Ever increasing numbers of promotional products companies have begun to use the internet as a shop window for promoting and selling their products. This enables them to offer cheaper prices and quicker lead times, as well as meeting customers' demands for convenience and immediate gratification. The best promotional products websites take customers step by step through the entire sourcing and selection process.
This trend was confirmed by PPAI's latest survey* which found that online sales of promotional products in the US have continued to grow slowly but steadily, increasing from $1.6 billion in 2003 to $2.7 billion in 2006. (Online sales are defined as those that result from orders placed through a website or online store.) What is equally interesting to note is that this rise was reflected across the board, irrespective of the size of firm.
The Internet is set to become an increasingly important factor in distributor sales due to the fact that a large proportion of promotional products buyers now belong to Generation Y, which encompasses anyone born after 1982. This generation is most at ease when establishing and developing relationships - both on a professional and personal level - online rather than face to face.
Although Internet marketing is finally gaining pace amongst promotional products distributors, the industry as a whole still depends primarily on personal selling which remains the major sales channel. However, what we are likely to see happening more often is a complementary blending of channels, with the Internet used for business transactions and the sales force employed to provide consultation services for promotional products.
Friday, October 12, 2007
Narrow Your Niche And Explode Your Online Sales
In the online business world, less is definitely more and that couldn’t be truer than when it comes to online retail businesses. The number one mistake internet business owners make is that they try to sell everything under the sun, on one single website. They may have a site that sells pet carriers, lawn furniture, and fishing equipment. This is not good. A lot of times the online retailer will try to run their business like the big box retailers. After all it seems to be working well for the big box retailer to sell hundreds of different products, shouldn’t it work for me? The answer is a resounding, no! This method simply does not work on the web.
For a successful online business, you want to narrow your offerings down to reach a targeted niche market. Such as....gifts for golfers, gifts for fisherman, gifts for left-handed people, well you get the idea. Unfortunately, there are many out there that will have you believe you need hundreds if not thousands of products to sell on your website or in online auctions, if you want to make any money. This is simply false. Actually, a site with a tight niche selling a handful of products can do quite well, in a lot of cases exceptionally well.
Why do you want narrow to your offerings down to a particular market? Because it is easier to market to one specific group than it is to try and market to several groups at once.
I am going to share a secret with you…contrary to popular belief it is not the product that is most critical, it is the market you are trying to reach that is most important. Many online business owners make the blunder of saying, “I need to find a hot product to sell online to make a lot of money.” What they don’t understand is that it is not the product they need to find, but the market of people they need to find first and then find a product to sell to that group of people.
Let me ask you a few questions, do you know who you are trying to market to? Do you know the best ways to reach this particular market? If you don’t know the answers to these two questions then you may need to go back to the drawing board. Finding a product to sell online is not what makes an internet business successful, it is the individual person’s ability to find a market to promote the product to, that is the secret to a successful business. Narrow your niche, focus on a particular market. By narrowing your niche and focuses on one particular market you will be able to reach your audience easier which translates into customers and making more money online. At the end of the day running an online business is not so much about selling a particular product but reaching a particular market to sell your product to. Remember that.
For a successful online business, you want to narrow your offerings down to reach a targeted niche market. Such as....gifts for golfers, gifts for fisherman, gifts for left-handed people, well you get the idea. Unfortunately, there are many out there that will have you believe you need hundreds if not thousands of products to sell on your website or in online auctions, if you want to make any money. This is simply false. Actually, a site with a tight niche selling a handful of products can do quite well, in a lot of cases exceptionally well.
Why do you want narrow to your offerings down to a particular market? Because it is easier to market to one specific group than it is to try and market to several groups at once.
I am going to share a secret with you…contrary to popular belief it is not the product that is most critical, it is the market you are trying to reach that is most important. Many online business owners make the blunder of saying, “I need to find a hot product to sell online to make a lot of money.” What they don’t understand is that it is not the product they need to find, but the market of people they need to find first and then find a product to sell to that group of people.
Let me ask you a few questions, do you know who you are trying to market to? Do you know the best ways to reach this particular market? If you don’t know the answers to these two questions then you may need to go back to the drawing board. Finding a product to sell online is not what makes an internet business successful, it is the individual person’s ability to find a market to promote the product to, that is the secret to a successful business. Narrow your niche, focus on a particular market. By narrowing your niche and focuses on one particular market you will be able to reach your audience easier which translates into customers and making more money online. At the end of the day running an online business is not so much about selling a particular product but reaching a particular market to sell your product to. Remember that.
Thursday, October 11, 2007
Why Your Condo Hotel Sales Agent Cannot Discuss Rental Income
At no point in the sales process of a condo hotel may the sales agent representing the developer discuss any aspect of rental income. In fact, not a single piece of information provided in connection with a condo hotel sale may emphasizes the economic or tax benefits of the rental program. This has proven to be a point of major frustration for many potential purchasers.
The laws are very clear. A developer will get into massive trouble with SEC securities laws if he promotes the "investment" nature of a condo hotel. And any sales agent who discusses a condo hotel as an investment will lose their license and will no longer be able to practice real estate.
In fact, the only statement that a sales agent can provide to a prospective purchaser is a generic statement to the effect that "ownership may include the opportunity to place your condominium in a rental arrangement."
If a condo hotel is sold as an investment and the developer wants to tout the benefits of the rental program, then the property must be registered with the SEC and every other appropriate securities regulatory agency in the United States.
So, why not sell condo hotels as a security and avoid the headaches and restrictions that developers and sales agents currently deal with? Most developers consider securities compliance as being too expensive, far too time consuming, and poorly suited to the practice of selling real estate. Additionally, they would be forced to only sell their property through registered securities brokers and salespersons. Making the matter even more difficult from a sales and marketing standpoint, the developer would be prohibited from public solicitation of customers. Additionally, any misstatements or omissions of relevant information can equate to a securities fraud.
The irony in all of this is that by forcing developers to avoid security status, the potential buyer is deprived of rental projections and occupancy rates needed to help get an understanding for potential cash flow. This makes it infinitely more difficult for the buyer to make a fully informed buying decision. It also tempts aggressive salespeople to provide the information on the side, which if ever discovered, would turn the entire real estate transaction into an illegal offering of a security and criminal penalties would follow.
Fortunately for the prospective purchaser, there is a way to get more information before they commit to such an important purchase. Many condo hotels will refer the more serious buyers to their rental management division. The rental management staff can provide potential purchasers with the rental history of comparable properties. The information obtained is often more than enough for the prospective buyer to gain enough understanding of where the property might perform from a cash flow stand point.
The laws are very clear. A developer will get into massive trouble with SEC securities laws if he promotes the "investment" nature of a condo hotel. And any sales agent who discusses a condo hotel as an investment will lose their license and will no longer be able to practice real estate.
In fact, the only statement that a sales agent can provide to a prospective purchaser is a generic statement to the effect that "ownership may include the opportunity to place your condominium in a rental arrangement."
If a condo hotel is sold as an investment and the developer wants to tout the benefits of the rental program, then the property must be registered with the SEC and every other appropriate securities regulatory agency in the United States.
So, why not sell condo hotels as a security and avoid the headaches and restrictions that developers and sales agents currently deal with? Most developers consider securities compliance as being too expensive, far too time consuming, and poorly suited to the practice of selling real estate. Additionally, they would be forced to only sell their property through registered securities brokers and salespersons. Making the matter even more difficult from a sales and marketing standpoint, the developer would be prohibited from public solicitation of customers. Additionally, any misstatements or omissions of relevant information can equate to a securities fraud.
The irony in all of this is that by forcing developers to avoid security status, the potential buyer is deprived of rental projections and occupancy rates needed to help get an understanding for potential cash flow. This makes it infinitely more difficult for the buyer to make a fully informed buying decision. It also tempts aggressive salespeople to provide the information on the side, which if ever discovered, would turn the entire real estate transaction into an illegal offering of a security and criminal penalties would follow.
Fortunately for the prospective purchaser, there is a way to get more information before they commit to such an important purchase. Many condo hotels will refer the more serious buyers to their rental management division. The rental management staff can provide potential purchasers with the rental history of comparable properties. The information obtained is often more than enough for the prospective buyer to gain enough understanding of where the property might perform from a cash flow stand point.
Sales Letter Writing - A Simple Step-by-Step Guide for Creating a Money Making Sales Pitch
Despite the variety of new marketing methods available today, the sales letter remains one of the most effective means of delivering a powerful selling message. A well-written sales letter is simple, personal, easy-to-read, and effective.
While sales letters are something of an art form, you can write an effective sales letter by following a simple, step-by-step formula:
* Consider using a headline or “Johnson Box.” Not every sales letter will have these elements, but they are ideal for telegraphing your offer or a clear benefit statement. Just remember that they make your letter look less personal and more like advertising.
* Use an appropriate salutation. Personalization is best when you can do it. Otherwise, use a salutation that connects with the reader as closely as possible. “Dear Friend” is safe but general. “Dear Cat Lover” is more targeted and specific. If you’re mailing to a business audience, use the occupational or professional title.
* Make your first sentence short and attention-grabbing. Don’t waste time with a long windup before your pitch. Involve the reader immediately. Make a startling statement. Start an interesting story. Hit an emotional hot button. Or just state the offer and get to the point. This last approach is often the best tactic and offers the least room for error. Then the sentences that follow can expand on this first sentence to pull the reader into the body copy.
* Present your offer on page one. If you don’t give your offer in the headline or first sentence, you should put it somewhere early in the sales letter text. The better your offer, the earlier you should mention it. Be clear and specific about what your reader will get by responding.
* Make the body of the sales letter work hard. Once you’ve grabbed your reader’s attention and generated interest in your offer, follow immediately with benefits, details, word pictures, testimonials, and proofs to eliminate doubt.
* End the first page in the middle of a sentence. Whether it’s curiosity or an urge for closure, cutting a sentence in two at the bottom of a page helps encourage the reader to turn the page, finish the sentence, and keep reading. You can also use this technique on successive pages.
* Keep your copy on track. You’re not writing a novel, but your main idea should be a thread that weaves through the whole letter. At minimum, present your theme on page one and end on a similar note on the last page.
* Call for action. Quickly restate the main points of your offer and ask for the response you want clearly and directly. Restate information on involvement devices, motivators, incentives, etc. Restate the big benefit.
* Make response easy and clear. How should the reader respond? Give your toll-free number. Explain the ordering process one-two-three.
* Guarantee your offer. Assure the reader that there is no risk. State your guarantee in strong terms. This should directly follow your call to action.
* Stress urgency. Why should the reader respond now? Is it a limited-time offer? Are supplies limited? Are prices going up soon? Give a logical, sensible, and honest reason why this is the best time to respond. And be clear about what will happen if the reader does not respond. Mention the lost opportunity or the consequences.
* End the sales letter when you’re finished. Just as your letter shouldn’t have a long windup at the beginning, it shouldn’t prattle on at the end. End a letter as bluntly as it began. Often this is a quick restatement of your instructions for responding or a simple “thank you.”
* Have the right person sign your letter. Your sales letter should be signed by the highest-authority person available or by someone relevant to the reader. Ideally, the signature should be in blue ink. (Hint: Consider how the signature looks. Does it suggest confidence and believability, or is it shaky and uncertain?)
* Use your P.S. effectively. The postscript is one of the most-read parts of a sales letter. It should present an important message, a prime benefit, a restatement of the offer, a reminder of the deadline, a sweetener, or whatever you feel is most effective in this prime spot. Some call the P.S. a headline at the end of the letter. Ideally, it should be short, about one to three lines.
While sales letters are something of an art form, you can write an effective sales letter by following a simple, step-by-step formula:
* Consider using a headline or “Johnson Box.” Not every sales letter will have these elements, but they are ideal for telegraphing your offer or a clear benefit statement. Just remember that they make your letter look less personal and more like advertising.
* Use an appropriate salutation. Personalization is best when you can do it. Otherwise, use a salutation that connects with the reader as closely as possible. “Dear Friend” is safe but general. “Dear Cat Lover” is more targeted and specific. If you’re mailing to a business audience, use the occupational or professional title.
* Make your first sentence short and attention-grabbing. Don’t waste time with a long windup before your pitch. Involve the reader immediately. Make a startling statement. Start an interesting story. Hit an emotional hot button. Or just state the offer and get to the point. This last approach is often the best tactic and offers the least room for error. Then the sentences that follow can expand on this first sentence to pull the reader into the body copy.
* Present your offer on page one. If you don’t give your offer in the headline or first sentence, you should put it somewhere early in the sales letter text. The better your offer, the earlier you should mention it. Be clear and specific about what your reader will get by responding.
* Make the body of the sales letter work hard. Once you’ve grabbed your reader’s attention and generated interest in your offer, follow immediately with benefits, details, word pictures, testimonials, and proofs to eliminate doubt.
* End the first page in the middle of a sentence. Whether it’s curiosity or an urge for closure, cutting a sentence in two at the bottom of a page helps encourage the reader to turn the page, finish the sentence, and keep reading. You can also use this technique on successive pages.
* Keep your copy on track. You’re not writing a novel, but your main idea should be a thread that weaves through the whole letter. At minimum, present your theme on page one and end on a similar note on the last page.
* Call for action. Quickly restate the main points of your offer and ask for the response you want clearly and directly. Restate information on involvement devices, motivators, incentives, etc. Restate the big benefit.
* Make response easy and clear. How should the reader respond? Give your toll-free number. Explain the ordering process one-two-three.
* Guarantee your offer. Assure the reader that there is no risk. State your guarantee in strong terms. This should directly follow your call to action.
* Stress urgency. Why should the reader respond now? Is it a limited-time offer? Are supplies limited? Are prices going up soon? Give a logical, sensible, and honest reason why this is the best time to respond. And be clear about what will happen if the reader does not respond. Mention the lost opportunity or the consequences.
* End the sales letter when you’re finished. Just as your letter shouldn’t have a long windup at the beginning, it shouldn’t prattle on at the end. End a letter as bluntly as it began. Often this is a quick restatement of your instructions for responding or a simple “thank you.”
* Have the right person sign your letter. Your sales letter should be signed by the highest-authority person available or by someone relevant to the reader. Ideally, the signature should be in blue ink. (Hint: Consider how the signature looks. Does it suggest confidence and believability, or is it shaky and uncertain?)
* Use your P.S. effectively. The postscript is one of the most-read parts of a sales letter. It should present an important message, a prime benefit, a restatement of the offer, a reminder of the deadline, a sweetener, or whatever you feel is most effective in this prime spot. Some call the P.S. a headline at the end of the letter. Ideally, it should be short, about one to three lines.
Sunday, October 7, 2007
Online Sales Strategies Inc. Signs an Area Development Agreement for Atlanta
Online Sales Strategies mission is to become a leading provider of all necessary resources to successfully manage and operate online sales and software related businesses. Online Sales Strategies Inc. makes auctioning online easy for individuals and businesses. Online Outpost franchise locations offer an easy and convenient way to sell items online. The concept is a store where customers can take advantage of a service and turn unwanted items into cash. Online Outpost stores handle the entire selling process whether it is one or many items, a small piece of jewelry, electronics, vehicles or even real estate. The software package offered to franchisees allows stores to manage all aspects of the business from customer management, listing, auction templates, image hosting, shipping and reporting all from one interface and has been certified as an eBay compatible application.
Investors are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of Online Sales Strategies, Inc. officials, are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act). Forward-Looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future Online Sales Strategies, Inc. actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-Looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and Online Sales Strategies, Inc. has no specific intention to update these statements.
Investors are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of Online Sales Strategies, Inc. officials, are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act). Forward-Looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future Online Sales Strategies, Inc. actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-Looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and Online Sales Strategies, Inc. has no specific intention to update these statements.
Online CRM Software helps organize data
Springville, Utah-A national sales-tracking software company announced the introduction of new features to their product package. InsideSales.com, a provider of on-demand sales and customer management software with built-in telephony tools, will now be providing advanced field customization options for its clients.
Called dynamic custom fields, this capability allows customers to individually customize their text and numeric fields to fit with the needs of the company.
CEO Dave Elkington said, "The dynamic custom fields allow customers to change or add any type of field into any object in our system to make it specific to their company. If a construction company needs to record building dimensions, they can add a field to do that. If a shipping company needs to record an order date, they can add a field to do that. We have no way to foresee every need all our customers will have. The dynamic custom fields let our customers adapt the system to fit their needs."
Other dynamic fields include text fields, email fields, date and time calendar fields, whole number fields, real number fields, currency fields and fields that will calculate a mathematical result. They also offer drop-down single and multi-select filters to help customers organize their data.
One of InsideSales.com's customers spoke about the effectiveness of the dynamic custom fields.
Chad Rawlings of Whisper Creek said, "Each company has its own unique needs, so having the ability to customize your own fields is huge. I came to InsideSales.com and told them what I wanted with the custom fields. They were so efficient at recognizing our needs and implementing the system for us timely and efficiently. The dynamic custom fields have greatly increased our productivity."
About InsideSales.com and Sales Team Automation, LLC.
InsideSales.com is a provider of advanced on-demand applications and services that help businesses better communicate with their customers, partners and employees. InsideSales.com's solution provides integrated sales force automation (SFA) with built-in telephony tools that dramatically increase sales numbers. They also address automation needs in the areas of customer service, support, marketing automation, order management and analytics to help companies meet the challenges of effective sales communication.
Sales Team Automation, LLC is the company behind InsideSales.com and offers a unique value proposition to small and mid-sized organizations looking to enhance the effectiveness of their sales initiatives. Sales Team Automation offers custom web programming solutions as well as other web-based applications.
Called dynamic custom fields, this capability allows customers to individually customize their text and numeric fields to fit with the needs of the company.
CEO Dave Elkington said, "The dynamic custom fields allow customers to change or add any type of field into any object in our system to make it specific to their company. If a construction company needs to record building dimensions, they can add a field to do that. If a shipping company needs to record an order date, they can add a field to do that. We have no way to foresee every need all our customers will have. The dynamic custom fields let our customers adapt the system to fit their needs."
Other dynamic fields include text fields, email fields, date and time calendar fields, whole number fields, real number fields, currency fields and fields that will calculate a mathematical result. They also offer drop-down single and multi-select filters to help customers organize their data.
One of InsideSales.com's customers spoke about the effectiveness of the dynamic custom fields.
Chad Rawlings of Whisper Creek said, "Each company has its own unique needs, so having the ability to customize your own fields is huge. I came to InsideSales.com and told them what I wanted with the custom fields. They were so efficient at recognizing our needs and implementing the system for us timely and efficiently. The dynamic custom fields have greatly increased our productivity."
About InsideSales.com and Sales Team Automation, LLC.
InsideSales.com is a provider of advanced on-demand applications and services that help businesses better communicate with their customers, partners and employees. InsideSales.com's solution provides integrated sales force automation (SFA) with built-in telephony tools that dramatically increase sales numbers. They also address automation needs in the areas of customer service, support, marketing automation, order management and analytics to help companies meet the challenges of effective sales communication.
Sales Team Automation, LLC is the company behind InsideSales.com and offers a unique value proposition to small and mid-sized organizations looking to enhance the effectiveness of their sales initiatives. Sales Team Automation offers custom web programming solutions as well as other web-based applications.
Saturday, October 6, 2007
Relation between clicks and bricks is silver lining to ho-hum holiday sales - online efforts of retailers
NATIONWIDE DSNRT REPORT -- Continued growth of online sales may have been one of this past holiday season's bright spots, but subtle e-commerce developments of another sort were actually more significant.
During November and December, it became apparent efforts by bricks-and-mortar retailers to more tightly integrate their online efforts with conventional store operations were being effective. In doing so, they have moved closer to fulfilling the potential of the highly touted bricks-and-clicks business model.
"It is clear that bricks-and-mortar retailers are committed to having an online presence that is integrated with their physical presence in a meaningful way," said Russell Jones, a vp in the retail practice of Cap Gemini Ernst & Young.
Several striking examples from the past holiday season involved Target, Wal-Mart, Sears and Circult City. In the category of most extensive use of a conventional advertising medium to promote a creative e-commerce initiative, the award would have to go to Target. The company devoted four pages of a 32-page circular that ran in Thanks-giving Day newspapers. The insert extended from the circular and across the top Target in-quired "Can't wait to save? Go to target.com."
Twenty-one items were featured, and to create a sense of urgency, the prices were good only on Thanksgiving. As an added bonus, if the order was for more than $50 and paid for with a Target Visa shipping was free.
Wal-Mart devoted less real estate in its Thanks-giving weekend circular to online retailing, but the featured promotion illustrates the integration point just as effectively Wal-Mart appealed to the insecurity 01 potential jewelry buyers with this headline across the bottom third of a page: "Learn how to buy a diamond at Walmart.com" that encouraged them to visit the site's jewelry learning center.
Sears and Circuit City took a different approach. Both offered online customers the option of picking up merchandise at stores. On Nov. 28, Sears announced a service that allowed customers to see whether items purchased online were in stock at a local store. They could pick up the merchandise at the store. According to Sears, "In many cases, the product may be picked up the same day as ordered."
The benefits of tighter integration are becoming apparent in the volume of people visiting the Web sites of conventional retailers. During November, seven of the top 15 e-commerce sites identified by Nielsen/NetRatings were operated by conventional retailers, including Toys "R" Us, Barnes and Noble, Best Buy, Wal-Mart, Sears, Target and JCPenney.
On Dec. 11, Circuit City, announced an arrangement with Amazon.com, allowing consumer electronics items offered on Amazon to be picked up and returned to its stores.
"Steady traffic to many bricks-and-mortar sites indicates consumers are researching online with the intent of buying in the actual stores, highlighting the need for retailers to integrate their online and offline operations," said Jupiter Media Metrix research analyst Jared Blank.
Integration is only part of the story, though. The online efforts of bricks-and-mortar retailers have also improved considerably. "We've seen huge improvements in the way Web sites work, and these improvements have made it much faster, easier and more fun to shop online," said Mary Humphrey, director of e-commerce at AOL. "Online shopping is becoming more mainstream, and one of the key reasons is the timesaving convenience. You have the ability to find anything you want without the hassle of parking lots and lines."
The mainstream nature of online retailing was illustrated by a survey commissioned by the International Mass Retail Association in early December. The survey of 1,000 people found 627 people had Internet access, and 54% of them used it as a tool to find product information. Their second most prevalent use, mentioned by 39% of respondents, was to see if a store carried a specific item. Buying products was mentioned by 38% of those surveyed.
Despite the improved Web sites, tighter integration and consumers overall happiness with purchasing online, online sales growth has begun to slow from prior-year levels. Goldman Sachs analyst Anthony Noto's estimate for full-year 2001 online sales of $32.2 billion represents a 20% to 25% increase from 2000, when sales increased 68% from 1999.
"Our survey indicates consumers are only marginally shifting spending online," Noto said. "Respondents indicate their planned holiday budget allocation of online spending for 2001 would only be modestly changed in favor of shopping online, compared to 2000."
Those surveyed by Goldman Sachs indicated 14.8% of their holiday budget would be spent online, as compared with 12.4% last year. An even larger percentage of next year's holiday budgets likely will be spent online, especially if bricks-and-mortar retailers continue to improve online offerings and make them an integral part of their overall merchandising, marketing and operations strategies.
During November and December, it became apparent efforts by bricks-and-mortar retailers to more tightly integrate their online efforts with conventional store operations were being effective. In doing so, they have moved closer to fulfilling the potential of the highly touted bricks-and-clicks business model.
"It is clear that bricks-and-mortar retailers are committed to having an online presence that is integrated with their physical presence in a meaningful way," said Russell Jones, a vp in the retail practice of Cap Gemini Ernst & Young.
Several striking examples from the past holiday season involved Target, Wal-Mart, Sears and Circult City. In the category of most extensive use of a conventional advertising medium to promote a creative e-commerce initiative, the award would have to go to Target. The company devoted four pages of a 32-page circular that ran in Thanks-giving Day newspapers. The insert extended from the circular and across the top Target in-quired "Can't wait to save? Go to target.com."
Twenty-one items were featured, and to create a sense of urgency, the prices were good only on Thanksgiving. As an added bonus, if the order was for more than $50 and paid for with a Target Visa shipping was free.
Wal-Mart devoted less real estate in its Thanks-giving weekend circular to online retailing, but the featured promotion illustrates the integration point just as effectively Wal-Mart appealed to the insecurity 01 potential jewelry buyers with this headline across the bottom third of a page: "Learn how to buy a diamond at Walmart.com" that encouraged them to visit the site's jewelry learning center.
Sears and Circuit City took a different approach. Both offered online customers the option of picking up merchandise at stores. On Nov. 28, Sears announced a service that allowed customers to see whether items purchased online were in stock at a local store. They could pick up the merchandise at the store. According to Sears, "In many cases, the product may be picked up the same day as ordered."
The benefits of tighter integration are becoming apparent in the volume of people visiting the Web sites of conventional retailers. During November, seven of the top 15 e-commerce sites identified by Nielsen/NetRatings were operated by conventional retailers, including Toys "R" Us, Barnes and Noble, Best Buy, Wal-Mart, Sears, Target and JCPenney.
On Dec. 11, Circuit City, announced an arrangement with Amazon.com, allowing consumer electronics items offered on Amazon to be picked up and returned to its stores.
"Steady traffic to many bricks-and-mortar sites indicates consumers are researching online with the intent of buying in the actual stores, highlighting the need for retailers to integrate their online and offline operations," said Jupiter Media Metrix research analyst Jared Blank.
Integration is only part of the story, though. The online efforts of bricks-and-mortar retailers have also improved considerably. "We've seen huge improvements in the way Web sites work, and these improvements have made it much faster, easier and more fun to shop online," said Mary Humphrey, director of e-commerce at AOL. "Online shopping is becoming more mainstream, and one of the key reasons is the timesaving convenience. You have the ability to find anything you want without the hassle of parking lots and lines."
The mainstream nature of online retailing was illustrated by a survey commissioned by the International Mass Retail Association in early December. The survey of 1,000 people found 627 people had Internet access, and 54% of them used it as a tool to find product information. Their second most prevalent use, mentioned by 39% of respondents, was to see if a store carried a specific item. Buying products was mentioned by 38% of those surveyed.
Despite the improved Web sites, tighter integration and consumers overall happiness with purchasing online, online sales growth has begun to slow from prior-year levels. Goldman Sachs analyst Anthony Noto's estimate for full-year 2001 online sales of $32.2 billion represents a 20% to 25% increase from 2000, when sales increased 68% from 1999.
"Our survey indicates consumers are only marginally shifting spending online," Noto said. "Respondents indicate their planned holiday budget allocation of online spending for 2001 would only be modestly changed in favor of shopping online, compared to 2000."
Those surveyed by Goldman Sachs indicated 14.8% of their holiday budget would be spent online, as compared with 12.4% last year. An even larger percentage of next year's holiday budgets likely will be spent online, especially if bricks-and-mortar retailers continue to improve online offerings and make them an integral part of their overall merchandising, marketing and operations strategies.
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