Joy Macknight Online consumers are "ideal customers", yet e-tailers
are missing out on more than $6.1 billion in lost sales said a new
survey by consultants AT Kearney. The lost sales represent 13% of
total worldwide revenue, said the report.
In surveying the purchasing behaviour of more than 1,200
experienced Internet consumers across three continents, it was
found that online shoppers want to establish deep relationships
with e-tailers, making repeat purchases at one in three sites, and
become loyal to their chosen sites.
Thirty per cent of consumers will buy anything online, including
cars and luxury goods. Yet many e-retailers are skimping on the
investment in basic Web design and usability that allows the
consumer to do what they want online.
The report says:
- Consumers cannot access the Internet the way they want. Demand
for alternative ways to access the Internet, for example digital
TV, is explosive, yet very few online retailers are developing
plans to offer access through anything but PCs.
- Online retailers could increase their revenues by more than
$2.2 billion if they facilitated access to their Web site by
alternative means.
- Consumer spending is blocked by poor Web site design. Four out
of five consumers try to purchase but give up. Abandoned purchase
attempts are costing e-retailers up to $3.8 billion in lost
revenue.
- One third of consumers' online transactions are "impure" -
consumers resort to a phone call to complete the transaction. Most
customers become so frustrated they never return.
- "Impure" and blocked online transactions are preventable and
lead to higher downstream costs and lost sales. E-retailers need to
make greater and more effective investments in Web design and
functionality.
This research in purchasing behaviour among experienced online
consumers was conducted in six of the most developed online
markets: US, UK, Sweden, Germany, France, and Japan, representing
89% of the worldwide market in online sales.
To sell online...
- Provide multiple access points to sell online
- Invest in upfront design and user testing
- Don't "get" customers, attract and cultivate them
- Embrace multi-channel marketing
Source:AT Kearney
Trade secrets
Know your customers:
- "Buy-anything" consumers are very experienced Internet users
and spend 10% more than other shoppers
- E-shopping behaviour differs by country: Japanese and British
shoppers are very adventurous online shoppers, while French
shoppers are more conservative
- Chat rooms are now being penetrated for sales leads
Source:ATKearney