieving the desired result. Here's my latest example:

There's a spa/salon not far from my house. It's fantastic and I've been going there for years. Actually, as I've aged, I find that I go there more frequently as there's a lot more work that needs to be done. Brows, nails, toes, hair, the occasional facial when the wrinkles get too hard to hide. You get the point.

I am a regular, to say the least. Every 3-4 weeks for haircuts and brow waxing. Typically every 4-6 weeks for pedicures and periodically, a manicure for an important meeting or occasion (too much typing to get them on a more regular basis). While the economy is tough, and I, like everyone else have found things to trim back on, my hair and nails will not stop growing. So it's doubtful that my spending habits at this salon will change much in the months or years ahead.

This salon has my appointment and purchase history for the last however many years. A lot of years. They can probably predict when I need an appointment better than I can. The technicians all know me by name and are always pleasant to deal with. We have a nice relationship.

So, here's the kicker. I have right now, sitting in front of me on my desk, the following:

A letter from my hairdresser offering me $10 off my next haircut
A gift card from a nail technician offering me $15 off my next service combo of $65 or more
5 (count them) $5 off coupons good on my next service or retail purchase now thru April.

So, what's going to happen? I'll use all of them. But, as you've probably figured out, I would have made appointments and paid for services whether or not I had this pile of discounts. I have no doubt that business for this salon is probably not what it was a year ago (hardly anyone's is, after all). But, they are now making their business worse by spraying discounts far and wide, giving many of them to customers like me, who show no slowdown in their purchase activity. They'll be making less money on me without the benefit of any extra business.

I know, implementing and executing well on CRM is not an easy task, but if this one anecdotal example is any indication, the payoff would certainly be there. What if the salon only mailed coupons to those customers that they hadn't seen in 6 months? Or those customers whose spend over a certain period of time had slowed by a certain amount? The really painful thing here is that they HAVE the data. I know. Every time I call for an appointment, the service rep diligently types the info into a computer and verifies my contact and credit card information that they have on file.

Managing customers is about more than having a nice relationship, it's about having a smart and profitable relationship. In these times, can we afford any less?