Compiled by Vicky Nolan
So That's How to Reach New Customers
Email marketing is the most effective way to boost customer retention and increase sales, Forrester Research reports. "Marketers are hunters--following the tracks of consumers and scattering promotional bait to lure elusive dollars out of hiding places," explained Jim Nail, senior analyst in media and entertainment research.
"Email turns marketers into herders: once they trap consumers, they must learn to tame and cultivate them as ongoing sources of nourishment. But email is not direct mail minus the paper and postage," Nail added.
As email marketing grows in popularity, marketing firms will spend an estimated $4.8 billion by 2004. Spending will be on customer retention mainly, and about of quarter of that money landing in outsourcing firms hands.
www.Forrester.com
Is Internet Advertising Necessary?
Zona Research says that advertising really doesn't drive customers to e-commerce sites. They surveyed Internet users and found that 77 percent found a site using that old stand-by the search engine. Nearly as popular were word-of-mouth recommendations, which 75 percent of those surveyed said led them to a new site. Advertising off the Internet directed about 70 percent, while online advertising was mentioned by 46 percent of the respondents. Zona Research's findings were featured in Internet Week.
The At-Home European Perspective
Datamonitor's new report Digital Home in Europe: Perspective 2003 says that four key elements are necessary for the digital home market to position themselves in the value chain, especially within service provision, content provision and technology provision. Vertical integration and
broadened product portfolios will be a must, researchers emphasized.
www.Datamonitor.com
Marketing Needs to Be More Specific
Fine-tuning marketing strategies is the best way to get and keep customers, according to a study by ActivMediaResearch. "Online markets are evolving based on market-specific terms," the study said. "E-merchants must learn to compete in ways that uniquely differentiate each marketplace to newly emerging consumers."
The study, Capturing Online Markets: The Definitive Guide to Online Consumer Loyalty details how e-commerce is growing and profiles how to succeed in each of ten specific online markets.
www.activmediaresearch.com