Shoppers That View Online Store-Based Specials / Ads Convert At 90%

Here is some really exciting primary market research that the team here just conducted (July 2007). These surveys were distributed across our network of online circular and catalog sites as well as on our national/local comparison shopping engine. The respondent number varies by question/topic, ranging from ~200 (for some very specific questions) up to ~2600 (for some of the more general directional questions).

Overall we found that the users of online catalog and circular sites tend to be:

• Highly Motivated Shoppers. Shoppers who view on-line circulars are clearly “in-market” buyers, with a conversion rate of approximately 90% (about 50% bought during the week of the circular and another 40% plan to buy from the retailer within the next 3 weeks)
• Prefer In Store Purchasing. In store trumps on-line by approximately 5:1 for SC shoppers, 10:1 for SL shoppers (in line with the general public)
• Interested In Multi-Channel Shopping Tools. Shoppers are very interested (2/3 to 3/4) in shopping tools that will...
• Notify them of a comparable product when their searched for/save one expires
• Allow them to check-off purchased items (if it will help the retailer effect what is placed in future circular advertisements - eg making it more relevant to the shoppers)
• Consistent In Which Channels They Buy From, Regardless of Category. Retail channels like consumer electronics and office products, surprisingly, did not have an appreciably higher on-line buying preference than general merchandise (for our surveyed shoppers)
• Retailer Loyal. Shoppers were dramatically consistent about buying at the store where they viewed the item in the circular (90%)
• Varying Basket Sizes. Retail channels like consumer electronics and office products did tend to be shoppers who “target buy” a single product. Department stores and general merchandise retailers did better with larger basket sizes, but some, who apparently do not appeal to shoppers across categories, did poorly.
• Varying Levels Of Price Sensitivity. Categories like CE, office and CPG were very price sensitive (as expected). Price sensitivity across department stores, home improvement, general merchandise, apparel, etc, varied substantially by retailer within the channel.