Reading an interesting research summary in HBR that I wanted to share.
Whether you are a B2B or B2C company, the time taken to respond to prospects stimulus online can significantly change the ROI of your web presence. As this research shows, many firms are too slow to follow up on these leads. As HBR states:
– 37% responded within an hour
– 16% within one to 24 hours
– 24% took more than 24 hours
– and 23% never responded at all!
As companies are investing significantly to get prospects out of the web, they should have a much better turnaround, don’t you think?
Reasons not to do so include retrieving leads from CRM daily rather than on the fly, sales forces focusing on their own generated leads and rules for leads dispatching not effective enough (“fairness” can be damageable).
Where are you with this? Better know where your marketing ROI is headed sooner than later.
– Posted using BlogPress from my iPhone
As I track the evolution of e-commerce, I found these results coming from Comscore pretty interesting.
e-commerce revenue reached $227.6B for the entire year, growing 9% compared to 2009, and varies per industry:
- travel e-commerce up 6% to $85.2B
- Retail (non travel) up 10% to $142.5B
- Top growing category: Consumer Electronics +19% (flat panel TV and mobile devices are first)
This signals a recovery since the end of 2008, after a two years depressed situation due to the economic downturn. The 2010 holiday season was at a peak with a 12% growth, reinforced by some promotional activity – most notably free shipping. The Cyber Monday (Nov 29th) did peak at $1.028B surpassing for the first time the $1B mark. Groupon.com attracted 10.7M unique visitors in December, up 712% vs 2009.
Interesting evolution since my post e-commerce revenue over $100B back in January 2007 i.e. it more than doubled since 2006 even with a major downturn in between.
So, how is your e-commerce strategy going? Maybe a good time to revisit if you have one and definitely start one if you haven’t.
If you want to know more, you can download the comScore 2010 US digital year in review report.
e-commerce is continuing its progression despite a poor economic environment. As this latest report from the US Department of Commerce shows:
“The third quarter 2010 e-commerce estimate increased 13.6 percent (±2.5%) from the third quarter of 2009 while total retail sales increased 6.0 percent (±0.5%) in the same period. E-commerce sales in the third quarter of 2010 accounted for 4.2 percent of total sales.”
e-commerce sales totaled $38.8B for Q3 2010, accounting for 4% of total US Sales. In 10 years, this proportion did quadruple (1.2% in 2001).
According to another research from DataMonitor, the global online retail sector grew 14.5% in 2009 to reach $348.6B! When considering North America accounts for 45.7% of this total, that’s nearly $160B in NA alone, up 60% from my last inquiry in Jan 2007.
At the same time, for H1 2010 we’re still growing on the internet at a pace of more than 2M+ new web users per week according to Internet World Stats, where Asia is leading the curve to over 825M users vs. NA 266M, but their penetration rate is still low 21,5% in Asia vs. 77% in NA.
e-commerce is going to just explode in Asia over the next few years and my prediction is it’s going to be mobile first!
A recent study published by ComScore and its research partner dunnhumbyUSA, shows that consistent online advertising can actually lift retail sales in the CPG industry by 9% over a 3 months period and contribute more to brand building than TV ads (+8% over a 12 months period according to an Information Resources, Inc. report.).
“These early results confirm the ability of online advertising to successfully build retail sales of [consumer packaged goods] brands on par with the impact of television advertising. It is likely that the more precise targeting ability of the Internet – especially in terms of accurately reaching the desired demographic segment – is a key reason for its effectiveness. That is meaningful in and of itself, but when you take into account the fact that online advertising is generally less costly than television, these results take on even greater significance,” said Gian Fulgoni, Executive Chairman of comScore
Let me know how does your marketing-mix looks for the remaining part of 2009, you may bend it to more of the web?
According to ComScore, this online holiday season is impacted by 5 fewer shopping days this year compared to last year. The impact seems to be contained to 1% decrease. The increased average online spending per day between Thanksgiving and Christmas ($643M, up 5% from last year) does not compensated for 16% decreased number of shopping days for this period.
The e-commerce spending for the first 49 days – Nov through December 19 is totaling $24.03 billion. The top categories are Sport & Fitness (+31%), Books & Magazines (+18%), Video Games, Consoles & Accessories (+17%), Apparel & Accessories (15%), Flowers, Greetings & Gifts (+13%) while Music, Movies & Videos are down (-24%).
Tectonic forces displacing enterprise applications boundaries are very diverse, I don’t pretend to be exhaustive here, but I’d like to highlight the ones having in my opinion a significant impact:
- Ubiquitous good quality (bandwidth) web access – check broadband stats – encouraging employees mobility
- Web crazy expansion (5.5M new users per week, 1.3B Internet users in Dec 2007) and more specifically mobile web expansion (3.2B mobile devices and among them 1.2B with a modern web browsing user experience) and explosive e-commerce growth – check IDC stats : 50% internet users will buy on line this year – favouring extended enterprise process development
- Users are educated at home on web based applications, noticeably on web 2.0 applications (Social Networking, Blogs, Wikis, …) and are increasingly accepting the Cloud Computing model relevance by using it (personal e-mail, Instant messaging, social bookmarking, photo & video sharing, e-banking, ….) – preparing for webtop and web 2.0 introduction in the enterprise (check “moving from deskltop to webtop” post)
- SOA and Mashup emergence as a distributed application architecture
- Transactional processes automation maturity – very typical of the ERP supported ones – will privilege productivity gains and transaction costs reduction (referring to Ronald Coase « The law of the firm ») in automating collaborative processes and exception management, paving the way to ERP/Web 2.0 integration
This nice cocktail augmented with a solid number of “ Y Generation ” employees — born between 1982 and 1994 – having grown with the natural use of SMS, instant messaging and social networking on the Web and which will be enterprise leaders in the next ten years – prepares the company with its change towards Enterprise 2.0 (first defined by Andy McAfee) characterized by the use of the Web 2.0 collaborative applications within the enterprise to harness collective intelligence.