“UK online retailers are disturbingly uninformed about the effectiveness of their digital marketing mix, despite facing one of the most frugal consumer Christmases on record, research from Coremetrics has revealed.
Coremetrics commissioned the survey to investigate the dynamics of European digital marketing, as seen through retailers’ own eyes, as well as the customers they target.
The survey found that 94% of UK e-retailers take a multi-channel approach, using five or more digital marketing elements, but of these, 74% do not measure Return On Investment (ROI).
Search, renowned as one of the most measurable techniques proved to be a ‘shot in the dark’ activity – with 80% of natural search and 66% of Pay Per Click (PPC) activities not measured for ROI.
The Coremetrics’ survey also examined consumer-spending habits, unsurprisingly finding that price-cutting was the biggest priority for 92% of consumers this Christmas. Encouraging friends and family to cap spending on gifts (55 per cent), buying cheaper gifts (32 per cent) and stalling shopping until the January sales (16 per cent), were the most popular Christmas cost-cutting strategies for consumers.
However, Coremetrics’ research showed more effective ways of targeting to gain a competitive edge in tough times. Chief channels identified by consumers for driving their buying decisions were price comparison websites (61%), online reviews (53%) and brand recognition (44%). Yet, of those marketers that do not already carry out these tactics, just 17% plan to introduce email promotions, and 23% special offers, suggesting a disparity in understanding between marketers and their audiences.
‘The Eyes & Ears of Digital Marketing Survey’ was conducted by Dynamic Markets, on behalf of Coremetrics in November 2008. The digital marketing survey was conducted amongst middle and senior marketing managers responsible for e-commerce sites of large retail and wholesale companies with more than 250 employees. 100 respondents were surveyed in the UK, France and Germany, totalling 300 respondents. The consumer survey was conducted among 1,000 adult consumers, aged 18+, in the UK, France & Germany, totalling 3,000 respondents.”