Saturday, October 24, 2009

Another Redesign

Prior to taking my current position, I worked for Michaels. You know, the arts are crafts store. I worked in their eCommerce division for almost six years. During that time I think we redesigned the web site at least six times. I am not talking little tweaks and color changes. I am talking major 6 month long efforts that totally changed the structure and design of the site. So, I guess you could say that I spent have my six years at Michaels redesigning their web site.

So, after each redesigned traffic shot through the roof, online revenue grew and my entire team got huge bonuses! I wish. So, what were the results? That would be nothing, nada, zip, goose egg, zero, zilch, zippo… you get my point. Yet we did it again and again and again and again.

Because of this entire experience, this one particular article caught my eye. The article referenced a recent survey that asked established companies where their eCommerce focus would be and what major initiative they would be taking on in 2008. Search engine optimization was second on the list. Paid search was third. The list included email marketing, strategic linking, display advertising and local search. What do you think was number one? That’s right, “Web site redesign”. Not by a small margin either. 28%! Search engine optimization was at 13%.

I have talked with several eCommerce leaders and shared my experience. It turns out that my experience is not unique. The survey would suggest the very same thing. We put more focus on redesigning our web sites than we do on attracting new customers. I know that many redesigns are warranted and need to be done. However my experience tells me that much of the efforts, time and money would be better spent on driving traffic and revenue.

My advice to all is to question the need for a redesign. Avoid the, “If we change it, they will come.” mentality. The biggest argument I would get is that we want to redesign to maximize conversion. My argument back is that there will not be anyone to convert! I recently did a paid search campaign with Google. We spent $10,000 and the return on the spend was almost 7:1. All the redesigns we did at Michaels never had that kind of production. Analyze what impact the changes will have on conversion and be realistic about the expected results. What will the financial impact be if you move the conversion rate from 1.8% to 2.0%?

If you have a huge customer base I totally understand the logic behind redesigning a site. If your competitor’s web site is head-and-shoulders above yours, you need to do a redesign. If your site lacks major transactional functionality, you need to do a redesign. However, if your site gets the job done seriously consider putting your focus on driving traffic.