Kenneth Cole looks to measure ROI of seasonal online marketing programs
CHICAGO, IL – December 20, 2001 – Do you "see" your customers when they’re sleeping? Do you know when they’re awake? This familiar holiday jingle might ring true for retailers if they knew exactly why – despite encouraging research showing a dramatic surge in online holiday shopping – nearly 75 to 78 percent of U.S. Internet users abandon their shopping carts before completing transactions, say industry experts including Vividence Corporation, Ernst & Young and Yankee Group.
According to Chicago-based Visual Insights‚ , the eBusiness Performance Management Company, the hottest request on eRetailer’s holiday wish lists this year is a better way to capture, track and understand their online customers’ purchasing behaviors and eliminate potential abandons. Analysts have predicted that 14.1 million more buyers will shop online in the fourth quarter of 2001, with four million being first-time online shoppers (source: eMarketer, November 2001). In fact, experts such as Goldman Sachs, Harris Interactive, Neilson/NetRatings recently found that the average amount spent online among U.S. consumers jumped 34 percent from the beginning of the holiday season (beginning of November) to the week after the Thanksgiving holiday.
This holiday season is a telling time not only for pure-play online retailers, but also traditional bricks-and-mortar retailers who’re experiencing a rapid influx of online shoppers seeking a safer, more convenient way to shop in the wake of the September 11 events. Understanding how customer segments are shifting their behaviors – and targeting them with appropriately tailored messaging, content and promotional strategies – is the key to managing the outcome and payback of eBusiness performance strategies.
"The holiday season represents one of the heaviest online traffic periods of the year and is the perfect opportunity to unwrap the mystery behind what motivates certain online customer segments to buy – or not. It’s also the moment of truth when retail executives must accurately measure the ROI of their holiday online marketing efforts to plan ahead and maximize their budgets in today’s recession-hit economy," says Scott Cotter, Vice President, Marketing, Visual Insights.
As today’s retailers must undergo belt-tightening measures, a new demand is emerging that’s driving retailers to embrace the value of eBusiness and customer relationship management (CRM) analytics. Web analytics, as a category, grew more than 200 percent to $425 million in 2000, from $148 million in 1999 and could be worth $4 billion by 2004 (source: Aberdeen Group). In fact, analytics is the fastest growing area of CRM, averaging annual growth of 82 percent through 2004.
If the Shoe Fits…Kenneth Cole Shapes Online Merchandising Strategies to Size
Kenneth Cole Productions, a leading shoe and apparel retailer, is on the cutting edge adopting eBusiness analytics into its everyday business practices. The global retail operation plans to use Visual Insights’ eBizinsights XL 3.0 eBusiness Performance Measurement software to measure the performance of its Website, www.kennethcole.com. "The information captured will help us to gain an in-depth view of important online customer purchasing behaviors during high volume holiday peaks and beyond. This insight will be used to enhance our Web-based promotion strategies, find opportunities to cross-sell and up-sell our products, and make instant changes to our site to improve customer satisfaction and sales," said Courtney Clark, Vice President, Online, Kenneth Cole Productions, Inc.
Like Kenneth Cole, many retailers worldwide are moving beyond basic Web tracking systems that just track hits and clicks and adopting more advanced Web analytics solutions such as Visual Insights eBizinsights XL 3.0 that have measurable business. With these types of software solutions now available, retailers are able to show quantifiable ROI from their eBusiness initiatives by capturing hard results that translate to revenue lift. They can obtain in-depth customer analysis, which allows them to understand how consumers interact and react to their Website, promotions and product offers. Based on this real-time insight, retailers can enhance Website performance almost immediately to make content, design and technical enhancements precisely tailored to online customer segments. The result: higher profit margins and enhanced customer service/retention for the retailer.
About the eBizinsights‰ Product Family
Visual Insights‚ eBizinsights‰ product family provides eBusiness customer and traffic analysis software for retail, financial, marketing and advertising executives. This next-generation eBusiness Performance Management solution enables companies to better understand, track and measure Website performance and activity, visitor behavior, content effectiveness and online advertising, branding and promotional strategies. The product family includes: eBizinsights XL™ 3.0 which optimizes Microsoft`s .NET Server; and eBizinsights CS™ for sites running on Microsoft Commerce Server 2000. These products offer Web log analysis and reporting, as well as integrated product performance and transaction analysis. Visual Insights’ clients include: Kenneth Cole, EDS, Tribal DDB Worldwide and TBWA/Chiat/Day, among others.
About Visual Insights
Visual Insights‚ (www.visualinsights.com) is the eBusiness Performance Company™. Our mission is to help companies create and sustain winning eBusiness strategies by providing an immediate and accurate understanding of Website performance and activity, visitor behavior, content effectiveness and online advertising, branding and promotional strategies. Visual Insights was incorporated in 1999 to leverage 10 years of Lucent Technologies Bell Laboratories’ extensive R&D efforts in data visualization technology. Headquartered in Chicago, Ill, we have offices throughout North America, Europe and Asia. We maintain strategic technology and co-marketing alliances with Microsoft, Intel, IBM, Cognos and i2 Technologies. Visual Insights is backed by premier investors including ABN AMRO Private Equity, Intel IA 64 Fund, Emigrant Capital, Gulf Investment Bank, Lucent Technologies, Milstein Brothers Capital Partners, and Topspin Partners, L.P. Visual Insights can be reached at 630-753-8600.
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