5 Web Strategies for

Gaining Market Share in a

Rough & Tumble Economy

Written by Lauren Freedman

President, the e-tailing group, inc.
 Table of Contents

Introduction ............................................................................................................................................................3

Profile of 8th Annual Merchant Survey Respondents.........................................................................................4

Merchants Optimize to Profit in Turbulent Times/Survey Top-Line Findings...................................................5

Five Web Strategies for Gaining Market Share ...................................................................................................7

1. Better Resource Allocation .....................................................................................................................8

2. Global Branding ....................................................................................................................................10

3. Category-Centric Merchandising ..........................................................................................................14

4. Confidence-Building Content ...............................................................................................................20

5. White Glove Service..............................................................................................................................25

Conclusion and Checklist ...................................................................................................................................30

About the e-tailing group and Demandware .....................................................................................................31

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

 Introduction

eCommerce continues to grow and evolve despite the times, but merchants
must be cognizant of both the changing consumer dynamics and the need to
deliver proven ROI in these rough and tumble times. The goal of this paper is to
share our thoughts and perspective in this time of conspicuous non-consumption.
We will initially provide an overview of the state of ecommerce, then delve
into five strategies for maintaining and gaining market share during this
economy including:

1. Better Resource Allocation 4. Confidence Building Content

2. Global Branding 5. White Glove Service
3. Category-Centric Merchandising

To shed light on the merchant point of view, we will also incorporate findings from the e-tailing group’s
8th Annual Merchant Survey, fielded in the first quarter, 2009. The insights of 195 merchants yield industry
benchmarks and peer perspective on industry challenges, planned strategic initiatives, top performing
merchandising tactics, and customer service opportunities.

The focus is clearly on ROI, prioritized initiatives, better targeting and category-centric merchandising and how
to do more with less. At the same time, merchants must address the daily struggle, asking, “How are we going
to get the sale today?” and “Do we have the requisite resources and the right functionality to deliver the
customer experience we define that exceeds customer expectations?”

Evaluating your resources and finding the right platform solution to best drive one’s business remains top-of-mind
for as many as 1/3 of those merchants surveyed expect to change out their platforms in the coming year. Some
seek to exploit domestic opportunities while for others going global is core to their business objectives. The
marriage of the right merchandising and the comprehensive content required to give customers the confidence
to buy has never been more critical. There is always room for growth from a merchandising perspective, but
white glove service should be in place despite the times.

This report includes highlights and statistics from the e-tailing group’s proprietary research and a series of best-
in-class examples to illustrate how merchants are truly using the web to maximize growth opportunities and gain
traction beyond traditional channels. No matter where you are within the landscape, may you find within these
pages adaptable ideas to make your own e-business more profitable.

Sincerely,

Lauren Freedman
President, the e-tailing group

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 3

 Profile of e-tailing group 8th Annual
Merchant Survey Respondents
Annually in the first quarter the e-tailing group fields an in-depth questionnaire to
executives with responsibility for ecommerce. This year 195 respondents gave
feedback to 45 questions about strategy, merchandising, and marketing trends
online. Our goal in continuing this survey is to share industry findings that merchants
can use to benchmark their performance while also serving as a comprehensive
resource for planning and prioritizing site upgrades and enhancements.

We are thrilled that our survey is one of the few in the industry representing a broad
cross-section of merchants based on size, title, channel, and mix as noted below.
Merchants of all sizes (annual sales)
30% <$1M to $20M
24% $20M to $100M
28% $100M to $1B
18% $1B to $5B>

Senior level participation

41% CEO/President/Principal or VP/General Manager
51% Director, Senior Manager or Manager
8% Analyst, Specialist, Assistant or Other

Selling through a mix of channels

28% Internet/Store/Catalog
27% Internet only
24% Internet/Store
18% Internet/Catalog
3% Other

Cross-section of B2C products and services

33% Apparel
30% Home & Garden/Home Improvement/Tools/Appliances/Furniture
23% Accessories/Shoes/Luggage/Jewelry
17% Sporting Goods/Outdoor Gear
16% Gifting/Greeting Cards/Food & Wine
13% Health & Beauty
12% Toys/Kids
10% Books/Music/Video
9% Consumer Electronics
7% Pets
5% Computer Hardware/Software/Peripheral

4 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

 Merchants Optimize to Profit in
Turbulent Times

This year’s top-line survey findings center on how today’s merchants are
tweaking, testing, and targeting to elevate the ecommerce channel and their
customers’ experiences per these highlights:

쑺 Despite the lagging economy ecommerce is
showing more resilience than other channels;
66% anticipate ’09 Internet revenues to increase
over ’08 as this channel continues to see growth.
쑺 eCommerce is core to multi-channel success,
but senior management satisfaction is waning
while pressure rests on ecommerce channel
performance more than ever before.
쑺 Profitability means scrutiny relative to achieving
desired revenue goals while being diligent in
cost savings.
쑺 Targeting and segmentation are the order of
the day onsite and particularly via email where
merchants ratchet up efforts from personalized
email to triggered email including abandonment
efforts.
쑺 Optimization is important and in order to
get optimization some merchants may need to
replatform while others will achieve optimization
with build-ons.

쑺 Though traffic appears to be holding its own,

merchants are challenged to get customers to
convert as conversion numbers are being tested
and other engagement metrics are being consid-
ered in the broader context of multi-channel
shopping.

쑺 Resources are stretched and budgets cut with an

ROI mentality prevailing.

쑺 Testing is central to understanding what works in

this climate where analytics and performance data
underlay decision-making.

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 5

 Compared to 2008, how do you anticipate your
Internet revenues to change in 2009?

Considering that the web has consistently been a source of sales gain, 34% reporting a flat or downward trend
in their ecommerce business is important to note. However, this channel does continue to see growth as 66%
anticipate ’09 Internet revenues to increase over ’08. Managing for these times will hopefully push more
merchants into growth mode though evolution in space, category limitations, and overall business will continue
to impact performance.

How will your ecommerce investments be impacted by the current economic climate?

eCommerce value to core business growth ensures that in ’09, despite the current economic climate,
70% of those surveyed intend to invest the same or somewhat more in ecommerce than they did in ’08.

In fact, many are taking advantage of this time to play catch-up while others seek to solidify their category’s
leadership position or at a minimum remain competitive.

6 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

 Five Web Strategies for Gaining
Market Share

The next five sections of this report show examples of how merchants are
successfully using the web to increase their market share despite limited
resources, a very competitive marketplace, and a weak economy, by looking
at a more global focus, category opportunities, the role of content in the
shopping experience, and last but by no means least, the importance of stellar
customer service.

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© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 7

 1. Better Resource Allocation

Demands of ecommerce are not sufficiently met with the right resources
particularly in these cash-strapped times. eCommerce has always been short
staffed and today’s economy exacerbates this situation. As a result merchants
are re-evaluating priorities and looking to automate some functionality, knowing
that customers expect seamless, smooth, and simple shopping experiences.

To exceed consumer expectations independent retailers must meet ever greater

demands with limited resources.

How many full time employees are working in your ecommerce program?

Merchants look to find the right model

Now, more than ever, merchants must assess their resources and address unique needs to allocate in the
smartest way; evaluating in light of their own organizations. In their own words those who completed the e-tailing
group’s 8th Annual Merchant Survey shared thoughts about the challenges, opportunities, and control they
desire to shape their selling strategies:

8 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

Merchant commentary “Do I have the resources to compete in my category?”

“We are implementing a new ecommerce platform
because we are held back right now by having to
develop everything in house; it is time to put control
in the hands of the marketers and merchandisers on
our team.”
“Is our time best spent on the nuts and bolts of
our business or on merchandising and marketing to
create differentiation?”
“I need to run my business not my site.”
“With capital expenditures tightly controlled am I
better off to take a more flexible approach to driving
my e-business?”
“Time to market is more important than ever before so
it is essential that we be able to quickly test and
deploy promotions to meet the needs of the changing
retail climate.”
“Global selling is intrinsic to our brand and the overall
success of our business.”

“What is the fastest road to profitability — I need to

minimize cost of infrastructure yet maximize ROI
where internal pressure to perform grows daily?”

Why would you look to switch platforms? Check all that apply.

Many merchants who started their e-business a decade ago just don’t have the tools they need to compete
today as content management needs have changed and overall systems are outdated. Their growing assortment
strategies coupled with the control necessary to promote and inspire shoppers are essential for a timely and
relevant shopping experience. The options are greater and the admin tools more robust, therefore the
cost/benefit analysis must be calculated for each merchant’s scenario.

44% plan to change ecommerce platforms within three years due to inadequate functionality (55%) and
inadequate systems (40%) along with outgrowing existing platforms (50%).

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 9

 2. Global Branding

Most of the business being done online is centered on the US market though
growth abroad is being seen on all continents. It is important that merchants
take a look at opportunities both at home and abroad and ensure that they have
a “global” selling strategy in place.

Today many brands are universally known while others hope to extend their reach
beyond our borders to tap into international opportunities.

Brand translation tops initiatives

Putting your best foot forward whether you are a retailer, a manufacturer or both requires coordinated marketing
efforts and consistent execution with clear objectives set forth. Having long invested in marketing and
messaging, retailers who diligently define their mission, customers, assortment, and service proposition tend to
be leaders in brand translation. However, today I often find that manufacturers and CPG companies like Apple
have a leg up in this area given their orientation.

Barneys consistently uses their Creative Director as a Consumers look to Apple for clean and clever
powerful voice of the brand. presentation of innovative products whether in-store
or online.

10 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

Brand visualization

Manufacturers invest significant dollars to position their products and tailor the onsite experience with consistent
and core merchandising themes.

Imagery reinforces the power of the Ralph Lauren Godiva’s Chocolate Guide provides a vehicle to tout
brand, embracing video to showcase their style and the brand’s depth and breadth of selection plus live
attitude — with the hook of conditional free shipping. chat reinforces the service support.

What is your time frame for coordinating marketing programs across

sales channels (retail, direct, Internet, TV)?

Coordinated marketing programs across channels are already in place for 67% of merchants as customer
expectations and an elevated merchant opportunity to offer a seamless shopping experience drive such efforts.

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 11

Execution consistency

A brand voice that is delivered seamlessly across channels resonates best with the customer. Though not always
easy to put forth, when executed well, the message relates to customers and prospects alike.

Tiffany blue has come to denote quality and caring
whether gracing an ad or a gift given in their “blue
box.” Being an established brand in the mind of the
consumer affords them merchandising liberty beyond
what a newer brand may experience.
The Container Store’s brand messaging is consistent
onsite and via email with services and conveniences to
simplify one’s life. This email example clearly
reinforces their get organized and simplification vision
while simultaneously introducing the supporting tenets
of such a strategy. These include their recently
launched Click and Pickup program along with
inspiring gifting services and the customer favorite,
free shipping.

12 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

 When do you anticipate selling and shipping internationally?

As we now find many merchants weighing international possibilities, a range of different approaches and
timelines exist. While 46% of merchants report already being international most are still considering such efforts
or have no plans as economic challenges at home may likely take precedence. A further deterrent to global
selling is the fact that it is very difficult to implement the nuances of ecommerce for multiple countries.

Translation takes many forms

For merchants today global opportunities often begin at home, particularly as our population grows more
diverse. While 15% of the EG100 offer the ability for consumers to shop in another language, international
shipping beyond Canada is seen on 34% of sites (4Q ’08 e-tailing group Mystery Shopping). Obviously, once the
decision is made to go global, it is important to provide customers with a complete experience.

Fossil asks “What vintage are you?” and offers a
drop-down menu from which customers can shop
via their country of choice. Integrating this in a
customer-centric way also bodes well for convenience
and a successful shopping experience.
Kudos to Amazon for expanding reach by translating
their robust content and tools into Japanese and other
languages. Their size and sophistication puts them in a
position for selling beyond US borders which has
been an important part of their expansion efforts.

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 13

 3. Category-Centric Merchandising

Merchandising should always start at the category level. Each merchant must
showcase the assortment to both engage and inspire the shopper while
simultaneously delivering profit and performance. The selection of merchandising
tactics should be appropriately integrated and reflect both short and long-term
business goals where continual analysis and refinement are ideal.

A merchant’s assortment must influence the supporting tools and tactics to be

competitive online once the basics are in place.

Over the past year (2008) how has your conversion rate
been relative to the prior year?

Conversion rates in ’08 appeared to be somewhat lower than in ’07, with consumers likely researching products
more including comparison shopping as a result of the economic times. It is our recommendation that merchants
move beyond industry-wide conversion rates to understand category performance factoring in their unique
brand and customer base.

14 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

 All 52 features in the survey in descending order as rated very to somewhat valuable (5-3)

Merchants find value in an array of features with keyword search (94%), sales and specials (93%), cross-sells
(92%), and email as a merchandising vehicle (90%) rated the highest.

The emphasis on search continues beyond keyword search with advanced search and guided navigation
securing prominent positions as well. Merchants’ desire to grow the average order value (AOV) can be seen in
the strong positioning of up-sells and cross-sells. Promotional tools have also grown in these challenging times
with sales and specials maintaining a #2 position. Conditional free shipping serves as a powerful perk for
shoppers and promotional incentives to buy move up in importance in hopes of driving immediate sales.

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 15

Category-centricity starts with an optimized
search experience
From landing page sorts to customized category
treatments this highly utilized area of one’s site must
continually be tweaked for usability and performance.
Beneath the tagline “We share your passion” Sam’s
provides multiple relevant search criteria including
type, varietal, country, price, flavor summary, reviews,
and food paring with icons to identify each.
Beyond brand and price Sephora enables shoppers to
refine search by best sellers, what’s new or gifts as
well as exclusives and limited editions. They wisely
incorporate brand and promotional messaging using
16 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com
integrated tips and tools to set the tone for a robust
customer experience. Content links and conditional
free shipping round out the page.
Promotional creativity
In tough economic times, all promotional tools are in play
with placement and messaging integral to their success.
Roots positions their limited time 20% Off Tees event
above the masthead on their home page; to ensure
that shoppers don’t miss the messaging, they repeat
the offer on each drop-down category menu.
The marriage of accessibility, merchandising, and
promotion is clearly in play with this strategy.
Sears sweetens this email opt-in with $10 in coupons
just for signing up then promises deals and discounts
2-3 times per week. Links to their weekly ad, in-store
pickup, and limited time eBusters are also front
and center.
Strategic placement of promotions mandatory In their shopping cart RoadRunner Sports proclaims
“Wait, There’s Still Time” with the lure of 10% off and
From the product page to the cart and post-order
free shipping to those who join their loyalty club
communication, all locations are fair game for
before checking out. Their customer-centricity is
promotional selling.
further highlighted with universal access to a running
specialist via home page utilities.

Customers take control via engagement tools

and customization

37% of the EG100 offer interactive onsite tools while

27% have product configurators and 24% allow
personalization of product (4Q ’08 e-tailing group
Mystery Shopping). As today’s consumer mindset
centers on the individual, merchants are evolving
tools/tactics that build community and ultimately
foster brand loyalty. These kinds of tactics are
particularly effective in enthusiast categories where
impassioned consumers want to connect.

A limited time offer with free shipping is the

enticement on Bare Escentual’s home page. On a
side note this tactic saw strong year-over-year growth
as 42% of the EG100 merchants up from 18% in 2007
pushed harder to get a sale (4Q ’08 e-tailing group
Mystery Shopping).

Lego’s downloadable “Digital Designer” enables one

to design and buy customized creations. Note the link
to “tell us what you think” for on-the-spot customer
feedback. Their brand is ripe for interactivity and their
evolved efforts in this area should be commended.

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 17

 Within “As Seen In” Nine West highlights editorial
exposure, their current TV/print ads, and a behind the
scenes video of their fashions both on the runway
and in the street.

Gardener’s Supply engages customers with a

“Kitchen Garden Planner” which includes a drag and
drop map to configure how many plants are needed to
create one’s own 3x6 garden by choosing from 30
options; print this map and a learning center complete
the application. Customer participation from this
dedicated segment can help to grow sales and AOV
simultaneously as both depth and breath of product
options are presented.

Inspiration tactics are essentials

From media-driven selling to customer-generated

content take advantage of a myriad of ways to direct
shopper purchasing. The customers want to be in
control while the category dictates the appropriate
elements for any given brand.
At the category level Dell presents Top Customer
Picks for that week with ratings and excerpts from
current reviews presented as part of a product
compare environment, always a customer favorite.
Immediacy is apparent via instant savings and
deferred billing to help close the sale while click to
chat or talk meet the customer’s need for more
information — now.

18 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

Engagement is the new conversion KPI

Merchants identify new metrics to address cross-

channel efforts that embrace consumers and
ultimately deliver brand loyalty. They look beyond
conversion knowing that customers connect with
brands in many ways where it is not always clear
when and how the sale happens. It is the long-term
brand connection that will last far past the initial sale
as these merchant examples suggest.

Now playing in the Barnes and Noble Studio are

audio and video interviews with writers. Navigation
enables one to also read a review, email-a-friend,
bookmark, podcast or buy the author’s works. Both
their author community and store personnel are
leveraged to stimulate visits and ultimately sales.

Within customer service Williams-Sonoma invites

shoppers to special events and cooking classes in
over 250 stores with monthly calendars detailing
where activities are taking place. A store locator and
bridal registry link are appropriately featured.

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 19

 4. Confidence-Building Content

Behind targeting, onsite search, and site redesigns, both content and product
enhancement tools are on the list to tackle this year to improve website
performance. Merchants must give customers information to feel 100%
confident when they consider making a purchase. This includes a combination
of visual cues, product information, and rich tools that make products come to
life when tactical options are limited.

Merchants are investing heavily in category, product and channel information to deliver
a robust and comprehensive consumer experience.

What initiatives are you planning to improve website performance?

Check all that apply.

20 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

Play your value proposition

Embrace your assortment and branding to give customers a sense of their true shopping options. Whether that
means teasing visitors with what’s new in-store or testing new concepts that embrace the current economic
climate, being clear on your value proposition simplifies messaging.

Within the category “New”/subcategory “Home”
Crate & Barrel presents visuals and links to browse
an extensive array of new and often exclusive
products inspiring shoppers to both buy online and
visit their stores.
L.L.Bean brands “Bean Values” complete with
iconography to denote “the best quality and price”
on basics — without a sale event! A proprietary credit
card offer promises free shipping among other
benefits and keeps their loyalist shopper in the fold
for another season.

Product page content must be robust

From a complete product description to targeted

recommendations comprehensive content best serves
the consumer. All the necessary supporting elements
must be in place for the shopper where all products
warrant a rich and robust presentation.

This American Girl product page gives every shopper

type what they need to immediately buy the doll and
related items, or learn more, read a review, add to
wish list, email-a-friend, share and explore content.
Wisely, ways to buy includes bundles at value pricing
and in-store events are integrated into the product
page experience.

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 21


Below a comprehensive product presentation Staples
organizes details, specs, reviews, promotions and
related products with tabs for easy shopping. Among
the tactics that make this a winning page — multiple
views, zoom, notation as an exclusive, price after
rebate shown, shipping/store delivery options, add to
favorites, customer reviews, and product compare. I
particularly like that they are taking advantage of a
prime location to showcase current promotions.
Supporting views fill a selling void
Alternative views can really make a difference when
shopping in cyber-space as these examples from
J.Crew and Famous Footwear clearly demonstrate
via execution that also offers shop by color
change/size tools. In home and apparel fashion, the
value of these tactics seems powerful and should
result in higher KPI performance.
Technology supports selling
Showcase products that complete a look or give the
consumer a better way to visualize their product in
use. By doing so consumers imagine and are inspired
to purchase and merchants are rewarded with greater
sales and a higher AOV.

The right views can seal the sale where all questions
about the products are covered. Each merchant must
decide the level of photography investment they can
afford to make, evaluating its importance relative to
being not only competitive in the category but
essential for customer conversion.

22 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

The Gap bundles baby bedding into 4-piece sets,
enabling shoppers to buy it all in a single click.
Alternatively one can view the individual items or zoom
within the room setting.

On the Toys ’R Us site the iPod Nano is featured in a

In the Nine West LookBook shoppers browse outfits
then click to buy desired products included in the look
from a pop-up window.
presentation that clearly leverages Apple’s marketing
visuals. Their messaging drives in store traffic,
leveraging the web’s ability to market and inform
brand enthusiasts.

Timely brand content romances the assortment

Show customers the power of the brands you carry,

delivering execution in line with direct-to-consumer
selling. Today merchants can take advantage of
syndicated content to best showcase the brands.
However, as retailers and manufacturers often sell
head-to-head, retailers must continue giving
consumers a reason and unique point of view in order
to maintain and grow their market share.

Sephora showcases the Urban Decay brand within

the shop-by-brand area of their site where pages are
formatted with links to help customers learn more.
Their robust execution has strong appeal to beauty
buyers and the bottom-line.

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 23

Confidence-building tactics perform
Giving customers a complete sense of the product
through demonstrations and video ensures they make
the right buy while simultaneously reducing return
rates (although direct impact on conversion is yet to
be substantiated in our surveys). The opportunity to
deliver results should continue to improve as cost-
effective video is now a reality.
eBags no frills, behind the scenes video demos offer
great sales support. Inclusion of ratings, email-a-
friend, download to phone, and share links on the
page is smart merchandising.
Green Mountain Coffee adds Keurig’s video demo
from YouTube to their site to give shoppers the full
flavor of this product and a banner boldly announces
free shipping for the category.
24 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com
Videos vault in importance
Video adds another dimension as 65% EG100 vs.
45% last year embrace the opportunity to show more
(4Q ’08 e-tailing group Mystery Shopping).
Golfsmith has long been a proponent of video to
showcase products as the vendors in this category are
known to provide a plethora of quality footage. The
opportunity to add video footage from winning golfers
further inspires their merchandising efforts.
Look to homedepot.com TV to find videos aggregated
on this merchant’s site including how-tos, inspiration,
and tips. As conveniences the “degree of difficulty”
and running time are noted. These efforts are ideal for
online access but can also drive cross-channel visits
and shopping while reinforcing the Home Depot
brand promise.
 5. White Glove Service

As part of the e-tailing group mystery shopping, we have always considered the
service a customer receives to be of the utmost importance. For us this includes
all self-service components as well as any touch points you might have with
your customers once they have placed an order or merely have a product
inquiry. Both knowledge of your brand’s value proposition along with timely and
thoughtful execution will be important to growing market share.

Customer service differentiation is even more critical in tough economic times as

consumers look for risk-free shopping and merchants must deliver.

Please rank your top 3 marketing and customer service tactics for retaining customers
with “1” being the most important to your strategy and “3” being the least important.

The top ranking marketing and customer service tactic for retaining customers is exemplary customer service
followed by targeted email and streamlined checkout. In tough times we would suggest that elevating service
standards rather than ratcheting back such efforts is the right retail vision. Every customer transaction and
communication touch point is a chance to establish a brand-bond that today’s merchants cannot afford to miss
in their quest for success.

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 25

 REALITY EXPECTATION

Delivery 4.76 days Next day or quicker deliveries based on the

high bar set by Amazon, Zappos and others
CSRs Mixed bag Support personnel must know the product and move
beyond being order takers and delivery informants
Email Response 20.15 hours Real product knowledge sent in a personalized
Time fashion delivered within 24 hours of query
Live Chat 32% of EG100 merchants Complete product and institutional information
utilize live chat where where more consumers come to expect this
service levels mimic option available to them as part of site experience
overall brand execution

Source: 4Q ’08 e-tailing group Mystery Shopping

Stellar service across-the-board should be non-negotiable yet per the above chart, based on benchmarking
100 sites, the realities of customer service do not always match expectations. In a perfect e-world product would
be shipped moments after the customer hits the buy button and queries would be answered immediately,
personally, professionally, and accurately.

From a live chat perspective our recent merchant discussions indicate that the tactic performs well with much
higher conversion and AOV reported. It is important to note however that exemplary service and training should
be in place prior to embarking on this added customer convenience.

Reinforce service differentiation

From the home page to your guarantee, make shopping a risk-free proposition for your customer. These times
suggest that giving your customer exemplary service is more important than ever before.

“The RedEnvelope Difference” includes unique gifts of

exceptional quality, personalization, great shipping
rates/options, and standout gift wrap all tied up in a
big white bow! The home page positioning gives their
message “can’t miss” visibility.

26 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

Sundance promises world class customer service via
this well-worded guarantee: “If at any time or for any
reason you do not feel that your purchase has worn
well, aged gracefully or lived up to your expectations
simply return it for an exchange or refund.” Coupled
with strong Sundance imagery this presents a
winning combination.

Supply exemplary expertise

In their “Beginner’s Corner” Orvis provides a glossary
Translate corporate knowledge via useful onsite
and how-to content. Customers are encouraged to
tools and communication to elevate customer
offer suggestions for this area as well as to send in
experience. This can range from FAQs and corporate
stories for inclusion in the catalog/website. This
expertise to video and Web 2.0 tools that embellish
enthusiast’s dream welcomes newbies in hopes of
the shopping experience.
establishing life-long relationships.

They know the value of these customer relationships

and their support/service belies such efforts.

“the doctors’ pet information center” on Doctors

Foster and Smith’s site is replete with “information &
pet tips from our experts” including an Article Library
listing topics A-to-Z that is sure to build a trusted
brand-bond with passionate pet owners.

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 27

Incorporate time-savings tools
From quick views to express checkouts (some multi-
store) shopping simplicity appeals to time-starved
shoppers. It is our recommendation that every tactic
under consideration center around convenience and
time saving, the #1 reason people shop online.
Consumers benefit from bolstered promotions and
time-saving tools. Shared ownership means shared
benefits for customers of The Gap, Old Navy, Banana
Republic and Piperlime — from shopping one site
with a single checkout to $7 flat rate shipping.
From their search results page Target’s “quick info”
feature opens a window with tabbed product
information plus links to reviews and to either buy or
conveniently add the item to a registry. This tactic is
especially desirable for commodity products where
shoppers can quickly make purchasing decisions.
28 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com
Take service beyond the call
Connect with your customer for both brand building
and buying opportunities.
As a brand building device Jones New York, intro-
duces and profiles their resident fashion expert then
invites shoppers to ask him style related questions
making this intimate connection a wonderful option.
Branded as “the world’s largest running store,” Road
Runner Sport’s home page is merchandised to the hilt
— a best price guarantee, deal of the week, and $5
shipping appeal to the price-driven while their shoe
dog search engine and what’s new aid decision-
making. There is even “green” messaging and
customer service is literally top-of-mind with a friendly
CSR positioned atop the page to set-off contact
information.
Lead with loyalty

Remind shoppers of how they can be rewarded

in these challenging times. All merchants must be in
the loyalty business as retention has always been
less expensive than acquisition. Keeping our current
shoppers happy should be a topic for discussion at
every retailer where all of us remember what it takes
to keep customers coming back. 50% of EG100
merchants, up from 43% in 2007, have introduced
loyalty programs (4Q ’08 e-tailing group Mystery
Shopping).
The hp home and home office store competes with
the masses for ink sales via a rewards program.
“Here’s What You Get” enumerates the benefits —
exclusive offers and deals, reward discounts, and
free next business day delivery.

On this well designed page Sephora explains the

details of its beauty insider rewards program via bold
headlines, succinct text, and clear product photos.
Links to join or view FAQs complete the functionality.

© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com 29

 Conclusion and Checklist: Are you
prepared to battle for market share?
We have shown 44 examples that inspire, inform, and promote to get the sale
today while building sustainable customer relationships for tomorrow. It is up to
each merchant to assess the opportunity for their brand, their category, and their
customers in hopes of optimizing their cross-channel customer experience.
Please utilize this checklist as a tool to take stock of the web for your business.

Take timely measure of your brand’s ecommerce state, assessing internal

resources and where your investments can make the biggest ROI impact.

Tackle the basics and then elevate the customer experience with
category-centric tools; it is all about prioritization.

Total content requirements must be delivered from a category, product,

and channel point of view as complete information is essential.

Test new tactics periodically to enhance the site’s merchandising.

Target unique customer segments with distinct experiences that support

their needs.

Take advantage of every opportunity to deliver exemplary customer service

as it is truly the differential.

Think global for greater customer reach.

30 © 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com

 About the e-tailing group
and Demandware
About the e-tailing group
We are seasoned experts specializing in providing
practical merchandising and customer service
solutions to elevate the multi-channel customer
experience. By conducting merchant and consumer
mindset research we help develop smart strategies for
merchants and thought leadership for technologists.
Additionally our industry benchmarks provide the basis
for media outreach and merchandising education.
쑺 15 years ecommerce consulting
쑺 Author, It’s Just Shopping
쑺 50+ years traditional retail and catalog experience
쑺 Fortune 500 client projects ranging from strategic
planning, merchandising, marketing, to technol-
ogy development and messaging
쑺 Proprietary research studies on mystery shop-
ping and merchandising, “egeg” index, marketing
and multi-channel customer mindset, in-store
pickup and gift registry
쑺 eCommerce expert and frequent speaker at
industry events; trade associations
© 2009 Demandware, Inc and the e-tailing group, inc. | www.demandware.com
About Demandware
High-growth retailers and consumer brands looking to
develop or extend the reach of their B2C ecommerce
business trust Demandware as their strategic partner
for ongoing success. Demandware solutions,
comprised of the only enterprise-class, on-demand
ecommerce platform and expert services, deliver
merchandising effectiveness, proven site reliability and
industry best practices that exceed profitability goals.
Only Demandware provides a distinct time-to-market
advantage for launching multiple ecommerce sites,
customizing the consumer experience from content
to code, and maintaining sites at the forefront of
ecommerce innovation. Demandware clients include
industry leaders such as Bare Escentuals, Barneys
New York, Columbia Sportswear, Crocs, Jones
Apparel Group, House of Fraser, Playmobil and
Timberland. For more information about Demandware,
visit www.demandware.com, call 888-553-9216 or
email info@demandware.com.
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