All About ROI March 2010
Q: In this multichannel environment, how do you measure success and allocate promotion dollars? While you spend money on your catalog, for example, you may get many orders through search. So, do you allocate more promotion money to catalog or search each year?— Sam Fong, circulation manager, School SpecialtyA: The answer, in my opinion, is…
If you're wondering, "How am I going to increase my online sales and profits in 2010?" here's an easy answer: TEST! An e-commerce site should run at least one test a month with the potential to increase sales by 10 percent. These are seven keys to a successful online testing program. Plus: Download the Chi-Square Test spreadsheet to prove your tests are statisically valid.
The past year was extremely difficult for catalog companies, and many firms elected to mail deeper to their housefiles instead of prospecting for new buyers. Catalogers, however, need to start prospecting again. File counts can’t continue to decrease, or sales will continue to decline. Catalogers should now cautiously increase prospecting levels to build for the future. As we emerge from the recession, companies that continue marketing and mining for new buyers will be in much better position to take advantage of the rebound.
A 2009 year-end survey of store traffic conducted by ShopperTrak, a provider of shopper traffic counting technology, showed a reasonably encouraging year-over-year increase of 3.5 percent. But store traffic has been so light over the past couple years that retailers, and their software vendors, are seeking ways to not only get consumers into stores, but also take them by the hand and guide them right to the cashiers. Case in point, take two recent retail technological innovations from Escalate Retail and NCR.
Most multichannel sellers have a small group of extremely loyal customers who buy year in, year out, or come back annually making substantial purchases. These are your biggest fans, and you'd be surprised to realize how much more they spend than your other customers, and thus how important they are to you.