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Rogue call action plan revealed

The Government has outlined its plans to crackdown on nuisance calls, nearly three months after agreeing to bring forward legislation to tackle what hasBig Ben been branded a “public menace”.
Under a Ministry of Justice consultation, launching this week, claims management firms could face fines of up to 20% of their annual turnover. This means some could potentially be fined millions of pounds, up from the current £500,000 maximum that the Information Commissioner’s Office can impose.
This will bring it in line with fines for mis-selling, although even these are not worked out from annual turnover. Scottish & Southern Electric (SSE) has the dubious honour of holding the record for the largest fine for mis-selling; it was slapped with a £10.5m monetary penalty in April last year.
Next week regulations will be laid out in Parliament to simplify how Ofcom can share information with the ICO and the Insolvency Service, while later this year the Government will also launch a consultation on lowering the threshold for ICO action.
Justice Secretary Chris Grayling, said: “The scale of these fines shows just how serious we are about stopping them. The Claims Management Regulator already takes touch action against companies which break the rules, suspending and closing down rogue firms, but now these fines will give us an extra weapon to drive bad behaviour out of the industry.”
Commenting on the Government’s action plan, the DMA’s chief of operations Mike Lordan said: “The Government’s action plan is a welcome warning to the rogue companies responsible for the nuisance calls that cause misery for millions of people and severely damage the legitimate telemarketing industry.
“As the industry’s representative, the DMA will play a leading role in implementing the action plan. This will not only benefit people at home, but also the tens of thousands businesses that lawfully use telemarketing to win new customers and drive sales.”
This was first published on Decision Marketing. For more breaking news and opinion pieces on direct, data and digital marketing in the UK visit us at www.decisionmarketing.co.uk

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In the News UK

Donors find most DM ‘very annoying’

Charities are being urged to rethink their marketing strategies after a damning report claimed most people find many DM techniques – including email,Donors-find-most-DM-‘very-annoying’ text message, and telemarketing activity – “very annoying”.
The research, published by consultancy nfpSynergy, will make worrying reading for many in sector as direct marketing is such a key discipline within most organisations. They spend over £300m a year – and rising – on direct mail alone, making it the third highest spending sector in the UK.
The study revealed that people are much more likely to donate to charities after viewing an ad campaign – either on TV or online – than through most DM techniques.
Doorstep fundraising is seen as the biggest villain, with 54% of people finding it very annoying, while 51% feel the same about being asked to donate on the telephone. A third (36%) get very annoyed when they are approached by a fundraiser on the street.
More modern methods are also unpopular, with 33% irritated by text messages and 20% unhappy with receiving emails.
The new data, based on a survey of 1,000 British adults, did show that some fundraising methods sit well with the public. Over a third were happy to be asked to donate via collection tins and online ads, while around a quarter find face-to-face, radio and TV approaches acceptable.
Despite the high levels of annoyance, people said they did understand that some methods are effective ways to raise money. These included newspaper/magazine ads (42%), radio (40%), collection tins (35%) and direct mail appeals (31%).
When asked for their preferred way to be asked for money, just 2% would choose being asked on their doorstep and 1% on the telephone.
nfpSynergy chief Joe Saxton said: “The Holy Grail in fundraising must be to maximise the money raised and minimise the aggravation it causes. This data gives a good indication that we are not winning this battle.
“We as a fundraising sector have to start working out ways of reducing the annoyance from some of our most effective and successful methods. Charities must ensure people can opt out of telephone calls and being badgered on their doorstep and they have to look at their direct marketing. It’s no good thinking that people are happy with certain methods and leaving it at that if those are not the ones that can raise the big bucks.”
This was first published on Decision Marketing. For more breaking news and opinion pieces on direct, data and digital marketing in the UK visit us at www.decisionmarketing.co.uk

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Teradata drops eCircle branding

Teradata has scrapped the eCircle name, one of the most well-known brands in European marketing automation, following the purchase of the business inTeradata-drops-eCircle-branding June 2012, and folded it into the main business.
The company insists Teradata eCircle had only ever been a “transitional name” and will now revert simply to Teradata.
At a product level, eCircle’s eC-messenger will be rebranded Teradata Digital Messaging Center, the label currently used in the rest of the world.
In addition to the organisational and product name changes, Teradata eCircle media services will become Teradata Interactive. Teradata Interactive is a full-service online marketing unit and is part of Teradata’s broad offering of business services.
Volker Wiewer (pictured), who co-founded eCircle in 1999 and is now Teradata international vice president of marketing applications, said: “As one brand and one unified global organisation, Teradata can better deliver its market-leading solutions to help companies increase the value of their data and customer relationships.
“By any name, Teradata’s solutions are enabling marketers to more effectively manage operations, multi-channel campaigns and analytics, resulting in greater effectiveness and efficiency and increased ROI.”
Teradata will maintain its European HQ in Munich, with offices throughout the EMEA region including Denmark, France, Italy, The Netherlands, Poland, Spain and the UK. The company also has offices across the Americas, Asia and Japan, with more than 10,000 employees in over 40 countries.
This was first published on Decision Marketing. For more breaking news and opinion pieces on direct, data and digital marketing in the UK visit us at www.decisionmarketing.co.uk

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Innovative B2B direct mail campaigns: marketers, take note!

The old days of simple messages in an envelope are long gone – to stand out from the direct mail crowd, you need to get creative, says Suzanne Stock (pictured).suzanne stock, Marketscan

Grabbing a prospect’s attention as soon as your missive lands on their desk is the hook that every campaign needs, no matter how good your direct marketing data is. So how are successful marketers making that positive first impression?

The basics: Pushing the envelopeenvelope, direct mail

You’ve spent money attaining finely-targeted direct marketing lists so now it’s time to consider your direct mail’s content, message – and just as importantly – its presentation.

While you may have a call to action that’ll make your prospects go weak at the knees, if it arrives in a brown envelope, you can expect all that work and investment in direct marketing data to be shown the nearest bin before it’s even been opened.

If possible, make the envelope the product, or at least reflect it in the packaging; Tetra Pack, the food and drink packaging company, wanted to show off its new Prisma Aspetic product that allows brands to print over the entire pack.

Tetra sent out Prisma Aspetic cartons with their prospect’s brand printed on it plus a personalised leaflet and a link to an online hypervideo for more information.

The DM alone had a 53% response rate . . .

Go multi-channel

While marketing bloggers can seem obsessed with comparing direct mail against supposed ‘competing’ channels such as digital, the smart B2B marketer knows that using a multi channel approach is becoming increasingly important.

NetNames wanted to make a splash by positioning itself as the leading global brand protection service for business. It focused its campaign on the concept of very literally ‘unmasking’ cyber criminals and deploying a key message ‘Search. Find. Stop‘. The visuals were simple – orange ‘cybermatter’ splashed over an invisible thief, revealing his facial features.

Working with Earnest, NetNames created an integrated campaign with personalised content – from social media and micro site content to a powerful targeted direct mail campaign, the latter deploying a two-tiered approach:

Low Value

A simple but highly attractive animated, interactive lenticular postcard with the company’s core message personalised for each industry type and job role the postcard was sent out to.

High Value

A plush box containing a personalised pin-art gadget inside to underline the invisible threat of cybercrime to businesses both big and small.

By deploying such an innovative, multi channel approach, NetNames garnered some 72 meetings during the campaign…

Think true multi-media

Other mediums can be used to fantastic effect, again with technology and traditional direct mail being used to complement each other. Step forward Oracle’s B2B direct mail campaign that saw the company reaching out to 40 hand-selected companies in the oil and gas sectors.

Using a video-in-a-card (a personalised TV-style news show in a miniature, self-playing video pack), the campaign generated 33 leads and a sales pipeline of more than £600,000 . . .

Remember:

  • Innovate with your packaging to ensure prospects actually open it.
  • Don’t fear a multi channel approach to complement your direct marketing; embrace it instead.
  • Personalisation and targeted direct mail marketing is more important than blanket-bombing hundreds of prospects, so make sure your direct marketing lists are optimised.

Before sending your innovative direct mail campaign, download the eGuide: ‘Wait -– Before you send: The Direct Mail Checklist.

Suzanne Stock is communications director of Marketscan.

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Taking customer experience management to the next level

Udesh Jadnanansing (pictured) looks at how online retailers should strive for ‘Excellent’ rather than settle for ‘Good’ when it comes to customer experience management. Udesh Jadnanansing, Mopinio (WEB)

Customer Experience Management (CEM) is big business. In an environment where retaining customers is just as important as winning new ones, the battle lines between competing businesses have shifted significantly in recent years.

Largely fuelled by the online retail revolution, customers are far savvier about the service they deserve for their custom and have many avenues to communicate their dissatisfaction to other consumers, if this isn’t met. Retailers, in turn, have ramped up their CEM and Voice of the Customer (VOC) programmes to meet this challenge – but this has raised the bar across the industry. So in this retail arms race the question now is: How do you take CEM to the next level?

Currently there is a lot of interest and use of Net Promoter Scores (NPS) and Customer Satisfaction (CSAT) monitoring. For many businesses, this looks at the customer service function as a whole as an overview, and the types of reporting can vary greatly (from paper reports and Excel files to online dashboards). For some businesses, measuring CSAT scores may only happen twice a year or quarterly. This unfortunately means that many businesses have no real-time measurement – and, more importantly, this means they are unable to react to issues quickly and recover at risk customers.

Ashley Williamson of knowledge provider Informa has worked with organisations of all sizes and agrees that using NPS and CSAT is sometimes regarded as a convenient panacea for CEM needs: “Most companies use some form of CSAT, and NPS is a very common way of working out where your business is within an imaginary league table of competitors. But it is important to consider the objectives of these systems. CSAT is great if you want a simple reflection of satisfaction but NPS can sometimes be seen as? point scoring, the flaw being that it doesn’t really tell you much about the dynamic of your customer relations and where you could make improvements to increase sales. Customer loyalty is more complicated and can fluctuate at different times due to market conditions or seasonal purchasing trends.”

Flat-liner customer experience management

Indeed, there is a phenomenon of so-called ‘Flat-Liners’ – businesses where an NPS or CSAT metric does not improve and simply maintains a level over time. In real terms, this is even more of an issue over time, as competitors inevitably creep ahead by raising customer expectations and fulfilling them. Companies that want to improve loyalty and really want to excel in great customer service need to be aware of the fact that just monitoring or measuring NPS (or any other loyalty metric) is not enough.

Williamson says: “It’s fair to say Flat-Liners look at the results but don’t really see the details of their Customer Satisfaction relationship. Part of the reason for this is that many companies still operate the different departments of their businesses as silos. A sales team will deal with the same customers as the customer service department or returns department, but they won’t necessarily be sharing the customer feedback directly with each other in a proactive way. After-sales teams will often get as much feedback on the sales cycle as the team selling the products/services and yet it’s surprising how rarely this information is considered from an overall view. Until a business can look at its customer sales holistically, it will always struggle to rise above its competition.”

The crux of this argument is that attaining a score of ‘Good’ is not enough when your most successful competitors have reached an ‘Excellent’ level. Often, this means dealing effectively with issues as much as aiming to ensure that things run smoothly for customers in the first place. Pain points also need to be addressed and this often means looking at data from all touch points, be it the website, customer IM, email or telephones. An ‘Excellent’ customer experience will often hinge on the business reacting and taking positive action to rectify any issues or concerns.Aspirational marketers, customer experience management

“Part of the problem with simply relying on scores is that it can make the company unmotivated to improve,” argues Williamson. “A ‘Good’ score may sound perfectly reasonable but in the context of your market, you want to be ‘Excellent’. But actually even if you reach top scores it is still worth knowing where you can improve or be alerted to up and coming competitors that could steal your sales. Benchmarking is an important addition to any customer service scoring mechanism as it shows you how you are placed within your market. A high satisfaction score may just be an indication you have a passive customer base that tends to repeat buy from the same source – which leaves you in danger of these customers being ‘poached’. In fact, there are significant gains to be made even if your score appears to be high already. I have seen organisations that have moved from a ‘Satisfied’ CSAT score to an ‘Extremely Satisfied’ score and have realised four times more business because they stand head and shoulders above their competition.”

At the moment, Social Media has become a lynchpin of customer service for many businesses. There is good reason for this. There is a high degree of visibility of experiences on social media, which is good for consumers. But it is also good for customer managers and executives because it highlights genuine strengths and weaknesses in service. It’s important not to let these remain passive – if it’s just a forum for complaint it can have a negative effect on the perception of your business. As well as addressing complaints properly, appropriate monitoring should guide improvements to your offering as a whole to put issues right for the future. This means investing in monitoring of these channels and this needs to reflect social appetites for communications – social media trends can change like anything else.

It used to be easy to spot good and bad customer service but this is much more flat now. So what is it that will elevate your business above the competition and win more sales? “An ‘Excellent’ score will mostly come from a consistent service to customers, one that offers a personalised service so customers feel valued and appreciated,” advises Williamson. “You also need to be aware of customer satisfaction in real-time, look at what competitors are offering them and provide an offering that persuades them to keep buying from you.”

Udesh Jadnanansing is founder and managing partner at Mopinion.  

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How to run an effective travel promotion

Simon White (pictured) tells how to leverage Brits’ love of holidays for campaign success.

Research consistently shows that, despite household budgets remaining stretched, the one thing hard-pressed Brits are reluctant to cut back on is their annual holiday.Simon White

In fact, travel association ABTA’s Consumer Trends Survey 2013 showed that, for many Brits, a holiday is a necessity they cannot do without, with one in five (21%) feeling this way about a longer overseas holiday and one in ten (11%) for a longer holiday in the UK.

With this in mind, brands, businesses and organisations that tap into this love of holidays by offering them as a reward or prize in a sales promotion campaign can achieve success. The right reward will capture the consumer’s imagination, create awareness, reinforce brand values and enable the brand or business to benefit from an important opportunity to collect accurate data.

With careful planning and the right advice travel promotions don’t need to cost the earth and can deliver a high ROI. However, there are a number of steps that should be put in place to ensure a promotion offering a holiday as a reward or prize goes smoothly.

Identify your business objectives

What is it that you want to achieve? An uplift in sales? Increased market share? Heightened brand awareness? To instigate product trial? This is the essential starting point in order to establish the right mechanic and reward for the promotion.

Identify the right reward

The reward must achieve the set objectives, but also be aspirational to the target audience in order to capture their imagination, engage them and make them excited. Depending on the preferences of your audience, it could mean offering £200 to put towards their next holiday, or the chance to win a trip to the Lake District, New York, or even the Bahamas.

Choose a cost-effective mechanic

The key to a winning mechanic is to keep it simple as consumers are turned off by overly complicated requirements. It is far easier to text or email in to enter, than to collect coupons, find a stamp and enter via post. Make use of digital technology in order to keep the cost of fulfilment/redemption down, but remember to test any technological aspects of the promotion to ensure it works.

Consider using fixed fee

Agreeing a single ‘Fixed Fee’ with a supplier at the beginning of a campaign allows you to budget for the promotion and offer more big rewards for the available budget, while also giving you total reassurance by removing the uncertainty of redemption levels and allowing someone else to take the risk.

Appoint a supplier who can handle the whole process

Appoint a supplier who has the resources, capacity and experience to handle all the administration and will look after the winners carefully and thoroughly. Booking and finalising travel arrangements, for example, can be very time consuming and people may request changes be made to the original booking. A promotional prize that is handled incorrectly can leave a lasting bad impression and blacken a brand’s reputation not only in the eyes of the individual prizewinner, but wider among consumers at large if there is negative publicity in the media, not to mention on social media channels.

Overall, remember the promotion is not over until the winner has enjoyed the prize and only has positive comments to make about it.

Simon White is business development director, Protravel. 

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First UK shopping centre uses revolutionary technology to deliver targeted promotions

New solution to help retailers narrow gap between ‘clicks and bricks’ 

A shopping centre on the UK’s south coast has become first in the country to use the revolutionary Beacon technology that enables retailers to Swan Centreacknowledge customers’ presence and deliver targeted ads.

The roll out of the technology – popularised by Apples’ iBeacon version in the US – in The Swan Centre in Eastleigh, allows shoppers inside the centre to receive discount offers from retailers straight to their phones – without having to open an app or browse a website.

The service has been developed by Brighton-based tech start-up TagPoints. Using Beacon technology, the company has incorporated its unique ‘TagBeacons’ platform into The Swan Centre’s popular white-labelled ‘SmartRewards’ app.

What are Beacons?

Beacons are low energy blue tooth devices that ‘ping’ a location message to smart phones, allowing consumers who have downloaded a retailer’s app to receive location-based content and advertising.

Along with a welcome message, customers entering the centre receive 10 points to their loyalty account (which can be used in conjunction with merchant discount offers). As more TagBeacons are installed throughout the centre, they will receive retailer-specific promotions. The frequency and targeting of these messages with be carefully controlled to ensure no single customer is bombarded with messages. The focus is on delivering a relevant message to the consumer while boosting merchant sales. The TagBeacon solution also helps shopping centres and their clients accurately measure footfall figures in real-time.

How TagBeacons works:

  1. Users download and install the white-labelled ‘SmartRewards’ app and turn on their phone’s Bluetooth connection
  2. On entering the shopping centre, low energy transmitters detect the customer’s presence. The Beacons have a maximum range of 50m and allow advertisers to locate a user within a few feet.
  3. Customers receive loyalty points and targeted sales and promotions alerts as they travel through the centre, based on their physical location within building
  4. TagBeacons can also be used for non-promotional activity like way-finding and customer service.
  5. Beacon technology was first introduced in Apple’s recent iOS7 update – both Android phones are compatible with the system.

Mark Robinson, investment director at Ellandi, owner of the Swan Centre, said: “There’s a real buzz within the retail industry about the potential of location-based technology to help engage with and market services to the public.

“It offers them the ability to connect with motivated customers and deliver filtered offers and discounts – based location and proximity – directly to their mobile phones. Our merchants are now able to communicate directly with customers and positively influence their spending patterns without having to lift a finger.”

The company that delivers the white-label solution – known as TagBeacons – says the installation ushers in a new era of mobile advertising.

Jess Stephens, co-founder of TagPoints, said: “While this is the first time this system has been used in a UK shopping centre, the technology is being used overseas in places including New York’s iconic department store Macys.

“Retailers are comfortable with integrating consumers’ mobile habits into their stores and an increasing number realise that to counter the impact the internet shopping is having on sales, they have to do more than offer their own apps and Wi-Fi within their stores. Location-based technology allows them to use digital marketing strategies to improve the shopping experience.”

TagPoints’ co-founder, Dave Mitchell, added: “We’ve already seen that when shoppers receive targeted offers – based on where they are within the shopping centre – they’re more motivated and hence likely to use them and connect with the brand behind the offer.

“As well as building customer loyalty, the system enables retailers to gain data about their end users that previously has been beyond them – and help close the loop between the digital and bricks and mortar worlds.“

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Dead or alive? Whatever happened to Direct (mail) Marketing?

Is Direct (mail) Marketing dead or smugly toasting its own rude health? Ian Simpson (pictured) explores the arguments for and against.

Direct (mail) Marketing is subject to constant debate and I would guess it’s fair to say it’s a ‘marmite subject’ – you either like it or you don’t. No marketing technique guarantees 100% conversion to sales and marketing is arguably as much about raising brand awareness. And many business baulk at the thought of their marketing being overtly ‘salesy’.

Direct (mail) Marketing does divide opinions though, but with 86% of consumers opening direct mail and 22.4% of the UK population over the age of 15 increasingly responsive to direct mail – it must still have a healthy pulse!Ian Simpson (C4B)

Here are some more interesting numbers: 64% of consumers reported that they value the post they receive in their postbox. This confirms an earlier DMN News/Pitney Bowes survey showing that more than 52% of people receive greater satisfaction from reviewing their postal mail when compared to email. And more than 94% of consumers take action on a promoted offer or coupon received through direct mail. So far, it’s still breathing and hanging in there!

Once upon a time, Direct (mail) Marketing was, well, very direct! The piece would arrive in the mail to a prospect and the engage-to-sale journey would be very short. If it looked too good to be true – then it probably was – but it didn’t matter anyway. Direct (mail) Marketing has evolved somewhat, and it is rarely a single strike to the consumer jugular. It is much more a nurturing tool aimed to develop a relationship between buyer and business. Consumers are far more brand savvy and informed – they know what they want to buy and why. And they will always respond with ‘What’s In It For Me?’ (WIIFM).

Engagement and education are very much part of the purchasing journey. Consumers can now compare any product or service online and direct mail is a very tangible way of reaching out to reinforce your proposition.

Marketing life cycles

Marketing trends are incredibly cyclical and each new generation of marketers ‘discovers’ a new approach – or applies a new slant to existing channels. There is the inevitable ‘Eureka!’ period where this new-found technique has a novelty value and responses are high. Once this technique or approach is visibly successful other marketing companies latch on and start to replicate the approach. This leads to market saturation and ultimately less engagement from consumers, finally killing off the strategy. It eventually is recognised as ‘redundant’ and the race is on to find the next marketing innovation.

Digital/Online Marketing

Digital marketing has proved an extremely successful way to connect businesses to consumers. Although online media has been around for some 20 years, it is still in a relative ‘honeymoon’ stage and there is still a fair bit of hype around it. The beauty of digital and online marketing is that it is inexpensive and extremely easy to measure and automate. It is also seen as the universal panacea to all marketing woes – and, in a world of receding marketing budgets, the cost/coverage equation of digital is extremely seductive.

Social media has given digital marketing a huge boost – largely because it can continue marketing conversations away from the desk and blur the distinction between business and personal messaging. Digital is a very personal channel, but as we have seen, it exposes individuals to very real security fears. In the face of rising digital marketing, Direct (mail) Marketing is seen as less of a priority and something of an anachronism. But it is long way short of dead!

Measurement of ROI

The measurement of ROI is one of the cornerstones of all marketing activity. And with so many channels now active, it is increasingly hard to attribute response to a respective channel. Digital marketing is easier to track and often in real time – responses can be quickly tallied and accredited. But ‘click throughs’ and ‘visits’ are only part of the story, it may take several ‘touch points’ to activate a response. And that last final trigger could just be that mailing piece landing on the doormat.

So, is direct marketing dead, then?

There are great parallels with online and offline marketing and they exist for the same purpose – to communicate. The web is a tool, a website is a channel – but the unsung hero of Direct (mail) Marketing is still catalogues. Uniquely, catalogues are both a marketing and sales vehicle – they take the messages to your customers, without them have to ask. They invite themselves to the party – but you have to invite the website and to a certain extent all other digital contact.

Catalogues dive through your letterbox, leap out of magazines and generally make a nuisance of themselves, whether you like it or not! And this is where they hit the spot, they tell you about things you never knew existed, from companies you have never heard of and get you interested in things you never knew you needed. And the web can’t do that nearly as well – although it is getting cleverer. Catalogues are a proven, valuable part of an integrated marketing strategy and great at driving online sales.

The predicted demise of catalogues, in the wake of online marketing, never happened. Yes, catalogue mailed volumes have declined – but they have become far more targeted. They can probe and exploit target markets very effectively, producing a cohesive assault on your prospective customers in combination with digital channels.

Direct (mail) Marketing is not dead, but it is changing and finding an important role within a multichannel (or omni-channel) marketing approach. Catalogues are the most tested and researched pieces of direct mail, we know exactly how they work and how they are increasing in relevancy.

According to the UK DMA’s 2012 Response Rate Report, the average direct mail response rate was 3.4%. That’s more than 30 times the 0.12% response rate for email. OK, so the investment in direct mail is higher – but so is the response! Mail responders spend more.

And you still think Direct (mail) Marketing is dead?

Ian Simpson is managing director of Catalogues4Business. 

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Online retail will outstrip in-store sales, says study into size of European and American e-commerce sector

online-retail1Despite a difficult economic environment, the e-commerce sector in Europe and the US is continuing to grow rapidly, according to major international research commissioned by digital coupon marketplace RetailMeNot, the owner of Vouchercodes.co.uk

The study, conducted by the Centre for Retail Research, forecasts that online sales in the US will grow by 15% in 2014 to £189.3 billion, while in Europe sales are expected to rise by 18% to £131.2 billion.

The UK, France, and Germany are projected to be responsible for the bulk of this growth in Europe, accounting for 81% of the online sales in the eight European markets expected in 2014.

The UK is the largest market in Europe, with sales of £38.8 billion 2013, and is expected to account for more than a third (34%) of all online retail sales in the eight European markets surveyed in 2014. The report forecasts that £45 billion will be spent online in the UK in 2014 – an increase of 16% on online consumer spend compared to the previous year.

Commenting on the results, Giulio Montemagno, SVP of International at RetailMeNot, said: “While the e-commerce sector is continuing to grow rapidly, we are starting to see the German, the UK and the US markets mature as shopping online becomes a commonplace activity. Today, growth is being mainly driven by an increase in the frequency of consumers shopping online and spending more money through online channels while, in previous years, e-commerce growth came primarily from an ever-growing number of first time online shoppers.

“In 2014, we are expecting to see online sales across Europe grow at a rate that is 11.9 times faster than in-store sales. In the UK, online retail is expected to increase by 15.8% this year, while the offline segment will grow by only 2.4%. With such a competitive retail environment it’s more important than ever that retailers look to mobile devices and the web to incentivise shoppers to make purchases online and in-store.

“Successful retailers will consider the Internet not as a threat but as a powerful complement which can help them increase their sales.”

Growth in online shopping spend and frequency  

The report shows that 46% of Europeans and 55% of Americans now shop online. Online shopping is particularly popular in Sweden and the UK where more than two-thirds of the population make purchases on the web: 71% of Swedes and 67% of Brits use the internet to shop. While growing, online shopping is less popular in southern Europe: one in five people shop online in Italy (20%), while one in three (32%) use the Internet to shop in Spain. Around half of people in France (52%), Poland (51%), Netherlands (49%) and Germany (45%) shop online.

The study, which includes phone interviews of 100 major retailers and 9,000 consumers, reveals that most consumers expect to shop online at least once a month in 2014. On average, European shoppers will make 15.2 online purchases this year with a typical basket size of £49, while American shoppers will make 15.6 online purchases, with an average spend of £71. In the UK, shoppers are expected to make 18.0 purchases online this year, spending an average of £59 each time.

Throughout 2014, European shoppers are expected to spend £749 online, an increase of 18% compared to 2013, while American shoppers are expected to spend £1,106 online, on average – 14.4% more than in 2013. In the UK, shoppers are expected to spend £1,071 on the web this year – 15.8% more than last year.

Online retailers accounted for 6.3% of all retail sales in Europe in 2013 and 10.6% in the US, and in 2014, this share is set to grow to 7.2% and 11.6%, respectively. In the UK, the research found that the internet accounted for 12.1% of all retail sales last year and this is expected to grow to 13.5% in 2014.


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A sales cycle of a thousand months . . .

Chuck Dulde (pictured) talks about the sales evolution.

If you’ve ever cracked open a fortune cookie, you’ve probably seen a variation of this Lao Tzu quote:

A journey of a thousand miles begins with a single step.

Modern marketers and sales reps should take this piece of wisdom to heart. With highly educated buyers and a selling landscape that is more competitive than ever, sales teams can no longer rely on what’s worked in the past – selling from their comfort-zones or based purely on building a relationship with their prospect. Sales teams must evolve to sell the way their buyers buy.

As the vice-president of Sales Enablement for SAVO, I spend a lot of time considering sales motion (the sales activities that constitute successful deals) – both ours and those of our clients. In order to make it a thousand miles – or, in our world, close the deal – you must learn how to move with the great shifts and changes in buyer behaviour, and take that first step.Chuck Dulde Twitter

Buyers are moving targets

To realise more closed deals and ultimately higher revenue, you should start by considering your buyers as moving targets. A typical sales motion is no longer about the distance between Point A (your buyer) and Point B (the sale). As buyers continue to self-educate prior to contacting a rep, Point A has become a live, moving target and sales and marketing teams must learn to meet buyers wherever they are in relation to purchasing a product or service.

Unfortunately, the outlook is not good. A recent survey that we conducted with BrightTALK found that sales and marketing leaders are adapting poorly to this changing buyer’s journey. Sales pros are facing numerous problems, from nurtured leads being poorly handed off from marketing to a general lack of support during the early stages of a deal – and they’re suffering.

Specifically, the survey revealed that 49 per cent of executives aren’t very well aligned to the modern buyer’s journey – they have the right tools, but hardly anyone uses them – and that, while compromise is key, 64 per cent of respondents admit to not adapting very well to changes within the sales cycle. This stiffness and inability to change directions deftly to accommodate the interests and needs of the prospect or customer can kill a sale in its tracks.

Executives see the source of the problem as a lack of adoption: they are providing the right solutions, but hardly anyone is using them. If only adoption of CRM or Marketing Automation (MA) solutions was higher, all their problems would be solved… right? Not necessarily, as adopting CRM and MA solutions does not automatically equal alignment between marketing and sales, which is the surest way to map to a buyer’s journey and win more business.

Although the survey respondents are not realising where the issue lies, the sales teams, marketing departments and buyers are all recognising and feeling the same business pain, which is the inability to adapt to changes within the sales cycle. Unless they are able to quickly adjust and respond, they will not be able to deliver what their buyers want and will lose the deal.

Taking the first step

Sales pros need more than just resources. They need the entire company to align behind them. The best interests of our prospects, customers and sales teams rest in our ability to meet buyers at the point in the purchasing cycle where they need to be transitioned from self-education to nurturing. Buyers know what problem they need to solve, but they aren’t necessarily aware of the solutions available to them. That’s where the value of our sales and marketing teams, and their ability to align to the buyer’s wants, instigate the sales motion.

Ensuring this alignment between marketing and sales happens cleanly is a crucial responsibility of the teams involved in the early stages of the sales motion. If every member of an organisation understands his or her value proposition to the sales team, the buyer’s transition into the sales motion will be smooth and the chances of a won deal occurring will increase exponentially. If the buyer feels like he or she is being pulled into a sales motion − even if your product is the one needed − the chance of a long, inconsistent sales process increases. So you can understand why this transition demands the focus of sales and marketing leadership.

Align, communicate and make clear the value propositions you hold to your sales organisation and you can turn thousand mile journeys – or sales cycles – into quick wins for your company.

Chuck Dulde is the vice-president of sales enablement for SAVO. Follow him on Twitter at @chuckdulde