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Our intention is to help keep you up-to-date with the trends in the online world in order to give merchants a competitive edge in this growing channel.
Please email km@e-tailing.com with any ideas or facts you would be interested in learning more about in future newsletters. Each month we will post the best ideas from your emails.
In an attempt to help merchants sort through all the Internet clutter, we have gathered some interesting stats about e-commerce, the online shopper, the online merchant and other marketing trends. We hope that you will find this information useful in making your online store the best it can be.
2Q07
Archived e-facts
Consumers spend big bucks online
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Almost 30% of online shoppers spend more than $1,000 online per year and 10% of total respondents spend more than $2,500 per year 1 |
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Source: Gomez Inc.; 2006 |
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Predictions for 2007….
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- Online ad spending will hit $20 billion
- Some money and lots of hype for online video advertising
- Social networks are set for a $1 billion windfall
- Downloadable games will get hotter
- Thirty-seven million Hispanic and African-American Internet Users: A “minority” bigger than Canada
- Mobile TV arrives
- US B2C E-commerce will cruise past $200 billion
- The retail power of word of mouth
- Broadbandservices will matter as much as speed
- DVRs pump up TV viewing
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| Source: eMarketer.; 2007 |
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U.S Shoppers bought gift cards in grocery stores, department stores, online and just about every other store and shopping center this holiday season, spending a record $27.8 billion according to the National Retail Federation
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By mid-January, their recipients had redeemed 37.8% fewer than half. |
Bad Online Experience Threatens Brick and Mortar Store
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According to a study conducted by Allurent, 82% of respondents would be less likely to return to a site where they had a frustrating shopping experience. Nearly a third said a frustrating experience when shopping online would make them less likely to buy at the retailer’s physical store |
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55% said a frustrating shopping experience online negatively impacts their overall opinion of the retailer |
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51% abandoned their shopping cart even though they intended to buy products on the site. Significant reasons include; having to click through too many pages to checkout & checkout process being too long |
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76% said they are more likely to buy products on a site that offers rich features, such as product zoom, 360 degree product views and online videos of the product |
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81% said shopping online during the Holiday 2005 season was convenient, but only 57% said it was trouble free and 29% described shopping online as fun |
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Source: Allurent; 2006 |
Consumers link retail websites to their brick and mortar counterparts
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65% of online shoppers would stop or reconsider shopping at a company’s physical store if they had a poor online experience |
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Source: Gomez Inc.; 2006 |
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71% of online shoppers are recommending retail web sites they like to other shoppers 1 |
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55% forward their e-mail marketing messages to friends and family 1 |
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Online shopping is acquiring customers at a higher rate than store shopping and losing fewer customers than in the past with a 15% net acquisition rate for online versus 2% for stores, according to Deloitte & Touche USA LLP |
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Source: 1) Nielsen/NetRatings; 2006 |
How do you e-mail your customer?
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According to Alterian, e-mail is becoming integrated with all the other advertising channels |
- 35% are using email now in coordination with other advertising
- 25% are using it in coordination with other offline offerings
- 18% use it as a stand alone channel
- The bulk of e-mail campaigns are being managed in-house for both small (less than 1 million emails/month) and large (more than 10 million emails/month)
- Mid-sized campaigns (between 1-10 million emails/month) are being outsourced
- 71% of merchant respondents send less than one million e-mails per average month
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Give the customer what they want!
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Branding in an e-mail subject line provides an open rate 32% to 60% higher than when the e-mail doesn’t have such branding
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Average click rate for B2C e-mails with lifestyle photography was 6.3% and 5.4% without it |
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A Newsletter format produced an average click through rate of 7.1% versus a 6.2% for e-mails using a postcard layout |
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Click rates offering a specific dollar amount off were 45% higher than those offering a percentage discount |
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Source: Silverpop Systems Inc.; 2006 |
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*Note: RSS non-existent until mid 2005 |
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Source: PQ Media; 2006 |
Research online, purchase in-store
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77% of people who do online research before buying a product purchase something when they went to the store the last time they did online research |
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52% purchase just the item they did research on, while another 18% purchased that item and additional items |
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7% did not purchase the item they did research on, but did purchase something else |
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15% of those responding did not purchase anything, and 4% say they have not researched a product online and then went to the store to purchase it |
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Over half ( 54%) of the people who, after doing research online ended up buying the product and something else from the store, spent up to $40 on the other products. 20% spent between $40 and $80 and 23% said they spent more than $80 |
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Source: Opinion Research for Omnibus.; October 2006 |
What works and what doesn’t in online marketing
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Source: Marketingsherpa, Inc.; January 2007 |
Getting personal
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44% of marketers personalize some part of their e-mail campaigns |
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89% said they will increase their use of personalization in the future |
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Almost 40% will limit their use of personalized elements to e-mail salutations |
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Only 10% individualize all aspects of their e-mail campaigns, including salutation, images, timing and promotions |
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44% said they looked forward to implementing more highly automated campaigns |
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39% said they hoped to launch multi-channel marketing campaigns that span e-mail, print, the web, the call center and mobile devices |
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Source: 1) Responsys; 2006 |
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Leading consumer categories in online ad impressions |
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Source: Nielsen/NetRatings; 2006 |
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Apparel & Beauty
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Source: Nielsen/NetRatings; 2006 |
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Travel
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Leading consumer categories in online ad impressions |
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Source: Burst Media; February 2007 |
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Electronics
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| According to CEA and Yahoo!, nearly 77% of all electronics purchased stemmed from online research |
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Of the $32.5 billion spent on these goods, online research from search engines and manufacturer and retail websites influenced about $25.1 billion of sales |
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Nearly half of those who researched online but bought offline used search engines as the basis for their information getting |
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The average online shopper is female , age 44 and has an annual household income of about $68,000 according to eMarketer. |
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She also has a college degree , is more inclined to use an advanced Internet connection and spends more than $360 per year on various purchases. |
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67% of consumers who visited an online store intending to make a purchase left the site because the retailer did not provide enough information on the product 1 |
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83% of consumers polled would buy more online if retailers added more interactive and interesting ways to display and purchase products (mix-and-match, customized products) 1 |
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Source: 1) Allurent Zoomerang; September 2006 |
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What annoys shoppers most...
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Three strikes and you're out!
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A whopping 87% of online shoppers would give up on a Website after 1-3 unsuccessful attempts at completing an online purchase |
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Are you sending them away?
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Almost 40% of online shoppers would switch to a competitor’s website if the site they were shopping on loaded too slowly |
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Where did college students spend winter break?
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The social networking Facebook site topped the list of favorite sites in Youth Trends' most recent quarterly survey, and it is now the first choice of nearly 70% of females ages 17-25 |
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Tweens Online
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According to new data from Experian Simmons, 48% of children ages 6-11 had played online games at least once in the preceding month |
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The second most common online activity for this age group was visiting favorite Web sites, with 25% of the respondents doing so in the preceding month |
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62% of shoppers said they would not go back to a store where they received poor customer service 1 |
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Online retailers on average are offering customers 3.5 payment methods, up from 2.1 methods in 2005, according to CyberSource Corp. |
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Larger merchants , those with $25 million in annual sales online, offered 4.7 payment methods, up from 2.6 options a year ago |
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According to Jupiter Research, Online chats average 7% longer than a phone encounter |
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75% of chats are sales-related , and those often occur when the customer has filled her cart and has one last question before checking out |
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25% involve problems with existing orders |
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Customers who clicked the chat button on a product page were 8-10 times more likely to end up buying something and the average order was 30% higher |
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83% of customers consider self-service a satisfactory alternative to 24-hour live-agent 2 |
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44% of consumers expect their e-mail to be replied to within the same day 2 |
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Source: 1 )Katzenbach Partners; 2006 2) Genesys Telecommunications laboratories, Inc. |
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Are you using transactional e-mails to their full advantage?
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Almost 40% of online retailers sent a transactional e-mail, after an online purchase, within one minute |
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44% had no personalization in the e-mail |
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While a mere 21% of the e-mails contained promotional content, 68% provided a link to opt-in to an e-mail program |
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Source: Silverpop; January 2007 |
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Into self-help?
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Over the next 5 years , BBC Research forecasts the global self-service market will grow from $10 billion to $24.8 billion, keeping up with a robust annual growth rate of 17% |
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More than 90% of consumers used self checkout in a two-month period, according to a 2005 survey by IHL Consulting |
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In-store kiosks are projected to grow at a rate three to four times higher than point-of-sale devices through 2010. And transactional kiosks have the highest growth rate, forecast at 20% per year through 2010, according to an IBM study |
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Why didn't they buy?
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Source: Marketing Sherpa; 2006 |
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