Retailers are focusing on factors that make their Web sites more profitable rather than investing in features that do not provide a return on investment.

The Internet continues to be an enormous area of growth and expansion for direct and interactive marketers. As a result, many marketers are continuing to invest in their Web capabilities as a strategy to grow their businesses.

But not all investments were created equal. With many companies feeling the effects of the economy, the pressure is higher than ever before to turn any expenditure of time, money and resources into a positive effect on the bottom line.

So, if you're looking to invest in your Web site, how do you predict what areas will produce the best return on your investment? What do you develop, improve or enhance in order to maximise your bottom-line impact?

Following are the top 10 best bets that online retailers are doing to build their bottom lines:

1. Develop content that addresses the nuances of product categories, customer base and distribution channels. This is especially important for product categories such as electronics, for which consumers need detailed information to make a buying decision.

2. Use interactive technology to add value to the online shopping experience and increase sales. Zoom, colour change and/or multiple-dimension technologies are frequently used on sites that sell computers, sporting goods retailers, department stores, mass merchants and apparel and accessory sites to give shoppers the sense of seeing the "actual" product and will minimise their perception of risk.

3. Minimise the number of clicks to checkout and improve "quick-to-shop" times to avoid cart abandonment. Research indicates that today's shoppers want rapid service and easy navigation. With so many e-tailers to choose from, consumers appear to be losing their patience for difficult-to-use Web sites.

4. Communicate with customers via targeted e-mails that include merchandising tactics and provide timely and accurate responses to customer service inquiries. E-mail is fast-becoming the communications medium of choice for many consumers. As a result, investments in technology and customer service will reap many long-term benefits.

5. Invest in search technology that allows consumers to search by multiple factors (e.g. department, keyword, price, recipient, theme, and occasion) and delivers results that match the search request. Often, consumers come to a site with a particular item or product category in mind. If that product is difficult to find, you risk losing a customer who came to your site ready and willing to buy.

6. Encourage additional purchases by offering relevant cross-sells and up-sells throughout the site. Cross-and up-sells are extremely effective tools to increase your average order sizes - but relevance to the customer and/or purchase is critical to achieve success.

7. Offer timely gift services. As shoppers become more confident in and savvy about shopping online, the convenience of shopping for gifts drives customers to the sites that offer superior gifting tools and services. Some features to consider include gift certificates/cards, gift suggestions, gift centres, gift registries and comprehensive gift searches.

8. Provide real-time online information about product availability and order status. Eliminate time-consuming customer service inquiries and potential customer frustrations by enabling customers to monitor their own orders.

9. Structure promotional offers without forfeiting profitability. Increase your average order size through creative offers (e.g. condition free delivery on order size).

10. Consistently integrate multi-channel efficiencies for customer convenience and operational cost savings. Offer a "Store Locator" or "Request a Catalogue" option on your Web site. In-store return and in-store pick-up capabilities, as well as information about store events online, can also create a profitable synergy among channels.

The full study is available for purchase from The DMA Online Store.

"After nearly a decade of learning what works in the online marketplace, retailers are getting back to basics and focusing on factors that build the bottom line," said H. Robert Wientzen, President & CEO, The DMA. "They are putting emphasis on merchandising tactics such as search technologies, product enhancement features and customer services that actually increase sales and they are placing less emphasis on features such as community that do not guarantee a solid return.".

Winnifred Knight, email winn@themarketingsite.com or phone 082 575 9922

Back to www.bizland.co.za