• by Dror Liwer , December 14, 2010

For many years, I have insisted that the secret sauce for any successful e-commerce strategy is weaving the "3 Cs" into a fabric that engages the consumer and facilitates higher conversion rate and basket size. And I haven't been the only one. Numerous e-commerce strategists believe the 3 Cs -- Commerce, Community and Content -- are the cornerstone of any relevant strategy.

In fact, the concept has been around for quite some time: computer magnate and CEO Michael Dell is credited with first defining this strategy in November 1999 as part of his vision for delivering a superior online customer experience. Ironic, considering the fact that even today, Dell does little to provide relevant content or community to engage, entertain or inform consumers.

But Dell is certainly not alone. In fact, very few e-tailers fully leverage all three of the Cs. Of course, all have commerce. Some have both commerce and community: Amazon has massive commerce and a tremendous community of peer reviews, lists and feedback. In fact, a large number of Amazon shoppers (myself included) base final purchase decisions on the community's reviews and recommendations. But it's all purely transactional -- beyond shoppers' sometimes entertaining firsthand report of their product experience, there is no "infotainment" to engage the visitor.

Others have commerce and content, but little community. J. Peterman, for example, does quite well in the commerce department, and does an exceptional job with content -- telling an engaging, entertaining and relatable story behind each product. But there's little emphasis on community -- no peer reviews, no product ratings, nothing. Even the link to its Peterman's Eye blog and forum site is buried at the bottom of the retail site.

In fact, I can't think of too many sites where all 3 Cs truly co-exist -- Sears and Continental Airlines are making strides, but few others are even close.

The Missing C

So, why is it that even after all this time and much discussion about the importance of the 3 Cs, very few are actually implementing this holy grail of ecommerce to successfully grow conversion and basket size?

I've come to the conclusion that there's a missing C -- it's not 3Cs, but 4.

The missing link is Curation. Much as a museum curator carefully selects appropriate pieces and meticulously arranges them in such a way for the audience to understand and appreciate them, the e-tailer of the future must curate its collection and offer it to audiences in an intelligent way that makes sense to its consumer.

The Problem of Choice

We already know that too much choice can be a bad thing. In his book, The Paradox of Choice: Why More is Less, psychology professor Barry Schwartz examines this concept of overwhelming selection in a half-scholarly report, half-self-help book that points to the risk of too much choice becoming more than we bargain for. Curation can solve this problem. Unlike the typical mass-market retailer, for example, Whole Foods offers just a handful of personal care product options -- a selection it has curated based on its customers' known desires.

Curation Premium

You're probably already thinking this notion of curation sounds expensive -- and it does require some investment in data analysis to determine exactly what your customers want and in digital development to deliver the goods in an effective way.

However, I firmly believe shoppers are willing to pay a premium for this added service. Consider the Nordstrom difference: while shopping for a skirt, you could walk into a discount retailer, ask where the skirts are and be directed there by a store clerk who likely has no idea how to actually sell garments and will provide little insight in helping you make a selection.

Or you could go to Nordstrom, ask a salesperson to help you find a skirt and he or she will not only show you where they are, but also which ones are most appropriate for your body type, the occasion or other factor. You're more apt to buy this skirt because of the service, and probably willingly pay more for the pleasure -- and still feel good about it, knowing you made the best choice.

Think Boutique

E-tailers must employ this same strategy, and curate their assortment -- in essence filtering their millions of products intelligently to deliver the most relevant selection to their customers.

But how can a behemoth retailer that prides itself on offering everything on earth curate its selection? They must think boutique.

Hayneedle has made great strides in achieving this boutique-style shopping experience, despite its massive selection. By using technology to organize its "sweet variety" into more than 200 specialty stores, it offers a boutique-style shopping experience with products curated to match its customers' habits, tastes and desires. An integrated shopping cart allows customers to shop each boutique individually, but then aggregate those purchases into a single cart for easy checkout. This approach is product-level curation at its finest.

Another example of curation -- this time "by purpose" -- is found at Red Envelope. Its focus on delivering products to satisfy virtually any specific gifting need enables it to curate its selection around events, holidays and special occasions. And customers willingly pay a premium to enjoy this curation. Red Envelope shoppers know that the gifts its customers buy will be perfect, beautiful and really unique as a result of the curation service provided.

Curation Cuts Through the Clutter

The e-commerce evolution has created a pathway to massive selection for consumers and provided infinite opportunities for small shops to compete head-to-head with gargantuan big-box retailers. But as the fragmentation and plethora of choice begins to overwhelm consumers, curation is becoming imperative. For e-tailers that do the legwork to curate the selection, there is tremendous opportunity to generate repeat business, increase margins, build basket size and conversion.