Report

August 2001

• eCommerce euphoria is giving way to ROI analysis.
• Current efforts to quantify ROI don't work.

• Retailers must calculate companywide ROI (cROI).
• A basic site is enough for replenishment items.
• Convenience and researched goods need sophisticated sites.

• Executives must customize Forrester's cROI model.
• Multibrand companies must have a unified Web strategy.

• CFOs will focus on cROI -- not ROI.
• Online liquidation will make outlet centers obsolete.

• Figure 1.  As eCommerce Matures, The Focus Shifts To ROI
• Figure 2.  cROI Yields A Complete Picture Of The ROI Of Selling Online
• Figure 3.  cROI Varies Based On The Level Of Functionality And Class Of Goods
• Figure 4.  Online Sales Will Be The Primary, But Not Only, Driver Of cROI
• Figure 5.  Basic Sites Are Best For Replenishment Sites
• Figure 6.  Sophisticated Sites Are A Must For Researched Goods
• Figure 7.  Sophisticated Sites Maximize cROI For Convenience Goods
• Figure 8.  Upgrades Are Only For Sites Selling Convenience Or Researched Goods

 

• Online Resources
• Research Summary
• Additional Sources
• Related Research

• Sears is already sold on cROI.
• This Athlete's Foot problem can be cured.
• It's a wonderful life.
• eCI + UI = cROI.