Marks and Spencer Tops eCommerce League Table But Most Online Retailers Fail to exploit the sales potential of their websites

Added-value content ignored with only 15% incorporating a blog and 75% failing to include social networks links

London, July 23rd 2009: Many UK retailers are neglecting to include added-value content and features on their websites that will encourage repeat visits, high transaction values and ongoing brand loyalty, a new study from dotCommerce reveals today.

Hitting The Checkout, which assessed 20 of the leading UK-based retailers, highlights that while most have the basics of ecommerce covered, the majority are failing to embrace the rise of Web 2.0 content, such as blogs, videos and user-generated content, or demonstrate integration with marketing tools, such as email and social media links.
 
The benchmark study, available to download at www.dotcommerce.co.uk/hittingthecheckout, assessed the ecommerce platforms of some of the UK’s leading retailers across a range of different sectors. Each site was evaluated against 26 criteria within seven categories - site content, design, product search, product page, marketing, checkout and after sale –  with each retailer awarded a total score out of 100. 

Marks and Spencer (82%) and John Lewis (78%) topped the eCommerce League Table, demonstrating that they were going beyond the basics and delivering a rich experience to website visitors, which was clearly integrated with email, after sales and marketing initiatives. However, health and beauty retailers fared badly, with Virgin Vie At Home (62%), The Fragrance Shop (56%) and Avon (54%) languishing at the bottom. The average score was 68%, with only the top two retailers scoring more than three quarters of the marks, suggesting there is still some work to do. 

Added-value content
Few retailers provided sufficient added-value content for website users, above and beyond their product detail. For example, less than half (45%) offered any kind of editorial material on their sites to engage customers and facilitate cross-sell. In addition, just 10% allowed users to submit comments or product reviews and only 15% included a blog – valuable for search engine optimisation and customer retention.

Other popular Web 2.0 features were missing too, with only half of retailers using video content to give an extra dimension to the online shopping experience. Three out of four also failed to leverage the rise of social networks by not bookmarking links that will allow visitors to share information on interesting products directly with like-minded friends and peers.

Customer service and design
However, there were some positive signs, with the 20 retailers all scoring high marks for the customer support options available to visitors. FAQs and searchable knowledgebases were commonplace on the websites, offering shoppers easy access to help and support if required. In addition, most of the retailers had paid careful attention to the overall design and layout of the website with good structure on product pages, engaging product images and coherent checkout funnels.

The eCommerce League Table

 
Hitting the Checkout Scores      
82   Marks and Spencer      67   Look fantastic.com      
78   John Lewis         66   Maplin      
73   Boots            66   Tesco      
73   Amazon.uk         65   Argos      
72   HMV            65   Play.com      
71   PC World            65   Asda      
71   Game            64   Currys      
71   Comet            62   Virgin Vie At Home      
69   Dixons            56   The Fragrance Shop      
68   LoveFilm            54   Avon   

“We were generally surprised to find a lack of added-value features and content on these websites,” said Simon Bird, Technical Director at dotCommerce. “With competition for every consumer pound at an all time high, it’s more important than ever for retailers to engage with visitors to their sites. Features such as video, editorial content and user generated content can really added something extra to a website and go a long way to increasing the amount of money a customer will spend.

“It is also important to recognise the role that ecommerce sites can play in encouraging shoppers to sign-up for other marketing and promotional efforts, such as email marketing or loyalty schemes. This allows the retailer to begin building long-term relationships with consumers and maximising revenue from their existing base.

Top Tips
Using the information contained within the report, dotCommerce’s Simon Bird sets out some top tips for retailers looking to reinvigorate their website:

1. Include ‘editorial’ content as it’s a powerful way to capture and hold the attention of visitor and encourage them to make a purchase. Only half of the sites we looked at featured video and over 50% didn’t include any real editorial content pages. Give your visitors something extra and really engage them!

2. Include User Generated Content. What if I told you that I could supply you with loads of copy about your products, with experts on hand to answer questions and describe your products in detail, how they have benefited people and how they have been used - all for no cost? This is exactly what Web 2.0 can bring to a site. User reviews, ratings, polls, forums and blogs are all indispensible tools for building customer engagement, confidence and driving sales.

3. Use social networking bookmark links to allow your visitors to share products they like with their friends on social networks. 75% of the retailers assessed failed to include any reference to social networks and only half gave the opportunity to email a page to a friend. Make it as easy as possible for customers to post relevant pages to their online networks by making it a one-click process

4. Capture as much data as possible during the checkout process as this will be vital for future marketing efforts. Just 6 out of the 20 retailers we assessed provided customers with a simple tick box to opt in/out of future marketing communications. If you don’t ask permission or give consumers the opportunity to deny you permission, then you can’t email them with marketing messages.

dotCommerce’s benchmark report, Hitting the Checkout, offers over 130 best practice guidelines and top tips for effective online retailing, with practical information and real-world examples.

To make sure your ecommerce site scores better than the major high street retailers, download the full report at no charge at www.dotcommerce.co.uk/hittingthecheckout