ecommerce in the downturn
DESCRIPTION
Consumers are adjusting how they perceive and interact with ecommerce sites due to the changing economy. Accordingly, companies online need to ensure that they're properly positioned to capture the attention (and money) of these customers. We discuss 17 ways to make sure your ecommerce site is ready for the downturn.TRANSCRIPT
eCommerce in the DownturnHow design can create opportunityJanuary 2009 • Bill Westerman, Principal
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We are a strategic design and research firm focused on web, mobile, desktop,and consumer electronics applications
We help companies with complex, strategic innovation projects: reinventingexisting digital products, inventing entirely new digital products, and bridging thegap between physical products and the digital world
Consumer and business-to-business behaviors Ecommerce and social commerce Social media and communities Internationalization and multi-cultural experiences Multiplatform products
Our clients range from the Fortune 500 to technology startupsFounded 2005, with headquarters in Santa Clara, California, USA
Who is Create with Context?
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Make it resonate
Background
Make it work
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Background
Over the course of the last year, we’ve done hundreds ofin-home, in-depth customer research visits across the US
We’ve had the chance to speak in detail with peopleabout their lives within the context of digital design …
… and we’ve seen first-hand how the changing economy isaffecting the online purchasing behaviors of the American consumer
Goals andunderlyingmotivations
Behaviors Attitudesand beliefs
Wantsand desires
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Background
Hispanic
Asian
Black
White US-born
Immigrant
Urban
Suburban
Rural
Chicago
AOL user
MSNloyalist
SF Area
20's
30's
40's
50's
Bookkeeper
Stay-at-home mom
Poet
Ex-convict
Human rightsactivist
Social worker
Dentist
Physician Public TV
GreenAccountant
Actress
Single mom
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Background
We’ve found that the changing economy is affectingonline purchasing behaviors in two main ways:
We’ll start out by exploring how to makeecommerce resonate with customers in this economy
Make it workTraditionalecommerce concerns,such as usability andtrust, continue to beimportant factors inecommerce success
Make it resonateBut importantly,financial worries arealso changing howcustomers perceiveand interact withcompanies online
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Make it resonate
Background and perspective
Make it work
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Consumption is becoming more logic-drivenPeople are looking for things they require
Not as open to ‘lifestyle’ impulse buys
Tone down the big glossy frivolous picturesInstead, make it more transactional, more logicalProvide messaging about savings and longevity
Transition from emotional to logical
Aspirational contentdoesn’t resonate aswell with customers
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Emphasize ‘good’ purchases
People are concerned about their jobs and their futures,but they’re willing to spend money on things that they
see as an “investment” in themselves,something that can make them more marketable
Highlight those aspects of your product that cater to this“investment” mentality, rather than improving their quality of life,
making them happier, making them more efficient, etc.
Implies that buying thisproduct can “empower”you to perform better
in your job
Doesn’t mention keyselling points: value,learning anywhere,getting things done
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Very large discounts fall down a slippery slopefrom ‘great bargain’ to ‘something must be wrong’
Consumers don’t want to own something froma vendor they fear will go out of business
Don’t make sales feel desperate - rather, helpconsumers feel like you’ve always been doing the right thing:
watching costs, being economical, being their advocate
Don’t seem desperate
“60% off?Something must
be wrong.”
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But make sure to provide bargains
At the same time, people are increasingly lookingfor bargains, discounts, and deals
And often the first place they go on ecommerce sites(and sometimes the only place) is to look for these bargains
Make it easy for consumers to find your bargains
However, keep in mind that having too many simultaneous deals(for example, free shipping + buy one get one free + percentage discount)
can be overwhelming from a usability perspective
Highlighted deals
Clearance browser
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Difficult times mean customersʼ mindset shiftsMake sure your product responds accordingly
Banking, for example, is suddenly a source of stress:people are sad, mad, worried, and scared - all very strong emotions
Recognize customersʼ emotions and be supportiveProvide tools, forums, and reassurance to address their issues
Consider the customer’s mindset
These don’t conveysolidity and stability;they show happiness
and family values
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Be up-front with everything
Trust in big companies is fading; companies can seemirresponsible, not trustworthy, and can disappear overnight
People think companies are trying to ̒ trickʼ them:added taxes, shipping and handling, batteries not included, …,
which has a visceral negative effect
To combat this, make relevant information easy to find,state costs and extras up front
+ shipping
Clear return policy In stock Free returns
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Source:newnetworks.com
Be up-front with everything
And when companies do seem to be hiding things,people are going to get upset and tell others
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Shipping feels like an extra “tax”, a frivolous charge thatcustomers are willing to pay for the convenience of online shopping
But in a down economy, this can be the final detractor
Provide free shipping, even if you have to reduce discounts to compensate
If you do charge for shipping, be up-front about costsWhen people find shipping is more expensive than expected
after entering their information, they get upset and leave
Free shipping is big. Really.
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Promote online shopping as thrifty
One of the original promises of ecommerce was that loweroverhead resulted in lower prices; however, this message has
largely been lost over the years
Promote online shopping as the low-cost channelProvide web-only deals
Communicate to customers that you’re able to provide lowerpricing on your website due to lower overhead than physical stores
Airlines have focusedon driving traffic to their
own sites through‘lowest fares online’ “You’ll always get the
lowest … price,guaranteed.”
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Embrace coupons, sales, and email
Especially today, people are looking for dealsSaving money, getting value for their spend
Provide easy-to-find coupons and discountsLet people share deals they find with their friends
Reward repeat customers: give them a personal discount code (People like to think they’re getting something that others aren’t)
And you’d be surprised how many people use unsolicitedemail as a way to find new online stores and deals
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In the downturn, people are subdued, concerned, pensive;they’re watching their wallets, tentative, and worried
Bold, happy-go-lucky design no longer resonatesVisual design needs to ‘tone it down’ to match;
it should be calming and logical, not jarring or bold
However, feeling yoga-like or ‘zen’ can seem frivolousbecause time spent on relaxation is money wasted
Tone down the visuals
Calm andstraightforward
Possibly tooyoga-like,
too inspirational
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Establish new guiding principles
An early step in the design process is to describethe feeling of the thing you are trying to create
Often, this is captured through two lists:what we want to be, and what we donʼt
Typically, these closely mirror the brand positioning;however, in a downturn they are more subdued:
YesStableSecure
ResponsibleRationalCalmingRelaxing
StraightforwardLogical
Not nowLifestyle-centric
OpulentFrivolous
Over-the-topVibrantExciting
ImpulsiveExtra
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Make it resonate
Background and perspective
Make it work
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Make it work
While functionality and usability has always beenimportant, it becomes essential during the downturn
People used to be willing to put up with a bit of confusion andinconvenience in their quest to make a purchase
But today, consumers are skittish, thinking about every dollarthey spend; the decision to make the purchase is hard enough,
especially if the product is optional in their lives
When the buy impulse comes, companies need to haverock-solid functionality and usability
Anything that gets in the customer’s way is enoughto break them out of the impulse mindset and let them
think “wait, I don’t really need to buy this”
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Don’t give a reason to give up
It can take very little for the customer to give upEven minor glitches in usability or slightly confusing task flows
through the site, can break the flow and lose the sale
Server issuecauses page to only
partially load
Error messagedoesn’t “pop”, lookslike other non-error
text on the page
Error fields aren’thighlighted; people
aren’t always willing togo searching for them
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Product forward, UI back
Consumers come to ecommerce sites topurchase things; everything else should be secondary
The experience isn’t about the brand, the logo, the message, thesplash screen, the store, or the fancy interface - it’s about the product
The user interface is simply a frame for the product
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Product forward, UI back
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Engages the customer,encourages browsing
and serendipitouspurchases
Product photos arelarge and plentiful -making it easy tobrowse and buy
Product forward, UI back
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Product forward, UI back
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Lots of navigation, butlittle product to capture
the attention
Product forward, UI back
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Keep people in the purchase funnel
While shopping, makeit as easy as possibleto find (and bump into)
more product
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But once they hit thecheckout, remove all
distractions fromcompleting the process
Keep people in the purchase funnel
In the past, the checkout process was a common placeto present the user with other products to purchase
However, in a down economy, we want to ensure that peoplemake it all the way through the funnel to checkout,
by removing distractions from the process
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Keep people in the purchase funnel
Notice that all thechrome is gone,
leaving only things thatprogress the purchase
Product navigation hasbeen replaced by aprogress indicator
Open-ended ‘browse’navigation is replaced
with clear, specificinstructions
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Keep people in the purchase funnel
Like the previous site,this one also provides
various options fornavigation
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Keep people in the purchase funnel
But they remain visibleduring checkout,
distracting customersfrom completing the
purchase
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Customer is required toprovide email address
to continue
Customer can buywithout registering,and register later if
they want
Don’t require registration
In customer visits, we often find that mandatory registrationcauses customers to drop off and never complete the purchase,
especially if the person isnʼt sure theyʼll use the site again
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Cross-sell and up-sell after checkout
It is often recommended that companies put cross-sell and up-sell opportunities into the purchase
process flow in order to increase basket size before checkout
However, in todayʼs economy, this can derail the purchase process;one may think “wow, maybe I should be buying the better one”, or
“I really should get the accessory kit; maybe I̓ ll hold off until I can afford both”
Instead, move cross-sell and up-sell to be immediately after checkout;allow customer to instantly ʻupgradeʼ their existing order
Frame it as a reward: “thank you for your order - wenow have a special discount for you - would you like to add
this to your purchase as well?”
Find product Add to cart CheckoutPresentcross-selland up-sell
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Use the confirmation page to drive signup
Now that the purchase is complete,attract customers with additional deals
More nowCross-sell and up-sell
More laterRegister with the site,sign up for email alerts
for deals; send them thecross-sell and upsell
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17 rules of thumb for ecommerce in the downturn
Make it resonateTransition from emotional to logicalEmphasize 'good' purchasesDon't seem desperateBut make sure to provide bargainsConsider the customer's mindsetBe up-front with everythingFree shipping is big. Really.Promote online shopping as thriftyEmbrace coupons, sales, and emailTone down the visualsEstablish new guiding principles
Make it workDon't give a reason to give upProduct forward, UI backKeep people in the purchase funnelDon't require registrationCross-sell and up-sell after checkoutUse the confirmation page to drive signup
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Our proven process provides a clear path from research to design, drawing oncustomer insights to generate things that people will want and use
For further information or to receive periodic reportssuch as this one, please [email protected]
For new business inquiries, please contactBill Westerman, [email protected] +1 408 834 7601 ext 24
DesignDeliver keydesigncomponentsand helpensure userfocus duringdevelopment
ConceptingRender ideasinto tangibleconcepts foruser testingand funding
IdeationGeneratedozens ofideas andselect thosethat are mostcompelling
ResearchUnderstandthe customerand businesscontexts
StructureDefine thebusiness needand structurethe project
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Websites and products mentioned in this report are shown as examples, and their inclusion does not necessarily indicate that these companies have been clients of Create with Context.Images and other materials incorporated into this document may be copyrighted by their original owner, and are included within under the doctrine of “Fair Use”.