ChoiceStream

Recommendations from friends in the community and the proximity to bricks-and-mortar stores greatly influence online purchases, say Wharton School researchers. "The more you can learn about someone's physical circumstances, either at the individual or neighborhood level, the better it could be for your business," said research co-author David R. Bell.Read the full article

Customer retention has been an area of marketing focus for many companies this past year. To combat a widespread reticence to spend during the recession, many brands have or will be beefing up their existing loyalty programs to meet consumers' needs. One such retailer is Target. According to a spokesperson for the company, "We're currently testing a new rewards program in select markets that offers guests a percent off all purchases made with their REDcard." Best Buy has taken an additional step as its Rewards Zone program not only offers more rewards to its most loyal customers, but it also focuses on keeping in touch with those consumers so that their brand is always top-of-mind. Bryan Kennedy, president of Epsilon, which works with Best Buy on Rewards Zone and its other loyalty and CRM efforts says the renewed focus on loyalty is logical, given the down economy and the hyper-competitive, multi-channel retail environment. "When we start thinking about how loyalty is implemented, now we're very focused on the dialog that takes place across all these various channels," says Kennedy. For more information, click on the link above.Read the full article

Replacing "asking" with "listening" has been a hot topic at market-research conferences for the past couple of years. But instead of surveying consumers, more researchers are relying on web tracking. However, no major brand marketers have yet taken the plunge to online listening only, and even some longtime advocates of web tracking, such as Nielsen Online are reluctant to suggest marketers ditch any of their tracking surveys just yet. One expert, TNS Chief Research Officer Larry Friedman believes, "What we're arguing [for] is that you need to think about it the other way around" by using surveys instead as the supplement to expand on trends identified in various forms of web tracking. Friedman goes on to say it's far too early to throw out all tracking surveys, but that they can be reduced in frequency and length by substituting web tracking.Read the full article

Believe it or not, many Boomer aged women find clothes shopping a drag. According to this article, “They can't find stores that understand their taste; they seek more privacy than many stores offer; and they are sick and tired of being ignored by salespeople who don't understand how much money they have to spend.” Those are some of the reasons online shopping for clothing, accessories and shoes is growing. A recent study of 600 women aged 50+ reveals many of these women have already shifted their clothes shopping online (13% buy clothes online ONLY while 2-out-of-3 do at least some of their clothes shopping online) while a full 84% of those surveyed complained that in-store salespeople were “indifferent, inexperienced, invisible or downright rude.” What do the good websites need to do to appeal to these women? Focus on lessons learned from successful online sites (Zappos is mentioned as one such successful site). Stay tuned!Read the full article

eMarketer forecasts that after 2 years of subpar growth, 2010 US retail e-commerce sales (excluding travel) will climb to more than $152 billion, up 12.7% year over year. “In 2011, growth will go on at the same pace, as the economy continues to recover and consumers loosen their purse strings,” said Jeffrey Grau, eMarketer senior analyst. “But by 2012, e-commerce will resume its pre-recessionary downward growth path because of the inevitable maturation of the online sales channel,” he said. “Still, there is plenty of energy driving e-commerce.” This year, 162 million people in the US will research products online. Much of this research will lead to in-store purchases. Over 82% of online researchers, or 133 million people, will be online buyers. The percent of online buyers will rise as young Internet users, predisposed to e-commerce, replace older users.Read the full article at eMarketer

A downward trend of US consumers shopping less hit a new low in February 2010, according to data from The Nielsen Company. Monthly all-outlet shopping trips among US consumers declined 4% on a year-over-year basis in February 2010. And, while per trip shopping basket rings began to pick up during and after the holidays, February 2010 remained static with a 1% increase compared to February 2009. Retailers’ focus on store brands and price cuts helped keep spending levels in check driving more value for shoppers. Nielsen advises retailers to follow three strategies that keep shoppers satisfied and spending while they are in the store: (1) Satisfy loyal shoppers with savings linked to shopping frequency and spending levels;(2) Entice new shoppers with promotional offers;(3) Offer value and low prices, but more importantly, promote some point of differentiation to maintain a competitive advantage.Read the full article at Retailer Daily

Men have been an afterthought among retail and marketing executives for as long as many can remember. Not anymore. Men are paying more attention to their wardrobes. They’re spending more time shopping for themselves, and they’re showing an increased interest in personal grooming products. About 75% of men shopped for themselves last year, compared with just 52% in 1995, according to research compiled by The NPD Group. NPD is estimating that men’s apparel sales totaled just over $51 billion for the 12 months ending December 2009. So why are retailers now taking notice of male shoppers more than ever. Marshall Cohen of NPD says the men’s segment has proven to be more resilient during these recessionary times. “The bottom line is that it looked more appealing because it was a little less recession-reactive,” Cohen says. “Retailers are always looking for new possibilities to grow their business. When it comes down to it, they have a choice – So now we’re seeing a surge in companies focusing on becoming male-centric for growth.”Read the full article at Stores

A new Morpace Omnibus study reveals that retailers who are actively involved in marketing their products and/or services using Facebook may have a distinct advantage over their competitors. The study finds that not only are consumers joining Facebook fan pages that are managed by businesses, but they use Facebook as a means to offer and receive product recommendations. The study concentrates on three key areas: which consumer segments are most likely to use Facebook and how frequently; how often consumers search for or share product/company opinions or information, and which demographics are most likely to use the social media website. "The results show us that Facebook is a tool for retailers to directly communicate with their target market," said Morpace exec Kirsten Denyes. "Retailers can offer consumers product information and exclusive coupons and discounts to create viral product buzz among Facebook consumers.”Read the full article

Media and marketing services firm Valassis has announced recent findings that provide greater insight into consumer savings habits with coupons which reveal how the economy is defining a new "normal" when it comes to shopping behavior. Current economic conditions are leading 94% of those surveyed to use consumer package good (CPG) coupons at least once in the past year, and 77% with regularity. In fact, 30% said they used more coupons in 2009 than in the past, leading to $800 million more being saved with CPG coupons compared to the prior year. Meanwhile, the percentage of consumers planning their shopping lists with CPG coupons is up significantly during recessionary times. In 2009, 88% matched their shopping lists with coupons compared to 78% in 2007.
Read the full article

Despite the negative impact of the recession on retail sales, retailers continue to increase their IT investments, according to a new study from ABI Research. The study indicates investment in retail technology continued to grow during 2009, totaling approximately $14.8 billion last year. In addition, retail IT spending is expected to continue growing at a rapid pace during the next four years. By 2014, ABI predicts retail IT spending will have undergone approximately 50% growth from its 2009 level. Leading the growth are retailer demands for highly efficient and customer-friendly technology. Larry Fisher of ABI Research said, “Retailers look to technology to enhance the customer experience, drive customer loyalty, reduce costs, and to become more efficient at managing inventory, space and human resources. It is also a way to stay competitive as peers look to achieve the same goals.”Read the full article at Retailer Daily