Computers/Electronics
Figuring out needs and moving on

IRWD2010 Conference

Computers/ Electronics Abt.com Apple.com Dell Home & Home Office HPShopping.com Palm.com PCConnection.com PCUniverse.com SonyStyle.com TigerDirect.com YourElectronicWarehouse.com

In today's world, computers and electronics are products that most consumers require, just as they need clothes, plates, light bulbs and hardware. Computers, though, are much more complex than a sweater or a hammer. As such, computer shopping is not easy for most consumers because they don't have the technical expertise to make a quick decision on a product they require.

Quick is the operative word for many of the computers and electronics e-retailers in the Hot 100 retail web sites. The merchants' goal of late is to get customers the information they need and get them to checkout quickly so the customers can seal a deal and move on.

Abt.com introduced a site feature that asks shoppers questions about what they're looking for, how they plan to use it, brand preference and price range to quickly narrow its list of 10,000 SKUs to a handful of products that best fit what shoppers need. The tool is so helpful and fast that sales associates use it to help customers in stores.

PCConnection.com soon will introduce a rich media virtual trade show to provide shoppers with a wealth of comprehensive technical information, and in a visually enticing manner. Today they boast a shopping experience that can get customers to the product they're looking for in as few as four clicks. Easy in, easy out.

Competitor PCUniverse.com did a complete redesign of its site this year with one overarching goal: Decrease the number of steps it takes for shoppers to find precisely what they're looking for. The e-retailer used a variety of technologies behind the scenes that have reduced the number of steps it takes to get to the best products by 50%.

SonyStyle.com also did a major site redesign this year to make the buying process more efficient as well as more enjoyable. To ensure the redesign was exactly what customers wanted, the web retailer surveyed hundreds of thousands of customers via e-mail and phone as it planned the new design. Now its site features product, pricing and support information all on the same page to give customers what they asked for and in a manner that requires the fewest clicks possible.

Remembering its roots

At the heart of the retailer's site is technology from Guidester Inc. that asks shoppers questions about the type of product they are looking for, how they intend to use it, brand preference, price range, etc., just like an in-store sales representative would. With each answer the number of SKUs per category is whittled down before the customer's eyes, making it easier to zero in on the right product.

"Taking the time to discuss with the customer what they want in a product and show choices within those parameters is at the heart of what retail is all about," says Stephen Baker, vice president, industry analysis for NPD Group Inc., a Port Washington, N.Y.-based market research firm. "Good retailers like Abt are able to transfer that philosophy to any sales channel."

The decision to install Guidester was based on providing a way to sort through the more than 10,000 SKUs Abt offers. Guidester is such a powerful tool that Abt's in-store sales representatives use it, according to Jon Abt, co-president of Abt Electronics. "Looking at hundreds of SKUs in a category can have shoppers asking 'Where do I begin' and we didn't want that," says Abt. "We want to replicate the in-store experience our sales representatives provide in guiding customers to the right product."

The same premium is placed on customer service, which is divided into sales and service, and delivered through live chat. As part of its post-sales care, Abt will set up service calls for customers living outside the Chicago area rather than direct them to the manufacturer. "We are known for service in Chicagoland but we want that same reputation out of state, which is why we go that extra mile," says Abt.

It is an old school approach to retailing that plays well on the web. Back to Top

Message to the faithful

Combining excellent use of multimedia and crisp imagery with product information, Cupertino, Calif.-based Apple Inc. has created a cutting edge destination site for aficionados of Apple products that make purchases easy.

What sets Apple apart from other manufacturer e-retail sites is its ability to communicate with the shopper. A video product tour of the latest Apple operating system is available on the home page and can be viewed on the shopper's computer or downloaded to an iPod or desktop. The tour creates an interactive shopping experience that melds education with sales and marketing techniques.

"What Apple.com does well is communicate with its customers from a sales and marketing perspective," says Stephen Baker, vice president, industry analysis for NPD Group Inc., a Port Washington, N.Y.-based market research firm. "A lot of shoppers coming to Apple.com are pre-sold and intend to purchase so the site is more about the buying experience."

In remembering who its customers are, Apple has created a hip site design through the use of vibrant images. "Products just pop off the page," says Lanae Paaverud, a board member of the Internet Merchants Association, a Wellington, Fla.-based non-profit trade association for e-commerce companies.

Organization by product type makes navigation easy and user friendly. Recommended products are showcased under the heading of "Staff Picks," a merchandising technique that speaks to the shopper on a more personal level. Customer reviews and product ratings further aid the buying decision. "It is a personable site with a lot of information and a clean design," adds Paaverud.

By communicating to its customer base in the manner they desire, Apple.com differentiates itself from competitors. "E-commerce is now a huge part of every manufacturer's business model and their web site needs to be a sales outlet more than a source of information," Baker says. "Apple is more oriented along this line than other manufacturers." Back to Top

Plugged in

And true to its tradition as a web-centric company, it has redesigned its web site to reflect its new market strategy in a big way. At Red Rock, Texas-based Dell.com, the precedent-setting configurators for building a customized desktop or laptop computer, for instance, are old hat.

The company has forged ahead to engage shoppers with new, easy-to-browse and image-heavy demonstrations that show how to get involved in the latest trends like starting and maintaining a web log, editing and posting online videos, and building and sharing online photo scrapbooks.

"The world of home electronics has brought about a necessarily sleeker site design," says Steve Rowen, an analyst with research and advisory firm RSR Research. "The extended range of products has forced Dell to bring about more excitement for all its products."

Dell has taken some hits to revenue in recent years related to substandard customer service and it admits that it must do a better job of catering to customers. "There's a whole transformation going on in our consumer business, and we're very much in the business of helping consumers achieve what they want to do," a spokesman says.

Dell.com's consumer-oriented Home and Home Office site now features several special sections designed to get consumers directly involved in new forms of communication and entertainment. In Dell Lounge, music lovers can mash up video and digital music, and players of online video games can learn about the latest gaming technology and participate in online competition.

The StudioDell section instructs visitors how to work with digital photos and videos, and lets them upload their own videos showing how they use Dell technology and e-mail their videos to friends. "We want customers to be part of a conversation to make for a better and more meaningful experience," the spokesman says. Back to Top

Beyond the basics

For shoppers looking for the mix of computer and home entertainment products Hewlett-Packard Co. offers, it's tough to find a more helpful retail environment than HP Shopping, also known as the HP Home and Home Office Store.

HP has expanded its retail site's functionality to zero in on shoppers' specific interests, displaying pertinent products in an informative and entertaining way that better reveals the broad scope of what HP has to offer.

"We have focused on these areas to continue to improve our customer experience for our custom-built products, services and solution bundles," says Michael Ritter, vice president of merchandising for HP Shopping.

HP Shopping has upgraded its product configurator with multiple views to help shoppers visualize the build-to-order process, and it has integrated customer reviews and ratings and injected them into product comparisons. Shoppers can compare dozens of items of a particular type of product, check on the experience of other customers, and compare things like shipping and promotional offers as well as product details. For some details that may need extra explanation, such as "resolution" and "zoom" in digital cameras, shoppers can mouse over the terms to generate pop-up windows with extra information.

In a "Learn, Use, Create" section accessible from every page, HP shows shoppers how to do things like take, print and share better digital photographs and videos as well as how to get more efficient use of computers.

The whole idea is to show more than just the basics, Ritter says. "Not all shoppers want to research a product by just its features and functions," he says. "They may want to research how a product fits their lifestyle or figure out exactly what they want a product to do." Back to Top

Helping them explore

"Manufacturers of innovative products that have a web store, like Palm, need interactive video to convey that innovation to the online shopper, who cannot touch the product," says Stephen Baker, vice president, industry analysis for NPD Group Inc., a Port Washington, N.Y.-based market research firm. "Online shoppers expect the ability to dive deeply and quickly into the level of product detail they want."

Palm achieves this goal by serving up video brochures that deliver product features in bullet points that shoppers can mouse over to view how the product feature will be displayed on the device's screen. For example, mousing over a bullet that says users can review a Microsoft Power Point presentation on the Treo 755p Smartphone shows what a Power Point presentation looks like on the device's screen.

Top 500 Guide

Shoppers have the option of clicking on a "Learn More" button in each segment of the video which opens a new segment. The videos, which can be paused, rewound or advanced by clicking on a menu of features detailed, are set to music, as opposed to narratives that walk shoppers through the features, to encourage shoppers to interact at their own pace.

"Our users expect rich features from our products and our aim is to convey that richness of the user experience on our web site," says Charlie Simpson, director of direct sales for Palm.com. "We want shoppers to explore the product, not look at it."

The use of video improves site navigation, making it easier for shoppers to find the product information they desire. "Interactive features create the same level of information and service shoppers expect in a store," Baker says. "It's a great adjunct for e-retailers to have." Back to Top

Straight to the product

On PCConnection.com consumers and businesses can find computer gear, consumer electronics and related accessories and complete a purchase in as few as four clicks. For repeat shoppers, especially small businesses that purchase multiple computers and accompanying cables and printers, TRAXX can provide them with comparative pricing from several suppliers and special pricing arranged directly through the manufacturer. The system also enables buyers to compare product information and availability, submit an order online, arrange for a delivery, and track shipments.

"We designed and maintain PCConnection.com and our other e-commerce sites in ways that get busy customers where they need to go," says PC Connection senior vice president, corporate marketing and creative services, David Beffa-Negrini.

PCConnection.com provides updated information for more than 115,000 items. Shoppers can now use an updated search engine to find and compare merchandise by product type, price, platform and manufacturer. Future site enhancements include a rich media-enhanced virtual trade show that will give a visitor access to relevant technical information. "We want customers to feel like they are coming to an e-commerce site where we can get their questions answered," Beffa-Negrini says.

E-commerce is clearly a growth channel. The web now accounts for almost one-third of PC Connection's annual revenue, compared with just 20% two years ago.

E-commerce analysts like the company's no-nonsense approach to Internet retailing. "By serving the basic needs of the customer in a clear and concise way, the PC Connection site offers an easy way for customers to find and purchase their preferred electronics," says Sunita Gupta, executive vice president at Cleveland-based e-commerce consulting firm LakeWest Group. Back to Top

Appealing to the core

Over time PC Universe has seen various competitors come and go, while bigger retailers such as Newegg.com have diversified their computer products with consumer electronics and technical services. But PC Universe survives in a tough, low-margin business because it sticks to its roots and gives customers what they value most: quick and easy ways to purchase computer gear.

In the past year PC Universe has completely overhauled PCUniverse.com with advanced features that reduced the steps to finding a product and completing a purchase by 50%. The product pages also have been reconfigured to include more product reviews, buyer's guides and other content.

Another new feature--Intelligent Cross-Sell, a product recommendation tool developed by CNET Channel but customized for PCUniverse.com--gives shoppers instant recommendations on the cables, cartridges or other accessories they need when they select a new computer or printer. "When a lot of retailers are offering similar computer equipment at the same price, we decided that building better features and functions would keep our customers focused and set us apart," says director of e-commerce Patrick Colletta.

The decision to rebuild its web site with tools that keep hardcore tech buyers coming back is paying off: PC Universe's average ticket has grown by 25% to more than $400 in the last year while the sale of computer accessories has jumped by 22%.

To seasoned e-commerce analysts, PCUniverse.com has the look of a much larger and sophisticated web store. "The site has a couple of valuable additions that I haven't seen on any other I.T sites that I was pleasantly pleased about," says Molecular Inc. senior design consultant Will Evans. "They understand the importance of offering useful content and original content to aid buyers in the decision process." Back to Top

Listen up

Over 18 months leading up to the May relaunch, SonyStyle segmented different customer groups in its huge database and reached out to hundreds of thousands of customers through e-mail and phone interviews, call center contacts, and focus groups during the planning, testing and execution phases.

"It was more than a redesign. I call it Sony's effort to listen to our consumers," vice president Brian Siegel says.

The new site offers an interactive wish list, product personalization options, and rich media technology that lets customers mouse over items on a product page to compare models and prices. Shoppers can e-mail product pages to friends. Checkout has been streamlined, and shoppers can store credit card information on the site and save products in their shopping cart for future visits.

The research effort is producing significant lifts across key measures, Siegel says, with overall sales performance up in the double digits and increases in customer satisfaction, time spent on site and number of page views.

The redesign also benefits from other intelligence gleaned in research: for example, SonyStyle reformatted all product pages for consistent placement of key information across categories, and it has realized an increase in the number of customers who shop multiple categories. Consumers want to see product, pricing and support information in the same place, Siegel notes. By serving that up in the redesign, SonyStyle has seen the number of product categories that a visitor views upon entering the site rise.

Gene Alvarez, vice president of retail e-commerce at Gartner Inc., says the site's creative use of rich Internet applications and Web 2.0 technology is right on target for the brand. "A brand manufacturer has an image to portray," he says. "So when you're image-oriented, like SonyStyle--'We're cool, we're innovative, our electronics are what you want'--having a site that has that coolness and innovation matches your brand." Back to Top

See for yourself

TigerDirect.com has such videos available for more than 700 products. And unlike some other retail sites that offer videos of product demonstrations, TigerDirect shot the videos itself showing people using the product, rather than accepting stock videos from the manufacturers.

"We show how the product really works so that customers can actually live vicariously through others," says Lonny Paul, director of interactive marketing for TigerDirect.com, a subsidiary of Systemax Inc.

Indeed, product shots are also photos taken by in-house photographers. "We don't use in-stock photos from the manufacturers," Paul says.

The advantage of taking photos and producing videos in-house is that "you really get to see the features of the product for comparison shopping purposes, whereas manufacturers' photos tend to show their brand more prominently than the product features," says Lee Diercks, managing director of Clear Thinking Group, a consulting firm.

Supplying the latest information about electronic items, rather than just supplying product descriptions from the manufacturers, is also part of the appeal of TigerDirect.com. The site has a news sections that has been expanded so that customers can read independent product reviews, customer blogs and other articles related to products sold on the site.

And if the site seems busy, that's because it is. TigerDirect.com crams a lot of product into a small space.

"They seem to have the deepest assortment of product of anyone out there," Diercks says. "Where they offer 40 different TVs in the 26- to 30-inch screen size, one of its top competitors offers 20 TVs." Still, TigerDirect has easy-to-use and highly focused internal search functions that let customers quickly sort through all those products to find what they want. Back to Top

The manufacturer's pal

Dennis Boudreau, president, estimates he spends close to 60% of his time consulting with these vendors. But he believes it is time well spent. By being manufacturer-approved for sales on nearly all its products, customers get the full manufacturer warranty, something they don't get at all electronics sites.

"When I first got into this business, there were a lot of manufacturers who said 'no Internet.' What they did not understand is that their products were already being sold on the Internet, but by companies they had no control over. We had to educate them about the changing nature of Internet sales and how, by working with us, we can better represent their product," Boudreau says.

This relationship also allows Quincy, Ill.-based YourElectronicWarehouse to offer special items, such as custom-length cables from Monster Cable. Customers send in the measurement they want and the site will have Monster make a cable to fit. "About 18% to 20% of our Monster sales come from manufacturer leads," Boudreau says.

Some observers see this close relationship as a mixed blessing, however. "They have a strong focus on product knowledge and expertise," says Lee Diercks, managing director of Hills­borough, N.J.-based Clear Thinking Group. But by spending so much time with a limited group of select vendors, "their product is not as deep as some competitors," Diercks adds.

Another unusual feature about this electronics site is that its parent company also operates online retail sites that sell golf equipment and travel. And while it might appear that these three products are dissimilar, Boudreau says he has found synergies that allow cross marketing. "There is an 80% overlap in our customer lists," Boudreau says. "The products may be different, but the customer demographics are not. The same people who buy high-end electronics often golf and like to travel." Back to Top