Stores Magazine - October 2007 - (Page 10) The Maturing Web BY TRACY MULLIN The Voice of Retail Worldwide STORES is published by NRF Enterprises Inc., a subsidiary of National Retail Federation Inc., 325 7th St. NW, Washington, D.C. 20004. (202) 783-7971 FAX (202) 737-2849 emember when it used to take 20 minutes to download those pictures that your college roommates sent of their growing families? You’d wait impatiently while the status bar slowly moved from 9 percent . . . to 13 percent . . . to 20 percent. Most of the time, I imagine, you’d find yourself closing out of the message entirely and just wait to for the Christmas card to arrive in the mail. Ten years ago, when the Internet had just started to take off, gung-ho designers needed to be restrained from using flash, large images and extensive product details. Not only would these cool technologies completely overwhelm a new web-user, executives feared, but consumers would be so frustrated by slow download times on their home dial-up computers that they would simply give up in aggravation. Today, about half of Americans have broadband access at home, which is creating a bit of a virtual paradox: as consumers become more comfortable with the web, they are easily bored and continually expect more from us. Instead of being told to tone it down or make things simpler, designers are being challenged to get creative. Boardroom conversations now focus on minimizing clicks and optimizing efficiencies. Those are among the findings from The State of Retailing Online 2007, the 10th annual Shop.org survey conducted by Forrester Research. The survey, which was released last month at the Shop.org Annual Summit, concluded that online retailers are being forced to raise the stakes to address a more sophisticated web user. Retailers are responding to this trend, revamping their homepages with drop-down menus and rollover lists in navigational areas. Many companies have begun to use strategic product placement, driving customers to specific merchandise for holidays or promotional periods. They are also highlighting “top sellers” and “what’s new” sections to take the guesswork out of gift giving. The facelift goes far beyond the homepage, the SORO survey found. Retailers are intently focusing on product detail, from 360-degree rotation to alternative images and lifestyle photography. They are also improving customer service, investing in live chat, pro-active chat and guest checkout. And we’re still seeing a big push with customer reviews. A handful of prominent e-tailers are experimenting with blogs, social networking and podcasts to give their customers a voice — and keep them coming back. This is all part of a growing focus on customer retention. Since fewer people are coming online for the first time, companies are shifting toward satisfying customers they already have. It’s a smart move for multi-channel retailers to acknowledge that sophisticated shoppers are looking for a more refined experience. The maturation of the web not only means that you can finish your holiday shopping in record time; it also means that when you get that Christmas card from your college friend, there won’t be a bunch of strangers staring back at you. R CHAIRMAN OF THE BOARD M. Farooq Kathwari, Chairman, President and CEO, Ethan Allen Inc., Danbury, CT VICE CHAIRMEN Paul R. Charron, Chairman Emeritus Liz Claiborne, Inc., New York, NY Myron E. Ullman III, Chairman and CEO, J.C. Penney Co., Plano, TX PRESIDENT & CEO Tracy Mullin SENIOR VICE PRESIDENTS Mallory B. Duncan, General Counsel David Hogan, CIO Karen Theibert Knobloch, Member Services Carleen C. Kohut, Finance & CFO Steven J. Pfister, Government Relations NRF Divisions Association for Retail Technology Standards EXECUTIVE DIRECTOR Richard E. Mader (202) 626-8140 National Council of Chain Restaurants PRESIDENT John R. (Jack) Whipple (202) 626-8183 FAX: (202) 626-8185 Retail Advertising & Marketing Association EXECUTIVE DIRECTOR Mike Gatti (202) 626-8117 FAX: (202) 737-2849 EXECUTIVE DIRECTOR Scott Silverman (202) 626-8192 FAX: (202) 626-8191 325 7th Street, NW Suite 1100 Washington, D.C. 20004 All articles published in this magazine represent solely the individual opinions of the writers, and not necessarily those of the National Retail Federation. 10 STORES / OCTOBER 2007 WWW.STORES.ORG http://Shop.org http://Shop.org http://WWW.STORES.ORG
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