Online retailers are doing it wrong

There’s been a load of cheering recently for the success of online shopping. At Christmas, for instance, many High Street stores in the UK reported lower than usual sales with less footflow than the previous year. But their online counterparts reported record sales. So everyone was happy. What tosh. The average conversion rate of the top retailers online is a mere 2.5% – and they are ecstatic about that..! If only 2.5% of the people who walked into their bricks and mortar stores bought anything they would be out of business pretty sharpish. One of the reasons is that customers online are “cheap”. It costs almost nothing to attract them; you can get millions passing by every day. The result is that the top retailers themselves perceive their online customers as ten a penny and treat them as such. Is it any wonder they don’t form great relationships and therefore don’t buy very much? A typical top retailer will tell you that their online store is worth about the same as one of their bricks and mortar stores. And, remarkably they think that’s great. Cloud cuckoo land I say. They are happy with the profit in an online store that generates ten times the amount of footflow as a High Street store? Again, this is an attitude problem. It’s highlighted today by a report on the way retailers use emails. This shows that few online retailers even personalise their emails to their customers. They don’t even use the proven methods of getting returns on emails and the vast majority don’t even promote their products in emails they send to customers. What? Say that again…! Yes, 77% of retailers who send emails to customers do not promote their products in those emails. Once again, this is evidence of major companies failing to understand the true nature of the Internet and how they can profit from it.

Like this article?

Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on facebook
Share on Facebook
Share on email
Share via email

Other posts that might be of interest

man searching
Internet Marketing Articles

Can you find what you are looking for?

If you want to increase your sales, your business needs to make it easy to find everything. That means reviewing how your web search works. It suggests you might need to reconsider the navigation structure of your website. It might even mean you need to distribute your content away from your site and have it on a variety of different platforms.

Read More »
Empty football stadium with no supporters
Internet Psychology

How well supported are you at work?

Yesterday I was transported back in time. I haven’t discovered time travel. Instead, my mind quickly flipped back to a meeting about three years ago that involved the same group of people. I noticed how

Read More »
Man using digital technology
Internet Psychology

Are you obsessed with digital?

Being obsessed with digital could take you away from old-school technologies that do the job better. Yet, avoiding technological change can cost your business dearly. How can you get the balance right?

Read More »