Achieving the digital equivalent of In-store Product Merchandising

Retail Business Review | Friday, April 21, 2023

Due to the lack of a physical storefront and the abundance of online distractions, it requires originality, ingenuity, and a lot of persuasion to stand out and convert lurkers into buyers.

FREMONT, CA: Digital product merchandising is how online retailers set up and promote their products for selling on the internet, grounded in a wealth of data and human psychology. The ultimate goal of digital product merchandising is to attract prospective customers and convince them to make a purchase. Since the early days of e-commerce, digital merchandising has advanced significantly. Retailers have now shifted the focus to creating a seamless shopper experience that is enjoyable and personalised, leading to higher revenue and customer loyalty. With the help of new technologies like augmented reality, smarter search engines, and relatable chatbots, the possibilities for digital merchandising are endless.

Fine-tune home page

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The home page of an e-commerce store is the first point of contact with potential customers and it is vital to make it engaging and interesting. A clean and inviting design, with a clear indication of the products and easy navigation, can help keep visitors engrossed.  Professional product photos along with concise and engaging product descriptions that highlight their unique features and benefits are key for effective visual merchandising.

The home page is always kept simple to read and understand. The headlines are highlighted stating the benefits of the products or services making it enticing to urge readers to keep reading and make purchases. Additionally, the home page highlights the best-selling or most popular products and promotes any current sales, promotions, or discounts. Finally, it is necessary to test and modify the home page periodically to improve its effectiveness. Analytics tools are employed to track user behaviour and make data-driven decisions to enhance the website.

Building customer trust is easier when customer reviews and ratings are included as social proof. Providing the ability to get personal with products is a great way to impress potential buyers and nudge the bottom line. Creating a comprehensive digital marketing strategy that leverages a variety of channels and tactics can help stand out from the competition and build a loyal customer base. How-to videos and editorial pieces can also help educate and engage shoppers, while related item recommendations can encourage them to purchase more products from the brand.

Use AI to personalise experiences

Placing prominent calls to action (CTAs) on the website is a good way to kick off a successful online merchandising strategy. Buttons like “Browse selection” or “View sale items” can help get customers to convert. Placing CTA towards the top of the page makes it easy to see for customers and brings in an optimal result.

Seamless omnichannel coordination ensures customers can purchase products at their convenience, whether shopping on the website, through social media, or in a physical store. Shoppers expect a first-rate search experience with personalisation, advanced filtering and sorting, and semantic search that “understands” their intent.

Optimising for mobile shoppers is essential as the majority of website traffic now originates with people using mobile devices. To pique the mobile users’ interest and drive sales, design and functionality should work flawlessly on mobile-size screens.

Gathering information about prospective customers with tools such as Google Analytics, user surveys, and user feedback can create a better experience for shoppers. A better understanding of their preferences, interests, browsing and buying behaviour effectively and making intuitive recommendations help target online merchandising. 

A new digital merch world

The realisation that the customer journey is the key to success has paved the way to creating easy-to-navigate storefronts, personalised product recommendations, and simplified checkouts.

Augmented Reality (AR) and Virtual Reality (VR) are technologies which hold the potential to revolutionise digital marketing. With AR, retailers can provide shoppers with a better sense of the appearance and feel of the products in real life. Shoppers can virtually try on clothes and even analyse the manner a piece of furniture fits in their living room. This technology eliminates the need for shoppers to physically visit a store, allowing them to make informed decisions from the comfort of their own homes. Additionally, VR provides buyers with an opportunity to see and experience a product in a simulated setting, allowing them to make educated decisions before purchasing.

Search engines have also seen significant improvements in the past decade, making them smarter and more personalised. Retailers can now use natural language processing and voice search to enhance the customer experience. They can also utilise search merchandising to promote specific products and increase online sales. By making it easier for customers to find their requirements, retailers are improving their conversion rates and ultimately their bottom line.

Chatbots have become more relatable and human-like. These AI-powered assistants can simulate sales assistants by answering questions and recommending products. With advanced machine learning algorithms, chatbots can also analyse customer data to provide personalised recommendations. By providing quick and helpful assistance to shoppers, retailers can enhance the customer experience and improve their sales.

The purpose of enhancing the shopping experience is to ensure that customers can find their requirements and make purchases easily. With the help of new technologies, retailers can create a seamless and personalised shopping experience that leads to higher revenue and customer loyalty. 

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