Editorial Articles

With 77 per cent of consumers finding online ads of limited or no use when searching for deals on the internet, Fredrik Holmén, MD of Keybroker UK, an online marketing specialist, explores the possible reasons for consumer frustration and suggests how retailers can avoid missing out on future growth and sales opportunities.

Our recent online survey revealed considerable frustration amongst online shoppers. Over half (53 per cent) indicated they rarely find online search ads offering related products that meet their needs, while 61 per cent admitted they are hardly ever inspired to make spontaneous purchases of unplanned items when shopping online. These figures clearly indicate missed growth opportunities for retailers.

So why is consumer sentiment so negative toward online retailers when it comes to looking for deals and inspiration on the internet?

We believe a combination of high consumer expectations and poor online marketing execution are the key drivers behind these results. With almost 90 per cent of the consumers we surveyed completing initial product research online before purchasing offline, retailers need to ensure their online offers accurately reflect their offline deals.

Online consumers today are sophisticated, with almost half buying online at least once a week. Shoppers expect online retailers to be able to ‘understand’ and respond to the specific nature of their searches. Irrelevant advertising is quickly dismissed, and often seen as an irritant that wastes valuable time.

Consumers making specific product searches expect to quickly and easily find good deals for that product. More generic searches provide greater opportunity to push a range of high margin items that might inspire a purchase. This response could include promoting both a primary product that fits a search, together with other items that complement that product – for example, in response to a search for a tennis racquet the retailer could also promote their range of tennis balls, racquet bags and spare grips for the racquets they offer.

The challenge for retailers is to keep up with consumer expectations and to be able to respond in real time with intelligent offers. This should be one of the basic elements of a successful online marketing campaign.

The key for retailers is to integrate and leverage information across the online marketing channel and their merchandising and inventory systems. In doing so they will be able to replicate shop floor strategies online, promoting specific products that drive sales and margins, just as retailers do in high street stores.

Successful retailers are beginning to implement real time advertising technology which enables retailers to quickly promote specific or related products in response to different types of search.

Much of the process can be automated, which creates time for management to make agile trading decisions around pricing, stock and promotion, as they seek to respond to emerging market opportunities.

The online retailers that build a reputation for consistently delivering attractive deals and inspirational ideas will tap into a sales opportunity that is currently not being fully exploited.

Fredrik Holmén, MD
Keybroker UK