Note: If you are currently in the hunt for a new e-commerce platform solution, you may want to read my previous entry on getting organized for the platform selection process. You can find it here.
And now for the promised, albeit late sequel to that post, Part 2:
Many times when I assist clients with the e-commerce platform selection process, I find that they either a) have outgrown their current solution or b) have come to the painful realization that they made the wrong provider choice the last time around.
There's no question: choosing an e-commerce solution is an important decision, and making the wrong choice can be costly. Couple that with the complexity of the subject matter and the shifting vendor landscape, and you have aggravation knocking at your door.
Assuming you've taken the advice in my "Part 1" post and you've done your pre-planning, you are now ready to move into the evaluation process. Here are my TOP 10 hit tips to help you make the right decision. Do yourself a favor and get this work well underway BEFORE you get into detailed discussions with potential e-commerce providers. Doing so will help you focus on what's important to you and help you avoid getting sucked into the sales pitch.
1) It's not about the platform. That's only part of the equation. Outline the services you will need from a new e-commerce provider. For example, do you need:
- Strategy consultation?
- Site design?
- Development?
- Usability testing?
- Systems or 3rd party integration work?
- Hosting & monitoring?
- Ongoing site maintenance & support?
- SEO or other marketing services?
- Customer service?
- Fulfillment?
Using the above as a starting point, make a list of the things you expect your provider to do vs. what will be done in house or by other 3rd parties. Think about how you want to work. Is it important for one provider to do all of the things you need, or are you willing to manage multiple relationships; for example, hiring an agency to do the design work and asking your platform provider to take care of the development work and hosting? Think about how much depth of expertise you need in each area, and how many relationships you feel comfortable coordinating and managing.
2) Make a list, check it a bunch. Make a detailed, categorized list of all of the things your website must have, both customer facing and behind the scenes. If you have an existing e-commerce site, use that as your starting point, assuming you want to keep all of your current functionality. Group your functionality needs into buckets, like product presentation, search/browse, promotions, customer accounts and site administration tools, etc. I know, this is a tedious process, but doing it will get you and the rest of the stakeholders on the same page, as well as form the foundation for your vendor discussions and RFP.
While you're at it, identify areas where you plan to use 3rd party software solutions, like analytics, reviews & ratings, on site search, imaging, etc. You'll need to be sure your solution can integrate with them and that the provider is used to doing that kind of work. Once the essentials are identified, list out the "nice to haves" or the "phase 2/3/4" items; this will assure that you are looking ahead, and that the capabilities of the platform will support your future needs.
3) Take your measurements. Collect your current e-commerce site's vital statistics, and if possible, project them out for the next 2-3 years:
- traffic by source
- conversion rate
- # of orders
- average order size
- total sales volume
- # of products for sale
- # of skus
- #of page views
Your potential providers will need to understand the size/scale of your operation to determine if there is a good fit. Ask about the vital stats of some of their current clients. You don't want to be too small or too big of a fish.
4) Avoid culture shock. This might sound squishy, but it's critical. How do you envision working with your provider after the new site is up and running? Time and time again I see retailers who were lured by the bells and whistles of the platform, only to find that their expectations for account management and service were out of synch with the provider. What kind of account support do you expect? How often do you plan to introduce new features? How aggressively do you plan to build your business and expand your site? Do you have people on your staff that "get it", speak the technical lingo and can navigate their way around admin tools? Or, do you need a provider that is skilled at a lot of hand holding? Note: sometimes I can tell by the pace of my first conversation with a provider whether or not I'm dealing with a company that will have the patience to work with a less savvy client.
Also think about how formally your company works - Would you rather see storyboards, wireframes, comps and prototypes for every new site features? Or are you happy having a few conversations about requirements and going straight into build?
5) Chat. Assuming you did your homework (see Part 1 again), you know the type of provider you're looking for and the overall payment model you're interested in. Schedule a long call or visit with everyone on the consideration list before the RFP goes out. Do yourself a favor and create an agenda for the call, and give that to the vendors in advance. Everyone has a standard sales pitch, but you don't want to waste time going into features and tools that you don't need. Ask for examples and demonstrations of the things that are the most important to your business.
6) Author, author. Write a good RFP. There could be an entire blog post about this topic alone, but in a nutshell, be sure you're asking for all of the information you need to make a thorough evaluation. For example, at a minimum, your RFP should ask for:
- A company overview, including information about longevity and financial health
- A full overview of their capabilities in relation to the services you need (see pt #1 above)
- Confirmation of their ability to produce the features and tools needed at a line item level, along with links to examples of their execution for other clients
- Location, configuration and services associated with hosting
- Process and timeline for the project, by phase
- Payment terms for the project as well as ongoing maintenance and fees
- Project/account team members and their background/experience
- Contract terms
- References
7) Keep score. Create a weighted scorecard that allows all respondents to be compared side by side on a number of factors, such as:
- Cost/economics
- Feature set
- Administrative tools
- Cultural fit
- Implementation time
- Ancillary services
Keep a running bulleted list of pros and cons for working with each vendor. For example, one supplier might not offer the SEO support that you need, but they may have a lower cost structure, which might allow you to hire an outside expert.
8) Repeat until you believe: There Is No Perfect Solution. There just isn't. But the more you know your own business and your own needs inside out, the closer you'll get to the partner that's right for you.
9) Get a 2nd opinion. Of course, check references. But remember, those references were listed for a reason. See if you can get the "word on the street" as well. Consider hiring a consultant or an industry research firm, even on a limited basis, to give you their take on whether or not your finalists are worthy of your business.
10) You're nowhere near done. Once you've made a decision, negotiated, and awarded your business, the "real" work starts. No matter how good your partner or your internal e-commerce team, the implementation of new websites is never totally easy or painless - don't believe anyone who tells you otherwise. Level expectations (including your own), dedicate the right resources to the effort and fasten your seatbelts.
Hi Sally! Great set of articles on platform selection. There's one more thing that I'm telling folks to do:
GET A NAMED ACCOUNT MANAGER AND INTERVIEW THAT PERSON.
Nothing drives me more nutso that having the dog-and-pony-show-ers replaced by often (very) junior people actually managing the project. Or contractors hired by the platform company. Or outsourced devs who don't know the entire platform yet. It's not about the fancy people they send to close the deal--it's about who you actually work with. And I'd put it in the contract: If they want to switch the team, you must have 30 days notice and approval rights. Which I'm sure the platform providers are going to hate, but hey, it's a long relationship you are setting up. Remember that the platform companies are still figuring it all out too, and they have to cut corners no matter how slick they look.
ALSO, tho I am clearly biased on this point, remember that getting the platform company to do your design work may be like getting a haircut at SuperCuts. Their focus is designing for the platform, not for your customers. In many cases this is fine. In other cases, it's a total conflict of interest.
Harumph. :)
Posted by: Tamara Adlin | November 10, 2008 at 03:29 PM