Q. Everybody knows that free shipping is a nice little incentive that many e-commerce businesses use to generate more sales. But just how much of an incentive is it? A. Right up there in the top three, behind security issues and price, according to a recent survey of intensive online users. In fact, for many shoppers it is more important than branding.
The study by Internet customer relationship management company Cyber Dialogue found that free shipping is among the most effective means of getting repeat business. According to the survey, the categories that users found very important in prompting return visits were guaranteed transaction security (85 percent), price discounts (79 percent), free shipping (76 percent), ease of finding items (69 percent) and a prominently posted delivery and shipping costs policy (67 percent).
What''s less important? The survey found that the availability of other shoppers'' opinions (14 percent), the ability to personalize info and receive updates (23 percent), and one-click shopping (30 percent) were not key concerns of experienced online shoppers..
Overall, free shipping was a factor in the decision-making process for 90 percent of online adults who made holiday gift purchases in 1999, according to Cyber Dialogue.
Even the lure of brand names wilts when compared to the promise of free shipping, with more than 63 percent of online users indicating they would prefer to shop at a site offering free shipping over one with well-known brands. This distinction is magnified when examining how women respond to this question: 69 percent of women would prefer free shipping to only 20 percent who would prefer to shop at sites with well-known brands.
"A clear majority of online shoppers are most interested in simple, easy-to-understand characteristics like low prices and free shipping," said Qaalfa Dibeehi, a senior analyst at Cyber Dialogue. "Currently, consumers appear to understand cyber-shopping in something similar to catalog shopping terms," he said. "This is not to discount the importance of online-specific innovations but the popularity of free shipping and low prices can''t be underestimated."
More than 73 percent of the survey''s respondents indicating they planned on increasing their online purchasing during 2000, indicating the increased importance of repeat visitors to shopping sites.
Other findings include:
Women expected to spend on average of $271 during the holiday season, but actually spent an average of $468 Men expected to spend an average of $381 during the holiday season, but actually spent an average of only $206 60 percent of online users who made a holiday order contacted customer service via e-mail, compared to 36 percent by phone and 17 percent through live online service The findings are from Cyber Dialogue''s January 2000 Omnibus, an in-depth survey of more than 1,000 U.S. adults drawn from Cyber Dialogue''s database of "intensive" online consumers.
Founded in 1993, Cyber Dialogue provides tools, data, and services to senior marketing professionals allowing them to identify, segment and target online consumers. The company''s customer management platform provides strategic consumer information, advanced database marketing techniques (including tracking, targeting, and measurement software), and data mining services.
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