Last year retailer Canada Goose decided to take business online in addition to it’s current wholesale and brick and mortar strategy. This is good news for them and probably not a moment too soon!
In the article (click here) the message is that they hope to close a 15-point margin gap between its rivals by selling online. This is all well and good, but here are some other points to consider:
> Shipping Costs – customers will be willing to pay a limited amount for shipping. This is one of the reasons Amazon’s model is so effective….low cost delivery! They’ll need to run plenty of testing in this area to see what works.
> Return Policy – do research in this area to understand the impact of potential returns on the business. Implement a good policy and watch closely as it could weigh on margin and feed negative publicity on social sites.
> Social Sharing – evaluate how this can be incorporated into the new website, if possible, so that existing customers “word of mouth” can help do the selling. In this process, and with the right tools, they could also find brand ambassadors to push the message in new markets.
> Analytics – some investment must go to both E-commerce and Consumer analytics so they can quickly see how the online customer differs from Wholesale and Brick and Mortar customers. There will without a doubt be distinctions in the products customers chose and their shopping habits, not to mention that there could be big demographic swings. Analytics will get them on top of these issues so adjustments can be made quickly.
> Automation – there’s usually not much marketing automation required in a brick and mortar or wholesale business. But for E-commerce, it can make a significant difference in conversion as they evaluate the sales funnel.
This an exciting time for Canada Goose as they bring their business forward and onto the digital landscape. Making sure that shipping and returns, analytics and automation and social are all given the proper review and investment will be the key to their success.
