Let’s Go Surfing Now: 8 Tactics to Drive Your Online Sales

June 30, 2007  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on July 2007 Just imagine you were there when the idea was first proposed to sell furniture on the Internet. The pitch was probably greeted with howls of laughter and comments like, “Customers will never go for that. They can’t touch it or sit on it? Just look at it on a screen? Furniture’s too big, too bulky to sell online. Fuggedaboutit!”

But we know that’s not the case. In his session entitled “Leveraging the Internet—You Don’t Have to be Wal-Mart” presented at High Point Market, Escalate Retail’s Roy Martin (also a frequent contributor to Home Furnishings Business) cited research that predicts a staggering 71 percent of all furniture sales will be influenced by the Internet.

That’s not all. Martin said currently 38 percent of affluent shoppers prefer buying online to the 33 percent who’d rather shop face-to-face, and 46 percent of all consumers do research online before they buy.

But even with this heavy traffic, the news isn’t all good for online sales. Technology presents challenges: 89 percent of customers have experienced issues while attempting to buy on the Internet. Of that 89 percent, 33 percent will try again and 27 percent will give up.

Take the Steps

These stats indicate that to maximize your online selling potential, you must make the most of your Web site to ensure it’s effective, compelling, user-friendly, and armed and ready to drive those sales.

To aid you in this quest, Martin offered eight suggestions to help your site be all it can be.

1. If you build it, they will come. If you don’t already have a store Web site, get one fast! Martin recommended that your site show a wide range of item selection, give directions to your store and offer shopping tips to customers. He estimated developing a new site would cost you a minimum of $5,000 to $10,000. “If you don’t want to start a Web site,” he added, “consider eBay (see story on pg. 50), Amazon, Yahoo or Google. All of these sites have fairly small price tags for entry, offer a tremendous volume of information, and provide experts to help you get started.”

2. Go back to school. Need to develop a new site, or revamp an old one? Martin suggested going to a local college or trade school to find young, aspiring Web developers. “Students must design and post Web sites as educational projects,” he said. “Why not work with (them) and have one create yours?”

3. Know who is buying what. Once you’re up and running with your site, consider putting systems in place to track customer data. There are a variety of different ways to do this that Martin cited, including recording all customer information in one master record whether sales occur on the Web or in your retail stores. “Successful companies treat their Web sites as just another store,” he said. “Pricing may be different between the Web and in their stores, but all of their data should come from (and be recorded in) one place. Think about when you need to automate the integration (between Web and store). It doesn’t have to be day one.” He also suggested that you have Web orders re-keyed into your current system, mainly to standardize the flow of information and add unique data as needed.

4. Keep in touch. Today’s Web-savvy shoppers have grown accustomed to quick, thorough follow-ups from sites like Amazon after they order, and you should follow suit. At a minimum, Martin suggested, you should send an initial e-mail that confirms a purchase and pricing, and indicates when the item(s) will be shipped and delivered. Also, immediately acknowledge and verify charges, and send subsequent e-mail reminders when the product ships and to confirm delivery.

5. Make yourself known. Start a blog that links to your Web site. As you share your thoughts, you can use a blog to promote your knowledge of furniture, and offer tips on how to buy it and get the best value for the customer’s dollar.

6. Map it out. A valuable enhancement to your Web site may be a page offering a virtual map of a bedroom that can be customized when a customer enters dimensions, existing and desired pieces, and even electronics, enabling them to design their room before they buy.

7. Reward loyalty. Martin said loyalty programs, which reward shoppers for repeat purchases, are an effective way to drive business to your Web site. With such a program, for example, shoppers would receive “points” for every purchase (possibly based on dollar value), and upon racking up set amounts of points, they’d get store credit or free gifts. One option Martin proposed was to partner with other stores that complement your business, such as an electronics store selling home appliances, for your loyalty program. Another variation he suggested was to do a loyalty program in collaboration with a local mall, providing links to the mall’s stores on your site and vice versa.

8. Broaden your horizons. Once you’ve established your site, worked out the bugs, and are gaining ground as an online seller, you may want to consider moving on to the next level of technical sophistication. Next phases that Martin said are within the grasp of most Web merchants include setting up provisions for special orders or creating a workable electronic catalog.

What’s Next?

Martin foresees the evolution of retail Web sites into what he calls “the ultimate experience, where instant updates occur between the Web, store and call center channels.” Such systems will enable customers to order online and pick up in stores, and allow retailers to share inventory, analytics and returns information between various channels. They’ll also perform advanced applications such as instant click analysis, with which you can assemble statistics on how many clicks shoppers execute before buying or leaving your site.

The future of online retailing is a sunny one in Martin’s view. He predicted the costs of running and enhancing Web sites will come down as technology improves and the online retail community continues to grow. But he felt it’s crucial that the furniture industry stay on top of cutting-edge advances in Web technology.

In closing, he offered this advice for newcomers to Web selling: “You don’t have to be a big guy to get going (on the Web). You can start with a few small ideas. You don’t have to do them all on day one. Your initial investment can be less than $10,000. Programs are in progress to provide “Nirvana.” People will buy (online) if (you carry) what they really want—they’ll even pay extra freight charges. Just tell them upfront about it by providing a calculator with your shipping information.”

Soon, that ultimate experience may be your reality ... as we all hit the surf.