17 September 2014
SYDNEY: Free shipping is the most effective way to meet
customer satisfaction, according to 400 Australian retailers questioned in a
recent report that also recommended they improve their mobile and digital
options.
According to a joint study from the Australian Retailers
Association (ARA) and ChannelAdvisor, the ecommerce solutions provider, almost
two-thirds (65%) of survey respondents had offered free shipping in the past 12
months.
They viewed it as their most effective online sales tool,
Marketing Magazine reported, but the report suggested their mobile advertising
needed to catch up.
Even though nearly half reported that at least 20% of the
traffic to their retail websites came from mobile, less than 5% of their
advertising budget was spent on targeting this source.
Nearly half of those surveyed viewed social media channels
as a "gateway" for attracting a new generation of customers, but only
just over a third (36%) saw social media as a way to drive conversations.
However, over three-quarters (77%) viewed social media as a
means of increasing brand awareness with 93% citing Facebook as the most
effective social channel.
The report also examined retailers' approach to
international and third-party opportunities and it found 33% sold on
international websites while half sold on third-party marketplaces, such as
eBay (41%).
With Australians spending an estimated $15.6bn each year
online, ARA executive director Russell Zimmermann appreciated that retailers
faced many challenges, but urged them to make better use of planning and
measurement.
"Retailers often answered 'I don't know' when asked
questions about where their sales or webstore traffic originated, or how much
they were spending on advertising," he said.
"Ecommerce is, and will continue to be, a core part of
retail, and retailers must continually learn how to operate efficiently and
effectively in this new world," he added.
Data sourced from Marketing Magazine; additional content by
Warc staff
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