Recommended reports
JUMP Magazine: Issue three
JUMP is Econsultancy's multichannel magazine in support of the multichannel event, JUMP, which takes place on 12 October 2011. In this third issue of JUMP Magazine we focus on a number of areas that will help you to join up your business, including optimising your mobile strategy, a guide to location-based marketing, using offline ads to drive online activity, and how to make the most out of your data.
How We Shop in 2010: Habits and Motivations of Consumers
How We Shop in 2010: Habits and Motivations of Consumers is split into two separate documents for the US and UK, examining e-commerce consumer behavior in both countries. Both reports focus on how consumers interact with e-commerce brands, conduct product research and the different factors in the buying decision-making process.
CEO at Econsultancy
22 March 2001 11:07am
Despite the current market gloom and dot com melt down all the signs continue to point to a rosy e-tail future. A few things that we have learnt:
- People look before they buy:
According to Forrester Research, the typical online shopper visits an average of 2.4 websites before buying. Jupiter Media Metrix reports that most consumers visit between 2 to 5 sites before making a purchase. According to Odyssey 75% of online buyers do some research of products or services online before buying.
According to eMarketer the gap between online shoppers and buyers is narrowing considerably. There were 63 million online "window shoppers" in 2000 - 59 million of them became purchasers.
- People often research online and then buy offline i.e. websites do increase store footfall
A recent Jupiter/NFO Consumer Survey found that more than 68% of online buyers researched products online and then purchased them at a physical store; 47% said they then bought via phone.
- Customers take a while to build up the courage to purchase online. The first buying experience is crucial to future confidence.
In 1999, 7 million households ran the gauntlet of trial purchase for the first time. In 2000, trial purchase was even more prevalent than in 1999, with 11 million new households purchasing over the Internet for the first time. Although the trial purchasers accounted for 50% of all online users, they were responsible for much less than 50% of online retail spending.
As 1999’s and 2000’s trial purchasers gain comfort with Web purchasing, total online revenue will skyrocket. Ensuring the first trial purchse is a good experience for a new online purchase is crucial to winning their confidence and future custom. In 2000, consumers spent $24 billion online, and online revenue is expected to grow at an average rate of 50% per year, totaling as much as $118 billion by 2005 (Jupiter / NFO)
- The mass market are getting into e-tail. Good and bad news.
This is good for overall volume of sales but it will also bring with it: lower average order size; higher price sensitivity; higher return rates; higher security concerns; increased demands on customer service
- People prefer multi-channel offerings from existing brands
Customers respond to familiar products online. Browsers and trial purchasers seek the comfort of what is known through established retailers with established brands, familiar products, and classic conveniences, providing customers with assurances of quality and consistency.
Clicks-and-mortar businesses also benefit from much lower customer acquisition costs than pure plays. A 2000 BCG study showed average customer acquisition costs for a pure play e-tailer to be $82 versus only $12 for a multi-channel clicks-and-mortar business.
The following 2 resources give a lot more detail on the above:
Online Shopping: Pry before You Buy
http://www.emarketer.com/analysis/ecommerce_b2c/20010206_prying.html
Looks at the research-to-buy trends in e-tailing
Interactive Retailing: The Third Wave
http://www.digitas.com/
Makes the argument that integrated multichannel retailers currently face an unprecedented opportunity to exploit the "third wave" of mass e-tail uptake.