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Customer-Focused and Market-Driven --

Multi-Channel Retailing at Eddie Bauer
UW Marketing Course, February 24, 2003
Bridgette Boudreau
Marketing Manager, E-Commerce
Eddie Bauer
Contents
Eddie Bauer a brief history
The Challenge of the Channels
The Voice of the Customer
Customer-Focused Web Design
Questions, Methods and Tools
Usability Lab explored
Case Study EB Product Page 2002
Summary
Q & A
Who was Eddie Bauer?
Eddie Bauer was a legendary Pacific Northwest
Outdoorsman
Eddie established his first sporting goods store in
downtown Seattle, Washington in 1920
Eddies character, determination, entrepreneurial
spirit and love of the outdoors created a successful
business and enduring legacy
Eddie was an innovator
Creed and guarantee
(Quality, Value, Service, Guarantee)
Revolutionizing and patenting the shuttlecock
Designing down insulated flight suits for Air Force pilots stationed in Alaska
during WWII
Creating and patenting the first quilted goose down jacket
That innovative spirit lives on today at Eddie Bauer
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What is Eddie Bauer Today?
Eddie Bauer has evolved to a multi-channel retailer with more than 580 stores,
100 million catalogs circulated and websites including eddiebauer.com,
eddiebauerhome.com and eddiebaueroutlet.com
Eddie Bauer operates stores in the United States, Canada, Germany and Japan
Offering includes Apparel and Gear products for men and women and Home
products
Eddie Bauer Mission
To become recognized and respected worldwide,
as the authentic-original American lifestyle brand
and the leading multi-channel authority
of outdoor-inspired products of inherent
premium quality and value
a company renowned for its innovative spirit, authenticity and
passion for creating a superior customer experience.
Creed and Guarantee
To give you such outstanding quality, value, service, and
guarantee that we may be worthyof your high esteem.
- Eddie Bauer, 1920
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E-Commerce History
1995 1996 R&D, Launch store on AOL
1997 1998 Launch store on the web
1999 2000 Add functionality, integrate with back-end systems
E-Commerce History
2001 2002 Optimize the Customer Experience
Launched Customer-Focused Design
Launched in-house usability lab
The Challenge of the Channels
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Its Complex!
Eddie Bauer is a complex organization with three core businesses
and three channels.
Apparel Home Outlet
Retail
Catalog
E-Commerce
Businesses
Channels
Its Complex!
Heres another way to look at customer touch points in context:
ONLINE ONLINE
X
CATALOG ONLINE
q Relevant on-page messaging in catalogs
promoting the features and benefits of
shopping online
q
Explore prominent 2/3, blow-in or other
kinds of intrusive messaging driving
customers to the web.
q Work with new customer acquisition to
ensure we are correctly messaging for new
customers, 50% of which go online to shop
(20% EOB, 30% direct-to-the-web)
q Ensure catalog features and online tools
are consistent (e.g. swim fit finder)
RETAIL ONLINE
q Relevant in-store messaging
q eb.com -- always open, more sizes, colors
and styles online
q Ensure online message appears on bags,
by products, at the DOC, fitting rooms,
etc as relevant
q Store associate communication and buy-in
q Retail to online and retail to catalog must
be an integrated strategy
ONLINE CATALOG
q Use catalogs online and online messaging
to extend mailing depth for new customer
acquisition
q Test sending smaller DM/Catalogs with a
message stating the customer can see the
entire assortment online in catalog form.
q Ensure catalog phone number is readily
available for online customers who may be
hesitant to complete their purchase online.
CATALOG CATALOG
X
RETAIL CATALOG
q Direct Order Center update (retail/direct
initiative)
q Relevant in-store messaging at the product
q Retail to online and retail to catalog must
be an integrated strategy
ONLINE RETAIL
q Improved store locator relevance and
messaging
q Retail product look-up and stock status (E-
Commerce initiative)
q Build a retail email file that can be used to
drive retail traffic
CATALOG RETAIL
q Continue multi-channel analysis of catalog
performance
q Explore opportunities to message retail in
catalogs
RETAIL RETAIL
X
Its Complex!
Our goal is to increase our understanding of the interplay between
these various customer touch points.
To leverage our tri-channel model.
From both a messaging and data standpoint.
To ensure that customers receive consistent messages across channels and
businesses.
The customers view us as one company, we better act like it!
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The Voice of the Customer
There are three key components to being a
customer-focused company
1. Customer Information
Market Research
Were Listening
Say it out Loud
Data
There are three key components to being a
customer-focused company
2. Keep your eyes on the competitors
Identify your competitive set from a both a merchandise and marketing
perspective
Get a clear idea of what you want to know about your competitors and then
Snoop, Spy, and Network to get the info
Gather and use information that will help you make business decisions,
avoid getting lost in things that are nice-to-know
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There are three key components to being a
customer-focused company
3. LISTEN to your customers, REACTto your competitors
Now that you have all this customer information, LISTEN to it!
Be sure you are making business decisions from a customer point-of-view, not
your own filter of the customers point-of-view
This is harder than it sounds
Get the right information about your competitors at the right time
Knowing everyone in the marketplace is going to have your signature product
during a key sales time period and its going to be cheaper than yours is...
Useful info 6-12 months in advance.
Useless when youre seeing this play out in your stores.
Customer-Focused Web Design
What is customer-focused design?
An approach to creating end-to-end, cross channel experiences
based on an understanding of users, their goals, and their behavior.
Forrester Research
Scenario Design December 2000
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Scenario Design Answers Three Questions
What
are their
goals?
Who
are your
users?
How can users
achieve their goals?
Goal
Forrester Research
Scenario Design December 2000
Scenario Design Answers Three Questions
What
are their
goals?
Who
are your
users?
How can users
achieve their goals?
Goal
Forrester Research
Scenario Design December 2000
Scenario Design Answers Three Questions
What
are their
goals?
Who
are your
users?
How can users
achieve their goals?
Goal
Forrester Research
Scenario Design December 2000
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What are the Questions ?
Who are your customers?
What are their goals?
Howcan customers achieve their goals?
What are the Steps?
Analyze Listen to the Customer
Discover Study the Site, Industry and Competition
Design Prototype > Test > Repeat
Implement Engineer and Launch solution
Repeat
What are the Tools?
Site Activity AnalysisProvides insight into what and where
Analyze success rates of key tasks (Pipeline Analysis)
Leverage metrics infrastructure
Customer Feedback Provides insight into who, what and why
Leverage call centers (Phone, email)
Conduct On Site Surveys and Market Research
Usability Research Provides further insight into why
In-House usability Lab
Usability Best Practices
Industry FeedbackProvides insight into what, where and how
Competitive ReviewsProvides insight into what, where and
how
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The Eddie Bauer Usability Lab
Facility:
Customer experience lab customers execute key tasks
Feels like home (Sofa, table, art, etc.)
Computer multiple environments for varied testing (OS, connections etc.,)
Video Camera Monitor task pathway
Stopwatch Monitor task time
Task List.. Sets a scenario and provides task direction
Usability Coordinator
Design lab teams view studies in progress and brainstorm solutions
Design War Room facilitates solution concepting and testing
TV Monitor facilitates real time observation of study
Ample Work Space
The Eddie Bauer Usability Lab
Guiding Principles:
Purpose of studies is to assess how well users can achieve representative tasks
Make the tasks specific to a detailed scenario
Focus on what users do, not what they say they do
Its fine to ask participants for feedback on how the task went
Look for commonality among participants
Avoid leading questions, remain neutral
Begin with an easy task
Case Study: Product Page Redesign 2002
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Why Look at Changing the Product Page?
Customers voiced concern about difficulty in finding necessary product
information.
Initial review of metrics indicated there was conversion and AOS upside
potential.
Industry feedback indicated improvements were needed.
Previous design was based on intuition and industry best
practices for web site design.
Everything must be above the fold
Users dont scroll
Users dont read
Present only the basic information
Click to reveal more details when interested
Old Product Page: Main View
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Old Product Page: More Info View
Project Objectives
Improve the customer experience
Increase average order size (units)
Increase add-on sales
Reduce task time
Sustain page performance
Improve site conversion rate
Discovery: Key Metrics
Very few users click:
more info
coordinating products link
Many users view more than one color
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Discovery: Pre-Study Identified Key Issues
Less than half of participants clicked on icons, but
commented on missing information
Confusion over which add button to click
Assumption that clicking to view a color also selects it in
the ordering section
Page refreshes are interruptive, disorienting
Size chart & coordinates links not seen
Discovery: Competitor Sites
Studied sites representing alternative approaches:
Varying amounts of product details
Varying functionality
Varying placement of functionality
Varying page layouts
Asked respondents to perform same tasks on each
Identified successes to adopt, problems to avoid
Iterative Usability Study Findings
Users read detailed product information on the page
Users scroll automatically
Choosing color and size is expected at the end of the page with a
submit button
Participants found view on a model with swatches and
responded positively
Participants clicked on and made positive comments about
You May Also Like section
Fewer errors in making color selections
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Key changes:
Expanded product
information, right on the page
You May Also Like section
View on a Model next to
with swatches
Size chart link next to size
selection
Radio button selections no
longer refresh page
Clicking on color swatches
also pre-selects color
Improved inventory
availability info
Pre-redesign Post -redesign
Post-Game Metrics: Pre- vs. Post- Redesign
Units/Order: + 7%
Add on Sales: + 550%
PPV/PV: + 6.4%
Conversion: + 36%
General Task Time: - 17%
Decision-Based Task Time: -9 %
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Summary
Eddie Bauer was an innovator that innovative spirit
lives on today at Eddie Bauer
While being a multi-channel, multi-business company is
complex, its imperative that Eddie Bauer understand
how to leverage this advantage
Be customer-focused and market -driven: listen to your
customers, understandthe competition, and act on that
learning
Customer Focused Design leads to increased
profitability
Thank You
Bridgette Boudreau
Marketing Manager, E-Commerce
bridgette.boudreau@eddiebauer.com
Q & A