DIGITAL RIVER GLOBAL COMMERCE

Strategies to support customercentricity and reducechannel conflict

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Evolve from channel-centric to customer-centricBrands need to create an omnichannel experience that keeps customerscoming back to their various sales channels. Shoppers are moreinformed, more selective and more demanding than ever—and they arewilling to spend the time and effort to get what they are looking for.While it can be said that many people equate online shopping with savingmoney, a large proportion of online shoppers think of online shopping asa crucial information gathering part of their purchase journey. In fact, 30percent of online shoppers spend 30+ minutes researching beforemaking a purchasing decision.

Customers want a great experience with your brand and have highexpectations of brand sites—it’s up to you to deliver what they arelooking for and build the brand loyalty you want to achieve. The best wayto optimize a cohesive experience for your customers is through adedicated direct-to-consumer brand store. It is in that environment thatyou can control the relationship with your customers, offer value addedcontent and resources, and market your brand exactly the way youwant. Your site should have rich content, your full product assortmentand be the go-to source for your product information.

 

Optimize every step of the customer journeyProgression from discovery to purchase should be seamless. Deliveringa disjointed experience can affect a buyers purchasing decision. Whenthey are on your online brand store, immerse shoppers in your brandexperience with value-added content, information and opportunities.Keep your customers engaged throughout the purchasing process–introduce promotions and product updates, real-time product andpricing updates, and automated catalog integration and management.

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Customers gravitate tobusinesses with anomnichannelapproach with a variety ofpurchasing options.

Purchase online or in-storeCheck inventory in real-timeOrder in-store for homedeliveryStore individual customerpreferencesCreate a tailored experience

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Create the right customer experience1. Regularly engage your customers and drive them to your brandwebstore—run interactive marketing campaigns and deliver meaningfulcontent to build brand loyalty.

2. Reserve special product SKUs for your brand store—unique colors,styles and limited offer products.

3. Segment your audience and offer a personalized experience—execute a fully integrated experience-driven marketing approachthat will traverse all touchpoints.

4. Localize the experience for your global online store locales—fullytranslated with local content, focused on most popular merchandise forthe region, regionally-appropriate pricing, offering preferred localpayment methods and localized marketing campaigns.

5. Provide a forum for product ratings and reviews on your brand storeto build trust and brand accessibility—shoppers are more likely topurchase when backed by the confidence of other satisfied buyers.

6. Provide online chat for quick and easy access to customer service—customers want to have their questions answered promptly (or you maylose the sale).

7. Target specific user audiences with Global Commerce Private Stores—create a unique shopping experience for certain target audiences withtailored merchandising.

 

Have an experience-driven marketingapproachIf the first phase in the evolution of the customer relationshipis messaging and media, the future is product research, selection andpayment. For the educated consumer, it is important to provide plentyof engaging, insightful information that evokes emotion, and guides theshopper to their end purchasing conclusion. Leverage personalpreference data to offer an experience that will have a positive overalleffect on both your retail and direct-to-consumer business. Omnichannelsolutions make your business function more like a complex ecosystemrather than a set of burdensome but necessary decisions. Customerswill choose their path to you—it’s up to you to offer them the right accessto and experience with your brand.

Strategies for your D2Cstore

Offer a full assortment ofproducts,including exclusiveproducts (unique model orcolor) with competitivepricing for your brand storeDifferentiate by adding valuethat enhances theexperienceSell at MSRP “everyday”pricing that will notundercut the channelsMatch direct channel withbroadly visible in-marketpromotionsTarget pilots to strategicsegments (i.e. students)

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Find the right use for Channel Lead Management(CLM)Channel Lead Management (CLM) and a “Where to Buy” feature on yourstore is a good way to offer your customers the purchasing options theywant—not to mention help manage channel conflict by stimulating yourretail channel to generate leads for your retail partners. If your onlinestore sells out of a certain item, CLM can provide accurate, real-timeupdates about where it is in stock—a smart way to show customers thatthey can always find the information they need on your site.

However, it is important to understand some potential negative impactswhen customers are directed away from your site and be cognizant ofwhen and where you utilize Channel Lead Management (CLM).

Customers who are sent to retailers to complete their purchase convert poorly.Customers convert 3-5% better on brand stores versus retail sites.Traffic sent to retailer sites to purchase actually purchase a competitor orunrelated product over 50% of the time.

CLM can offer the tools needed to help you track shoppers after they leftyour site and collect data about their purchasing behavior. Where didthey go? Did they buy? What did they buy? Having this information candramatically affect your overall online strategy—and your revenue.

Real-time inventory: Access online inventory information and automatically replace“out of stock” messages with preferred reseller links.Minimize channel conflict: List your trusted retail partners and their productinformation. You control rankings and what data to show, such as pricing, shippingand handling, rebates, stock status, a buy button and more.Close the loop: Track shoppers after they have left your site and collect data aboutpurchasing behavior. Where did they go? What did they buy? Knowing thisinformation can dramatically affect your overall online and offline strategy.Geographical heat maps: View breakdown of purchasing information and trends bygeographical region.Mobile: Mobile optimization ensures that customers can find where to buy yourproduct while on the move.Online data, offline sales: Allow customers to use a store locator to find brick-and-mortar stores that carry your products.Competitive market analysis: Compare your product pricing with competitiveproducts. Review pricing, price history, ratings and reviews, stock status and manageand enforce minimum advertised price (MAP) violations.Analytics: Measure campaign effectiveness and return on investment (ROI) across allchannels.Track public and private pricing tiers: Protect your brand and product value bytightly monitoring how partners set prices relative to your MAP.

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Avoid channel conflict—fuel your channel, don’tcompete with them. 

Use both the retail channeland your brand site to testpricing and productpromotions for thoroughanalysisFocus sales of your topproduct SKUs through yourretail partners—protecttheir inventory and pricingKeep their employeesinformed about yourproducts and your brand topof mindStrategically support Whereto Buy functionality for retailpartners

digitalriver.com©2016 Digital River, Inc. | Digital River is a registered trademark of

Digital River, Inc.

1. Source:. https://selz.com/blog/40-online-shopping-ecommerce-statistics-know/2. Source: Compiled 2015 data from Digital River client webstore performance, PriceSpider and client data (confidential).

About Digital RiverDigital River, the revenue growth experts in globalcloud commerce, helps companies of all sizes buildand manage their online businesses, maximize onlinerevenue, reduce costs and minimize risk. Founded in1994, the company is headquartered in Minneapolis,with offices across the United States, Asia andEurope.

Unlock the value of Digital Riverto grow your business.E: info@digitalriver.comUS: +1 800 598 7450UK: +44 (0) 845 603 5070TW: + 886 2 8173 1711W: digitalriver.com/contact-us

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Digital River, Inc.