Habitat gets a web site makeover

Habitat becomes a web convert

For a store that made its name by being at the leading edge of design, Habitat admits it is playing catch-up online.

The furniture retailer does not have a fully transactional web site and realised it was not taking advantage of the growth in online shopping, so the company decided it was time to take action.

Planning for a revamped web site started in January, in partnership with e-commerce specialist eCommera, with BT Fresca supporting the online store’s infrastructure.

“Right now, you cannot buy products from our web site, which is not a good thing as our clients’ expectations on service are quite high. We need to provide an online operation that matches the high quality that we provide in the real world,” said Jacques Dekock, chief information officer at Habitat.

“Our new chief executive is really passionate about getting online and wants to ensure that we do not miss the business opportunities in that market and use the web to provide good customer service by making it easier for people to buy from us,” he told Computing.

Dekock believes the new web offering will help the business mitigate some challenges, such as the difficulty of displaying products in some stores due to lack of floorspace.

Habitat’s IT spend is about two per cent of the firm’s £300m turnover. Most of that is now being channelled into the web overhaul, which has become a business priority for the organisation.

“This is also about catching up. We will soon be in line with the competition on e-commerce and have a web offering that is as good or better than theirs,” said Dekock.

“Before, we were quite sceptical about selling furniture online, but we have changed our view and realised that the web offers enormous potential.”

As well as improving the logistics supporting the web site, enhancing the quality of data will be a crucial part of the revamp and Habitat will be improving its bespoke content management system, as well as the use of images and the depth of product information.

“Having less than optimum information on products and images is the single biggest stoppage for a transactional web site ­ – there is a big piece of work going on at the moment to help us identify the gaps in that area,” said Dekock.

From late September, customers should be able to buy furniture online at Habitat’s new web site and the home accessories range will be available before Christmas.

As the majority of its IT finances are targeted at web improvement, Habitat decided not to focus investment on back-office systems such as SAP. Instead, the firm invested in new hardware to support the application and in the rollout of SAP’s reporting suite, so requirements can be met for as long as required.

An electronic point-of-sale upgrade has also received the go-ahead for 2010, aimed at gaining real-time visibility of store product information and availability.

Apart from making its web strategy a success, Habitat’s biggest challenge over the next year has to do with its people.

“The retail sector has been affected by the recession, coupled with a reduction in interesting technical projects, which makes motivating staff quite difficult,” said Dekock.

“The solution for us is to give IT people opportunities outside their existing comfort zones, such as learning some new skills around e-commerce.”

Social media in e-commerce – a cautionary tale

Habitat is one of many retailers using social media tools to increase web traffic and maximise conversion rates, but the technology must be used with caution, according to experts.

Businesses using social networking and user-generated content often report an uplift in sales as users value other people’s opinion on their experience with products or services.

“Traditionally, retailers have used features such as the top 10 best-selling products to attract customers, but it emerged that having the top 10 reviewed products works best as consumers believe in fellow shoppers,” said Andrew McClelland, business development director at e-commerce trade body IMRG.

McClelland advises retailers to get the basics right on their web sites before venturing into social media.

“Usability practices that make it easy for customers to find information, and good information and images, are crucial for any transactional web site,” he said.

But the use of social networking platforms needs to be treated carefully, McClelland added. Habitat fell foul last week when it mistakenly used keywords related to the unrest in Iran to promote its Twitter feed.

“The purpose of these tools is to spread information quickly and any mistake can become global knowledge in a matter of minutes, so such tools need to be treated very delicately,” McClelland said.