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Experts: Know Your Customers, Technology

Jenny Heinzen York -- Furniture Today, July 12, 2011

Andy Bernstein, FurnitureDealer.net ATLANTA - The world of technology continues to evolve at a rapid pace, and even with a sometimes slowto- get-on-board industry such as home furnishings, the tools are becoming so powerful that no one who is serious about business can afford to ignore them.
"Good websites are expensive - they require a lot of time, money and skill." Andy Bernstein, FurnitureDealer.net
     This was the key message at the recent Online Technologies Conference held in May at Americasmart here. The event, hosted by Furniture/ Today, Home Accents Today and their sister magazines, drew more than 100 attendees to learn about email marketing, social media, Web development, tablet computing, data mining and more.
     Eric Dean of Whereoware kicked off the conference with a presentation about "convergence" and how companies can make sure all the channels they use for marketing work together, including print advertising, phone, sales reps, websites, catalogs, emails, trade shows and social media.
     "Consumers want whatever they want, however they want it, whenever they want it, wherever they are," he said. The days are past when a company can dictate how it communicates with its customers - it has to be available on all platforms so the customers can do business on their own terms.
     He cited an example of Old Navy, which sent an email to its customers with an Easter promotion using QR tags. Customers were invited to visit the stores, look for 15 QR tags hidden through the store and scan them, for a chance to win $50,000. This promotion used technology to drive people into the stores, then encouraged them to stay longer and look around more.
     Andy Bernstein, owner of FurnitureDealer.net, discussed what questions a business should ask when working with a developer on a new website.
     He said nearly three out of four furniture purchases are influenced by online research, and 81% of home furnishings shoppers cite the Internet as their number one source of information. And in a world of fast-moving technology, consumers have no patience with a bad website (one that's slow, uninformative, confusing or hard to navigate).
     "Good websites are expensive - they require a lot of time, money and skill," he said. "But, money alone cannot buy a good website. Most home furnishings executives (people above the age of 35) simply are not expert about the Internet. They do not understand it well."
     Bernstein said the most important topics to discuss with a Web developer are:
     Product content (depth and breadth of product images; Google search only works effectively with original descriptive copy).
     Search engine optimization (effective use of keywords and number of landing pages).
Software and site features (design and layout, product coordination, rich media, search, tagging and navigation).
     Service and maintenance (how much are the charges for this, and can you do it yourself?).
     The contract (cost, what is included, maintenance/upgrades, timetables).
Todd Litzman, president of Brandwise, talked about tablet computing, which many see as the future of technology. He described the iPad, Android and Microsoft technologies now available, and the capabilities and limitations of each type of tablet.
     He also discussed "the cloud" - a new buzzword referring to technology that helps to solve some of the limitations of the current tablets - namely that the different brands cannot operate each other's apps and software. Effectively, he said, cloud-computing "allows you to remotely run your native applications on any browser capable device."
     But because cloud-computing requires an always-on Internet connection, it does have limitations, Litzman said.
     "We are in the middle of a major technology revolution," he said. "The key to success ... is understanding how technology works toward your goals, not how your goals can be manipulated to conform to this technology. Be sure your technology partners are looking at both online and offline solutions to meet your varied needs. One size does not fit all."
     Bob George, founder of FurnitureCore.com, discussed the importance of business intelligence, and how the Internet can be used to gather it.
     "I always encourage retailers and manufacturers to ready, aim and fire," George said. "And not do the opposite. You need to understand technology before you use it."
     He said that 15 years ago, traditional channels accounted for about 95% of retail volume, but they are less than 60% now. He said the best way to use technology is to gather as much data as possible on your customers and target them appropriately.
     "Do you know who your customers are?" he asked. "Pottery Barn, Crate & Barrel and Target do."
     Corey Williams, vice president of global sales for email provider Silverpop, talked about 12 effective types of emails that drive sales. Examples: welcome messages (for new customers), service-oriented cart reminders (can we answer any questions about the items left in your cart?), product review invitation (tell us about your recent purchases), birthday offers (it's your birthday - save 10%), maintenance reminders (time to get your oil changed), and out-of-stock updates (there is a limited quantity available of something you've ordered previously - better reorder soon).
     For products with long purchase cycles (like furniture and appliances) maintenance reminders can help keep consumers brand-aware. This is critical, he said, because once a customer makes a second purchase from a company, he or she is much more likely to be a lifetime customer.
     Sponsors of the conference were Americasmart, Ayr1, Brandwise, FurnitureCore. com, FurnitureDealer.net, Myriad Software, Shopatron and Whereoware.

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