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Lean Merchandising How Flash-Sale Websites Learn Fast Prepared by Bill Carrier March 2014

Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

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A case study of One Kings Lane repeated sales in a single product category over several weeks. Repeated sales enable rapid testing and metrics on everything from presentation elements, to product mix, to pricing. Over several weeks One Kings Lane demonstrates how flash sales are really nothing more than small market tests that can be used to de-risk decisions if applied by traditional catalog and online retailers.

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Page 1: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Lean Merchandising

How Flash-Sale Websites

Learn Fast

Prepared by Bill Carrier March 2014

Page 2: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Casting Seeds in the

Gardening Category

Prepared by Bill Carrier March 2014

Page 3: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

• Collection Visuals and Taglines

• Day of Week

• Product Mix

• Product Sequencing

• Pricing

Launching Repeated Sales in a Category:

Discerning the Variables of a Successful Campaign

Prepared by Bill Carrier March 2014

Page 4: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Sunday, February 9th

Landing Page HeadersCreate Visually Distinct

Collections

Prepared by Bill Carrier March 2014

Page 5: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Saturday, February 22nd

Measure the Effect of TaglinesMotivating

Calls-to-Action

Wednesday, February 26th

Monday, March 3rd

Prepared by Bill Carrier March 2014

Page 6: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Friday, March 7th

Evocative

Measure the Effect of Taglines

Friday, February 14th

Prepared by Bill Carrier March 2014

Page 7: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Saturday, March 15th

Measure the Effect of Taglines

Sunday, February 16th

Descriptive

Prepared by Bill Carrier March 2014

Page 8: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Scheduling: Launch Repeated Sales

Prepared by Bill Carrier

One Kings Lane launched sales on these dates

Page 9: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Scheduling: Launch Repeated Sales

Prepared by Bill Carrier

One Kings Lane launched sales on these dates

Page 10: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

1. Test

2. Measure

3. Refine

4. Measure (again)

Iterative Sales Process

Prepared by Bill Carrier March 2014

Page 11: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Product Imagery Promotes Repurposing

Prepared by Bill Carrier March 2014

Page 12: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Dialing-in the Product Mix: The Basics

Prepared by Bill Carrier March 2014

Page 13: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Dialing-in the Product Mix: The Decorative

Prepared by Bill Carrier March 2014

Page 14: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Most Popular Relisted Items

Prepared by Bill Carrier March 2014

Page 15: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Price Points: Sweet Spot $15 to $75

Page 16: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Successfully Tests Higher Price Points

Prepared by Bill Carrier March 2014

Page 17: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Pricing

Saturday, March 15th Saturday, February 22nd

Test price receptivity but be cautious in your “retail / list price” comparisons.

One Kings Lane risks credibility claiming retail price fluctuated from $33 to $48.

Page 18: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Pricing

Saturday, March 15th Wednesday, February 26th

Again, One Kings Lane risks credibility claiming retail price fluctuated from $30 to $40.

Page 19: Lean Merchandising: What Flash-Sale Websites Can Teach Online Retailers

Lessons for Catalogers & Online Retailers Consider running flash sales as a way to

de-risk your business:

•Test multiple presentation variables in less disruptive way than A/B testing

•Create a process for new products to earn their way into your main product offering

•Maximize profitability by testing pricing in distinct markets before setting nationally

Prepared by Bill Carrier March 2014