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Shopper Typologies to
Drive Site Design and
Ecommerce Strategies
April 25, 2012
Who Am I?
Eric Paquette
Senior Vice President
Copernicus Marketing
Consulting and Research
Aegis Media
Expected Growth in eCommerce Sales for
2012
– Apparel and Accessories: +19.7%
– Books, Music, Videos: +18.0%
– Computers and Electronics: +15.9%
Source: eMarketer
While most of the top eCommerce sites are
retailers selling a mix of brands, several brand
specific sites crack the Top 25
– Apple (#3)
– Victoria’s Secret (#18)
– L.L. Bean (#21)
– Gap (#24)
Background
155.2 167.3
194.3
224.2
2009 2010 2011 2012*
U.S. On-Line Retail Sales
+7.8%
+16.1%
+15.3%
Ecommerce is also growing for brands that use retailers for distribution
More and more brands are expanding their direct on-line presence.
Significantly higher margins
Providing significantly expanded reach for distribution
Provides access to customer data
Opportunities to develop customer insights
More and more, consumers expect to be able to buy brands directly
And brand websites provide a much richer brand experience
They are typically only a sub-set of brand buyers
While direct on-line sales are increasingly important to brands, it is critical to realize that direct buyers have
a distinct set of needs compared to general brand shoppers.
The on-line shopping experience is decidedly different than a retail experience. That has implications for who
is going to shop on-line in different product categories.
4%
26%
% of Brand Buyers Who
Buy Directly On-Line
Often 50+% of
brand sales are
directed to the site
for these shoppers
In fact, there are many types of ecommerce shoppers
Broad Selection
Retail Haters
Family Provisioner
Browser/Researcher
Bargain Hunter
Latest & Greatest
Understanding general on-line behavior doesn’t explain enough
Any given person can behave very differently with different brands or on different sites.
The mix and value of those shopper types depends on the category and brand
25%
10% 15% 12%
18%
9%
22%
8%
16%
10%
24%
40%
19%
27%
25% 32%
22%
44%
14% 8%
% of Direct Ecommerce
Buyers
% of Direct Ecommerce
Sales
% of Direct Ecommerce
Buyers
% of Direct Ecommerce
Sales
Apparel Brand A Apparel Brand B
Understanding site users has wide ranging implications
Website tone, look and feel
Site architecture
Site shopping tools
Availability / role of mobile site
Amount / role of branded content
vs. ecommerce
Email/direct marketing strategies
and tactics
Social and search tools and
strategies
Site merchandising strategies
Pricing strategy
Who are they demographically?
What is their “brand” segment?
What are their attitudes about
shopping on-line?
What do they want when shopping for
our brand?
What do they want from our site?
– Shopping experience
– Product, price, etc.
– Brand experience
How does the site compare to other sites
/ channels?
Who do they shop the site for?
What is the “journey” when buying?
What devices are used when shopping?
What current / potential site tools,
content, etc. are desired?
What are social behaviors for the brand?
Start with surveys of site buyers
Who do you survey?
Our focus is on relatively recent buyers on the site….
Who are they?
How and why have they shopped recently?
We might include those interested in buying on the site….
If just developing an ecommerce presence
If envisioning a significant overhaul of the site
We would want on-line buyers in the category
We want to interview lots of them to provide strong links to customer databases….
Fortunately interviews from customer databases are inexpensive
Understand the basics of your on-line buyers is a first step
The on-line shopper might not fit the stereotypical profile of the brand buyer potentially influencing the look,
feel, and tone of your site.
Identify the segment that is most important to ecommerce sales
15
CREATE
Hundreds of
Variables
1. Attitudes
2. Site Needs
3. Buying Behaviors
4. Demographics
5. Brand Segment
Membership
6. Database data
TEST
To identify
characteristics
of people who
are profitable
for your
ecommerce
SITE
PRODUCE
Optimal
Segmentation
Develop a Meaningful, Profit-Directed and Actionable Segmentation
Who is Most Important?
Using “predictive” characteristics to define segments leads to clear targeting.
25%
10% 8%
18%
9% 5%
16%
10% 14%
19%
27% 25%
22%
44% 48%
% of Direct Ecommerce
Buyers
% of Direct Ecommerce
Sales
% of Direct Ecommerce
Profits
What about the overall brand targets?
20% 27% 37% 40%
30%
38%
43% 30%
50% 35%
20% 20%
Ecommerce Targets
Primary Target
Secondary Target
Non-Target
Brand Targets
The result is not the same, but ideally is generally aligned with the overall marketing targets for the brand.
The target segment drives the site design, tools, and site “positioning”
18
Different Demographically
Different Attitudes about Shopping On-Line
Different in Terms of Who Buying For
Different Devices Used to Shop
Very Different in Needs/Wants Shopping
The Perfect Fit Hate-to-Shop Gifters Price Pilgrims Browsers
The details of quantitative research are often embellished with qualitative research and Personas are
developed to guide design teams.
The tone and look vary based on the target
The prominence of “branding” can vary
The site architecture driven by the needs of the target
The segments inform different tools as well
Illustrative Case
The Perfect Fit Hate-to-Shop Gifters Price Pilgrims Browsers
Featured “Deals”
New Product Features
“Compare” Tool
Return Policy
Store Locator/Interaction
Customer Service Hotline
Breadth of Selection
Customer Reviews
Product Recommendations
Link the segments to your customer database
Profile the segments with their database data….
Validating results of the survey
Extending the information that is available
Predict segment membership using available
database information….
Transactional and other data
Historical
3rd Party Data
Enabling segment specific direct marketing
activities.
Strategies and tactics can be used to address secondary targets as well
Historical patterns in segment shopping behavior can identify seasonal opportunities
Direct marketing opportunities
Site “merchandising” opportunities
Site pricing / sale strategies
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Hate to Shop
Perfect Fit
Gifters
Bargain Hunters
Browsers
Share of Site Sales by Segment
Linking the database enables segment-specific direct offers
Segment specific offers can be developed, tested and tracked.
Recap
Your web buyers are generally not the same as your overall brand buyers.
There are many different types of on-line shoppers on your site.
These groups have different wants and needs from that on-line shopping
experience.
Importantly, they also they also provide very different levels of profit potential for
your ecommerce channel.
Understanding the segments, and your ecommerce target provides clear guidance
for your site design, strategies and tactics.
Jeff Maloy
Senior Vice President
Copernicus Marketing Consulting and Research
Register Now: copernicusmarketing.com/webcasts
Wednesday, May 23, 2012
Mission Impossible:
Profiling Shopping Occasions for
Retail and Channel Partners
Mark Your Calendars!
Wednesday, May 23, 2012
