Sharp Net Shoppers are Putting the Pressure On!
| Category: E-commerce | Date: 2001-10-09 |
It isnt surprising that the sharp, fast acting, impulsive and type "a" personalities that roam the web go where the action is for online shopping. And the action is happening at sites that provide incentives for shopping there.
Incentives for purchasing have been around since the corner store and the two proprietors faced-off across the street from one another. But in cyberspace, a better deal is a click away, and therefore everyone in a segment is in a face-off.
According to the newest NFO Interactive study, incentive / reward programs spur online purchasing and customer loyalty. The study of 1,905 online consumers found that nearly 53% of them would increase their spending at specific e-tail Web sites if loyalty points or incentives were offered. Only 15% of those surveyed said that such incentive programs would not influence their buying decisions.
Consumers stated as preferring the following types of rewards:
* Products or gifts: 28%
* Airline miles: 18%
* Gift certificates to retailers: 16%
* Electronic cash: 14%
NFO also reported that more than half of the respondents would provide personal contact information in return for a reward or incentive.
The most effective way to determine if points, gifts, air miles, gift certificates or even nothing at all works on your site is to TEST each. Try placing ads for your site with the varying incentive items running in equal rotation. Measure the click-through rates as well as conversion rates, and compare each. It is very likely that the best click rate will not result in the best conversion and return on investment.
Performing a controlled test like this and measuring the results closely will greatly help in defining an incentive item and ongoing marketing tactics. The companies that stick around through the Internet e-tail shakeout will be the ones who adapt and test the preferences of the wily and fickle consumer.
About the Author
Robert McKim
:To contact see details below.
DBMarkets@aol.com
http://www.msdbm.com
Incentives for purchasing have been around since the corner store and the two proprietors faced-off across the street from one another. But in cyberspace, a better deal is a click away, and therefore everyone in a segment is in a face-off.
According to the newest NFO Interactive study, incentive / reward programs spur online purchasing and customer loyalty. The study of 1,905 online consumers found that nearly 53% of them would increase their spending at specific e-tail Web sites if loyalty points or incentives were offered. Only 15% of those surveyed said that such incentive programs would not influence their buying decisions.
Consumers stated as preferring the following types of rewards:
* Products or gifts: 28%
* Airline miles: 18%
* Gift certificates to retailers: 16%
* Electronic cash: 14%
NFO also reported that more than half of the respondents would provide personal contact information in return for a reward or incentive.
The most effective way to determine if points, gifts, air miles, gift certificates or even nothing at all works on your site is to TEST each. Try placing ads for your site with the varying incentive items running in equal rotation. Measure the click-through rates as well as conversion rates, and compare each. It is very likely that the best click rate will not result in the best conversion and return on investment.
Performing a controlled test like this and measuring the results closely will greatly help in defining an incentive item and ongoing marketing tactics. The companies that stick around through the Internet e-tail shakeout will be the ones who adapt and test the preferences of the wily and fickle consumer.
About the Author
Robert McKim
:To contact see details below.
DBMarkets@aol.com
http://www.msdbm.com
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