2009 - standing out from the crowd - Net.Matters - January 2009

Having reviewed Christmas online trading figures in our previous article, we look at what the media thinks online E-tailers can expect to look forward to in 2009 - what UK online customers will be looking for before they buy.

A survey by New Media Age (conducted by Lightspeed Research) of 1,957 people showed 36% were planning to shop more online this year.

By age group:

	45% of 18-24 year olds said they would be shopping more online in 2009
	44% of 25-34 year olds (the biggest spenders) would be shopping more online in 2009

The sample also planned to make more use of price-comparison sites and auction sites in a bid to get the best quality product at the most competitive price.

Indeed, figures reported by Retail Week show that more customers than ever before are posting product reviews.  Bazaarvoice, a customer ratings and reviews platform provider found a 51% leap in review postings in the month running up to 8 December 2008.  Google UK saw a 94% increase on the search term “discount vouchers” for the same period.  Customers are using the web to be proactive and discerning when it comes to making a purchasing decision - this trend will continue as we all feel the pinch of the financial downturn.

So what will give E-tailers the competitive edge?

1. Price
2. Cashback and targeted offers
3. An easy to use site
4. Service guarantees

In establishing what 2009 will bring for retail sites it is worth considering the research of 2,043 people by GSI Commerce and YouGov.  Data reported in The Retail Bulletin showed that:

	56% of respondents said brand presence was a major factor in conducting a search for a product
	68% said free delivery would decide who they bought from (if the actual product price was the same)
	73% of the women sampled said free delivery was the most crucial factor in making a  purchasing decision
	20% of men said selecting a specific time slot for delivery was key
	33% of respondents quoted a costly and inconvenient returns process would deter them from revisiting a site

And what factors were likely to cause a consumer to abandon their shopping cart?

	35% cited a complicated website
	33% cited a protracted registration process
	8% cited a checkout process involving numerous pages

On the more positive side, E-tailers should think about target emails and limited period offers as a means of encouraging consumers.  Of those sampled by GSI Commerce, 1 in 4 people said a “for a limited period only” offer would encourage them to buy and 36% said an email specific to them would also promote interest.

Steve Davis, President, International at GSI Commerce concluded:

“Retailers need to make sure that the steps to purchase are as simple and quick as possible as well as including all the information that might affect the purchasing decision such as delivery options, inventory availability and product pictures.  If you don't reveal essential information, such as extra charges for tax, until the point of checkout - or by the same token, if you ask customers to go through steps unrelated to payment once they reach the checkout stage, it is inevitable that you will lose business.”

The customer service an E-tailer is able to bring to the online experience is also important.  A comprehensive FAQ section can vastly improve conversion rates (and means businesses don't have to manage a customer help desk out of normal office hours when consumers are more likely to buy).

E-tailers should also be aware of what their customers are searching for within their own sites - and if the products being searched for are not being stocked, ask the question “Should they be?”.  Statistics also show that around half of all consumers who search on a particular brand end up buying from another brand.  Experts advise that it is worth adding generic terms to PPC campaigns as it is still important to invest in your brand presence.

HMV's head of online, Justin Moodie told Retail Week:

“Competitive pricing is a given really - customers expect it and price comparison sites can obviously also highlight the value of your offers.  Ease of use has to be the key thing: make it responsive to customers' needs and also make it fun, engaging and straightforward to use.  Get that right and the response will hopefully be there.”