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UK E-Shoppers Put Convenience
First
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Fletcher Research Report

57% of UK Shopper said Convenience was the main reason for purchasing over the internet. Price came 3rd with just 23% and Speed of Ordering 2nd at 29%. This is in contrast to the US where price is top at 80%.

Other factors the survey found were:

Customers value 'Fun/Novelty' and 'No Alternative' both equally at 15% each, and Speed of Delivery at 9%.
37% already know the supplier off-line, 38% already know the supplier is on-line, and only 25% find them by chance.
The 10 top UK advertisers spent £445m between them in the last year on web advertising.

Implications

This survey highlights the importance of taking culture differences into account in devising both your e-commerce strategy and in its implementation. Also, that well established suppliers have a significant edge in terms of consumer mind-share that they reinforce and protect through substantial advertising.

From a strategic point of view it means:

identify products and services that your customers will give a high convenience rating to and that are less price sensitive.
- examples are gifts, breakdown assistance, no hassle mortgages (e.g. with bundled and fast legal processing).
identify your most valuable customers, i.e. the ones that appreciate or demand service above price.
- you want the 57% who value convenience, not the 23% who want low price.
communicate the convenience message to your target customers using the most appropriate mediums.
- your customers may use the internet in their time of need but a prior written communication with a PC "memory jogger" sticker may be the best way of letting them know you can help.
defining appropriate value added service to up-sell and cross-sell.
- for example, if you are selling tangible products that are often given as gifts, then offer express delivery and gift wrapped services. New customers, desperate to fulfil a forgotten birthday will appreciate these services. Your most valuable customer (those with a high life time value) can be given one or both of these as complimentary services if they need them.
identify the appropriate communication mediums to access your service.
- someone who is away on business and has forgotten a birthday may not have access to a PC.

From a tactical point of view it means:

Fast, simple means of ordering goods and services:
- web sites that are easy to navigate and that remember customer information and preferences.
- call centres that respond and process orders quickly and again have access to customer information and preferences.
  - but do allow your clerks to spend more time with your most valuable customers, especially when they are making an important or large value order.
- ability to identify, present and cost the most appropriate value added services.
Fast, efficient and reliable methods of executing the orders:
- real-time links to inventory systems and logistic systems or suppliers so your promises are not empty promises but are fulfilled promises.
- real-time order tracking so customers can be reassured their goods are on their way and can be notified when they arrive.
Effective communications:
- regular reminders that don't irritate (e.g. inversely related to purchase frequency).
- suitable content and style for each individual customer.
- targetted communication channels with adequate spend to make your message heard.
  - remember that screen space at popular web sites is limited and therefore the ad. price is high.
- follow-up calls based on customers life time value and order value.

The above a just a selection of factor to take into account. The key action is not to blindly follow US practice and to understand your own customer base, to meet their needs, to effectively communicate your message, and then to efficiently and accurately execute their order.

Over time, as more suppliers come on-line and consumers take convenience for granted, then the importance of price will increase. By investing to-day in on-line shopping, while prices are less sensitive, you have an opportunity to recoup your investment.

Happy shopping!

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