Archive for the 'Merchandising' tag
April 1st, 2010 — Business, DealerNews, E-Commerce
The idea for this month’s column came to me last year when I was out doing some Christmas shopping. I didn’t have a specific item in mind, but I did have a general idea. Now this is a store that I don’t normally do a lot of shopping in so I’m sure when I walked through the door I had a little of that “deer in the headlights” look. Fortunately this store was staffed with knowledgeable and helpful staff and I think even more importantly, the products were organized and presented in a manner that made it, if not enjoyable, at least pleasant to shop in.
One thing that’s pretty obvious from looking through those stacks of catalogs on your parts counter is that we are in an industry with an insane number of products that our customers can choose from. While a small percentage of the hard-core enthusiasts know exactly what they want (you know the type.. The ones that have the distributor catalog memorized and come in with reams of printouts from the forums) most people need some help figuring out what they need or even more importantly what they don’t know they need.
Unlike in your physical store where you can have one of your knowledgeable and helpful staff aid a lost customer, on your website for the most part, the customer is on their own (unless of course you’ve got some type of online chat and co-browsing or co-shopping application on your site).
When it comes to e-commerce, the only tool you really have to help the customer is the merchandising on your website. For the purpose of this column I’m going to define merchandising to encompass three things:
- Organization of the products (product or feature groups, category and taxonomy development, etc.)
- Selection of products (what product go into those groupings or receive some other type of “feature” status)
- Presentation of the products
The first two elements go hand in hand. You can create a “category” on your site and call it something like “Maintenance Essentials” with products that pretty much anyone that rides any type of powersports vehicle is going to find useful or necessary. One of those items may be chain lube. Let’s say you’ve got access to like 10 different brands each with 3 variations and 3 different sizes. That’s 90 different combinations! For one simple product!
Imagine this type of scenario that I think makes up 80% of the shopping situations out there: A guy rides his motorcycle as an alternate commute vehicle and an occasionally for recreation. He likes his motorcycle, but he’s got a life. He doesn’t spend every waking moment on forums to determine what the ultimate chain lube is. He doesn’t ride with a big group of people that will sit around debating the relative benefits of various type of chain lube. All he knows is that his chain looks dirty and needs cleaning and lubing.
He goes to your site, or any typical site, and types in chain lube and is presented with almost 100 choices! For a simple product like chain lube! You need to make sure that on your site that you’ve picked the “best” one or two options for these major product types and present them in a way that makes it 1) easy to find and 2) communicate that based on your expert opinion that these are the ones to go with. Basically the exact same thing that a good parts person would do in a face-to-face situation. The difference is that online you need to do all of this before the customer ever comes onto your site.
There are a few different ways that you can do this. The first is the idea of creating multiple personas of model customers and so scenario planning on how they may interact with your site. Create like 3 to 5 customer types (the hard-core enthusiast, the casual rider, the spouse or parent of a rider, the total noob, etc.) and then imagine a few different scenarios for each type (a major part broke and they need to find a replacement right now, they are new to riding and need everything but don’t know anything, they need to buy a birthday gift for their wife, son, friend that rides, and so on). Pretend to be these various types in various situations and try to organize your site so that there are obvious categories and product assortments that make each customer’s shopping experience as fulfilling as possible.
If your site has been live for a few years and you’ve been using a good analytics package, you can use its data to see how people use your site and utilize real-world data in your scenario planning. Where they go, what they buy, what they look at and don’t buy, etc. etc.
Obviously this is all a lot of work. It’s so much easier to just buy a site from a 3rd party vendor with all the catalogs pre-loaded, or build your own and dump a product feed into it, have a few general categories like helmets, exhausts, etc., and be done with it. That’s what 99% of the sites out there do, and that’s why 99% of the sites out there suck and don’t sell anything! Not only does merchandising make it easier to shop, it’s just about the strongest tool you have to differentiate your site from all the other sites out there!
That doesn’t mean that you should do away with the potentially millions of other products in your online catalogs. More often than not, you’ll want to present that potentially overwhelming selection on a second layer behind the your primary merchandising and allow customers to drill down to explore. Always have a “See all of our chain lube products” link next to your hand-picked selection. Of course a robust and powerful search tool is your best bet to handle these kinds of shoppers.
So now that we’ve dealt with the product selection and organization ideas, let’s move onto the final piece, the presentation of those products.
There are so many cool technologies these days that can help you communicate the features, advantages, and benefits of the products that you sell. You’ve of course got the good ol’ custom written and compelling product description. You’ve got the ability to take your own product photos that show things like the product in use, various angles or views, mounting options and so on. You’ve got videos that you can post on YouTube and embed in the product page. You can post sound files of exhaust systems. The limit is really only your imagination and the amount of time you want to devote to it.
At the very top you can even go big time and use rich-media technology like Adobe’s Scene7 (www.scene7.com) that can provide a huge range of presentation and interaction opportunities.
Try to remember that you are the expert in what you sell. Use that expertise to help customers figure out what they should be buying and communicate it through professional merchandising on your site.
Tags:Column, copywriting, DealerNews, dealerships, E-Commerce, ecommerce, internet, Merchandising, motorcycle, powersports, selling-online
January 1st, 2010 — Business, DealerNews, E-Commerce
Welcome to 2010! I want to kick off this year with a column about selling online, but selling someplace else other than your own website. This is something that you can engage in even if you’re not directly engaged in full-blown e-commerce on your dealership’s primary website.
What I’m talking about is taking advantage of things like e-commerce applications on social networking sites like Facebook and other “widgets” that you can embed in blogs or forums.
The first example I’ll point out is a company called Payvment [http://www.payvment.com/] that has a nifty little storefront application for Facebook.
In order for this to work you’ll need to have a Facebook fan page set up for your dealership. You simply install the application on your page, set up the look at feel of the storefront using the tools that Payvement gives you, enter in some information about your shop, and then start loading products. (Obviously there’s more detailed steps involved and Payvment’s site provides all the details).
I’d recommend experimenting at first and a load a small selection (around 10) of products that are impulse buy, gift, general interest type of products. You’ll want to keep in mind that Facebook is not really a shopping destination, and typically you’ll want to focus on the interaction and social networking aspect of Facebook and keep the sales pitches to a minimum. But since it is a fan page, I see it as a great way to sell things like t-shirts, hats, and other items branded with your shop’s logo, or the brands that you carry.
Considering that Payvement is totally free to use right now, there’s really no reason to not give it a try and see if there’s a sensible way for you to fit it into the overall online activities.
One dealership that has begun experimenting with Payvment is Ducati Seattle [http://tinyurl.com/ykppl42]. What’s interesting about the fact that they have this e-commerce application running on Facebook is that they don’t even have any e-commerce on their primary dealership website!
Ducati Seattle’s Cindy Wallace is in charge of the Facebook storefront as well as their eBay store where they focus on selling crash damage take-offs, excess & obsolete, etc. Cindy told me that based on a combination of factors (strong local community support & involvement in the shop, etc.) Ducati Seattle has made the decision to not have a full-blown e-commerce operation. “People prefer to come into the shop to buy things where they can actually see them and to see other people there as well.”
But that doesn’t mean that they are not active online in other ways. Based on leadership by Ducati Seattle’s owner David Roosevelt they have made a decision to be very involved in social media like Facebook. Considering that they have over 1,200 fans on their Facebook page it makes sense that they are giving the Payvement application a test ride.
Another Facebook application for selling products from within your Facebook page is Nimbit MyStore for Facebook [http://tinyurl.com/yzvdzxh]. Nimbit seems to be going more for the rock band trying to sell merchandise angle (so they offer features like the ability to sell tickets or downloadable music), but I don’t see why you couldn’t use it to sell merchandise for your shop. Nimbit has several offerings that range from free to about twenty bucks a month.
Moving away from Facebook, I want to point out that there’s a growing number of widgets that allow you to place shopping experiences on more content-centered (as opposed to shopping-centered) websites and pages. A widget is a small bit of code that you embed in a webpage that provides a little area or box where something shows up that gives people information (weather, race results, etc.) or in our case a product display with the ability to buy it right there.
These widgets allow what I call contextual commerce. Where you can offer products that go along with the content the visitor is reading about. Writing a post in your blog about how to bleed the brakes? Why not have a widget in the side bar selling brake fluid, brake bleeders, pads, etc?
There’s quite a few people playing in this widget area out there. Here’s a few leads to get you started: BlinkCart [http://www.blinkcart.com/], Shopit [http://www.shopit.com/], CartFly [http://www.cartfly.com/], and Amazon [https://widgets.amazon.com/] even has widgets that let you sell products they offer (or that you have loaded as an Amazon merchant) on your site.
Check out Widgetbox (a clearinghouse of all things widget) as well and check out the ecommerce tag http://www.widgetbox.com/tag/ecommerce. Finally, of course, you can always Google “e-commerce widgets” to track down more of the latest and greatest as developers keep the wheels of progress humming along.
Having a storefront on Facebook or an e-commmerce widget on your blog is most likely not going to be a silver bullet in terms of generating a huge amount of extra revenue. A lot of this has to do with the fact that most people out there are not in the shopping mood when they are on a social site like Facebook. However, having a good selection of impulse purchase products and gifty items makes a lot of sense. It gives you a chance to have a few more hooks in the water in terms of selling things and it keeps you abreast of what’s going on in the world of e-commerce technology and off-site merchandising.
If you give this a try, please let me know how it works for you!
Tags:Column, contextual commerce, DealerNews, dealerships, E-Commerce, ecommerce, internet, marketing, Merchandising, motorcycle, powersports, selling-online, social marketing, social media, social-networking
October 1st, 2009 — Business, DealerNews, E-Commerce
“Well the frost is on the pumpkin, And the hay is in the barn…” those lines from James Taylor’s “Walking Man” always remind me of this time of the year. It’s harvest time, and it’s time for the gardener/farmer to go out and start picking the crops they’ve been growing all season.
If you’re going to play in the internet you need to understand the importance of having a full time “gardener” for your online garden. Someone to nurture it, coax it along, do all of the right things at the right times. Otherwise you’ll end up with what I see a lot of out there: a land of promise transformed into a barren and forsaken land whose bleakness is only interrupted by patches of weeds, brambles, and thorns.
This month’s column compliments perfectly last month’s screed on the importance of hiring the right people. I was up in the air as to which one to present first, but once I seized on the garden/farming metaphor, I figured this one made more sense to run in October.
Last month’s column was all about why and how to hire the best people possible, this month’s column is about what you need them to do and why it needs to be a full-time position.
There’s a lot of moving parts in a modern, successful online operation. There’s the technical side of things to make sure the websites, databases, and applications all work the way they are supposed to. Then there’s the artistic and design aspects to make sure that the world perceives your brand as favoriably as possible. There’s the art and science of search engine optimization and search engine marketing. You’ve also got to consider product merchandising, promotions, and the overall shopping experience. Of course on top of all those, there’s the seemingly infinite number of other things that always seem to pop up. Broken things to fix, decent things to improve, opportunities to pursue, ideas to test and experiment with, etc. etc.
If you think that it’s possible to do all of this without at least one full time person, you’re delusional. In a perfect world you’d have at least one person working on each of these facets. If you want to be successful online, either via e-commerce or just online marketing and advertising (perhaps via social networking technologies like Twitter, Facebook, etc.) you need to have at least one highly competent and dedicated individual in charge of it all.
You need someone that can eat and sleep this stuff. There’s simply too many highly lucrative opportunities to fill this position with a 9-5 clock puncher. You need someone that is passionate about your market (motorcycles, racing, ATV’s, watercraft, etc.), passionate about the web, passionate about social technologies, passionate about design. You need to encourage and support them with the tools, technologies, and most importantly education necessary to stay on top of it all.
I can say with certainty that when a business has at least one person like I’m describing above, they are virtually unstoppable. When they don’t have that, they go nowhere fast and the decline is dramatic and almost instantaneous. It’s a hard climb to the top and it’s too easy on the internet to be knocked off your perch. It’s so easy for the competition to take advantages of unprotected flanks. You’re at the mercy of ever-changing search engine algorithms that can wipe you off the face of web with the flip of a bit.
If you think that you can just move someone that did a decent job as a parts manager into the role of running your websites, your e-commerce, your online marketing and expect to see anything short of poor results without a ton of training, development, and support, you’re just not being realistic.
But assuming that you do hire someone with the intelligence, drive, and potential, how do you get them started. Well, at the risk of being immodest, the first thing you should do is have them read all my columns. If you go wayyyy back to the very beginning, over the years I’ve laid out an almost step-by-step outline of what to do, how to do it, where to get more information, etc. Considering how much I charge for consulting, and considering you’re getting Dealernews for free, if you’re not doing what I’m telling you, well, then there’s something wrong with you. Look, I’m not being arrogant if it’s true!
This is an area of specialized expertise just like the other aspects of your dealership. Do you have a service department without a service manager? A sales department without a sales manager? A parts department without a parts manager? Not if you’re a high-performing dealership. Obviously if you’re doing e-commerce there’s going to be a lot of overlap into areas of the parts department, but you still need to think of your online operations like its own line of business.
I don’t think there’s very many retailers/dealerships out there that have figured this out yet. I think part of that is because a lot of the 20-type groups and other general industry consultants that may have years and years of excellent experience in the “traditional” dealership management roles don’t have a clue about the internet. They don’t properly recognize the immense potential it represents, nor do they properly understand or respect how difficult it is to do it right.
Because the majority of training and education dealerships do get (if they get any) is from these traditional sources, they are absolutely missing out on this stuff. That’s why I write this column. That’s why Dealernews is the only industry trade publication that has dedicated space to these topics for years. We recognize the need to get this information out to you, the dealers, retailers, and independent shops to help you survive the uncertain and turbulent future.
We’ve only witnessed the beginning of the amazing potential the internet has to dramatically and radically reshape the very nature of our industry. Next month I’m going to unleash on you my nightmare vision of the fiery hell-scape unleashed by the Internet Monster in all its fury. Whoa be unto those that have not embraced Todd’s Gospel of The Interwebs and are caught up in the chaotic aftermath (it will be right after Halloween after all!).
Tags:Column, DealerNews, dealerships, E-Commerce, ecommerce, employment, internet, Merchandising, motorcycle, powersports, selling-online
February 1st, 2009 — Business, DealerNews, E-Commerce
Last month I wrote about the importance of investing the time and energy to write your own product descriptions. Well, as the saying goes, a picture is worth a thousand words so this month’s column is going to focus on visual merchandising or product photography.
One of the first things that I want to get out of the way is that I am in no way suggesting professional, high-quality product photography is easy or that anyone can do it. Some of the highest paid, working professional photographers are in fact product photographers. They don’t get that way because taking product pictures is easy. It’s a unique discipline with its own dedicated career path.
However, I’m not writing about taking pictures for advertising or high-quality, glossy brochures. I’m going to be describing taking pictures mostly for their pragmatic, informational value. The ability of a picture to display or describe a product in ways that would be impossible or too difficult and time consuming to do with words alone.
Why is it important that you invest in the tools, processes, and expertise necessary to take your own images, especially if you are selling products that have good imagery from the OEM or supplier (which unfortunately is an amazingly rare occurrence)?
Because your website is trying to actually sell the product. You are (hopefully) the last hurdle between your site visitor’s desire to own the product he’s looking at and actually spending the money to buy it.
If the visitor is really close to buying from you, but really needs to see how the bottom, or back of that widget looks, there’s a very high risk that they are going to go to another site or to a brick and mortar store to find out. If you have the photography or other visual merchandising (video, 360 spin views, etc.) to meet their informational need, you’ve just made the sale.
While the informational aspect of the visual merchandising is a primary concern, it should not be your only concern. You should also want your photography to positively reflect a strong brand image for your dealership and the product that your selling. Try to make the images look as good as you possibly can. Blurry, over-exposed pictures taken on a beat-up, oil-spotted plywood table may not be what your customers are looking to see (however, sharp, well-lit pictures of cool products taken on a beat-up, oil-stained plywood table might be kind of cool!).
Driven by the requirements of huge numbers of eBay-type business the necessary equipment to take semi-professional product photography has gotten very affordable. There are literally thousands of sites out there (just Google “product photography”) that will teach you everything you need to know to get started. And if you don’t want to do it yourself, and don’t currently have someone on staff that can tackle it, craigslist or your local college is a great place to find people with the basic skills that are looking to build portfolios and have a vested interest in making your pictures looks good.
With all of those elements in place, there’s very little in the way of a rational excuse to not take this on if you are serious about setting yourself apart in the e-commerce market place. If you are not the place to go, that means someone else is.
Now to do the job right you’re going to need some basic lighting equipment, a good digital camera, an environment for your products, and the software necessary to make the images look good or to reformat them for your website.
You can get some really decent lighting systems (either constant light or strobe based) on eBay for very little money. Or you can go upscale and shop at places like B&H (http://www.bhphotovideo.com). Or you can even build your own. I know that professional photographers out there are going to want to burn me at the stake for saying this, but there’s really no reason to spend the big bucks for professional lighting gear for our purposes. You don’t need the fancy $40 bulbs and the $300 tripod and fixture. A $3.00 full spectrum compact fluorescent bulb in a $6.00 clip on fixture attached to a 2×4 wood stand works just fine.
However, there are some rules of thumb you need to follow. You want to make sure that ALL of your light bulbs are the same brand and the same type. you can vary the wattage/output, but you get into real problems with color issues if you use different types of bulbs. As long as all the bulbs are the same you can set a custom white-balance point in your camera or do color corrections in your photo software.
Next, you’re going to want to invest in a GOOD digital camera. That’s not really a problem anymore as you can get amazing digital SLR’s with great lenses in a kit for around $500 and non-SLR’s that have astounding built in lenses for around $350. I suggest www.dpreview.com to learn more about what camera to buy. I recommend getting a camera/lens that is as “fast” as you can get (i.e. an f value as close to 2.0 as you can get and when looking at a zoom lens that stays near 2 across the entire zoom range). This will allow you to shoot with faster shutter speeds without needing super bright lights and gives you the ability to use depth of field (DOF) to your advantage.
You’re also going to need an environment to place your products in. This could be a large light-box or light-tent you get off eBay or build yourself or something more creative like a table-top display. You may want to even consider something like a small studio where a beautiful model can display that carbon fiber fender a la QVC. Be creative!
Finally you’re going to need software to edit the images. This can be as simple as cropping and resizing to doing color correction or adding text. The big dog here is Photoshop. There’s nothing you can possibly ever need to do that Photoshop can’t handle either by itself of extended via plug-ins.
However Photoshop has an almost vertical learning curve and if the folks doing the work are not already well versed you may want to look at some software that is more purpose-based for product photography.
A package that is getting some attention is a program called “Bling It” (http://www.blingit.us/) that has some really simple abilities to spruce up the product shots. They have a free download so you should at least try it out. It allows you to place the product on different backgrounds and even do basic retouching of the product to remove scratches, fingerprints, etc.
Finally, if you are really going to take this on, you’re going to want to look at something that automates the workflow and produces consistent results. You might want to look at some of the products offered by Ortery (http://ortery.com). They are a little pricey, but if you have several thousand products to take pictures of, and want to do things like 360 spins and multi angles, these setups will let you do it all and save a lot of time.
Ultimately all of the investment you are going to make in visual merchandising is going to be paid back by higher conversion rates and therefore more revenue. Think about it… Would you settle for dust and cobweb-covered products displayed behind dirty and smudged glass in your showroom? Then why are settling for over-compressed, grainy, small, and generally poor looking product photography on your website?
If you are on one of the turn-key systems, you are currently stuck as none of them allow you to change or add to the product images that come out of the box. If you find yourself in that situation, pick up the phone and call them to request that they change their software to allow you, the merchant, to take more control over how products are displayed on your site. That includes being able to change or add to the descriptions and the product photography. Maybe if they hear from more of you they will make these capabilities more of a priority.
That concludes this two-part series on merchandising. Hopefully by following my advise last month on the words, and this month on the pictures you’ll start raking in even more money. Of course if you don’t do it, I’m sure someone else will.
Tags:DealerNews, E-Commerce, internet, Merchandising, selling-online
January 1st, 2009 — Business, DealerNews, E-Commerce
Your website should be like your ultimate sales person. All knowing, all helpful, all the time.
As more and more dealerships and retailers are jumping into the motorcycle and powersports e-commerce space it’s going to become more and more important that you do some key things that differentiate your web store from everyone else.
One area that has a huge bang for the buck is having your own powerful, compelling, and well written product descriptions.
If you really want to set yourself apart from the competition, you need to do things differently especially when it comes to the product descriptions on your site. You shouldn’t be relying on the descriptions that come from the OEM or a distributor catalog. While they might be a good place to start, in general they are just not up to the level you need to truly be a best in class operation.
There are several advantages to doing this:
- Obviously better descriptions that are written to really inform the customer and turn that browser into a buyer will increase conversions and sales. Benefit: More money
- A side benefit is that better descriptions should lead to better search engine rankings. Even if they don’t get you to number one or number two (or even three or four) if everyone else is using the same canned descriptions, your unique description when picked up by the search engine and used as that little summary below your link (when well written as a sales tool) will lead more people to click your link even if you are nut at the very top (of course you still need to be at least in the top 10). Benefit: More traffic
- A last benefit I’ll spell out here is that you will slowly become known as the place on the web to go for in-depth information on motorcycle and powersports products. Sure you might be shouting at me (or at least my goofy picture above the column), “So I put all that time and energy into writing great descriptions, millions of people visit my site, then they go to some web discounter to get them for less!” Well yes, that may happen, but the increase in reputation, traffic, and so on will undoubtedly lead to more sales in the long run. Benefit: Better reputation and brand image
And of course unlike having to educate and train parts people over and over as they leave your shop and new one come in, once you put it on the website, it’s done!
Where does this in-depth product knowledge come from? Well, it should be coming from your parts department. If the people in your parts department don’t do much more than hold down the counter with their elbows waiting for a customer to come in or call, and when they do all they do is read the customer the description out of the product brochure or distributor’s catalog, they are not really providing a very unique service.
If you don’t have a parts staff that could, at any moment, give a customer a more compelling reason to buy some widget or doodad than that customer could get from reading a brochure, the manufacturer’s website (in most cases), or a distributor’s catalog, you need a new parts staff. Or at the very least you need to begin a comprehensive product training program so that your parts staff can provide the level of service that will blow customers away and that you can use on your website.
After all, some one’s dealership has to be known as the best place in the world to get the highest level of motorcycle and powersports information. Why shouldn’t it be yours? Are you afraid you’ll make so much money that you won’t know what to do with it all?
With your website acting as a never sleeping extension of that parts sales team, you should be doing everything you can to get the knowledge that’s in their heads onto your web customer’s computer screen when they visit your site.
Now obviously not everyone has the ability or education level to be able to write to the level that public display on a professional website requires and that’s where having your own professional merchandising copywriter comes in.
Hire a person that can write really, really well and have meetings between that person and your parts staff to go over all the products that you’re selling. Have your knowledgeable parts staff go over all the features, advantages, and benefits of the products and then let your merchandising copy-writer put them into words that sell. It is it’s own unique art form to write in a manner that sells products. Don’t assume that just because you have a warehouse full of monkeys banging away on keyboards that they have the ability to write truly amazing web copy that sells.
If you’re doing decent business, or want to be doing decent business, I’d recommend hiring someone internally. If you don’t want to go that way, there’s plenty of writers that are looking to make some money while they are waiting for their Great American Novel to get published. Look for someone with a background in catalog (remember mail-order) copy-writing that is also a motorcycle or powersports enthusiast and hire them on a contract basis.
Now if you are on a turn-key platform you may not have the ability to re-write the product descriptions for products that come out of their “catalogs.” Obviously this puts you at a potentially huge competitive disadvantage against the dealerships and other retailers that have taken my advice and not relied on these canned solutions.
It’s time to make a decision. If your website does not allow you to have the level of control that you need to be successful, then it seems like it might be a good idea to start developing a plan to get onto your own platform and take control of your future.
Next month I’ll expand on the product merchandising vein by talking about why it’s important to invest in your own product photography.
Tags:Column, copywriting, DealerNews, E-Commerce, ecommerce, Merchandising, motorcycle, powersports, SEO