Digital.IQ | Test & Learn
Grow Digital Sales with Digital.IQ™ - Our Proprietary Test & Learn Platform
As researchers and strategic advisors to a variety of brands and businesses, Decision Insight is highly vested in understanding the changing shopper, the impact of digital on retail – and providing guidance to optimize for future opportunities.
Strategic initiatives that have been effective in brick and mortar can be effective online, but they must be reimagined to work in a new, digital retail environment. Dream big, then test ideas using Digital.IQ to understand the impact before launch.
How do basic shopper and category strategies translate to the eCommerce environment? Consider the 4Ps of marketing and their relevancy in the online world.
1. Understand Place
Thoroughly understanding the significance of Place, both Brick & Mortar and Online, and how the shopper interacts with them provides significant advantages – and can lead to more successful digital strategies. As eCommerce evolves, so should research around Place and today’s shopper.
In the traditional retail store, the focus is on shelf space and facings. With no physical limitations (or advantages) in the online channel, marketing focus shifts to arrangement, assortment, and taxonomy. How do you maximize your presence in an endlessly-scrolling-product-grid? There are many questions: What are the new merchandising levers to drive cross-selling, occasion/solution offers, featured items, and impulse purchases? DI has tested exciting new online strategies to build customers’ baskets and influence impulse purchasing, to understand what wins before going to market. Click here to read more about Place.
2. Presenting Price
For the manufacturer and retailer, how pricing is presented online is often a key factor in converting sales. From bundles and SKU breadth to complementary product adjacencies, premium placement in search results, auto-fill subscriptions, and free shipping – there is much shopper confusion online and true price is often obscured. Consider just two factors – unique to eCommerce – that may wildly affect shopping behavior: “Free Shipping” and “The more you spend, the more you save.”
Without physical limitations, complementary bundles and product adjacencies that are difficult in brick and mortar (consider occasion-based destinations such as Breakfast, Super Bowl, Back to School) are reasonably simple in eCommerce. But what bundles at what prices are optimal? The options are nearly unlimited. With Digital.IQ from Decision Insight, multiple variables may be tested simultaneously to predict the best mix of product bundles, featured items, adjacencies, and discounts. This allows the retailer and manufacturer to optimize sales, improve the shopper experience, and increase bottom line sales results. Click here to read more about Price.
3. Reimagine Promotion
For a product to be successful in the eCommerce channel, understanding and optimizing online sales promotion is a must. With no physical limitations, merchandising opportunities nearly explode with possibilities. Leaders in the industry are reimagining promotions for eCommerce – from more dynamic promotions, to new cross-selling opportunities, a new breed of occasion/solutions offers, unconventional featured items and new possibilities of impulse purchases – all without the burden of physical aisles.
Promotions can be shaped by shopper need or usage occasion – such as Breakfast. Online, products from all over the store – e.g., milk, pancake mix, bacon, and cereal – may be presented together, while a multimedia Tony the Tiger encourages shoppers to buy Frosted Flakes. Offers can also be tailored to the shopper’s current basket or past purchases.
Despite concerns in the industry of the inability to meaningfully influence impulse buying online, there are, in fact, many opportunities to drive unplanned purchases. For example, the lack of physical constraints has created new ways to reimagine the tried-and-true checkout lane. DI has tested multiple alternative strategies to build customer’s baskets and influence impulse purchase online with much success – helping clients better understand what strategy wins before going to market. Click here to read more about Promotion.
4. Product Presentation
First impressions are everything. On the shelf, the package is the introduction to the product. Online, the retail advantages of placement, multiple shelf facings, and endcap displays are gone: A product has only a moment to be noticed. The product image – often a single photo – must catch the shopper’s attention and drive either a click to purchase or a click to learn more.
In many cases online, the Product page has replaced the product’s physical package as the one-stop shopper engagement tool. Opportunities and priorities have shifted from simply gaining attention to providing the shopper with needed information. First, the Product page needs to clearly communicate the product’s most attractive attributes, from features and benefits to sizes and efficacy. Second in importance is prioritizing product information. With more space for information, decisions must be made as to what goes above – and below – the fold. Shoppers also expect that all pertinent product detail will be readily available and product reviews will be present – without adding unnecessary page clutter.
Proprietary research from DI also reveals that when a product visual (usually a photo) does not offer a true representation of the product offered, the result is shopper dissatisfaction – and loss of sales.
In addition to Product page imagery, consider that many consumers decide what they’re going to purchase based on a single product image presented on the Category page – without ever visiting a product page – making the impact of the single product image the most meaningful marketing lever for brand success – or even survival. Click here to read more about Product.
Test Dream Strategies with Digital.IQ
With Decision Insight’s proprietary Digital.IQ research platform – developed exclusively for the eCommerce channel – manufacturers can quickly and economically test their best marketing ideas to better understand which levers best optimize sales before going to market. With Digital.IQ, online shoppers shop a virtual eCommerce site where they are exposed to alternative strategies such as the order products are shown or variations in promotions. The results of this testing can be the difference between online brand success – or failure.
Is your own brand or product optimizing the 4Ps for the digital era? Click here to learn more.