PERSPECTIVES

Category: ‘Case Studies’







Using Online Content to Strengthen eCommerce

Posted on March 24, 2011 at 10:06 am

With the launch of the new kate spade new york site, many media outlets are focusing on the “Shop or Play” design of the site, where approximately half of the site is content-based with minimal focus on the eCommerce storefront. Visitors can interact with the kate spade new york brand to find out what inspires their designers, what initiatives the brand is currently working on, and even read and comment on the kate spade new york Tumblr blog.

The shift away from a full-fledged eCommerce site toward a split of content and eCommerce is an interesting one. Depending on the industry, the concept of visiting a site specifically to purchase is something some brands are shying away from as these are singular, isolated experiences. Now brands are looking to attract frequent visitors with new content, in hopes that over time the content will retain visitors and lead to an online purchase.

So what are the benefits of content on an eCommerce site, be it a blog, video, or editorial photography? Here are a few…

  • Content builds a deeper connection with brands and consumers – With seemingly everyone selling online now, brands should consider attempting to take the brand-consumer connection to a new level by engaging with consumers to understand the way they think and utilize their feedback for future design and content efforts. By building connections with customers content can increase brand loyalty and brands are reaching not only a specific customer but the people their customers know.
  • Increased likelihood of organic search results – It’s no secret the more unique content you create on your site, be it an eCommerce site or a personal blog, the higher the probability that someone will discover your site via organic search. By opening avenues and creating content not focused around eCommerce, brands are able to engage visitors without being judged on price or other factors. This helps in educating new visitors who have never heard of the brand, what the brand sells, and what the brand stands for.
  • Opens doors for interactive and social elements – Having content and an audience that is used to interacting with a brand’s content allows the introduction of new and different content to usually be met with a more positive and favorable reception. This allows for brands to experiment and try new things such as social contests and social sharing initiatives without receiving much, if any, pushback from their audience (granted the initiatives are carried out correctly).
  • Fresh, valuable content draws eyes without promotion – Most people have their “sites” that they visit frequently, be it for news, discussion, or entertainment. People visit these sites because they provide value to their everyday lives in some way, shape or form. While this may be more difficult to obtain with an eCommerce site than a news portal, this status can be aided tremendously by incorporating fresh, valuable content on a frequent basis to keep visitors coming back to see what’s new.

While there may be no direct correlation between generating content and sales, much in the same way there is little to no direct correlation between social media and sales, there are certainly positive metrics for brand awareness, brand engagement, and brand preference/loyalty which should not be ignored.  As brands move forward with site re-designs they may look at the kate spade new york site as an example of how content is not being put on the back-burner of eCommerce sites anymore, but has become a focal point of eCommerce initiatives that, in this situation, has been greeted warmly by professionals and consumers alike.

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The Evolution and Success of Proactive Live Chat

Posted on June 22, 2010 at 9:58 am

Although live chat is certainly not a new service offered by eCommerce solution providers, most people often think of what is called “reactive” live chat, where the customer must contact a chat agent themselves if they have a question about a product, often navigating to the customer support section of an eCommerce storefront in order to seek out a chat agent.

In an effort to allow customers to spend more time shopping instead of seeking help, the live chat industry is evolving. Chat agents are contacting customers while they are shopping to answer whatever questions they may have with hopes to improve conversion rates on specific products. This is called “proactive” live chat and it is used to help nudge the undecided customer to make a purchase.

According to a Forrester report conducted in March entitled “Retailers Plan To Expand Online Customer Service Channels in 2010”, only 5% of current online retail professionals responded that they currently offer live proactive IM or click-to-chat services. However, 21% of the online retail professionals are planning to offer this service within the next 12 months.

An example of a proactive live chat session from an agent perspective

PFSweb has experienced great success using proactive live chat with several of its clients. In order to successfully implement proactive live chat, PFSweb…

  • Works with client to define categories and events that make sense for proactive chat. These include high-margin products, products that typically require questions, zero search results, or customers who have stayed in the shopping cart for an extended period of time
  • Provides extensive training for call center agents on how to handle product-related questions
  • Provides extensive training of product categories and how to handle certain events such as zero search results
  • Works with the client to measure the flow and quality of the chat experience to the customer
  • Works with the client to determine which product categories provide the best ROI for using chat agents
  • Provides extensive reporting to client on performance metrics

What it Means – Case Study

As a result of the efforts of the proactive live chat initiative, one of our clients was able to realize outstanding increases in conversion and AOV (average order value).

To date, the client has seen a 40% increase in conversion for customers that are in the shopping cart and chose to chat with a PFSweb agent and has also seen a 10% increase in AOV for customers that have chosen to chat. PFSweb and the client have also learned what product categories are conducive to chat and provide the largest increase in sales. As a result of this success, the client has tripled the size of their proactive chat staff over a twelve month period. The cost of the agents is completely funded by the increase in sales and conversions making the department a revenue generating entity compared to what traditionally would have been viewed as a cost of doing business.

In conclusion, the perception of live chat has changed from a customer support mechanism to a service which can be leveraged to increase sales, conversion rates, and AOV. Looking back at the Forrester report, it appears more eCommerce professionals are realizing this.

What are your thoughts on proactive live chat, regardless of whether or not your company currently invests in the service?

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