Attracting customers remains the priority for 40 per cent of e-commerce managers, over retaining the loyalty of existing ones.
This is according to research conducted by e-commerce expert Avail Intelligence at this year’s Internet World show [1]. Only 29 per cent of respondents ranked customer retention as their most important objective for online sales.
To help attract customers, e-commerce retailers are focusing on the implementation of online strategies and targeted tactics. 46 per cent of online retailers want to implement customer reviews and recommendations over the next 12 months. Promotions such as abandoned cart discounts (9%) and offers for returning customers (10%) are less popular. Avail Intelligence believes this shows a shift by retailers to establish a sense of “trust” for their brand, which will encourage a word of mouth attraction.
“Internet retailers are dealing with two major threats: the current credit crunch and an onslaught of competitive sites. The economic climate is bound to have an effect on spending, however at the same time online shoppers are becoming increasingly demanding,” said Dr Rolf Elmér, CEO, Avail Intelligence. “E-commerce managers face a huge challenge to ensure their site stands out to the market. Our research proves that online retailers are taking a gladiatorial approach and are ready to take bold steps to win market share.”
“Trust is becoming increasingly important for the online industry, and behavioural merchandising mechanisms will be critical tools for e-commerce managers,” Elmér continued. “Harnessing the power of a site’s existing customers to produce the most relevant products for new customers with similar requirements, will encourage them to browse and buy on a regular basis.”
[1] Avail questioned 105 e-commerce managers at Internet World, April 29-May 1, 2008
.About Avail Intelligence (http://www.avail.net)
Avail Intelligence is the leader in maximising the value of visitor traffic to e-commerce web sites. The company’s technology harnesses the community intelligence from site visitors to deliver the most effective shopping experience for new and returning customers.
Using advanced mathematical techniques from its research arm Avail Labs, Avail Intelligence has created the Avail eMarketing suite. The suite comprises a set of tools, which improve relevance when merchandising to and communicating with individual visitors across the entire Customer Interaction Cycle/tm; of a single web site or across multiple web sites.
The results are significant, immediate and measurable improvements to conversion rates and average order values.
Avail Intelligence’s technology is being used by over 80% of the leading Scandinavian e-commerce sites. Key UK customers include GAME, Woolworths, Berry Brothers and DVD.co.uk.