Online Retailers See Dollars In Email

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Online Retailers See Dollars In Email

By: David Utter
2006-08-08

Holiday promotions like free shipping and pricing deals won't figure in the plans of many retailers, who will spend their marketing dollars on email, SEM, and SEO.

The WebTrends second annual "2006 Online Retail Holiday Readiness Report" indicates the focus for online sellers will be on marketing and less on giveaways. Almost a quarter of the 300 Internet and multi-channel retail respondents said they will not use price-based promotions during the busy holiday shopping season.

In 2005, only 11 percent indicated price-based promotions would not be part of their strategies. Free shipping has long been a favored gimmick, but only 45 percent of respondents said it would be used this year, a significant drop from 62 percent in 2005.

Shipping costs have been a long-time issue for online shoppers, and a big reason for shopping cart abandonment. There is a perception, an accurate one, that high shipping costs are being used as a profit center by many retailers. Higher fuel costs have driven package delivery services to raise fuel surcharges, which in turn has led to increased shipping costs to retailers.

Instead of giving away shipping, retailers will turn to email, search engine marketing, and search engine optimization to bring back loyal customers and find higher quality new ones. 52 percent of those surveyed plan to increase email spending for the holidays, while 46 percent will boost SEM, and 38 percent will spend more on SEO.

All of those methods give the retailer something they can measure for effectiveness. In the case of SEM and SEO, those provide a broad method of reaching potential and existing customers through paid and organic search results.

Marketing to loyal customers remains an area of critical importance for retailers. Customers who have demonstrated a willingness to spend money with a business deserve a retailer's best efforts to retain them. A measurable marketing effort that focuses on the retailer's niche as it applies to their most desirable customers appears to be what respondents have planned for the holidays.

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Tags: Holiday, Retail, Marketing

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