The Hidden Gem of eCommerce - Unlocking Retail Success through Sophisticated Merchandising

23 Aug 2024

Many eCommerce retailers make the mistake of relying solely on search functionality to drive sales, overlooking the true catalyst of online success: effective merchandising and visual merchandising. While search is important, it's the nuanced art of presenting products in a visually compelling and strategically curated manner that truly differentiates a brand, engages shoppers, and drives higher conversion rates. By focusing on these hidden gems, retailers can transform the shopping experience, creating a more personalized and immersive journey that not only attracts customers but also keeps them coming back.

The Power of Effective, AI-Powered Merchandising

Effective merchandising is more than just arranging products on a landing page of product listing page. It’s about using data-driven insights, powered by AI, to strategically position products in a way that resonates with consumers, influencing their buying decisions and enhancing their overall experience. By leveraging data points such as new arrivals, trending items, and products with the highest conversions, retailers can craft a personalized shopping journey that drives engagement and boosts key performance indicators (KPIs).

How could this play out? With Crownpeak, retailers can implement row-by-row merchandising strategies to tailor product displays based on factors such as highest views, stock availability, and purchase history—without needing a Customer Data Platform (CDP). This approach enhances product discoverability and encourages customers to explore more, driving increased conversions and higher basket sizes. It's a proven strategy that has delivered global success for brands like adidas, Tommy Hilfiger, and Calvin Klein.

Learn more about Crownpeak Intelligent Merchandising →

Visual Merchandising: Creating an Immersive Experience

Visual merchandising extends these principles into the aesthetic realm, where the presentation of products is optimized to create a visually appealing and cohesive shopping experience. This involves strategically placing products, content, and collections together which make the online shopping experience engaging and make it easier for customers to find what they’re looking for.

When done effectively, visual merchandising not only enhances the visual appeal of a store but also significantly improves the user experience (UX). A well-executed visual strategy can reduce the time customers spend searching for products (a key metric), ultimately leading to higher satisfaction and loyalty.

See our quick guide on building virtual categories as one example of visual merchandising used by leading brands →

The Role of Product Discovery in Modern Merchandising

Product discovery tools, powered by AI, are revolutionizing the way retailers approach merchandising. These tools, such as Crownpeak's Intelligent Merchandising platform, enable retailers to create dynamic, personalized collections that cater to individual customer preferences and behaviours. By analyzing factors like browsing history, social media engagement, and previous purchases, retailers can showcase products that are most likely to resonate with each customer, thereby increasing the likelihood of conversion.

Moreover, these tools can help retailers create virtual categories and collections that align with current trends, ensuring that customers are always presented with the most relevant products. This not only enhances the shopping experience but also drives repeat visits and long-term customer loyalty.

Driving Engagement, Conversion, and Loyalty

Integrating effective merchandising, visual merchandising, and advanced product discovery tools — powered by AI — creates a powerful strategy for driving engagement, conversion, and loyalty. The sophistication of modern merchandising techniques, coupled with the strategic use of product discovery tools with AI, is enabling retailers to create more engaging, visually appealing, and conversion-friendly shopping experiences.

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