World wide web is weapon in struggling retailers’ arsenal
RETAILERS are being advised to not slash online marketing budgets as cash strapped consumers turn to the internet for value.
According to research by e-consultancy Logan Todd brands that fail to embrace and engage in “online consumer dialogues” are set to be among the most severely affected by the economic downturn.
The survey shows that with increasing fears surrounding the credit crunch, falling house prices and worsening economic conditions, consumers are turning online to find the best available prices.
Comparison engines and user reviews are also proving popular with 62% of survey respondents saying they are now more likely to consult reviews written by other web shoppers before buying.
Online retail has seen a continual growth in 2008 despite the credit crunch with online spend up 38% on the first half of 2007. E-purchases now account for 17p of every pound spent in the UK.
While women are more inclined to reduce overall spending during the economic downturn, they are also more likely to consult online reviews than men (64% compared to 58%).
However, mortgage free silver surfers (those aged 55 and over) are the least concerned about the economic situation (43%), followed by the 16-24 age bracket with 37% of respondents confident that they would’t change their spending levels.
Matthew Tod, Logan Tod chief executive, said:
“It is clear from this research that online strategies will have to become far more sophisticated to weather the economic slowdown.
“A one size fits all strategy will no longer be the most effective and online retailers will have to start to segment their audience and match their marketing activity to each group.”
