Retail & Consumer Products (eCommerce)
Consumers are changing the way they shop online, specifically we note the following key trends that are changing the digital retail game:
- Multiple Device Customer Journeys – Increasingly, consumers are shopping across their devices often in conjunction with the consumption of media such as broadcast television or digital music subscription services that may drive consumer buying decision making.
- Aggressive Price Comparison – Consumers are increasingly price comparing from their mobile devices while in-store, dramatically changing increasing price transparency, particularly with one stop shops such as Amazon, but also big box competitors that have invested heavily to increase their product selections online in an effort to remain competitive. Mobile Apps such as Red Laser have further punished retailers that prove to be uncompetitive by permitting simpler price comparison.
- Dynamic Promotion – Savvy online marketers are increasingly leveraging specific promotions that change on a daily basis, with many changing prices on specific items multiple times per day, particularly on hot selling items.
- Personalization – Today we have the tools to identify specific individuals, their buying patterns, preferences, key demographic features etc. However, only a small fraction of online retailers leverage this data effectively. Presenting the same experience to “Grandma” as one does to a teenager limits the potential user experience and online retail opportunity. Given the trend towards having a high number of SKUs in order to compete effectively, very few online stores have relatively high levels of homogeneity in their customer base.
How does this change your A/B testing strategy?
It is no longer sufficient to assume that a moderate online competitive advantage will remain viable; all online players are forced to be flexible and consider customized approaches to their business. As an example, an online pet product store that is selling innovative products will need to spend more time establishing themselves as an expert in the category, carrying differentiated products that provide value to consumers and may not be available elsewhere. This differentiation will need to be communicated in a manner that is compelling for consumers and will need to be A/B tested for effectiveness. Very often online stores have strong intrinsic advantages but do not optimize the communication of the value of their brand online, A/B testing can facilitate this process of messaging around differentiation and make a compelling case for shoppers to transact rather than leave without understanding why they should be purchasing from a particular website.
Understanding the data around the site and how that relates to customer purchasing behavior, as well as trends in your business and the underpinnings of your competitive advantage, permits Spiralyze to drive towards building robust tests that can significantly grow online revenue. Having covered the gamut of consumer products and having had exposure to the range of demographic segments, we have been able to develop an internal data set that greatly enhances our ability to quickly drive to results.