The Expanding Community Of Web Buyers Boosts EU And US Online Retail Growth In 2011

Patti Freeman Evans

Forrester has just released its US Online Retail Forecast, 2010 to 2015, and EU Online Retail Forecast, 2010 to 2015. It is clear from our forecast data that online sales in the US and EU will continue to rise as users become increasingly comfortable buying in the online space. In 2010, US online retail sales grew 12.6% to a total of $176 billion. Similarly, EU online retails sales grew 18% in 2010 to a total of $81 billion. The US and EU markets are projected to grow 12% and 13%, respectively, in 2011.

Why is retail eCommerce continuing to grow?

  • There is an increase in overall web buyers. There were 5.5 million new US online shoppers who accounted for 30% of the total eCommerce sales. The EU online population grew by 13.4 million users in 2010.
  • Web buyers are spending more online. 70% of growth in US retail eCommerce sales came from existing shoppers spending more. Similarly, EU average online spend has increased 8% from 2010.
  • There is an increased level of penetration for online retail. Mobile devices and the proliferation of touchpoints have contributed to the US online retail penetration growing to 8% in 2010. The EU is also seeing steady growth; Forrester is estimating 10% penetration in the UK by 2012.
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Forrester’s US Online Retail Forecast Reports 12.6% Growth In 2010

Sucharita  Mulpuru

Forrester’s US Online Retail Forecast, 2010 To 2015, launches today, reporting strong growth in the last year. “The Great Recession” appears to have ended as sales charge ahead, driven by ubiquitous connectivity and an increasing familiarity with the Web. Growth was driven by a few key factors:

  • Several million new web buyers. In 2010, 5.5 million shopped online for the first time.
  • Greater spend per buyer online. 70% of the overall growth came from existing shoppers simply buying more.
  • Online penetration of total retail sales. This rose to 8% during 2010.

According to our forecast, the web channel will grow steadily through 2015, with an emphasis on customer empowerment. Bricks-and-mortar stores will continue to be hampered by this web growth as people become more in tune with the Web and less interested in traffic and long lines. We’ll be continuing our online retail research with our long-standing partnership with Shop.org this year. Next up: The State of Retailing Online report in Q2.  If you’re an online retailer, contact me at smulpuru@forrester.com to participate in the survey and receive the report. 

 Want more details? US Online Retail Forecast, 2010 To 2015

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Customer Experience Outlook For 2011: Lopsided Battle For Differentiation

Harley Manning

We recently published the results of our annual survey of the members of our customer experience professionals peer research group. The group is interesting in that they’re pros: They all work to improve the customer experience delivered by their organizations.

This year, their responses are encouraging — but also very sobering.

Here are some of the encouraging data points. A whopping 86% said that customer experience is a top strategic priority at their company. More than half work at companies that already have a single set of customer experience metrics in place across the entire company, and another 20% said that their firms are considering this move. What’s more, almost as many respondents said that their companies have a voice of the customer program in place, and another 29% said that their firms are actively considering a voice of the customer (VoC) program.

At this point I’m thinking, “Fantastic! Their companies care about customer experience, and they are implementing mission-critical programs that will help them succeed!”

Plus they’re coming from a good place. When we asked our panelists how they’d describe their executive team’s goal for customer experience, 63% of respondents said that their senior executives want to be the best in their industry, while another 13% said that their execs shoot higher and want to be seen as a customer experience leader across all industries.

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Which Social Media Marketing Metrics Really Matter? (And To Whom?)

Nate Elliott

We’ve been pretty vocal over the past couple of years about how marketers should define success in social media and (perhaps more importantly) how they shouldn’t define success. To put it bluntly, if you’re focusing on fans and followers, then you’re almost certainly doing it wrong.

But saying that raises the question: If the number of fans or followers you have doesn’t tell us whether you’ve succeeded as a company, then what does it tell you? And if your CEO shouldn’t be worried about the number of wall posts you’ve generated, then who should be paying attention to this number?

Since last summer, I’ve been using a structured model to help my clients focus on delivering the right social media marketing data to various stakeholders inside their organization. Social media programs throw off so much data that the key to measuring and managing your programs well is focusing each stakeholder on just the pieces of data that are relevant to helping them do their jobs. If part of your job is measuring the success of your social media marketing programs, then you need to start segmenting the stakeholder groups you’re providing that data to and tailoring the type of metrics, the volume of metrics, and the frequency of reporting you provide them.

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The Portfolio Track View From Forrester's Sales Enablement Forum 2011

Dean Davison

In addition to the sessions mentioned by Brad Holmes and Brian Lambert in their blog entries, we dedicated an entire track to sessions that discussed how the decisions made by portfolio teams relate to the efficiency (or not) of sales teams.

Participants in the portfolio track all consider themselves to be sales enablement professionals, but have job titles that include product management, sales operations, competitive intelligence, and marketing communications.

Despite this wide range of responsibilities, each person shares a common goal of improving their areas of responsibility in ways that improve sales efficiency.

Attendees who look at sales enablement through a portoflio lens expressed the following thoughts about the Forum:

  • We feel empowered by seeing and hearing so many sales enablement professional come together.
  • We need to make our company executives aware of the industry changes in sales enablement.
  • We have entrenched behaviors that we need to overcome (i.e. muscle memory).
  • We face a complex amount of change and need a way to communicate it clearly.
  • We need to understand how e can overcome organizational silos that increase complexity.
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PacSun's Integrated Marketing Lessons

Shar VanBoskirk

Mondy Beller, the VP of eCommerce for PacSun, spoke just before I did at the Responsys event about the integrated marketing programs PacSun is developing. Here are the lessons I learned from her:

  • Your biggest priority should be to build a unified customer database. Beller gave some great examples of multichannel campaigns — running email or Facebook messages that match with customers' recent purchases or daily promotions that are running in store. None of these work without a single customer database that stores all of the customer information.
  • Develop trust with your customers. Beller said PacSun is lucky because its young target audience is both technology savvy and wants to engage in an interactive relationship with PacSun. This makes it easier for PacSun than for other brands to gain customer permission, registrations, and behavioral data. But PacSun still works to nurture trust with its audience. It uses QR codes in stores to get shoppers to log products they browse or to register for mobile promotions. It will also be using iPads to help sales reps show fashions or register customers for email or Facebook while they are in the store.
  • Use Facebook for research and relationship building. PacSun certainly uses Facebook to distribute promotions. But it also uses it to converse with customers. It reads and responds to comments fans post. It posts questions and conversation starters. And it listens to the community to test product ideas, pricing, and the buzz about current promotions. 
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Responsys Introduces The New School Of Marketing

Shar VanBoskirk

I spoke last week at Interact 2011, a Responsys-sponsored event attended by about 600 of its current clients and prospects. The theme of this year's event was "The New School of Marketing," a framework Responsys has developed to help marketers better connect with empowered consumers. The fundamental principles of New School Marketing are that it is: permission-based, automated, cross-channel, and focused on engagement. See what Responsys thinks will change from current approaches to those that are part of New School Marketing:

I found the event to be extremely well produced (not just because it featured a fantastic performance by the iconic Cyndi Lauper -- see photos below) and full of some great marketer stories which I'd like to share in my next several posts.

The Eerie Similarities Between Groupon And Priceline

Sucharita  Mulpuru

At the risk of someone saying I can’t let this Groupon thing go (I can’t), I saw a fascinating graphic the other day. Groupon has, as its proponents like to tell everyone they meet, the dubious distinction of being the fastest company to get to $1B in sales. Why I say dubious (and what I found fascinating about the graphic) is that the second-fastest ever to achieve the same milestone was none other than Priceline. How apropos because I can’t resist pointing out the similarities:

  • Both used tacky and expensive celebrity ads to promote their quirky brands (let’s call Timothy Hutton the William Shatner of this bubble).
  • Both thrive on the thrill of finding an outrageous deal (sales and scarcity go together like a horse and carriage; they’re two of the most effective merchandising tactics that exist).
  • Both are called disruptive models (Priceline lets travel buyers name their price; whereas, Groupon essentially lets companies split marketing costs directly with customers rather than with media companies).
  • Both have a “gross merchandise value” model (that basically means a lot of mystery around what customers pay and what the company actually earns).   
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Back From My Pilgrimage To Mobile’s Mecca

Thomas Husson

Once again, I spent a couple of days in Barcelona at Mobile World Congress (MWC). 

With 60,000 visitors (10,000 more than last year) — including an amazing 12,000 developers (!), 3,000 CEOs, and 2,900 journalists — MWC is the place to be for anyone wanting to make the most of mobile technologies.

Year after year, it is interesting to see how the show is becoming more global, more open to non-telecom players (advertisers, developers, etc.), and more open to connected devices other than just phones.

While it is difficult to summarize all the news and announcements, here are my key takeaways from MWC 2011:

  • Android, Android, Android.Google’s Android stand was the hit of MWC this year. Why? Very clever marketing: It was located in the main hall away from all the other players in the App Planet hall; it had a “cool” bar with animations; the Android robot logo was all over the place; and it featured interesting demonstrations from startups and key players. Google’s Android was helped by Apple’s absence and the lack of a serious upgrade to Windows Phone 7, unlike last year. Of course, the Nokia-Microsoft deal came up in most conversations. Forrester has already published its take on the strategic implications of this key announcement (clients can read it here). As my colleague Charles Golvin sums it up: “Nokia hopes to produce its first Windows Phone in 2011, but it will not bring a significant portfolio to the market in volume until 2012 — a lifetime in today’s smartphone market.” With 300,000 Android phone activations per day and 170 Android-based handsets currently available from 27 vendors, Android is definitely getting a lot of traction. 
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The Data Digest: When Do Consumers Use Reviews and Ratings?

Reineke Reitsma

In July 2010, we posted a Data Digest that shows that almost half of US online males and 42% of online females read consumer ratings and reviews at least monthly. Well, what types of decisions are reviews helping these consumers to make?

Our Technographics® data shows that, as most would expect, more than half of the consumers who check ratings and reviews use them to help make more complex decisions such as a car, TV, or refrigerator. However, these are not the only types of decisions consumers are looking to reviews for — in fact, most check reviews to help with a variety of decisions — from entertainment decisions to making purchases for their jobs.

When we look at this data by generation, it is no surprise that Gen Yers are more likely to use online reviews across most of the decision types that we ask about compared to the overall US population. What is interesting is how dependent they are on online reviews when it comes to entertainment choices (44%) and purchasing ongoing services (41%). And although young consumers lead with using ratings and reviews, it is interesting to see that Seniors that are using ratings and reviews show similar behaviors compated to the total US population for most categories -- apart from the job related one.

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