Similarities?. E.g. More time spent more money spent (a la mega bookstores): according to a series of joint studies in online retail by Bain & Company and Mainspring. According to the research, the more often a customer visits a site, the more likely that customer will spend an increasing amount of money and generate more profits for the online retailer. For example, in apparel, the average repeat customer spent 67 percent more overall in the third year of his or her shopping relationship with an online retail vendor than in the first six months. And, over three years, customers referred by online grocery shoppers spent an additional 75 percent of what the original shopper spent. - http://www.clickz.com/showPage.html?page=331431. To what extent will competition stay the same: eCommerce offers visibility to the smaller players. Can we expect a similar divide online, because of budgets, margins, etc
These companies tell you they are you friends. They want to partner with their retail customers. I say this is crap. Now I realize there are some real big boy site design companies who believe working with the vendor on web development is beneficial for the dealer. I don’t. Maybe that’s why some think I’m crazy.
But until I see my retail friends and customers making the sort of money the should online I’ll continue to push against the idea of “partnering” Affiliate website continue to die. They are old fashioned. People don’t believe the slick packaged presentations.
Customers are looking for real feedback. It’s gritty. It’s truthful. It’s the good the bad and the ugly.
66 clusters, 80 top markets in America, using the number one retail research firm in the world. This data is relevant and the data is fresh- December 2008. We are as far as I know the only company in the furniture business to have done a national study in the last 24 months. What do you think this data is worth in your future?
Demystifying the Online Furniture Shopper<br />David Lively<br />
The experts are <br />saying...<br />"If you're not converting to commerce at your Web site, I don't think you'll be around 10 years from now,”<br />said Ed Stevens, chief executive of Shopatron. His San Luis Obispo, Calif., firm provides e-commerce applications. It is a growing business, especially within home furnishings. <br />
The industry is currently selling<br />$12.3 billion online, representing9% of all category sales, according to research firm Forrester Research Inc. These numbers are expected to rise to 11% this year and more than double to $26.7 billion by 2012, the firm estimates. <br />
Jewelry and furniture will pace online sales this holiday, comScore says…<br />“The most robust growth in online holiday shopping will occur in Jewelry & Watches, where sales are expected to increase 67% year-over-year to $739 million in November and December of this year from $443 million a year ago, comScore Networks Inc. projects. The next strongest growth will occur in Furniture, where November-December sales will be up 58% to $1.7 billion from $1 billion a year ago, comScore says.”<br />
Proportion of ecommerce sales as a % of retailing subsectors (US market)<br />source: Forrester 2008, Morgan Stanley<br />
"One cannot afford to not be in e-commerce," said Ethan Allen Chairman and Chief Executive Farooq Kathwari in an interview. <br />
"We knew that the longer we waited on the Web, the more risk that someone else would be capturing that demand," said Jason Camp, senior vice president of retail. <br />
“We estimate between 60% and 70% of people spend some time on the Web before or during the purchase process," said La-Z-Boy Chief Marketing Officer Doug Collier. With "more than a few million" visitors to its site each year, Collier said, La-Z-Boy wants to convert as many of those to sales as possible.”<br />
Online marketplace?<br />“In 2009 the wheat came off the chaff in online retailing,” says Nikki Baird, managing partner at research firm RSR Research. “The online retailers that just count on being the lowest price provider aren’t going to be around for the long term.The ones that survive and grow will be ones that run a very efficient operation and give consumers the best customer service and shopping experience.” <br />
The strategy for identifying your marketing targets is based on two tried and true observations:<br />The best customers for your product are existing customers. The people who have already used your product or a similar one or other people like your existing customers are most likely your best customers.<br />Birds of a feather flock together. In choosing a place to live, people tend to seek out neighborhoods compatible with their lifestyles, where they find others in similar circumstances with similar consumer behavior patterns. Once established, the character of a neighborhood tends to persist over time, even though individual residents come and go.<br />
The nature of the research <br />Where<br />Understanding Market Potential Index | Market Potential Index Report | <br />89 Locations - 50 mile radius<br />Who<br />Understanding PRIZM Profile Reports | Profile Charts & Reports<br />Appendix<br />PRIZM Cluster Narratives<br />
We then use MPI reports which illustrate the PRIZM market potential for each of the DMAs in the study. DMAs are ranked by potential. Each of<br />the MPIs shown on the report is part of a national index of the propensity to be online furniture buyers, weighted to reflect the PRIZM Clusters present within the market, using PRIZM<br />An MPI of 122 shows that residents<br />of this DMA should be 22% more likely than the national average to buy furniture online.<br />To compute MPIs, Claritas calculates (1) the percentage of households within each Cluster in<br />each of the markets reported on and (2) the equivalent of a sixty-six Cluster PRIZM profile<br />report for the product, and then calculates a weight-averaged MPI for each of the markets.<br />
Buy Home Furnishings by Internet, 1yr (A) (4.31%)<br />percentage of MRI survey households that fit the profile. <br />
PRIZM culminated years of research and development in a groundbreaking methodology that allows marketers to seamlessly shift from the ZIP Code level through the block group, ZIP+4, or ZIP+6 level—all the way down to the individual household level—using the same set of 66 segments. This single set of segments affords marketers the benefits of household-level precision in applications such as<br />direct mail, while at the same time maintaining the broad market linkages, usability, and cost-effectiveness of geodemographics for applications such as market sizing and site selection.<br />
PRIZM Profiling<br />Claritas provided specifications for a PRIZM profile “Buy Home Furnishings by Internet, 1yr” using the Mediamark Research Inc. (MRI) Survey of American Consumers data. The profile was created from counts of survey participants who made online purchases of home furnishings in the last 12 months. Each MRI survey participant is assigned to one of the sixty-six PRIZM neighborhood lifestyle clusters. Each PRIZM Cluster represents a distinct consumer market segment comprised of households with similar demographics, lifestyles, and consumer behavior. <br />