ATG today announced the results of an eCommerce research study that examined web growth priorities among mid-sized and fast-growing merchants in a variety of industries. ATG polled eCommerce executives at mid-market companies to analyze their technology investment priorities. It also gathered data about current tools being used, as well as their plans to incorporate emerging sales channels, such as mobile and social commerce capabilities, into their overall web and cross-channel strategy.
The survey found that 80 percent of mid-sized merchants see eCommerce growth as very important or critical to their overall business in the next 1-3 years. Yet, while it is clear that driving web revenue is a primary business objective for mid-sized companies, on average 40 percent of the merchants surveyed said they are not satisfied with their site's current shopping experience, as it pertains to maximizing revenue potential. In fact, one-third of respondents said they plan to re-platform and re-launch their sites in the near future.
The findings revealed that 98 percent of mid-sized merchants said segmentation and targeting are important to their overall web and cross-channel merchandising strategy, yet the majority are not satisfied with the business tools they use. The data highlights a clear demand among mid-sized merchants for better business tools and underscores their need to merchandise to key segments using technologies and services that personalize everything from promotions, product recommendations, and search results, to customer service.
"Our study reiterates the strategic role of online channels in growth strategies for mid-sized companies," said Nina McIntyre, ATG's senior vice president of marketing and chief marketing officer. "It's clear many mid-market brands are recognizing the need for more agile and sophisticated business tools that can help them target customer segments efficiently and effectively. Given the importance of eCommerce growth to mid-sized business today and the high dissatisfaction with current business tools and platforms, it's not surprising that a large portion of the market is planning to re-platform their eCommerce infrastructure."
When merchants were asked which aspects of their website's shopping experience they would like to significantly improve in the next 6-24 months, more than half (52 percent) cited dissatisfaction with the business tools they use for merchandising and promotions. Specifically (respondents could choose multiple answers):
- 62% said they would like to improve their ability to offer, control, and manage cross-sells and up-sells to encourage more sales
- 60% said they would like to improve their site search functionalities
- 50% said they would like to improve their ability to offer, control, and manage promotions
- 37% said they would like to improve the "help" and customer service features on the site
In examining the challenges mid-sized merchants face with their current merchandising and promotions tools, respondents stated:
- 66% said they are too manual, not automated enough
- 38% said they are difficult to use
- 30% said they do not have enough control over site content
- 23% said they do not have enough control over the product catalog
When asked how they plan to improve customer experience and their site's performance to drive additional growth in the near future, merchants responded with:
- 53% plan to improve by experimenting with emerging sales channels, such as mobile and social commerce
- 42% plan to improve by investing in add-on services, widgets, and tools they can implement on their existing site
- 33% plan to improve by completely replacing their existing commerce platform and re-launching their web store
This online study polled 60 executives responsible for their company's eCommerce initiatives, at mid-market retail, telecommunications, consumer manufacturing, high-tech, and other companies with overall revenue up to $500 million and web revenue up to $100 million. The study was commissioned and deployed by ATG, throughout a period of eight months in late 2009 and early 2010.
For the full report, eCommerce Technology Investment Priorities for the Mid-market: The Merchant View, visit: http://www.atg.com/ecommerce-statistics.