Turning up the heat online
One area where Lowe’s is charging full-speed ahead is online retailing.
And according to recently published research, Lowe’s has little choice. “More consumers are using the Internet as a way to increase shopping efficiency or to plan for future purchases,” said Nick McCoy, senior consultant with Retail Forward, which in January published “Lowe’s: Giving Customers More Options With E-Commerce.” McCoy said Lowe’s commitment to its expanded e-commerce platform “reflects an understanding that the way consumers shop is changing.”
At a time when many homeowners are pulling back from home improvement spending, Lowe’s is adding online capabilities to stay connected with its current customers and to attract new customers. During a recent e-commerce conference, Ames Flynn, Lowe’s VP e-commerce, said the retailer is looking to implement some “quick-hit projects,” including features that encourage visitors to enter their e-mail addresses, while building the case for more expensive investments, such as site personalization.
To illustrate Lowe’s commitment to e-commerce, the company has been placing ads on job Web sites seeking online marketing people and e-commerce programmers to buttress what already exists: videos, interactive tools, special-interest microsites and other multimedia features. One example: Viewers who click on “New Lower Prices” can sort through them by department, by price point or—most intuitive perhaps—by room of the house.
Some of Lowe’s vendors have noticed the changes. “Lowe’s Web site is well-organized and content-rich to help people buy plumbing products,” said Chris Barg, senior director of retail sales for American Standard. Barg said the way the Web site is organized with buying guides, how-to’s and creative ideas “helps people who are doing full remodels as well as do-it-yourselfers who need to quickly replace or repair.”
Barg was referring to the Services tab on Lowe’s home page which connects shoppers to buying guides, how-to information and interactive design tools.
McCoy said that consumers may be holding off on most major home improvement and renovation projects in the current economy, but that does not stop them from planning for future projects. “The information provided in this section of Lowe’s Web site is an important way for Lowe’s to remain in touch with these customers, bringing them through the doors now for necessities, and later when the large projects get started,” he said.