Archive for November, 2009

Google Launches Commerce Search

Friday, November 6th, 2009

Google’s introduction earlier this week of its “Google Commerce Search” tool–a site search tool designed to improve user experience and boost conversions by employing proper spell checking techniques, keyword stemming, synonyms–has brought a ton of attention to the site search world.

For that we’re happy. We’re also happy (a cynic would say relieved) that Google’s v1.0 launched with many of the features that our Nextopia customers have already been using for years. While its search technology certainly doesn’t break any new ground, the simple fact that Google entered the market is obviously newsworthy.

We welcome Google’s foray into this space. It reinforces the same message that we, and our competitors, have been preaching for year; GOOD SITE SEARCH IS CRITICAL TO MAXIMIZING SITE CONVERSION! Google’s presence in the market should raise awareness and help encourage retailers understand the ROI opportunity from implementing site search.

At the same time, are we concerned that Google is now a potential competitor? Absolutely! This is, after all, one of the biggest, most profitable technological and entrepreneurial successes of the past decade. Google is a powerhouse in many Internet and communications markets and only a fool would dismiss the Mountain View company.

Still, two observations are important. First, the price. With a starting annual price of $50,000, Google is targeting the peak of the online retailing pyramid. That is not the typical Nextopia customer, many of which pay our starting price of just $995 per year. In contrast to the top 100-200 retailers who might be able to budget $50,000, Nextopia is affordable enough to be used by virtually ANY website.

Second, the launch timing is frankly strange. It is almost inexplicable when you figure in the pricing. Why introduce a really expensive product seven weeks before Christmas when the target market is almost solely comprised of the type of companies that require six months to select a retailing technology and implement it? It would have made much more sense for Google to unveil this at say, the Internet Retailer conference in June, give prospects a month or two to evaluate it, and then a couple of months for implementation.

The pricing and launch date notwithstanding, how well does the product work? Our engineering team took a detailed look at the Google Store (googlestore.com). The search is pretty good, but the team found a few irregularities. Without getting into specifics (after all, why give our competitors the benefit of our eight+ years of site search engineering experience!), it definitely appears that Google’s offering is missing a lot of the functionality retailers need to sell effectively and efficiently. What could be the reason?

A common Google practice is to release products and services with a “Beta” qualifier. The theory is throw it out in the market and allow millions of users to bang on it, using it in ways the developers never dreamed of. After a couple of years of refinement, Google will typically remove the Beta qualifier from those services that have actually proved useful. So, while it is clear that this search product is still in the early stages of development (another cynic might say it was perhaps rushed out a little early), we have no idea whether it is a Beta version or not. If Google continues to support this product, we’ve no doubt that it will adjust and improve it over the coming months and years.

But without knowing the future, we’ll concentrate on the present and enjoy the spotlight that has been cast for now on the site search industry. It’s great to have Google following Nextopia’s footsteps.

The ROI of Site Search: The Abt Electronics Experience

Wednesday, November 4th, 2009

Online retailers, whether speaking to us via email, phone calls or in person at trade shows, frequently want to know the bottom line benefit that can be realized from implementing site search technology. Sure, they’re interested in some or all of the following benefits:

  • Site visitors customers will remain longer
  • Site visitors will be able to find more easily find what they’re looking for (or if you don’t stock that particular SKU, you’ll be able to direct/nudge them to a competitive alternative that you do stock)
  • The ROI of PPC campaigns generally rises
  • Merchandising becomes easier and more profitable

 More often, however, what they really want to know is how much more profitable can their futures be.

 Well, If you saw the August Internet Retailer on site search, you saw just how profitable a future with site search closely integrated into site operations can be.

 In the article, Senior Editor Bill Siwicki profiles the experience of Abt Electronics, a long-time member of the Internet Retailer Top 500 and one of the largest independent electronics retailers in the US.  Since implementing our site search technology three years ago, Abt Ecommerce Director Ken Au has done pretty well:

  ”…..Au reports an increase in sales of nearly 10% attributable to what he describes as site search technology significantly better than its predecessor…..”

 If you translate the 10% sales increase Ken attributes to Nextopia’s search technology into sales dollars, the numbers are pretty impressive.

 Sure, Abt.com is one of the most professional and successful online stores you’ll find anywhere and your own sales may be a lot less so you won’t necessarily see millions of dollars in incremental revenues. But whatever your revenues are today, by improving your site search technology, those revenues will most likely be higher next month.