Turning An Unsuccessful Site Search Into a Growth Opportunity

  |  June 13, 2012   |  Comments

How effectively are you mining your onsite search behavior to improve your product mix and customer satisfaction?

Traditionally, retailers have been heavily reliant on sales data, specifically transactional sales data, to drive many of their decisions on future pricing, cross-selling, and availability. They even use that data to make decisions about who to buy from and what collections to feature next season. But are they missing out on an ever-greater data point? By limiting their data collection and review to what did or didn't sell, instead of trying to understand what customers were really looking for, retailers are missing an opportunity to get deeper into a customer's psyche.

The online shopping experience, by contrast, provides a natural opportunity for these retailers to expand their perspectives. By taking advantage of the data surrounding online shoppers and their search behaviors, not just their buying patterns, retailers can obtain a more effective view into unmet demand.

Take, for example, a chain of brick-and-mortar shoe retailers. They likely have great insight into what shoes are selling best by region, how quickly certain sizes sell, and all kinds of tidbits of granular details about user behavior - after the sale. On the surface, that is a major improvement from the days of manual stock checking and quarterly forecasting. This data may help them reorder similar shoes, plan for sales, and even help spot trends in quicker fashion.

But what about all the missed sales whose data never gets collected? All the potential customers who left the physical store empty-handed because they were looking for the hard-to-find size, the non-traditional color, the "emerging" designer that the chain had never heard of? All of these unsuccessful interactions actually contain a treasure trove of data. For retailers willing to mine their search data, especially their data of unsuccessful searches, they just might uncover a new market or unmet need.

Two search behaviors are logical starting points for retailers looking to get more out of their onsite search data:

  • Top unsuccessful searches. Understanding why a search is unsuccessful may provide new insight into trends or emerging demand for certain sizes, colors, manufacturers, and brands. This could lead to more effective size options, suggestions to designers of new colors and combinations, the potential inclusion of new designers in their inventory, and even better collaborating with the offline stores to feature regional or emerging trends - all driving additional sales.
  • Top purchase after unsuccessful search. Understanding what users purchased after a failed product search can help not only understand how a customer sees comparable brands, but can be used for better targeting and visual merchandising, both offline and onsite. Understanding these alternative brands and then retargeting with a visual of the product or featuring the alternative product in a primary banner are two great ways to introduce the brand to a customer who may not be aware of the second option.

It's not just retailers that can benefit from analyzing their non-sales-related data to identify unmet demand. Netflix, the online TV, movie, and video game subscription service, had been in the business of distributing content online or via disc in the mail. With its uncanny ability to suggest content based on your past viewing behavior - and its speedy delivery - it was able to create a new model for distributing media. However, it was still relying on the traditional vendors to produce the media.

No longer. The same dataset that helps offer compelling recommendations also indicated there was another unmet need from Netflix's audience. A need that could not be met by its current distribution-based model. Adding more existing content would not improve these failed searches. The need: more original programming. Specifically, these failed searches and related user activities indicated to Netflix that the demand for new episodes of certain niche series was so high that Netflix has decided to make a major move by beginning to commission original programming to extend these series.

The company is so confident in its data from customers searching for shows that are no longer in production that it is actually going to change part of its business model and develop original content to meet this need. While not all businesses may have the data, confidence, or capital needed to create new products or business lines to support an unmet search, all retailers should consider how effectively they are mining their onsite search behavior to improve their product mix and customer satisfaction.

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

Andrea Fishman

Andrea Fishman, VP of strategy and a partner at BGT Partners, leads BGT's Chicago office and has extensive experience in marketing and management consulting. She and her team drive value to BGT's clients through the development of behavioral marketing programs, web analytics, measurement programs, industry benchmarking, competitive assessments, and the design of integrated marketing programs.

Andrea has been with BGT since 2003 and is credited with strengthening partnerships with such clients as ADT, Sony, ADP, and Avaya. Prior to joining BGT, she served as global vice president at divine, inc. She's also held strategic positions within marchFIRST, The Lewin Group, and the office of U.S. Sen. Edward Kennedy.

A graduate of Brandeis University, Fishman was awarded the Wasserman Scholarship for academic achievement and was named a 2010 Stevie Awards Finalist as Best Executive in a Service Business. She is a frequent judge for the eHealthcare Leadership Awards and is involved with the Special Olympics and Chicago Cares, a community service organization.

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

    Information currently unavailable

Jobs

    • Online Marketing Coordinator
      Online Marketing Coordinator (NewMarket Health) - BaltimoreWant to learn marketing from the best minds in the business? NewMarket Health, a subsidiary...
    • Call Center Manager
      Call Center Manager (Common Sense Publishing) - Delray BeachWanted: Dynamic Call Center Manager with a Proven Track Record of Improving Response...
    • Interactive Product Manager
      Interactive Product Manager (Western Governors University) - Salt Lake CityWestern Governors University, one of the 20 largest universities...