Showing posts with label sales. Show all posts
Showing posts with label sales. Show all posts

23 Jan 2011

Online Shoppers Don't Want to be Retargeted

Do the consumers have to share personal information on your e-commerce site? If you demand that they share personal information it might prevent you from increasing your online revenue. A survey from Baynote reveals that online shoppers are unwilling to share personal information with retailers in order to personalize their shopping experience.

How likely are you to share personal information for the sake of getting a more personalized shopping experience?
I am not willing to share personal information 37%
I would consider sharing personal information but prefer not to 47%
I would definitely share personal information 16%
Source: Baynote (January 2011)

In other words 8 in 10 are hesitant or unwilling to share personal information with retailers. A surprisingly high number and a fact we should take into account when designing the online shopping experince.

The reason many websites request personal information is to be able to retarget the consumer. If a visitor is shopping for a product but leaves the site without purchasing, the company needs personal information to retarget the visitor. In other words retargeting is the practice of targeting a consumer with ads after they have clicked on a product on a website but did not end up making the purchase. If you, for example, have put a pair of trousers in the shopping basket but did not make the purchase you'll see ads for the trousers when you're surfing different and unrelated sites in the future.

Consumers don't like it
The retailers and e-commerce professionals think the retargeting technique a great possibility to increase revenue. What do the online shoppers think? Unfortunately, they don't think it's so great. On the contrary, if retailers work with retargeting it might have great impact on the company's image. When asked how the consumers relate to the idea of retargeting, the consumers are quite clear, they don't link it.

When asked: "Whether you experienced retargeted ads or not, please indicate whether you agree or disagree with each of the following statements as they relate to the idea of retargeting."

It turns me off that specific retailer
Strongly disagree   6.0%
Somewhat disagree   7.4%
Neither agree nor disagree 38.4%
Somewhat agree 27.5%
Strongly agree 20.7%
Source: Baynote (January 2011)

I find them an invasion of privacy
Strongly disagree   5.6%
Somewhat disagree   6.5%
Neither agree nor disagree 34.3%
Somewhat agree 25.3%
Strongly agree 28.3%
Source: Baynote (January 2011)

Potential after all
The two above mentioned statements show that consumers don't like it but there might be some potential after all. Some consumers find retargetting useful and think it leads to additional purchases.

They lead to additional purchases
Strongly disagree 17.9%
Somewhat disagree 10.9%
Neither agree nor disagree 35.5%
Somewhat agree 25.5%
Strongly agree 10.2%
Source: Baynote (January 2011)

I find them useful                
Strongly disagree 17.5%
Somewhat disagree 15.3%
Neither agree nor disagree 34.7%
Somewhat agree 22.5%
Strongly agree 10.0%
Source: Baynote (January 2011)

Is the lesson that you can work with retargeting but do it in subtle way without attracting too much attention to it? Perhaps the solution is to put a time limit on so the consumers are only exposed to the ads for a week after the visit. 

See the whole Online Holiday Shopping Experience Survey by Baynote.

8 Jul 2010

The Crisis Is Over: Double-Digit Growth for Online Shopping in Western Europe and in the US

In the last couple of years you might have experienced disappointing or even declining sales in your online shop. But keep the faith the crisis might be over. Forrester Research expects an increase in online sales both in Western Europe and in the US over the next five years - and that by double-digit. Online sales in the largest European Union nations in Western Europe will grow at a 11 per cent annual growth rate over the next five years reaching €114 billion by 2014. In the US online sales will grow at a 10 per cent annual growth rate over the same period to reach close to $249 billion by 2014.

Western European online sales
In Western Europe an increased online tenure, improved access and greater promotion by retailers will increase the number of online shoppers in Europe from 141 million in 2009 to 190 million by 2014. The average spend per online shopper will rise from €483 in 2009 to €601 in 2014. Books, event tickets and clothing are the top three categories put in the virtual shopping basket in Western Europe. Among the three largest EU markets, online sales will grow by 10 per cent over the next five years in the UK; 9 percent in Germany; and 13 percent in France.

Online shopping in Europe will grow but there is a clear division between the countries of Northern and Southern Europe. In UK half of the people shop regularly online, however, only 10 per cent of online Spaniards and 11 per cent of online Italians shop online. However, with annual growth rates approaching 20 per cent in markets like Spain, emerging European e-commerce markets are poised for a great period of growth.

US online sales
In the US, online shopping will account for 8 per cent of total retail sales by 2014. Three categories dominate online sale, that is apparel, footwear and accessories; consumer electronics; and consumer hardware, software and peripherals. Together, these categories represent more than 40 per cent of total online sales in the US. By 2014, 53 per cent of total retail sales in the US will be influenced by e-commerce as consumers use the Internet to research products before purchasing.

All in all get ready. Get your CRM, CMS, analytics and newsletter modul ready. The crisis might be over. 

See more about the forecast on Forrester Research