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 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 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 Elmer, CEO, Avail. “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,” Elmer 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
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