June 2009 Issue No. 4

Email Marketing Continues to Bode Well for Online Retailers

Most retailers are counting on the Web for growth in 2009, with sales expected to rise 11% to $156.1 billion, up from $141.3 billion in 2008, according to State of Retailing Online 2009: Marketing Report. This is the latest edition of the annual report from research and advisory firm Forrester Research Inc. and Shop.org.

Still, retailers are being extra careful this year in controlling costs, the report says.

Retailers everywhere are trying to get their arms around a pullback in consumer spending, and online retailers are no exception, says Scott Silverman, executive director of Shop.org. Online retailers are trying to weather this economic storm by doing more with less, making smart spending decisions, and leveraging effective, affordable tactics like e-mail to grow their businesses.

But some retailers also see the downturn as an opportunity to increase market share and are proceeding with new initiatives. 46% have no plans to cut back original budgets, while 24% will spend more on their online business than originally planned. Companies planning to spend more will increase investments in areas such as search (80%), e-mail (65%) and social marketing (60%).

A majority of retailers (88%) listed e-mail as a high priority for the year, largely to retain customers, the study found. 71% plan to send segmented e-mails to customers based on stated preferences and purchase data. In addition, 55% will use e-mails to highlight new product availability and to extend invitations to participate in surveys or gather customer feedback, while 53% will use e-mails to feature online-only promotions.

Other highlights of the report include:

- Search engine marketing is most often mentioned among effective acquisition tactics (83%), followed by organic traffic (51%) and affiliate programs (41%)

- E-mail is the most-mentioned successful tactic overall (cited by 89%), followed by pay-for-performance search placement (80%) and SEO/natural search (53%)

Need help planning and developing an effective email marketing or search engine marketing campaign? Mountain Media's marketing specialists can devise a cost-effective, customized strategy for your business's specific needs. Contact us today to learn more.

Investing Time vs. Money in
Social Media Marketing

Internet users turn to social media sites to seek one another, rather than learn about brands or products. That's the conclusion of a study by Knowledge Networks, a consumer research company that just released a study on the impact of advertising on the social networking community.

The study, which focused on how people react to ads on sites such as FaceBook and MySpace, found that only 16% of those surveyed said they would be likely to buy from advertisers. Predictably, the main reason people visit these sites is for social interaction, not to gather information about products or services. More than half of the group surveyed (54%) said that meeting new people and staying connected with family and friends are what they liked most about participating in social media.

Perhaps a more realistic way of looking at the marketing opportunities that exist on social media networks would be to use the sites as a vehicle for cultivating relationships, communicating with your customers, creating name recognition, and enhancing your credibility rather than expecting a direct result in sales from your social networking efforts.

The Power of Product Merchandising

Advertisements on your website that are designed to draw a visitor to various product groupings or promotional items can be extremely effective for converting your site visitors into buyers (for example, "Summer Blockbusters", "Gifts for the Nature Lover", "On Sale Now", "Best Sellers", etc.). Be sure to implement strategies for cross-selling and up-selling and if your ecommerce solution offers specific features to help you perform this task... use them to their fullest extent!

Mountain Commerce sites come equipped with "popular products", "also purchased products", "related products", and special and featured products. Call us if you need help or have questions about using these Mountain Commerce up-selling features.

877.583.0300

Ulcron3.com, a division of Uncle Ronny's Greetings and Gifts, LLC was launched in 2001 to sell jewelry, candles, cauldrons, dragons and more.

The site began to take off, and eventually led to the launch of a second site fairyvillage.com, which sells all things related to the fairy world.

The newly revamped Ulcron 3 site focuses on gothic and dragon art, clothing, accessories, action figures as well as Harmony Kingdom Limited Edition collectables.

Our selection is always expanding, so please stop by and browse frequently.

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