The key to shopping 2.0 success: Empowering customers
By: Philip Jacob
Even the titans of online retailing struggle with how to tackle the challenge of delivering personalisation. Most techniques for generating personalised product recommendations involve identifying which items tend to be purchased together. While this approach effectively groups products by interest, it doesn't get to the heart of treating each consumer as an individual.
Shopping online has become a favourite activity for consumers. However, retailers still haven't successfully replicated the experience of uncovering the perfect item hidden on the back of a rack, the thrill of unexpectedly wandering into an out-of-the way boutique, or the way friends bond over dressing room disasters. Technology that improves the online shopping experience is evolving rapidly, but to properly take advantage of what's coming down the pike, retailers will need to go back to basics.
It turns out that the secret to e-commerce success is the same thing that drives offline sales: merchandising. However, not in the traditional sense of product mix or price points. The future of online merchandising is all about empowering customers to create their own shopping experience - turning them into brand advocates while creating a much more authentic online shopping experience.
Personal choice and customization is the name of the game on today's Web. Before it's too late, retailers should take some lessons from failed attempts to keep control over access to merchandise. The music industry tried to maintain an iron-fisted control over the production and distribution of their product and failed miserably as music lovers dragged the record companies kicking and screaming into the future. Look at parts of the advertising industry - shifting control and creating networks has made Google (Nasdaq: GOOG) Latest News about Google into a US$200 billion giant.
Consumers are demanding a more personal experience online. The growth of social networking sites like Facebook and MySpace has created a whole generation of consumers accustomed to being at the centre of their own worlds. Facebook, for example, serves as a personal CNN.com, providing a news feed of everything that's happening with one's friends and affinity groups.
The advent of IM and texting has made it easy to get information or advice from others around the clock. However, online retailers are lagging behind in recognising the extent to which plugged-in consumers want to be catered to and recognised as unique individuals.
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