Company News • 21.11.2014

Online retailers lose sales through irrelevant promotions, poor follow-up with shoppers

Survey underscores retail’s disconnects: 3/4 of online retailers promote irrelevant products, while others fail to build customer relationships that drive repeat purchases

Online retailers lose sales through irrelevant promotions, poor follow-up with...
Source: OrderDynamics

Nearly three-quarters of online retailers (74 percent) miss out on sales by promoting irrelevant items to online shoppers, according to new research from OrderDynamics.

As retailers prepare for the crucial holiday shopping season, many could be driving customers away by promoting irrelevant products, failing to build customer relationships through intelligent follow-up, and ignoring consumer preferences on end-to-end order tracking.

The OrderDynamics study compares customer acquisition and retention to a “dating game” and found that retailers miss the mark in many areas of the customer relationship. The study focuses on retailers’ effectiveness in securing a “first date” or purchase, as well as creating long-term relationships that lead to additional purchases and increased order values. The study was based on surveys of more than 60 retailers and 2,000 consumers and was conducted by Opinion Matters on behalf of OrderDynamics.

Key findings include:

  • 74 percent of retailers promote irrelevant items to shoppers. A majority of retailers received failing grades in shopper follow-up by sending irrelevant information. For example, an apparel retailer sent promotional emails about women’s sweaters to a researcher that saved men’s fleecewear in an online shopping cart, while a pet supplies retailer sent promos on cat and dog food to someone who exclusively browsed the aquatics department.
  • 1/3 of retailers never follow up with shoppers, while others bombard them with emails. A surprising number of retailers – 33 percent – never followed up when researchers signed up for their mailing list, missing out on a key opportunity to build and nurture the customer relationship. Others went overboard; one retailer, for example, sent 17 emails in a four-week period—a sure turn-off for consumers.
  • Poor site search results lead to missed sales opportunities. Forty-six percent (46%) of shoppers prefer to go directly to a retailer’s website to search for products, yet many retailers’ eCommerce sites miss the mark for online search accuracy—leading to customer defection and lost sales. For example, one retailer’s site returned 65 results for “silver cufflinks,” but only three items were cufflinks, while the others were silver but not cufflinks.
  • Only 15 percent of retailers offer order tracking through their website. A majority of consumers expressed a strong preference to receive order tracking information directly from the retailer, yet only 15 percent of retailers empower consumers to track orders through their websites.

“Our message to retailers is simple: customer relationships are theirs to win or lose, and retailers must focus on these disconnects in their customers’ experiences to succeed during the vital holiday push. They must use data more intelligently and effectively in order to engage and win shoppers,” said Kevin Sterneckert, CMO, OrderDynamics. “Retailers must walk a fine line between romancing customers and over-approaching them to ensure that shopping is a seamless experience. If retailers disappoint shoppers, they risk losing not only the initial sale but the customer relationship as well.”

Sterneckert continued: “We call these disappointments and disconnects in data and operations the Ghost Economy, and it is worth more than $800 billion annually to global retailers to solve these issues and create frictionless experiences for their customers.”

For more information on the results of this consumer survey, read the new OrderDynamics study, Customer Relationships: The Dating Game, available for download here.

Source: OrderDynamics

related articles:

popular articles:

Thumbnail-Photo: Event: E-commerce Berlin Expo 2021
28.08.2020   #online trading #e-commerce

Event: E-commerce Berlin Expo 2021

E-commerce Berlin Expo is the biggest pure-play e-commerce event in the (tech) capital city of Germany. Over 9,000 visitors and 200 exhibitors are expected every year.

E-commerce Expo views itself as a community and a meeting point for all major decision-makers in the e-commerce sector. We bring together leaders in the e-commerce industry to offer online sellers and retailers the opportunity to develop their ...

Thumbnail-Photo: Inviting customers to learn new skills in virtual classes...
21.08.2020   #digital marketing #online marketing

Inviting customers to learn new skills in virtual classes

Whole Foods Market launches “Home Ec 365” with modernized lessons in #adulting

Whole Foods Market launched Home Ec 365, a digital curriculum designed to modernize the fundamentals of home economics. Through a series of virtual classes, each with a contemporary take on mastering everyday home tasks and need-to-know life skills, ...

Thumbnail-Photo: On-premise ghost kitchens at Kroger
09.10.2020   #brick and mortar retail #food retail

On-premise ghost kitchens at Kroger

Retailer and ClusterTruck to provide customers with on-demand meal ordering

The Kroger Co. announced the launch of two on-premise kitchens, respectively at stores in Metro Indianapolis, IN and Metro Columbus, OH. Developed in partnership with ClusterTruck, a technology start-up that operates delivery-only restaurants, the ...

Thumbnail-Photo: Spotlight on ... city centre

Spotlight on ... city centre

Learn more about the challenges that city centres are currently facing in our focus topic

What attracts customers to city centres these days? You can find possible answers to all aspects of city marketing with us. ...

Thumbnail-Photo: 3 steps to personalisation in e-commerce
04.08.2020   #online trading #e-commerce

3 steps to personalisation in e-commerce

How retailers can build trust and foster customer loyalty

The COVID-19 pandemic has left a visible mark on the retail sector, and companies have had to find new ways to reach consumers effectively in a very short time. Many companies that had previously focused on stationary retail have expanded their ...

Thumbnail-Photo: Come together: local retailers connect with local customers...
15.09.2020   #brick and mortar retail #customer relationship management

Come together: local retailers connect with local customers

The online platform connects local retailers with potential customers. The common denominator: A product.

How can you bridge the gap and connect online retail to pedestrian zones? A Nuremberg startup wondered how this could be accomplished and came up with a solution: In this interview, founder Matthias Hueber talks about the idea behind ...

Thumbnail-Photo: Please give us shopping, events, and emotions!...
15.09.2020   #online trading #customer satisfaction

Please give us shopping, events, and emotions!

What should cities do to attract more visitors?

Online retail, coronavirus pandemic, monotony – city centers are fighting many battles these days. But although times might be tough for brick-and-mortar businesses, all is not lost when it comes to pedestrian zones.However, retailers should ...

Thumbnail-Photo: Labor Day ads up, consumers’ planned spend down...
04.09.2020   #online trading #e-commerce

Labor Day ads up, consumers’ planned spend down

Half of consumers plan to purchase items for Labor Day

Numerator has launched a consumer sentiment survey to understand how people plan to celebrate, shop, and spend for Labor Day. Overall, almost two-thirds of consumers expect to celebrate and shop for Labor Day differently this year and 49% expect to ...

Thumbnail-Photo: Sustainability is surviving COVID-19
27.07.2020   #sustainability #coronavirus

Sustainability is surviving COVID-19

Trends and consumer demographics for sustainable products and brands

The NYU Stern Center for Sustainable Business and IRI® published the results of new research examining consumer purchases of sustainability-marketed consumer packaged goods in the US and taking a closer look at the top 10 states in terms of per ...

Thumbnail-Photo: Face coverings to be mandatory in shops from 24th July...
23.07.2020   #security #brick and mortar retail

Face coverings to be mandatory in shops from 24th July

Guidance and information for retailers

The Government announced that wearing a face covering will be mandatory in shops from Friday 24th July. Penalties for not wearing a face covering will be enforced by the police, who can issue fines of up to £100 (reduced to £50 if paid ...