Spring - InsideOutdoor Magazine

Data Points
Numbers Worth Noting
by Martin Vilaboy
Returns and Retention
Retailers, for good reasons, are not too fond of merchandise
returns, but unfortunately shoppers are. According to an annual
consumer returns survey commissioned by Newgistics, Inc.
and conducted by Harris Interactive, nine out of 10 direct
shoppers cited a convenient returns policy as very important,
important or somewhat important to encouraging them to
shop with a new or unknown online or catalog retailer. More
than two-thirds said the ability to make a return from home was
very important or important when deciding whether to shop
with an online or catalog retailer. On the flip side, 82 percent
of direct shoppers said they are not likely to shop again with a
direct retailer if the return process is inconvenient.
Very
likely
Somewhat
likely
Not very
likely
Not at all
likely
Don’t
know
Very
likely
Somewhat
likely
Not very
likely
Not at all
likely
Don’t
know
Likelihood of shopping again if returns
are CONVENIENT
3%
3%
2%
Source: Newgistics
2%
6%
10%
Source: Newgistics
20%
Likelihood of shopping again if returns
are INCONVENIENT
8 | InsideOutdoor | Spring 2008
72%
92%
38%
82%
44%
Stimulate This
The National Retail Federation estimates the $42.9 billion
will end up in retailers’ tills as a result of President Bush’s
$168 billion dollar Economic Stimulus Plan, which will result
in anywhere from $300 to $1,200 in the pockets of qualifying
consumers. Retailers, however, appear less than confident
about their chances of capitalizing on the opportunity. A good
majority of retailers surveyed by Retail Systems Research said
they will not be making adjusting this spring in order to capture
any lift in spending.
Money Left on the Table?
Will your company be adjusting you current plans to capture
additional revenue from the Economic Stimulus Plan?
35% 65%
Retail Formats with Below Average Sales Gr
Are you planning to increase your inventory levels to meet
increased demand from the Stimulus Plan?
37% 63%
10
Will you be planning special promotions and events to
capture additional sales from the 8.2% Stimulus Plan?
8
Yes
No
77% 23%
Source: Retail Systems Research 6.5%
5.9%
5.5%
6
4.7% 4.7% 4.6% 4.9%
Four Reviews Before Buying Online 4.4% 4.3% 4.2% 4.3%
As much as 684
3.5
percent of online shoppers read at least 2.6%
four reviews before making a purchase, according to data from
2
joint research by PowerReviews and the e-tailing group. The
companies surveyed 1,200 consumers who shopped online at
0
least four times per year and spent at least $500 in aggregate
and found that almost -2 a quarter of the respondents checked at
least eight reviews or more before deciding to buy.
Some 22 percent -4 of respondents said that they “always”
read reviews before making a purchase, while more than four
Source: Newgistics
in 10 said they checked ratings and reviews “most of the time.”
In contrast, just 2 percent of the online shoppers surveyed
said that they “never” read reviews in advance. And a recent
Avenue A|Razorfish study Non-auto found Retail that Sales 55 percent Growth of Around online the Glo
shoppers chose user reviews most frequently when conducting
product research — more Russia than double the 22 percent that used
Nigeria
comparison charts or expert reviews (21 percent).
12.8%
Turkey
11.2%
Indonesia
10.6%
Most Desired Features Vietnam on Retail Web Sites* 10.4%
India
Features
% of Respondents Choosing
10.4%
Philippines
9.7%
User ratings and reviews Argentina 64%
9.6%
Special offers and couponsChina
61%
8.9%
South Africa
7.9%
Videos Thailand 48%
7.7%
Personalization capabilities Mexico 37% 7.2%
Malaysia
7.1%
Games and quizzes 29%
Brazil
6.6%
Source: Forrester Research; Spain *Included consumer electronics, 6.0% travel and banking
sites—key drivers of e-commerce Australiain the U.S.
5.7%
United States
5.2%
South Korea
5.1%
Canada
4.7%
Poland
4.6%
United Kingdom
4.1%