April 10, 2006

Online Retailers Face A Tough Road Ahead

Waning Customer Satisfaction Forces Retailers To Earn Loyalty And Trust

by Carrie Johnson, Sucharita Mulpuru

with Brian Tesch

Executive Summary (This is a document excerpt)

As mainstream consumers become a larger and larger portion of online buyers, the dynamics of online shopping are shifting. Overall satisfaction with eCommerce shopping experiences and credit card security trust is declining, consumers still shop online mostly to get low prices, and the majority of customers prefer to shop in stores. What does this mean for retailers? That it's finally time to scrap promotional-only strategies and build trust and loyalty with shoppers. They'll do that by touting their safe shopping experiences online and offline, focusing loyalty programs on rewarding word-of-mouth behavior, reviving branding online, creating segmented online store offerings, and getting the multichannel integration basics right.

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