By Tim Dodge, Hanson Dodge Creative President & Chief Innovation Officer

Most organizations no longer question the value of direct online commerce. However, what many struggle with is how much must be invested in technology and marketing activities in order to succeed.

With the rapid growth of e-commerce, Hanson Dodge Creative (HDC) identified a need for a more efficient way for its consumer product clients to quickly and cost-effectively launch a more sophisticated e-commerce technology platform. In 2011, we built the Active Commerce Platform to help clients take advantage of the opportunities in their fastest growing channel.

The bottom line — we can now design and build a state-of-the-art customized e-commerce web initiative in about half the time and for half the cost than we could 12 months ago.

Giving customers what they want
Most consumer brands once again saw double digit increases in online revenue for 2011. According to digital research firm, L2, nearly one-third of Christmas shoppers expected to do most of their shopping online this year. For many brands, Amazon is quickly becoming one of their most powerful retailers and their own e-commerce websites are driving significantly more sales and margin than ever expected. Couple that growth with the challenges in recent years to convince brick and mortar retailers to fully stock their products and it’s no wonder that manufacturers are moving rapidly to maximize online channel opportunities.

Brands that have chosen to take the plunge and drive transactions through their branded websites quickly realize that the decision has positive implications beyond immediate revenue growth. For instance:

• Higher margin business online creates a funding source that can support more online branding and result in a better user experience for their customers.
• Setting price/value for products on their own site establishes the discipline to watch over and manage their MAP and MSRP pricing across channels and sets a benchmark that keeps other retailers accountable.
• While investing in online advertising increases traffic to their e-commerce site, it also increases traffic to bricks and mortar retail partners who carry those products.
• Direct online sales can create a safety valve and buffer the growing power of online retailers like Amazon.

(Signs from a Borders closing in February 2011 via Marianne O'Leary/Flickr)

Consumer expectations of their online shopping experience are very high. Amazon, Zappos and a handful of other online retailers have set the bar high. Consumers want to compare products, see reviews, shop price and purchase in a few clicks.  They expect the experience to be tailored to them. They expect you to know their needs and deliver content, options and custom offerings that suit them perfectly.

First and second generation e-commerce platforms simply couldn’t do that. Until recently, only the largest retailers could afford to fund technology systems which could deliver that kind of functionality.

Enter HDC’s new Active Commerce Platform
HDC has been building consumer brand websites and e-commerce platforms for active lifestyle brands for more than 15 years. We’ve assembled best practices, established partnerships with best-of-breed software products and honed our skills in online branding. This past summer, our design and software development teams launched Active Commerce.

Active Commerce is a third generation, full-featured, state-of-the-art e-commerce platform designed for mid-market consumer product brands. It is built on best-of-breed content management and online shopping technologies. It provides a full e-commerce experience out-of-the-box so that brands can launch quickly, while still having the flexibility to grow and express your brand now and in the future. It offers the most advanced features being used by today’s largest e-commerce platforms including product filtering and comparisons, reviews, personalized content and social media integration in a cost-effective and quick deployment model.

Technology alone doesn’t solve the problem
We know that e-commerce success is built on a three-legged stool through a balanced approach to improving the technology, growing the traffic and brand (delivering meaningful stories and content). In the past companies often invested so much in the technology build that there was little budget left to grow transactions. Active Commerce gives customers a powerful platform, but leaves more dollars to work with in strengthening the other legs of the stool, resulting in a faster path to revenue growth.

In addition to the website build, the HDC Active Commerce team can help clients drive online revenue through user experience design, search engine optimization, social media integration, advertising traffic-building strategies and ongoing analytics and reporting.

At a time when many traditional retail channels are contracting, Active Commerce offers a cost effective way for consumer product brands to capture high margin revenue, get closer to their customers and develop a long-term strategy to better manage their brand online.

To learn more and/or see an online demonstration of what Active Commerce has to offer, contact me at: tdodge@hansondodge.com or call 414-270-8304.

Hanson Dodge Creative is America’s leading active lifestyle agency. The full-service firm was established in 1984 and specializes in helping global brands attain market leadership through the strategic integration of world-class branding, relationship marketing, social media, e-commerce and advanced interactive technology. Clients include Wilson Sporting Goods, Trek, Wolverine, Thule and Kmart.

Other articles in the January Active Insights Newsletter
An online experience inspired by architecture
Creating a flagship store for the inventor of stereophones
Search engines can make or break your brand
HDC announces new strategic initiatives