Thursday, November 19, 2009

Shoppers Plan to Spend More Online Than They Did Last Year

Consumer-Focused Shopping Survey by MarketLive and The e-tailing Group Reveals
Shoppers Plan to do 55% of their Holiday Gift Buying Online, Up From 49% Last Year

Survey Indicates Shoppers Plan to Spend More Online Than They Did Last Year and
Reveals Consumer Preferences that Help Retailers Capture Maximum Holiday Spend

Petaluma, CA – October 19, 2009 – MarketLive, Inc. (www.marketlive.com), the leading eCommerce platform and services provider for mid-market specialty retailers, and the e-tailing group (www.e-tailing.com), the industry’s premier shopper-centric eCommerce consultantancy, today revealed results from the 2009 Mindset of a Multi-Channel Shopper Survey. The report, polled more than 1,000 consumers about their shopping habits and plans for the upcoming holiday season. It revealed that 55 percent of surveyed shoppers plan to do their holiday shopping online this year, compared to 49 percent last year. It also reports that online channel continues to gain wallet share as indicated that by the fact that 26 percent of shoppers plan to purchase more gifts using the Internet. Last year only 21 percent planned to buy more gifts online.

These trends, as well other insights into what will motivate consumers to buy this holiday season, will inform retailers as they implement targeted strategies that will appeal to holiday shoppers and improve 2009 results.

“There are lots of surveys that focus on the holidays from the perspective of retailers,” said Ken Burke, Founder and Chairman of MarketLive. “This survey is unique in that it approaches the holiday shopping season from the consumer’s point of view—an ultimately more important perspective. The information and insights gained from this research are invaluable for retailers as they prioritize holiday campaigns and offers, and implement marketing and merchandising strategies this season.”

Survey Highlights
In addition to the increase in shoppers buying holiday items online, the report also revealed that:

•Eighty-eight percent of shoppers are willing to pay full price for hard-to-find products, customer conveniences and effective customer service such as an 800 number, online chat, simple-to-use order status, and email alerts when orders are shipped.
•Eighty-five percent of survey respondents report the primary reason for shopping online is still time savings, but 40 and 38 percent of shoppers respectively also rate wish lists and reviews as increasingly important.
•Books, clothing, music, gift certificates, toys, and consumer electronics are the top product categories shoppers are likely to purchase online by at least 33 percent of respondents.
•Sixty-two percent of shoppers report that high shipping charges remain the primary reason they will not buy more online, highlighting the fact that free shipping offers will again be very compelling this season.
•While shoppers indicated a desire to remain loyal to their favorite retailer, 70 percent indicated that they are likely to shop competitors’ websites or retail stores when they encounter out-of-stock products this holiday season.
•In-store pick-up for products purchased online was cited as important by 60 percent of shoppers.
•One in three shoppers plan to use a mobile phone for shopping-related purposes such as price checks, in-stock checks, and redemption of promotions this holiday season.
•This holiday season social networking sites will influence shopping behavior for 37percent of online shoppers versus
24 percent last year.
“It’s exciting to see shoppers continue to embrace the web channel, especially in these challenging economic times,” said Lauren Freedman, President of the e-tailing group. “We as merchants must remain vigilant and deliver truly convenient, compelling and customer-service oriented experience to continue to reap market share channel gains. With this, and other findings from the report, retailers can implement targeted strategies that will greatly improve business results for 2009 and beyond.”

Essential Strategies Showcased in Oct 22 Webinar
The survey’s key findings and effective holiday strategies for retailers will be showcased in a free webinar, titled The ROI of Christmas Present—Capture Your Fair Share of Consumer Spending During Challenging Times, on October 22, 2009 at 10:00 a.m. Pacific time. Register to attend the webinar, at www.marketlive.com/consumer09.

“The e-tailing group offers over 15 years of e-retailing experience and we’ve learned which strategies will help retailers weather today’s economic climate,” added Freedman. “By looking at retailing from the eyes of the consumer, retailers can captivate shoppers and maximize ROI for their holiday efforts.”

During the webinar, retailers will learn:

•“Must-have” merchandising and promotional strategies for the holiday season
•What it will take for consumers to pay full price for gifts this holiday season
•What gets shoppers attention beyond free shipping
•Which onsite gifting tools matter the most and how service impacts brand perception
•How promotional features rank for influencing buying decisions
•Cross-channel shopping plans for pre- and post-holiday periods
•How mobility and social networking are beginning to factor into consumer decision making
“Building effective holiday strategies can be tricky,” said Burke. “Our Internet Strategy and Solutions groups work closely with our client retailers to build sound marketing and merchandising strategies that are tied to consumer preferences.”



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