Always Room for Improvement
May 2006
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Solution: Wholesale change of the search tool.
Result: Improved conversion, average order value and customer return rates.
Most online retailers would have been thrilled with a Web site search tool as effective as Office Depot’s, converting sometimes at rates higher than 80 percent for certain keywords. According to Noah Maffitt, Office Depot’s director of e-commerce, the multichannel company even wondered how much it could actually “move the needle” with a redo of its site search functionality. But there’s always room for improvement, and after identifying a few deficiencies, Office Depot decided to implement a more consumer- and promotion-friendly program.
The areas targeted for improvement were overall accuracy, particularly in how the search tool met customer intent, and the search results themselves, which Office Depot wanted to present in a contextualized format that would allow it to better promote and cross-sell. It also wanted to bring in new functionality and search capabilities that allow customers to take multiple paths to a product and to refine their searches on such factors as brand, price and features. “Our previous experience was locked into product hierarchies,” explains Maffitt. “So, if you wanted to find something, you had to march down a preset path.”
To achieve these goals, the retailer enlisted Cambridge, Mass.-based search solutions provider Endeca and its InFront search product, which Maffitt specifically chose for its navigation capabilities and its more open product hierarchies.
Because Office Depot did have its concerns whether a new system would deliver a strong enough ROI over its already effective search tool, it began by initiating a rigorous proof of concept implementation, Maffitt states. For about three months, it ran a series of A/B tests controlling for factors such as pricing and seasonality, and collected detailed metrics. The results, according to Maffitt, were undeniable. “We did see the overall lift in conversion we were looking for. In fact, it exceeded the business case modeling we had initially [developed].”
The tests even delivered some surprising results: “One of our assumptions had been that we would have the biggest impact on new customers. We did see a lift with [that group] but we saw an even bigger lift with repeat customers and larger business customers, which was a very welcome surprise because that’s where the bulk of our business lies.” Office Depot also saw improvements in search-to-order conversion, average order value, return visits and overall spend during the testing period.
Not content with even a great tool, Office Depot has plans to continue improving its site search functionality. Next on its agenda: personalization. “We’d like to use [search] to drive a customer experience that is personalized and targeted,” explains Maffitt. “So if you’re a customer who always buys paper, you might see different results on the same keyword from a customer who buys furniture. Extending into areas of personalization is a key area of focus for us.”
—Tracy A. Gill
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