How retailers can boost online customer retention

Many retailers are now offering online purchasing options on top of their brick-and-mortar locations. Additionally, there are merchants who operate solely on the internet. Whatever choice these businesses are using for ecommerce, more focus needs to be put on increasing customer retention through the web, especially as internet purchases continue to increase.

For the third quarter of 2012, comScore found that online retail sales reached $41.9 billion, representing a 15 percent year-over-year increase, states Venture Beat. This is the twelfth quarter in a row that has seen growth for internet purchases. The comScore reports expects that retailers will experience an exceptional holiday season online as consumers take to the web to buy the items and gifts on their holiday lists.

So what can retailers do to keep shoppers coming back to their websites, even after the holiday season is over? Offering quick and discounted shipping options is one way to retain customers, writes eConsultancy. Maintaining consumer data effectively, such as purchase history, can help companies create loyal buyers. Customer service is another important aspect, retailers can offer this by providing simple return policies and answering consumer inquiries quickly.

US ecommerce continues its strong growth

American consumers are increasingly using the internet to purchase items and services, whether from retailers who maintain brick-and-mortar locations along with websites or merchants that have online storefronts only. There are a variety of reasons as to why the purchasing methods is becoming more popular – it provides more convenience, saves shoppers large amounts of time and allows for easier product and price comparisons. As the economy prepares from the coming new year and the holiday season, retailers will want to turn more attention to their online channels as sources of incoming revenue.

Ecommerce rises in third quarter

Internet Retailer cites a recent study by comScore Inc., which revealed that third quarter online retail sales reached a total of $41.9 billion, representing a 15.4 percent increase from the same time a year ago. This is the twelfth quarter in a row that web purchases have seen year-over-year improvement. There were several sectors that experienced more growth than others during the third quarter, comScore found. These include consumer electronics, computer software, apparel and accessories and event tickets – all of which increased by at least 16 percent from the same time a year ago.

While there are still many consumers and businesses that are not incredibly optimistic about the economy, comScore stated that the confidence among customers has already begun to improve, as conditions continue to get better. The company believes that this positive outlook will keep its momentum, as both shoppers and retailers prepare for the holiday season, states the website.

“Such performance offers some optimism as we approach the holiday season, especially given recent improvements in consumer sentiment,” said comScore chairman Gian Fulgoni.

Holiday sales and ecommerce

When it comes to ecommerce in this year's fourth quarter, the holiday shopping season is expected to boost web purchases significantly. According to Forbes, a recent study by Forrester Research anticipates that internet retail sales will reach $68.4 billion over the coming weeks, as consumers buy gifts and other associated items. This represents a 15 percent increase from the same time in 2011.

However, Forrester stated there are several trends that merchants need to be aware of if they want to see large rises in their holiday revenues. Shoppers are going to be on the lookout for special deals and discounts online, as they want to save money while also purchasing the products they need and want. Free shipping will be a major factor when it comes to ecommerce, as customers are more likely to do business with retailers that offer this element.

Customers looking for multiple channels from retailers for holidays

As ecommerce continues to grow, retailers are having to adapt to these changes as customers' expectations evolve. Recent research has revealed that for the upcoming holiday season, more customers are going to be purchasing items and gifts online, and for this reason, they will prefer retailers that provide multichannel options both for shopping and service issues. Additionally, if businesses fail to implement these methods into their existing operations, they run the chance of losing out to competitors, as patrons turn elsewhere to find what they are looking for.

Social media, live chat coming to the forefront

When it comes to buying products from retailers through the internet, customers are starting to prefer having other digital resources available to them as well. According to a recent survey by LivePerson Inc., customers are increasingly using social media networks to interact with merchants. Forty percent of respondents stated they will use sites like Facebook and Twitter throughout the holiday shopping season to reach out to businesses by tweeting or posting comments on pages.

Mobile devices are also becoming more common for browsing and purchasing items, and shoppers are using mobile applications and optimized websites to access retailers' online storefronts. Of the consumers who said they will use these tools for the holiday season, 50 percent stated it is important that merchants have these resources available for mobile-connected customers.

When it comes to digital components for holiday shopping, live chat options seem to be the most vital for customers, both online and by mobile devices, the survey revealed. Forty-five percent of consumers surveyed prefer live chat for dealing with service issues. The majority of patrons who have used live chat in the past (94 percent) said they will use it again to get the help they are looking for.

"In order to provide the most compelling online shopping experience possible, it's essential that businesses understand how consumers are interacting with brands online during the holiday shopping season," said Jeremy Sokolic, head of marketing at LivePerson. "By intelligently connecting with online visitors, at the right time and through their preferred channel, businesses can exceed consumer expectations this holiday season, enabling them to drive more conversions and greater customer loyalty as a result."

Adapting to multichannel operations

The survey's results help to highlight the importance that retailers offer these digital forms, not just for the holiday season, but for overall operations. Retail Week states that instead of merchants creating channels for their shoppers, businesses should listen to what their customers want. Additionally, constant improvements need to be made, as consumer expectations will change with technology.

Holiday season to be merry for mobile, internet shopping

While it is expected that millions of American consumers will hit retail stores over the next few months to purchase gifts for the holiday season, it seems as though ecommerce will also see its fair share of activity, as customers are increasingly using their computers and mobile devices to buy products. To capitalize on this trend, there are several strategies that merchants can follow to boost their winter sales.

Ecommerce trends for the holiday season

According to a recent study from PriceGrabber, one of the main reasons as to why consumers are increasing their online shopping is to avoid the long lines and wait times that can occur at brick-and-mortar locations during the holidays. Another aspect shoppers like about internet purchasing is the free shipping and other elements that are offered. The third reason is that buying items and gifts on the web can be done at anytime and is not limited to store hours.

Purchasing products from retailers is increasingly being done on mobile devices. Sixteen percent of customers surveyed stated they will be shopping on their phones, up from 13 percent who said the same last year. Many consumers also said they will be using their devices to look up prices, reviews and information about retailers, the report states.

"We anticipate that online and mobile shopping will continue to increase in popularity this holiday season because it allows consumers to easily compare products and read merchant reviews, as well as locate the best price on every product without having to visit each and every brick-and-mortar store," said Rojeh Avanesian, vice president of marketing and analytics of PriceGrabber.com. "Online and mobile shopping allows consumers the ability to monitor prices and to shop around the clock. Today's busy and money-conscious consumer is looking at these channels as go-to options for finding the best deals during a frenetic period like the winter holiday season."

How retailers can boost holiday ecommerce sales

For retailers that are offering online and mobile shopping options for customers, there are several methods that can help to boost holiday sales this year. Independent Retailer writes that merchants need to make sure their options such as free shipping and return policies are stated clearly for consumers. Targeted email campaigns can also be effective, as this gives businesses the chance to showcase their holiday deals and discounts. Maintaining easy-to-use and attractive websites is another aspect that can increase retail sales as well as customer retention, the source states.

Consumers expecting more when it comes to ecommerce retailers

Retailers know that meeting the expectations and wants of customers is one of the top priorities for their operations. They also know that these needs change frequently, especially when new purchasing processes and channels are implemented. Such is the case with ecommerce, as buying items and services on the internet is giving consumers more convenience, easier comparison shopping capabilities and other benefits. For this reason, there are several trends pertaining to online purchases that retailers need to be aware about. Customer expectations can be easily met if merchants take the steps to provide consumers with what they are looking for.

Customer have ecommerce requirements

As online shopping becomes increasingly popular, consumers are beginning to have a set of expectations – and sometimes requirements – of what they want from internet retailers. This especially applies to returning items. Brick-and-mortar retailers have physical locations for returning and exchanging products, whereas ecommerce websites do not. According to a recent study by Redshift Research and Fits.me, approximately 60 percent of customers surveyed stated they would not buy from a web merchant if the business did not offer free returns, reports Internet Retailing.

When it comes to how shoppers deal with returns for clothing items bought on the internet, 41 percent said they purchase several sizes of the same article and then return the ones that do not fit, the research discovered.

"[Consumers] are learning that the 'free returns' offered by retailers works to their advantage," said Fits.me co-founder and CEO Heikki Haldre. "However, returns cost retailers enormous sums of money; not just the transportation of it, but the re-warehousing of the garment and, often, its subsequent discounting for resale."

Meeting other online expectations

Despite the losses in revenue for online returns, retailers need to be willing to accommodate their internet shoppers or risk losing out to competition. There are also several other trends that merchants need to be aware of when it comes to online retail. Financial News writes that customers are increasingly expecting mobile applications and optimized websites for easy browsing on their smartphones and tablets. This can increase sales for businesses and lead to greater consumer satisfaction.

Additionally, location-based services are another aspect that retailers should keep their eyes on. Shoppers using their mobile devices or computers can find deals and discounts offered by merchants depending on where they are located, states the source. This can bring in new patrons, keep existing customers coming back and result in big gains for retailers.

Ecommerce set to be large part of UK retail sales in future

Online retailers are becoming increasingly common among consumers in the United Kingdom, as shoppers turn to the internet for convenience and easier product comparison. The trend is expected to become more widespread in the future, as more customers will be purchasing items and services via the web.

According to recent research by the Economist Intelligence Unit, approximately one-third of the retail sales in the U.K. will happen online by 2022, reports Internet Retailing. Currently, about 10 percent of purchases from retailers take place through the internet. As shoppers move to web buying, retailers will attempt to accommodate these consumers by integrating digital resources into their operations, including the use of point-of-sale kiosks, smartphone applications and other forms of new media.

"The opportunities for retail over the next decade and beyond are enormous," said report author Jon Copestake. "But where the future markets will reside and the way in which we will buy goods will change dramatically."

Internet Retailer states that recent online retail sales in the U.K. have seen significant growth, according to a study by e-retail trade group IMRG. In September, British consumers spent £6.4 billion ($10.25 billion) through the web. This represents a year-over-year increase of 16 percent.

Online retailers stepping up holiday marketing efforts

Consumers will soon flood online retail websites to buy holiday items and gifts, and online retailers are already attempting to draw in more shoppers by launching new marketing campaigns to advertise their promotions and products.

Many businesses that either manage ecommerce sites along with their brick-and-mortar locations or operate only internet stores have begun stepping up their marketing efforts, according to a survey by Shop.org. Rapaport states that 60 percent of online retailers surveyed stated they will begin their promotions in late October, which is a jump from the 53 percent that did so last year. Thirty-eight percent said they will wait until mid-November or shortly thereafter to begin their initiatives.

"For retailers, there is no better time to shine than the holiday season, and it's evident that online retailers are already planning to go the extra mile for their customers this year," said Shop.org's executive director, Vicki Cantrell.

For ecommerce merchants that have yet to launch their marketing campaigns, MarketLive recommends highlighting the most enticing holiday promotions and aspects, such as free shipping. Additionally, steps should be taken to ensure that websites are optimized for mobile devices, as shoppers are increasingly purchasing items by this method.

Online retailers see strong sales during third quarter

The third quarter proved to be kind to many internet retailers, as recent research has revealed that businesses saw significant increases in both revenue and website visits during the past three months.

A recent study by MarketLive found that for the third quarter, retail revenue rose by 15.9 percent compared to same time last year, Internet Retailer reports. Additionally, the number of website visitors jumped by 12.7 percent year-over-year, which many believe is what led to the successful amount of sales. Online customers increasingly followed through with their purchases on retail sites, as the cart abandonment rate dropped by 2.1 percent during the third quarter. Authors of MarketLive's report stated that more ecommerce merchants are making shopping processes easier for consumers, which is one contributor to the positive results, the website writes.

However, there are still things that internet retailers do that can turnoff shoppers, says Daniweb. The source suggests that online merchants frequently update and improve their sites, both to provide more content and information, but also to fix technical issues and bugs. In addition, a lack of customer feedback and reviews can result in shoppers not trusting products or merchants.

Retailers can boost online engagement to drive holiday ecommerce

It is expected that American consumers will increasingly be taking to the internet over the next few months to purchase items and gifts for the holiday season. For this reason, it is becoming vital for retailers to increase their online efforts to meet the needs of online shoppers and bring in more revenue for their operations.

According to a recent survey by the National Retail Federation (NRF), 51.8 percent of shoppers stated they plan to go online to buy items and services from retailers for the holiday season. Last year, only 46.7 percent of consumers said they were using the internet to purchase products from retailers. Of those that are going online, the respondents said they would complete 38.8 percent of their holiday shopping through ecommerce sites this year. Separate research from the NRF estimates that online holiday sales will bring in around $96 billion this year, representing a 12 percent increase from last year.

To increase their online sales during the holiday season, retailers can focus on increasing digital engagement with shoppers, writes Kyle Priest in an article for Independent Retailer. As smartphones and tablets are now being used at purchasing tools, businesses should turn their attention to making their online storefronts more interactive for consumers. This can ultimately lead to increased sales and higher customer satisfaction, states Priest.

Retailers attempting to avoid website downtime for holiday shopping

Retailers that maintain websites for online sales are preparing for the influx of internet shoppers that will flood their pages in the coming months to purchase items and gifts for the holidays. Many are taking steps now to reinforce their ecommerce sites so that the pages do not crash or experience outages, which could lead to a decrease in sales.

Businesses are using a variety of methods to enhance their customers' online experiences for the holidays, including redesigning their websites, updating security measures and increasing computer capacity, according to recent research from Rackspace Hosting. More than three-quarters of retailers surveyed are focusing on reducing website downtime, as they believe it can result in a drop in sales. Last year, 18 percent of respondents stated they had problems with site downtime, which cost businesses between hundreds of thousands and tens of millions in sales.

In addition to eliminating downtime, there are also a few other elements that retailers need to focus on when developing an ecommerce site. The Huffington Post writes that every retail page should include contact information for the business, simple and easy-to-use features and secure shopping capabilities so that customers are assured their transactions are being handled safely.