Monday, November 8, 2010

Appeal to Holiday Shoppers’ Ecommerce Brains

The Christmas shopping season is underway.
  • The New York Times reports that Sears has started running “Black Friday” ads, and the week before Halloween, Abercrombie & Fitch sent e-mails to customers with the subject line: “We’re feeling naughty and sneaking Christmas in early!”
  • Ecommerce retailers are even further along. According to the latest eHoliday survey sponsored by the National Retail Federation’s Shop.org, about 80% of online stores have already launched their holiday promotions.
     Recognize that ecommerce has changed the mentality of the shopper. Here are a few consumer psychology tips on appealing to holiday shoppers’ ecommerce brains:
  • Help shoppers avoid unwanted crowds. Yes, many people find enjoyment in the busy bustle of holiday shopping. The ecommerce brain—especially the female ecommerce brain—finds that being with others who are in a holiday mood gives a sense of community energy. But although these women love the bustle, they hate to be jostled. It’s the unwanted crowds which make the shopper want to run home to their computer to finish the purchases. In the bricks-and-mortar store, establish store operating hours that spread out any crowds. Up the merchandise density for the holidays, but leave spaces—such as pristine restrooms—to which shoppers can retreat from crowds for a few minutes.
  • Let customers say thank you. Customers wish to deal with retailers who help them out, and one way customers express this wish is to say thanks to store staff. Research findings from Università Commerciale Luigi Bocconi and another set from University of Maryland and Yale University together suggest that giving the customer an opportunity to express gratitude to staff facilitates loyalty to the retailer. This seems to become more important during the holiday season because of the spirit of giving. Where are the opportunities for the purchaser to say thanks to a salesperson or cashier when online? On some sites, the answer comes with “click to chat online” features. It is the opportunity to say thank you rather than an obligation to say it which makes the difference. Lots of shoppers want to complete their transaction as quickly as possible.
  • Give shopper rewards right now. The ecommerce brain expects speed. JCPenney predicts their holiday JCPca$h promotion—which offers 20% instant rebates—will have a clear advantage for shoppers over programs such as Kohl’s Cash—which rewards with a 20% discount for the customer’s next shopping trip.
Click below for more:
Design Store Operations for Ecommerce Brains
Set Store Searches for Ecommerce Mentalities
Help Ecommerce Customers Thank You

3 comments:

  1. Great stuff, Bruce. I work for VeriSign and these psychological clues are things we remain cognizant of, as well...I think, too, that safety remains a huge issue with consumers, and there's push and pull between brick-and-mortar and online retailers. When a few years ago Best Buy and Walmart customers got hit with a debit card attack the scales tipped in favor of trusted online stores like Amazon...and I think recent security boosters like Extended Validation SSL (with the green url bar) have continued to enforce the benefits of online shopping. Most shoppers make decisions based on price, but all of these other factors -- convenience, safety, etc -- play a role that shouldn't be dismissed.

    ReplyDelete
  2. Thanks for your comment, Joseph, and I apologize for my delay in acknowledging it. I love comments that help retailers improve their profitability.
    Building on your wise observations, I’m convinced it’s in the interest of all retailers-—bricks-and-mortar and online-—to help shoppers protect the security of their personal information, including credit information. As you say, it’s a safety issue.
    Research findings from Carnegie Mellon University indicate that tales of mild horror can help. Study participants who completed a photo-identification task that asked them to spot phishing emails (designed to lure people into revealing their passwords) were less likely to disclose sensitive information in the next part of the study. But the lessons should not arouse too much fear. Otherwise, the recipients will deny that any such thing could happen to them.

    ReplyDelete