According to the e-tailing group 9th Annual Merchant Survey, given the
e-commerce essential role for today's retailers, 59% are planning to invest somewhat more in e-commerce than the 36% who did so in 2009.
With a recovering economy and shifting
channel priorities, 92% anticipate 2010 Internet revenues to increase over '09 with significant growth in the 6-15% range; just 8% report a flat or downward trend in their e-commerce business vs.
34% last year.
Expected Internet Revenue Change in 2010 (% of
Respondents) |
Change (% vs. 2009) | % of Respondents |
-6% to -20% | 2% |
-1 to -5 | 0% |
Flat | 6 |
+1 to +5 | 23 |
+6 to +15 | 33 |
+16 to 25 | 16 |
+26 to 50 | 15 |
≥ 51 | 5 |
Source: e-tailing group, April
2010 |
In early 2010 e-commerce dynamics put forth a favorable climate for cross-channel optimization. Marketing plans are performing at or above plan for
47% of merchants up from 37% in the prior year while merchandising is moving beyond redesigns towards industry standards and category-centric differentiators.
Lauren Freedman, President of the
e-tailing group, says "Seasoned sellers, emerging retailers and manufacturers are... positioning themselves for growth as the economy rebounds... taking a laser-like focus on performance...
"
Anticipated E-Commerce Investment Change in 2010 |
Investing Compared to 2009 | % of Respondents |
No change | 7% |
Somewhat more | 59 |
About the same | 27 |
Somewhat
less | 6 |
Significantly less | 1 |
Source: e-tailing group, April 2010 |
Conversion remains a proverbial challenge as 56% of respondents report
that the conversion rate sweet spot is still 3% or lower, even more than the 48% in that range last year although increased online researching and value pricing may be contributing factors.
Conversion Rates Expected in 2010 (No. of Orders Divided By Unique
Visitors) |
Conversion Rate 2010 | % of
Respondents |
0 < 1% | 6% |
1.0 - 2.9 | 50 |
3.0 - 4.9 | 17 |
5.0 - 7.9 | 13 |
8.0 -
20.0 | 11 |
Don't know | 3 |
Source: e-tailing group, April 2010 |
With an emphasis on
margin and profitability, where both impact tactical feature selection, the top three impact points where analytics have successfully been leveraged are conversion (52%), search marketing (44%) and
cart abandonment (38%) all providing ample opportunities for revenue generation.
To improve website performance 79% of the respondents report planning more targeted email, 72% will refine
onsite search and 70% will be enhancing onsite merchandising. Beyond these top initiatives the following will also be contributing factors:
- Cross-sells/Up-sells rise 66% vs. 55% with AOV
focus
- Merchants move beyond redesign/upgrades (60% vs. 67%) to embrace strategic merchandising
- More than one-half are planning to invest in usability or A/B testing
(58%) and/or web analytics (53%) to better guide decision-making
- Customer service (53%) remains an important initiative for over half of the merchants
- Personalization/Customization sees long-awaited attention for 52% vs. 41%
- Outreach efforts gain ground with social networking strategies being planned by 58% and blogs
(32%)
- 39% vs. 19% last year are planning expenditures on mobile initiatives
- Added to the list this year - videos (48%) see strong adoption
Top Five Tactics for Customer Retention in 2010 |
Tactic | % Considering Most Important or Very Important |
Free shipping and private sales for current customers | 49% |
Site redesign for enhanced customer experience and navigation | 49 |
The "right" in-stock assortment | 48 |
Enhanced onsite search, relevance,
landing page optimization | 46 |
Tactical email sent on pre-established frequency | 46 |
Source: e-tailing group, April 2010 |
In conclusion, Freedman states, "Merchants must ensure that their e-commerce roadmap is clearly defined yet fluid enough to embrace new opportunities throughout the year...
being proactive in securing the necessary funds... (for) future demands... keeps merchants on the fast track."
To read more of the topline data, please visit Exact Target here,
or to acquire the complete, aggregated findings, contact e-tailing here.