Management Centre is a good example where this much-improved business tooling was brought to market relatively quickly without replacing Accelerator 100% i.e. there was still functionality within Accelerator that wasn’t available in Management Centre.  Cleverly though, they developed the marketing focussed elements early so most business users only need to see Management Centre.  Meanwhile, Accelerator is still used for the more technically oriented facilities.  Wins all round and it’s a philosophy that we greatly support.

So Feature Pack 4 is the latest one, what’s in it?… In summary, it includes these new, main features:

• Mobile commerce extensions
• Facebook integration (like button and activity feed)
• Precision marketing enhancements
• REST services

Mobile commerce extensions. The Mobile commerce extensions enhance the current mobile starter store and bring to market device-specific applications for Android.  There are also new location-based services, including an ability for the shopper to check-in to a local store so that marketers can provide store-specific marketing materials and an “eFlyer” feature that can promote location-specific advertising in the store.  More information on the mobile starter store can be found here and on location based services here.

Facebook integration.  New Facebook integration features extend this general direction into “social bridging”, a posh way of saying integration to social networking sites.  The new “like button” provides a simple, but effective link into your social network on Facebook updating your “likes” and sharing.  Similarly, the activity feed will show other liked items that have been shared by your network.  More information can be found here.

Precision marketing enhancements.  Precision marketing is the huge leap forward that has been made in marketing and merchandising in WebSphere Commerce version 7.  In a nutshell this is the ability to modify content driven by behaviour, for instance, if a shopper is tending to browse a particular category heavily during their session then the system can promote merchandising that is associated with that category.  It’s a lot more complex than this obviously, comprising a number of triggers, events and actions across a wide area of customer journey.  We’ll be doing some posts around this soon as it represents a hugely powerful area.  Enhancements in Feature Pack 4 include tying precision marketing into some of the features above (location-based services for example) and enhanced triggers and targets.  More information can be found here.

REST services. Lastly, Feature Pack 4 releases a new suite of REST services.  REST is the trendy way to integrate through web services.  REST services have taken off because they are simple – and this of course means more widely understood easier to implement, and therefore quicker!  More information can be found here.

Shortlisted in the highly sought after category – Brandbank Multichannel Retailer of the Year, Halfords are up against fierce competition from other retail giants including, Argos (also a Salmon customer), Debenhams, House of Fraser, John Lewis, New Look and Tesco.

Sue Pratt, Head of Marketing at Salmon said, “Halfords and Salmon have worked together to develop their multi-channel proposition over the past few years. We are delighted that this work has been recognised by the judges.”

Halfords have a strong multi-channel offer, combining store, online, mobile and apps to deliver a compelling customer experience. They provide an excellent case study in how to ensure different channels perfectly complement each other.

Other Salmon customers also shortlisted at the awards include, Homebase, Boots, Pets at Home, Lloydspharmacy and Kiddicare – good luck to all.

The winners will be announced on the 15th March 2012, at the Grosvenor House Hotel, in the heart of Mayfair. More information on the awards can be found here.

In principle the regulations are right but how practical are they?  Remember back to when 3D Secure came about, originally this was seen as an inhibitor to online shopping but is now seen as a necessary evil. Although, by comparison, the cookies compliancy will have a much bigger impact.

On May 26^th 2011, the Privacy and Electronic Communications (EC Directive) (Amendment) Regulations 2011 came into force.  Under the new Regulations a subscriber or user has to give consent to the use of cookies, having been given clear and comprehensive information about the purpose of them.  Under the previous law, organisations only had to inform users how they used cookies and how the user could “opt out” if they objected to their use.   The aim of the Regulations is to increase transparency for consumers.

So what do you need to know?

Well, most importantly, the Regulations came into force on 26^th May – so there are only 7 months left to work towards compliance before risking a fine – this is the law now…. (Fines are possible up to £500,000).

Why are the rules changing?

The European Directive on which the Regulations are based has been revised. UK law has to change to implement that changed Directive.

What are the rules?

There are many, but the ones that stand out say that cookies can only be placed on machines where the user or subscriber has given their explicit consent and is provided clear and comprehensive information about the storage of, or access to, that information.  It is important to note that changing the terms of use alone to include consent for cookies would not be good enough.  To satisfy the new rules on cookies, you have to make users aware of the changes and specifically that the changes refer to your use of cookies.  You then need to gain a positive indication that users understand and agree to the changes.

Not all cookies are included in this legislation, and it’s unclear what cookies are excluded. Basically, only essential cookies such as eCommerce shopping baskets are allowed – provided they dont store personal data.

The original rule was set out in Regulations 6 of the Privacy and Electronic Communications Regulation 2003 (PECR), more here.

The new requirement is essentially that cookies can only be placed on machines where the user or subscriber has given their consent.

6 (1) Subject to paragraph (4), a person shall not store or gain access to information stored, in the terminal equipment of a subscriber or user unless the requirements of paragraph (2) are met.

(2) The requirements are that the subscriber or user of that terminal equipment–

(a) is provided with clear and comprehensive information about the purposes of the storage of, or access to, that information; and

(b) has given his or her consent.

(3) Where an electronic communications network is used by the same person to store or access information in the terminal equipment of a subscriber or user on more than one occasion, it is sufficient for the purposes of this regulation that the requirements of paragraph (2) are met in respect of the initial use.

“(3A) For the purposes of paragraph (2), consent may be signified by a subscriber who amends or sets controls on the internet browser which the subscriber uses or by using another application or programme to signify consent.

(4) Paragraph (1) shall not apply to the technical storage of, or access to, information–

(a) for the sole purpose of carrying out the transmission of a communication over an electronic communications network; or

(b) where such storage or access is strictly necessary for the provision of an information society service requested by the subscriber or user.

More here

So who’s compliant?

Well, it seems that few have acted on the new rules as yet.  The BBC have taken some steps listing the cookies they use on the site, the purpose of the cookies and telling you how to reject or delete cookies  see here.

For a bit of amusement, David Naylor gives his spin on what the new Cookie policy could mean for you here.

What to do now? 

Our suggestion is to start thinking about it now and implement incrementally, with small changes:

• Audit your site and highlight the most “intrusive” cookies
• Plan how to gain consent: browsers, pop-ups, T&C’s, etc
• Consider Third Party cookies (e.g. from an advertising network or a streaming video service)
• Consider devices (website, phone, in store kiosk)
• 8 months before action (fines up to £500,000)

It’s not all doom and gloom

Looking at the positives that will come out of this, it offers a great opportunity for you  to talk to your customers and for you to come up with some innovative marketing campaigns to encourage customers to understand and accept your cookies.

Useful Links

The Information Commissioner’s Office (ICO), the UK’s information watchdog, will publish a report before Christmas on progress UK organisations have made to comply with the new cookie rules.

Learn more about cookies

ICO (Information Commissioner’s Office) Privacy and Electronic Communications Regulations

The Privacy and Electronic Communisations (EC Directive) (Amendment) Regulations 2011

Note: This blog does not constitute legal or other professional advice and should not be relied on as such.  Specific advice should be sought about your individual circumstances.

Argos has had a bit of a rough ride with the press recently but it’s not all bad news, that’s for sure.  Yes, sales are down by 6% on last year, but that’s not surprising with the prevailing economic conditions.  Positively, they are still leading the way when it comes to multi-channel expertise and leadership, with multi-channel sales continuing to grow.  News Salmon is pleased to hear, as we’ve been working with them since 2002 to help them deliver and support their website,  and most recently, to deliver their mobile optimised site.  

The latest figures show that multi-channel sales are now 46% of total sales.  Total sales from mobile shopping are now at 4%, (that’s about £2.6m per week), with total internet orders, including Check & Reserve comprising 33% of Argos’ total sales, that’s approximately £21m per week. The remaining 13% of sales classed as multi-channel are for products ordered in-store for home delivery or by telephone.

According to their half year results for the 26 weeks to 27 August 2011 -

• Multi-channel sales have continued to grow and now represent £770m or 46% of Argos’ total sales.
• The fastest growing channel continues to be online Check & Reserve, which grew to represent 22% of all sales.
• Approximately half of these sales are reserved and collected from stores the same day, with the remainder collected the following day.
• The store network provides the certainty and immediacy of stock availability that customers require.
• Total internet orders, including Check & Reserve grew to comprise 33% of Argos’ total sales.
• The remaining 13% of multi-channel sales being products ordered in-store for home delivery or by telephone.
• Argos continues to be the second largest internet retailer in the UK, with over 180 million website visits in the period, an increase of 11% over the same period last year.
• The launch of the web platform for mobile devices and the app for Android phones, supported by the previously launched Apple iPhone app, is leading to rapid growth of mobile shopping.
• At the end of the period the proportion of total sales from mobile shipping was around 4%.

It’s clear that consumers are increasingly using mobile technology in their day to day lives for convenience and speed and that mobile has become a vital sales channel for any successful retailer.

British consumers are set to spend 19.3 billion a year using their mobile phones and tablets within the next ten years, compared with 1.3 billion spent today, according to new research by Barclays Corporate. More here.

Here are six sets of opposites that come to mind:

• Developing strategic IT architectures and embracing rapidly emerging technologies.
• Listening to what the customer wants now while anticipating their future needs.
• Balancing cost versus capability in solution design.
• Delivering personalised customer experiences and super-fast web site performance.
• Managing divergent goals of stakeholders from marketing, stores, supply chain, IT and finance.
• Building sound return on investment cases in the context of rapidly changing business models and technology.

(I’m sure there are many more than six, so would welcome your thoughts on others.)

So why is the ability to attract opposites important ?

These opposites exist whether we like it or not.  They are created by an overall business context of rapid change – for example, technology, consumer behaviour and globalisation.  At an organisational level the collision between the digital and physical worlds and the stakeholders in both can be explosive.  The successful business finds a way to navigate through this to deliver compelling and consistent customer experiences, drive profitable business growth and engage their own business stakeholders.   And, in some cases, it’s the tension between opposites than leads to true innovation.  The unsuccessful business gets caught up in internal politics, decision paralysis and falls behind their competitors.

So how do you attract the opposite ?  Here are some tips to help you:

• Think of the strategic IT architecture as the foundation.  If you have a solid foundation then you can easily experiment round the edges.  Be prepared to try out third party components as a fast way to extend capability.
• Just do it.  Sometimes you’ll need to take a risk – be happy to make mistakes because you’ll learn from them and move forward.  Try out small-scale initiatives where the business case is uncertain and extend/iterate as you learn more.
• Be pragmatic.  Better to make a decision based on limited information that to sit wondering while the world moves on.  Getting something to market quickly will give you useful insight that can be used to plan the next stage.
• Innovate collaboratively.   Gone are the days when an organisation would themselves have all the knowledge needed to develop a detailed requirements specification and then ask a supplier for a quote.  These days, good suppliers will have a wealth of experience that can help shape your requirements and therefore lead to a better solution.  It’s also a faster and more cost effective way of working.
• Design for performance.  Think about performance right from the design stage.  When building new solutions, keep a performance log to track decisions (e.g. about functionality or integration) that can affect performance.  Make sure that everyone understands that there may be compromises to be made.
• Manage cross-functional relationships.  Those functions have a major impact on the success of multi channel initiatives so embrace them and enable them to share in the rewards.

So who’s doing this well ?

Halfords Head of Multi Channel talked about how “cross functional commitment is key to success’ at the Multi Channel Retail Summit in February 2011.  Further details can be found here.  There’s also an interesting interview with Simon Forster, Debenhams Head of Online Trading in May’s edition of Internet Retailing which gives an insight into how they have dealt with some of the above opposites.

However, because insight about internal company processes is typically confidential, it’s easier to judge by results.  eConsultancy recently showcased seven multichannel retail success stories here.  It’s interesting to note that Argos, (a Salmon client), having been first to launch a Click and Collect service in 2000, continues to be a multi channel innovator, for example with the trial of an immediate 90 minute delivery service in 2010.   There’s also lots of information about our work with Halfords on their multi channel initiatives and success on the Salmon website.

While occasionally the challenges can seem daunting, the ability to attract opposites is critical to multi channel business success.  Indeed, for some of us, it is the very opposite-ness of these elements that makes the multi channel world such an exciting place.

Groupon made it’s first deal in late 2008 with a half-price pizza offer.  Today Goupon is offering deals in 43 countries with an estimated revenue of around $2 billion.  Andy Jones, Director of Customer Experience at Salmon takes a look at their site and gives his take on eight things he believes they do well, leading to a design that is not only compelling and visually coherent but also very persuasive.

• Extremely well written “Ronseal” headlines.  You know exactly what you are going to get.
• Large, standout “call to action”.  Well designed that leaves you in no doubt that its a button and you need to click it.
• Savings shown in both amount and %.  You know exactly how much you are going to save.
• The countdown delivers a sense of urgency.  Customers know the deal is only going to be around for a limited time and encourages them to act now.
• Social proof.  It must be a good deal, look how many others have bought it.
• Short, snappy, easy to scan bullet points.
• No searching for the small print.  It’s right up front and honest, placed in the middle of the page for everyone to see.
• Highly informative, succinct cross sell.  Shows the amount of saving, then another “Ronseal” headline.

Salmon and Halfords have picked up an outright sector category win and two highly commended citations at the Online Retail Awards 2011.  The Awards are international, impartial, independent business awards that can be won by online retailers of any size anywhere in the world.

For the category “Cars and Car Accessories” Halfords.com and Salmon were named the overall winner. The judging panel said, “The vast Halfords’ website is proof of how successful a retail website can be if the customer is placed centre stage. Halfords’ customers can now source and pay for products in four different ways both online and mobile. This in turn has led to increased sales and greater conversion. Navigation options are made easier for customers, too, with fewer clicks on the customer journey. Over 40 million visitors and growth of around 35% prove Halfords have got their multi-channel strategy right.”

Halfords and Salmon were also highly commended in the categories “Multiple Online Retail Site of the Year” and “Online Retail Mobile Site of the Year”.  (More here).

“Internet Retailing” magazine (n.b. takes you to the  July/Aug 2011 digital edition) is focused upon serving the UK and Europe’s leading multichannel and pureplay retailers. Inspired by the very best, and commercial to the core, Internet Retailing analyses, stimulates and challenges the etail community with news, analysis, events and insight.

In the latest edition, we are delighted that a Salmon retail project, Halfords has been showcased.  Emma Herrod speaks to Jon Asbury, Channel Development Manager, Halfords, about how system integration has improved customer choice and encouraged mobile interaction. The interview covers Reserve & Collect, Text & Reserve, Advice Centre, Order & Collect, Distribution, M-commerce site, iPhone and Android apps.

To read the full story click the image above, or simply go to Internet Retailing Magazine. (The Halfords/Salmon story starts on pg. 10 of the digital magazine).

Option 1.  Building a mobile store – developing a set of pages specifically optimised for mobile devices

Pros:  Fancy something (relatively) quick to market and with easy access?  Then a mobile store could be just what you are looking for.  No snazzy touch screen smart phone needed, even if your customers have a Nokia e71 they can shop on your mobile store, plus with auto detection and re-direction, accessing your store couldn’t be simpler.

Why not go green?  Recycling is the way forward, and no, not your milk cartons, I am talking infrastructure, functionality, data, images, specs, reviews and promotions, all the good stuff your web site already uses.  The customer experience is owned by you and not only does that mean your customers will recognise it instantly, (and it keeps the brand police happy), you get to cherry pick all the best bits from each page of your site to ‘mobilise’.  Another pro, is that once the pages have been developed, there is no ongoing charge and the pages are served by the same infrastructure that support the web site.

Ah, but can it scan a barcode you ask?  Well that is one of the biggest pros of a mobile store.  You take a solid revenue generating platform, and integrate it with an app that can.  For example, you could take advantage of smartphone capabilities like camera, location awareness, bar code scanning etc and combine these with the mobile store for that killer app.  This takes the mobile optimised site which is now a ‘hygiene factor’ and develops it into something that (done well) could be a differentiator.  Halfords have recently done a good job of this, more information here.

Cons:  So that all sounds great, what are the downsides to developing a mobile store?  Well the effort involved is determined by how your web site has been architected.  Those sites that have clear separation between the presentation layer, business functions and database are well-suited to this approach.  For those sites that that don’t have this architecture the time and effort will be higher.  Want to find out more?  Further information on multi tier software architectures can be found here.

Option 2.  A ‘screen scraping’ solution.

Pros:  This option will give you a lot of the great stuff that a mobile store can.  It offers easy access via any smartphone and reuses all your data too.  All the functions are carried out on your eCommerce platform, and the customer is presented with a user interface that looks like your brand, has all the key content and functions, and is responsive too.   At first glance this solution can also appear to be simpler, faster and lower cost.  The supplier’s sales message is that the solution is developed by a third party who returns with a lovely optimised site for you at low cost and with minimal involvement from you and your IT team.

Cons:  But, as is often the case, the devil is in the detail.  In practice, each retailer’s site is different and the more complex the site, the more complex and costly the implementation.  Typically, the supplier will need access to your in house IT function around custom parts of the site and this can lead to higher costs and longer timescales.  Also, watch out for ongoing costs – this could mean that the total cost of ownership of this option is higher than option 1.  On the downside it will only ever give you a version of your current web site and is therefore really a tactical option. Finally you should be mindful of SEO. Scrapers can index multiple copies of pages on many domains, making your pages less competitive, and nobody wants that.

Option 3 – Responsive design

Potentially the most exciting development in this area is the birth of responsive design.  (We recently wrote a post on the subject which you can find here.)  This is really an extension to option 1.

Pros:  With responsive design, control is given to the Cascading Style Sheets (CSS), either one CSS for all devices or separate CSS for each device.  The CSS then senses which device is being used and adjusts the design accordingly – by screen width, orientation and resolution.  The added bonus is that the CSS can be optimised for a wide variety of devices, smartphones, tablets and who knows what else as new devices are invented.

Cons:  The traditional concept of a ‘page’ disappears.  Are you ready to sign off components?  Are you willing to move away from signing off pixel perfect designs for each browser/device and move towards the idea that your design will ‘respond’ to the way it is being viewed?

Finally hot off the press recently was Google’s announcement about their templates for small businesses to develop some mobile site capability.  On early inspection, this could be a useful solution for small businesses.  However, it does force use of Google Checkout and doesn’t look the right solution for medium sized companies with more complex commerce sites.

** Some stats here and here if you’re still to be convinced.

Mobile phone shoppers will receive a better online experience with the ability to research, locate and purchase products via the apps. The apps combine both web and app capabilities, providing Halfords with a cost effective solution and customers with a better online experience.

Jon Asbury, Halfords Channel Development Manager said: “We aim to give customers an even better online shopping experience through cutting edge technology. The apps are a natural progression from our successful mobile site. Customers will find the apps versatile, functional and easy to navigate.”

The apps use Halfords’ existing mobile site and are a key addition to their overall multi-channel proposition.  The “Shop” feature that is automatically launched when customers scan a code is an embedded view of the existing mobile store front within a separate tab.  Each app is optimised to take advantage of native features of iPhone and Android technologies.

Sue Pratt, Account Director at Salmon said.  “There are a number of advantages to Halfords’ combining web and app capabilities.  The fact that the shopping part of the app comes from the current mobile site means that the Halfords business team can easily add new features without having to roll out new versions of each app.  This means that customers don’t have to keep downloading new versions of the apps time and time again.  The Halfords business team can also change promotional content easily and use IBM WebSphere Commerce features such as precision marketing, that wouldn’t easily be available in a native app.”

Sue continued, “Halfords are a great example of how retailers should strive to have a “customer interaction platform” in place that will support their business now and in the future.  Halfords are now benefitting from being able to reuse user generated content like “Ratings and Reviews” on the mobile optimised site within the app and at the same time take advantage of smartphone technology like location awareness and cameras to support a great cross-channel customer experience.”

Customers can download the apps free of charge from iTunes, Marketplace or Halfords.com.

More information here.