Ecommerce sites that host user generated content (UGC) such as product reviews and photos taken by customers are relatively common. Unfortunately, the inherent value of that content is often overlooked by e-tailers. With the ubiquity of product discounts and shipping promos, UGC can be a great competitive differentiator. According to a consumer survey from TurnTo, 81% of US consumers say they would pay more for, and wait longer to receive, products that had UGC. Rather than “setting and forgetting” the UGC features of your ecommerce site, use the following tips to leverage this valuable content to your benefit.
Establish a baseline
Step back a take a broad view of how UGC is currently incorporated into your ecommerce site. What types of UGC do you support? Of those, which do customers interact with the most? Answering these questions will help you make informed decisions on adding new types of UGC, which types you want to promote to customers, and how effective UGC is for certain products.
Expand UGC touchpoints
UGC is only effective when customers are interacting with it, so look for opportunities to make UGC more prominent on your site and in your marketing materials. Some ideas include:
- HTML coding that allow ratings and review snippets from your site to appear in search results
- Including ratings and review information in the shopping cart and throughout the checkout process
- Using review commentary and customer photos in social media and retargeting ads
A robust foundation of UGC provides both you and your customers with more accurate information. For example, the 4-star average rating on a product page with 500 reviews is more credible than a 5-star average on product page with only 2 reviews. Use techniques to get more UGC submissions for your ecommerce site.
Growing your ecommerce business requires putting resources into both customer acquisition and customer retention. However, it's all too common to see companies that put too many of their eggs in the "acquisition" basket. According to consultants at Invesp, 44% of companies have a greater focus on customer acquisition vs. 18% that focus on retention. Unfortunately, that spread belies the great benefits that retention efforts can provide. Consider the following:
Without a doubt, acquisition is important for the short-term growth of your business and for increasing the number of customers to eventually direct retention efforts toward. As the New Year approaches, now may be the perfect time to evaluate whether your company is striking the right balance.
Efficiency is a crucial element for success in the warehouse or distribution center. Previously, we focused on ways to utilize warehouse space more efficiently. In this blog post, we'll go over 3 fundamental tips for more efficient fulfillment operations and inventory management processes.
A laissez-faire approach to slotting is detrimental to overall throughput and efficient space utilization. You've probably heard of the 80/20 rule: 20% of your SKUs usually account for 80% of your sales. Those top-performing SKUs should be slotted in a layout that 1) reduces the frequency and urgency of replenishment trips by providing sufficient space for extra stock, and 2) allows pickers to quickly and easily access them. Be sure to periodically review your slotting assignments to account for changes in customer demand (especially for seasonal items).
Faster intra-warehouse transit
Aside from changing the layout and slotting assignments, consider investing in equipment that will minimize the travel time for stock and staff within the warehouse. For example, conveyor systems can improve efficiency by reducing product handling and walking distance.
In kit assembly, or "kitting," you take individual items from your inventory and bundle them together as a unique SKU. The kits are then ready-to-ship when orders are placed – saving more time compared to picking each of the products at the time of order.
User generated content (UGC) such as product reviews, questions & answers, photos, videos, and more provide a number of benefits to ecommerce sites. They improve your site's online shopping experience, build trust with new customers, improve brand reception, and serve as a resource for creating promotional and marketing materials. But, just because you build space for UGC into your site doesn't mean shoppers will come and start providing content. Use these tips to encourage your customers to submit more UGC, more frequently.
There are several ways you can reward customers for contributing UGC. Let contributors know that their content is appreciated and makes a difference by notifying them when other shoppers find their photos, reviews or answers helpful. If your site has a customer portal, you can borrow some ideas from gamification and award users with badges or redeemable points for actively contributing UGC.
Provide tools to make creation and submission easy
Users are more likely to provide UGC if you can make the experience as frictionless as possible. Some ideas include using review submission forms with writing prompts or icons for mobile that launch a camera app for quickly sending product photos or video.
Highlight privacy and security features
Give contributors a way to preview how UGC submissions will appear onsite (including how account info will display to other users) before they go live. If you are hosting a platform for shoppers to communicate with one another (e.g. a user forum or Q&A product page section), make sure it is moderated well to prevent offensive content.
Ask for UGC
Redesign the visibility of UGC throughout your site and use clear calls to action for shoppers to participate. Offsite, send follow up emails to customers after they receive an order and ask if they can write a review or answer other customers' questions. You may need to adjust the timing of this follow up to ensure customers have had enough time to properly evaluate the product.
SKU replenishment is a major component in the efficiency of warehouse picking and packing. If a picker goes to a designated pick slot, but finds it empty, multiple people and processes are affected. The picker gets stuck on the current order trying to track down the necessary product. Staffers in charge of replenishing the pick slots stop what they're currently doing to address the problem. Order filling is delayed until the right item is found and the order completed – or worse, the order ships incomplete and a second shipment is required with shipping costs paid by you.
In combination with optimal inventory locations, well-timed SKU replenishment can greatly improve fulfillment efficiencies. Below are a few methods you can use to control SKU replenishment rates:
This method establishes the maximum number of products a slot can hold and the minimum quantity it should have at all times. The minimum quantity threshold provides a "safety net" of products in stock that gives you time to replenish the slot before it runs out completely.
This method measures the demand for a SKU within a batch of orders and compares it to the current quantity in the pick slot. The demand exceeds the current quantity, the slot is marked for replenishment. In combination with the min-max method, on-demand SKU replenishment is especially useful for keeping pick slots full during peak season or sudden increases in order volume.
Also known lean time or downtime SKU replenishment, the top-off strategy refills pick slots when the warehouse isn't busy - regardless of the slot's quantity. This ensures that pickers will have all the product they need when orders start pouring in.