Listrak Survey: Communication Overload and Impersonal Outreach Biggest Barriers to Email Engagement
97% of retailers say customer engagement is key, but majority underutilize critical touch points
LITITZ, PA, December 1, 2010 – In an eCommerce world where customer engagement has proven to deliver bottom line impact, retailers are missing critical opportunities to engage customers and drive sales, according to a survey released today by email marketing firm Listrak. The study, of 80 executives from Internet Retailers, revealed that retailers cite communication overload and impersonal outreach as the biggest barriers to customer engagement via email. The survey is the latest in an ongoing series from Listrak, where the firm examines the ever-changing needs of the interactive marketing of the retail industry by monitoring Digital Vital Signs™, tracking behavior and providing up-to-the-second insights.
While respondents nearly unanimously agree (97%) that audience engagement is a critical priority, the survey reveals that they are under-utilizing proven tactics and key touch points to engage consumers, including campaigns to proactively prompt repurchase of replenishable products and shopping cart abandonment strategies that keep existing customers buying. Retailers on average reported using fewer than half of available key touch points (2.3 of 6), which include welcome messaging, confirmations, transactional, shopping cart abandonment, seasonal and post purchase campaigns. All of which provide tremendous opportunity to sell, cross-sell and up-sell products to customers who are engaged with your brand.
“Retailers are overlooking crucial opportunities to further engage customers when they are most receptive to it,” said Ross Kramer, Listrak CEO. “Customers who leave items in a shopping cart before completing the purchase are prime for remarketing campaigns.”
The survey also revealed that the techniques most companies are using to measure engagement are outdated and lacking insight. In fact the overwhelming majority of those polled (82%) measure campaign effectiveness only in terms of opens, clicks and email conversions, none of which provide insight to actual ROI. Most experts agree that retailers need to use business-driven rather than behavior-focused metrics to truly understand customer engagement levels and determine the actual sales impact of campaigns. Among the more sales-driven metrics being adopted are: measuring the number of products purchased, revenue from those orders, and repeat purchases from those customers. These metrics are more closely tied to true ROI and customer lifetime value.
The survey showed that there has been an increase in the number of retailers who measure engagement based on customer value. Specifically, 26.25% look at conversion rates, 16% use recency and frequency of purchases, and 8.25% measure the overall value of their customers to determine how engaged they are with their brand.
“By reaching customers at key touch points with relevant messages and using more advanced measurement criteria, retailers can cut through the clutter and overcome barriers to truly engage customers. That is how retailers will build brand loyalty and increase customer lifetime value,” adds Heather Bonura, Listrak Director, Brand Strategy.