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5 Reasons to Stop Worrying and Love the Internet
Don’t let fear of the Internet paralyze your
marketing strategy.
It’s easy to view the online world as an
intimidating behemoth of highly advanced
technology that’s only suitable for use by those
who are the most technically knowledgeable
among us.
In fact, you shouldn’t let fear of the Internet
prevent you from utilizing it as an effective
marketing channel. A monthly advertising game
plan that involves using the web as a means to
promote your products, services, and brands is not
only something you should do, it’s something that
you must do to thrive in your local market.
Stop The Presses
Yes, technology is changing the face of retailing
just like it is changing the face of many industries.
However, to paraphrase Mark Twain, the reports
about the death of traditional retail are greatly
exaggerated.
There’s no question that e-commerce is growing.
But online shopping will never replace brick-andmortar retailing.
Online Marketing Leads To Offline Sales
If you think that online marketing is only for huge
retail sites like Amazon and Overstock, think again.
When shoppers decide what to buy, they value
the opinions of sales associates in stores and
information gleaned from television and magazines.
However, it should be noted that the local retailer
websites are now the top sources of information.
The Internet has transformed the way people shop.
Web-savvy consumers have become smarter than
ever, with price comparison websites and consumer
forums also frequently browsed during shoppers’
“path to purchase.”
Here’s 5 things every business owner should know:
1. A Majority Of Retail Sales Are Influenced By
Internet Research
The web’s influence is greater than the threat of
online sales. A Forrester retail study shows that in
addition to the projected $300 billion in online sales
in 2014, $1.4 trillion will be influenced by the web.
Yahoo and Universal McCann published research
showing that 69% of people trust the Internet for
researching their purchases over TV and magazines.
A similar study showed that 50% of purchasers are
influenced by online shopping, with consumers
searching on the web before purchasing in-store.
The influence of online will be driven by the growing
importance of mobile marketing. Smartphone
penetration and one-to-one localized promotions will
continue to enhance online marketing.
According to Juniper Research, U.S. retailers are
predicted to spend $55 billion on mobile marketing
by 2015, which is almost double that in 2013.
800.940.4351 | [email protected] | 2400 Perimeter Park Drive, Suite 100, Research Triangle Region, Morrisville, NC 27560
5 Reasons to Stop Worrying and Love the Internet
By 2017, 60% of all U.S. retail sales will involve the Internet in some way, either as a direct e-commerce
transaction or as part of a shopper’s research on a laptop or mobile device. That’s according to a new
report by Forrester Research entitled “U.S. Cross-Channel Retail Forecast, 2012 To 2017.” Approximately
10.3% of total retail sales in the U.S. in five years will be online purchases, or $370 billion in web sales
compared to $3.6 trillion in total retail sales. And in 2012, 46% of total U.S. retail sales were either
transacted directly or influenced by Internet research on PCs, smartphones and tablets.
In contrast, last year e-commerce accounted for just 5.2% of total retail spending in the United States
according to the U.S. Commerce Department.
2. 94% Of All Retail Sales Happen In Local Retail Stores
Another study by Forrester Research shows that “94% of retail sales in the U.S still happen ‘offline’...
just 6% online.” Even if online retail sales double in the United States in the next five years, almost 90%
of retail will still be done in brick-and-mortar locations. “Despite the popularity of ordering online,
people still seem to have an affinity for bricks-and-mortar stores,” a Pricegrabber spokeswoman
recently said to InternetRetailer.com.
3. 91% Of Local Shoppers “Have Gone Into A Store As A Result Of An Online Promotion”
Shoppers are doing more research before they buy by using the Internet to pre-shop, price compare,
and read reviews. They are also responding to promotions from brands. Online usage has increased
significantly, even in the past year. Mobile technology has taken this even further, giving shoppers
access to the internet and the ability to shop from anywhere. This has changed shoppers’ path to
purchase, impacting the way they consider, and ultimately buy, products and services.
4. Customers Who Research Online Spend More In-Store
The opportunities to grow revenue are quite real for companies in the context of a retail environment.
Consumers increasingly expect a seamless, multichannel purchasing pathway that includes online
retailing. In the UK, for example, McKinsey research shows that multichannel customers spend nearly
twice as much on average as customers who only visit the store. Depending on the circumstances, the
monthly spend per customer varies between +84 and +119 percent.
5. Online Advertising Boosts Local Store Sales
Consumers are becoming increasingly comfortable with using digital technology in the shopping
environment and presumably will more frequently measure a retailer on how well it supports this
change. The challenge for business owners is how well they adapt, how quickly they shift marketing
funds to leverage new advertising technology, and how best they can use the Internet to continuously
connect with and nurture their greatest asset - the local consumer.
As companies contend with a diverse set of channels – online research, social media, referrals, etc. –
the winning players will have developed a consistent strategy to address all of these fragmented touch
points, investing in the most efficient outlets while aligning their message across all platforms.
Netsertive knows how to leverage local online marketing to turn online discovery into foot traffic
and sales in your business. Contact us today, and let us show you how we can take your marketing to
another level.
800.940.4351 | [email protected] | 2400 Perimeter Park Drive, Suite 100, Research Triangle Region, Morrisville, NC 27560