Online Holiday Sales Satisfaction

There's been plenty of news about how fruitful the 2011 Holiday shopping season was for retailers and how dramatic of an increase there was in online retail sales, but a recent report analyzing how satisfied holiday online shoppers were demonstrates why e-commerce is booming. The ForeSee E-Retail Satisfaction Index, U.S. Holiday Edition, included the top 40 online retailers in the United States and found that shoppers who were highly satisfied with their purchase experience online were 64 percent more likely to return to the site, recommend it to their networks and establish a loyalty to the brand than those who had issues with their transactions. A compelling result was that just a one-point change in overall website satisfaction represented a 14 percent increase in sales revenues.

Eye Candy For "Digitists"

It's no surprise that retail analysts are expecting holiday sales to be up sharply this year with digital marketing growing at a spectacular rate, as more social media and online platforms mature, delivering larger and more engaged digital audiences. When Twitter launched its "promoted trend" advertising property just last year, it cost Rainmakers $25,000-$30,000 per day to promote their brand on the 140-character tweet platform. Today, Twitter can demand $120,000 per day for a promoted trend placement. Overall, brands will spend nearly $50 billion on online ads in the U.S. by 2015, according to a recent survey by ZenithOptimedia, with online video ads commanding the most dramatic growth. That's a lot of eye candy for "digitists" on computers, tablets and smartphones.

Digital Scams Equal Holiday Blues

It's Digital December! Two weeks of online shopping bonanza lie ahead and odds are you will be the recipient of spam email sometime during this period. But the trick is knowing how to not to fall victim to digital scams. These tips can help keep you vigilant and avoid holiday blues:

• Avoid clicking links. If you see an online special copy of a product coupon code in the email, type the site’s address directly into your browser's address bar and collect it from original source.
• Shop at secure sites. Seeing a lock icon on the page doesn’t make it secure. Make sure that the page where you enter your credit card information is https prefaced. (notice the "s")
• Make sure you understand the website’s privacy policy. Know what retailer intends to do with your personal information once you identify. If the site doesn’t have a privacy policy, avoid providing any information altogether.

Holiday Package Malware Grinch

With all the packages shipped over the holidays, Rainmakers should be aware that their online customers will be targeted by the Malware Grinch who typically first send a spam email telling them that their package was "delayed" and they need to do something to "fix the shipping mistake." If the email is from a legitimate online retailer or shipper, no action is requested. But with tracking capabilities, a spammer can tell if the customer clicks on a link they sent. Now, all they have to do is send those people a fake email from a shipping company telling them that they have to download an attachment so they can "clear up any shipping issues before it’s too late." The "attachment" actually contains malware that once installed, infects the victim’s computer enabling the collection of sensitive information.

The Cyber Monday Raindance

Since Cyber Monday's inception in 2005, the online retail's alternative to Black Friday has experienced explosive growth. With the news this week by ComScore that 2011 Cyber Monday sales surpassed $1.3 billion -- more than $300,000 million generated last year -- it's clear that the Digital Raindance is working. Cyber Monday 2011 was the biggest day for online shopping in U.S. history and marked the launch of the most fruitful retail period of the year. Traditionally, more than 80 percent of retail stores annual sales are generated between Cyber Monday and Christmas Day. But online retail is changing the game. This year online shopping generated more than $15 billion -- up by 15 percent -- in the four weeks of November before the bricks-and-mortar Black Friday bonanza.  And even on Black Friday, more than $800 million in sales were accounted for online. It's obvious that shoppers are becoming more comfortable buying online, but the "digitizing" of goods has also fueled online retail. E-readers are replacing the production of physical books and digital music and movie downloads are replacing the production and shipping of CDs and DVDs. The good news for grocery stores is that our digestive system hasn't yet figured out how to absorb "digital nourishment".



Online Ahead Of "On Air"

New consumer research shows that for the first time ever, U.S. households time online now equals time spent watching television at 13 hours per week (Forrester Research). These survey results come on the heels of similar research showing that younger consumers (18-30) spend more time on the Web than than watching TV.  In fact, the amount of time U.S. households spend watching TV has not grown at all in the last five years, while time spent on the Web has risen 121 percent. Unsurprisingly, Forrester reported that e-commerce and social media as the major drivers of growth over the last three years. E-commerce use rose from 37 percent to 60 percent, while social media went from 15 percent to 35 percent. While this media shift has not gone unnoticed by marketers, they have collectively yet to match media marketing investments to the proportional growth in consumer consumption of digital content and online social networks.   

Santa Claus' Job Just Got Easier

The 2010 Holiday shopping period got off to a fierce start this weekend, but it was primarily fueled by mouse clicks, rather than store stampedes. For the first time ever, online retail shopping year-over-year growth surpassed in-store purchase rate, proving that "the digital raindance" has forever changed Holiday shopping. With consumer electronics and apparel leading the way, online retail purchases during Black Friday weekend rose by 16 percent, according to UBS retail analysts. In-store sales were about 6 percent higher than last year. Those retailers with user friendly online sites and free shipping are expected to rule Cyber Monday results when it's all said and done. Early reports show that Nordstrom, Macy's, Abercrombie & Fitch and Urban Outfitters could show year over year increases of about 20 percent. Best Buy, Walmart, Target and Internet giants, Amazon and Ebay are also expected to show positive results. It looks like Santa Claus' job may be getting easier.

Chasing Online Holiday Shoppers

 

 

 

Some experts predict that online Holiday sales this November and December will be higher than last season. eMarketer is predicting a 14.3% increase over the same period last year. If they're right, this season’s growth will push annual ecommerce sales to $162.4 billion for full-year 2010, giving online Holiday shopping a 23.7% share of all online sales. So with November and December as the most important months of the year for online retailers, digital marketers who leverage social media networks have an opportunity to provide a rich array of product selections, complementing product accessories and intensify their analytical processes to understand what consumer who come to their sites are looking at. Online retailers with product-selection guides, easy return policies, and friendly and accessible customer service representatives put digital shoppers at ease and can turn them into lifelong online customers.