Outlined in a custom research survey of 1,243 Internet users conducted by JupiterResearch in June 2008 and sponsored by LinkShare, the study reveals that online retailers can adjust to the weakening economy by focusing on deepening relationships with existing customers, as they are vulnerable to promotional influences, and also engaging those consumers who tend to influence the purchases of others.
"In a challenging economy, when people are spending less and scrutinizing each purchase they make, every e-retailer must work to distribute their promotions widely, in the most effective way," said Jonathan Levine, Co-President of LinkShare.
A powerful means of establishing that relationship and driving repeat business, according to the study, is through ongoing promotions, which also help to deepen customer relationships and keep customers loyal.
"In light of this study, we advise ecommerce marketers to broaden their marketing partnerships online and embrace user-generated reviews," added Yasuhisa Iida ("Yaz"), Co-President of LinkShare. "Marketers who encourage customers to share their positive shopping experiences with peers will end up benefitting."
The survey distinguished two key segments of buyers. The Influencers, who are considered a key shopper segment because they influence their friends in purchase decisions, spend more money online than the average consumer and plan to increase their annual online spending (on average) as compared to all online shoppers. Advertisers that want to reach influencers, become part of their purchase consideration and benefit from their advocacy should consider stepping up their outreach to this segment.
The other key segment is the engaged shopper, a group that comprises 50% of online shoppers. While this group claims they will stick with their current brands and stores, 50% are still willing to experiment with new retailers in order to get the best price on a product.
Overall, the LinkShare survey conducted by JupiterResearch revealed the following about online shoppers in the US:
- On average, online consumers are predicting their offline spending will drop more than online spending. Offline spending is predicted to drop 6.3% versus a smaller drop of 4.2% online.
- Most online consumers (81%) believe they are facing an economic recession.
- 56% of Influencers plan to do more product and pricing research online to ensure the best price as a result of struggling economy.
