How to hit a moving target?
The current climate has led to a break up in established shopping habits. As shoppers face a decline in real income, and increasing uncertainty in home and work life, a creeping cautiousness has entered the profile of many more established shoppers. A recent survey suggested this may hit some of the previously more attractive segments retailers have come to rely upon.
The 2009 Consumer Shopping Intentions Study suggested over two-thirds (69%) of US adults plan to spend less at retailers in 2009 than they did in 2008. In contrast to the younger age group, nearly 80% of consumers age 35-54 plan to spend less. However, the survey reveals a twist which might offer some hope within this gloomy forecast. It suggests 58% of those ages 18-24 plan to spend the same or more, especially at mass merchants, according to results from the study by research agency, Cavallino. Fuller results can be gleaned from their website (below).
http://www.cavallinollc.com/files/2009%20CSIS%20Press%20release.pdf
With this shift a re-calibration of marketing initiatives may be required to establish the loyalty indicators of previously relied upon customers, and potentially to target this new group more aggressively. This bears out some of the predictions which were already present in the The National Retail Federation’s (NRF) who compiled a list of how shopping will change in their report, “The State of Retailing Online 2008:Marketing Report”
www.shop.org
This compiled a fascinating store of statistics of how shopping online will change this year as social marketing was predicted to increase, repeat customers will be searching for improved shipping deals and e-store discounts
As blogger, Jennifer Litwin (The Shop Cop blog, http://www.jenniferlitwin.com/) reported, shoppers will be learning a new set of facts about how marketing is conducted, proof that the harder times are creating more savvy users. She describes the trends consumers will be watching out for, as follows:
1. Paid search and email marketing becoming the most popular marketing avenues for online retailers
a. 5% of online sales revenue was spent on Web marketing initiatives whereas 92% of all online stores paid for email marketing and paid search
b. Shoppers will receive, on average, 77 emails a year from sites visited/purchased
c. Email lists are kept current by 72% of all online stores; shipping deals will be for loyal customers this year, and not new shoppers
d. E-stores pay $.50 for each customer to record email data
e. 90% of emails sent from online stores go through and are not considered spam
f. Only 22% of consumers open these emails!
g. Most emails relate to recent shipments and are most likely to be opened
2. Companies are dipping their toes in the waters of social marketing
a. Only 1% of all sales come from social networking sites!
b. Virtually no sales come from mobile devices
3. Catalogues becoming the biggest expenditures after email lists
a. E-stores are bumping up catalogues to their core customer base
b. Expect a 46% increase in catalogues this year.
4. Computer related purchases to continue as the fastest growing sector of online sales
5. Home furnishings sales will likely double in the next 5 years as house sales decline and people look to improve their current location
6. 35% of all online sales come from search engine marketing/referrals from other sites
So is this really a ‘brave new world’ or merely a case of ‘back to the future’? An old Top 10 list of ways to guarantee online success (from 2006) proves that some things “just don’t get old!”
So check out these time worn ‘homilies’ and just kep in mind if – honestly – you can still claim to be staying ‘true’ to the message they contain:
1. Focus on Win-Win Situations
The Web has shown that working alone is the fastest way to fall on your face. Search engines reward sites that are linked and recommended by quality sites. Successful online businesses enlist the help of other websites to promote their products through affiliate programs.
2. Give Value to Customers
Despite the Web being the "new economy," the old fashion business rule still applies: the most successful businesses are those able to create value for their customers. The website exists first and foremost to fill customers’ needs whether for information, a product or a service. You will only succeed if you give customers something that they want
3. Focus on the Customer
The challenge facing every small business owner on the 'Net is how to keep customer service alive and well in a medium where personal interaction is inherently limited. One way would be to keep your web site functional and personal.
4. Under-promise, Over-deliver
Customers love it when you deliver way more than their expectations.
5. Tighten the Belt, but not the Service
Contrary to the dot-com s excessive and free-wheeling spending, you can run an Internet business on a tight ship.
6. Design the Web Site for Your Customers
Although a well-written, well-designed Web site with great content can make a positive impression on your prospects, the design should focus around getting the visitor to take the action you want.
7. Team Up with the Right Partners
Partnering with the right groups or individuals can help increase the exposure of your website, build its reputation in your industry, and move on to become the industry authority
8. Focus on Creating a Brand
On the Web, Google, eBay and Amazon also have built strong businesses based in part on great branding. These big businesses understand that an integral part of success is building strong brands. Effective online branding does not require big budgets, just an understanding of what brand attributes you are trying to build. By making every Web transaction brand-relevant and providing your customers with brand-based value, you will increase the depth and stickiness of your customer relationships.
9. Put on a Face!
Automation is the name of the game on the Web, but it does not mean that personal touches that will assure your customers that they are dealing with humans have gone out of style. In fact, customers are more likely to trust, use and patronize a Web site repeatedly if they know that they can communicate with a person easily. They want assurance that their orders will come through, their complaints will be addressed and their feedback will be heard. Many successful e-tailers are generating sales through click-and-buy (e-commerce) but a hefty percentage also comes from telephone calls after customers found the number on the websites. If your sales are done without the assistance of a live person, send out personal "thank you" emails, including a real name and phone number of their personal customer service representative so if there are any questions, they can call or email a real person!
10. Don't Predict the Future
One important lesson of the Web is that you cannot predict the future. What is hot today may be gone tomorrow. The key is to be vigilant and flexible in the creation of your site and products. Take the long view of your business. Observe carefully if new uses of your products emerge. Get customer feedback on your site and monitor what the competition is doing. Forums and chatrooms are some of the easiest ways to check out what is happening on your industry and on the Web in general.
“Go to the mattresses!”
The 2009 Consumer Shopping Intentions Study suggested over two-thirds (69%) of US adults plan to spend less at retailers in 2009 than they did in 2008. In contrast to the younger age group, nearly 80% of consumers age 35-54 plan to spend less. However, the survey reveals a twist which might offer some hope within this gloomy forecast. It suggests 58% of those ages 18-24 plan to spend the same or more, especially at mass merchants, according to results from the study by research agency, Cavallino. Fuller results can be gleaned from their website (below).
http://www.cavallinollc.com/files/2009%20CSIS%20Press%20release.pdf
With this shift a re-calibration of marketing initiatives may be required to establish the loyalty indicators of previously relied upon customers, and potentially to target this new group more aggressively. This bears out some of the predictions which were already present in the The National Retail Federation’s (NRF) who compiled a list of how shopping will change in their report, “The State of Retailing Online 2008:Marketing Report”
www.shop.org
This compiled a fascinating store of statistics of how shopping online will change this year as social marketing was predicted to increase, repeat customers will be searching for improved shipping deals and e-store discounts
As blogger, Jennifer Litwin (The Shop Cop blog, http://www.jenniferlitwin.com/) reported, shoppers will be learning a new set of facts about how marketing is conducted, proof that the harder times are creating more savvy users. She describes the trends consumers will be watching out for, as follows:
1. Paid search and email marketing becoming the most popular marketing avenues for online retailers
a. 5% of online sales revenue was spent on Web marketing initiatives whereas 92% of all online stores paid for email marketing and paid search
b. Shoppers will receive, on average, 77 emails a year from sites visited/purchased
c. Email lists are kept current by 72% of all online stores; shipping deals will be for loyal customers this year, and not new shoppers
d. E-stores pay $.50 for each customer to record email data
e. 90% of emails sent from online stores go through and are not considered spam
f. Only 22% of consumers open these emails!
g. Most emails relate to recent shipments and are most likely to be opened
2. Companies are dipping their toes in the waters of social marketing
a. Only 1% of all sales come from social networking sites!
b. Virtually no sales come from mobile devices
3. Catalogues becoming the biggest expenditures after email lists
a. E-stores are bumping up catalogues to their core customer base
b. Expect a 46% increase in catalogues this year.
4. Computer related purchases to continue as the fastest growing sector of online sales
5. Home furnishings sales will likely double in the next 5 years as house sales decline and people look to improve their current location
6. 35% of all online sales come from search engine marketing/referrals from other sites
So is this really a ‘brave new world’ or merely a case of ‘back to the future’? An old Top 10 list of ways to guarantee online success (from 2006) proves that some things “just don’t get old!”
So check out these time worn ‘homilies’ and just kep in mind if – honestly – you can still claim to be staying ‘true’ to the message they contain:
1. Focus on Win-Win Situations
The Web has shown that working alone is the fastest way to fall on your face. Search engines reward sites that are linked and recommended by quality sites. Successful online businesses enlist the help of other websites to promote their products through affiliate programs.
2. Give Value to Customers
Despite the Web being the "new economy," the old fashion business rule still applies: the most successful businesses are those able to create value for their customers. The website exists first and foremost to fill customers’ needs whether for information, a product or a service. You will only succeed if you give customers something that they want
3. Focus on the Customer
The challenge facing every small business owner on the 'Net is how to keep customer service alive and well in a medium where personal interaction is inherently limited. One way would be to keep your web site functional and personal.
4. Under-promise, Over-deliver
Customers love it when you deliver way more than their expectations.
5. Tighten the Belt, but not the Service
Contrary to the dot-com s excessive and free-wheeling spending, you can run an Internet business on a tight ship.
6. Design the Web Site for Your Customers
Although a well-written, well-designed Web site with great content can make a positive impression on your prospects, the design should focus around getting the visitor to take the action you want.
7. Team Up with the Right Partners
Partnering with the right groups or individuals can help increase the exposure of your website, build its reputation in your industry, and move on to become the industry authority
8. Focus on Creating a Brand
On the Web, Google, eBay and Amazon also have built strong businesses based in part on great branding. These big businesses understand that an integral part of success is building strong brands. Effective online branding does not require big budgets, just an understanding of what brand attributes you are trying to build. By making every Web transaction brand-relevant and providing your customers with brand-based value, you will increase the depth and stickiness of your customer relationships.
9. Put on a Face!
Automation is the name of the game on the Web, but it does not mean that personal touches that will assure your customers that they are dealing with humans have gone out of style. In fact, customers are more likely to trust, use and patronize a Web site repeatedly if they know that they can communicate with a person easily. They want assurance that their orders will come through, their complaints will be addressed and their feedback will be heard. Many successful e-tailers are generating sales through click-and-buy (e-commerce) but a hefty percentage also comes from telephone calls after customers found the number on the websites. If your sales are done without the assistance of a live person, send out personal "thank you" emails, including a real name and phone number of their personal customer service representative so if there are any questions, they can call or email a real person!
10. Don't Predict the Future
One important lesson of the Web is that you cannot predict the future. What is hot today may be gone tomorrow. The key is to be vigilant and flexible in the creation of your site and products. Take the long view of your business. Observe carefully if new uses of your products emerge. Get customer feedback on your site and monitor what the competition is doing. Forums and chatrooms are some of the easiest ways to check out what is happening on your industry and on the Web in general.
http://forums.teneric.co.uk/finance-forum/10-ways-guarantee-your-online-success-5679.html
Here’s hoping you scored a ‘Perfect 10’ but if not, remember what Meg Ryan was advised when Tom Hanks started to up the competition in “You’ve got mail”
“Go to the mattresses!”
