Marketing Forecast from Ad-ology

Online retail in the U.S. is expected to continue on a double-digit growth trajectory over the next five years, according to a new forecast from Forrester Research. The independent research firm predicts that U.S. e-commerce spending will reach $278.9 billion by 2015. Forrester’s forecast is based on a 10% compound annual growth rate through 2015, as well as the continuation of several key trends, including the ubiquity of consumer Web usage; their increased familiarity with — and preference for — online shopping; and ever-better e-commerce user experiences. Forrester also credits new online shopping models — and “flash sales” and “daily deal” services in particular — with continuing to generate excitement among shoppers.

As spring approaches, consumers will be driving to garden centers and other retailers of outside equipment and supplies. One specific consumer group, homeowners, might be fixing up their lawns and gardens to improve their prospects of a real estate sale while others are just enjoying the renewed interest in gardening. Either way, marketers of lawn and garden products can appeal to consumers in a variety of ways to increase revenue.

Ad-ology Research recently updated their Industry Marketing Insights report for Shoe Stores. The following are the predicted Top 3 Opportunities/Challenges from the report for this industry for the upcoming 12 months:

According to new research from The Knot Inc., “brides remain committed to planning a luxurious, memorable event and are willing to spend despite the state of the economy,” said Carley Roney, editor in chief of The Knot Inc. “In fact, approximately 1 in 5 brides are spending more than $30,000 on their wedding, and 12% of brides are spending more than $40,000.” Destination weddings are becoming more popular, and brides are increasingly using online wedding planning tools to prepare for the big day. More brides are using social media to communicate wedding details (a 78% increase since 2008) and creating/sending save-the-dates or invitations online (a 40% increase since 2008) as well as using an online RSVP service (a 31% increase since 2008) or setting up personal wedding websites (a 23% increase since 2008).

According to a recent report by the Pew Research Center, younger adults are leading the way in increased mobility, preferring laptops to desktops and using their cell phones for a variety of functions, including internet, email, music, games, and video. Cell phones are by far the most popular device among American adults, with 85% of adults owning cell phones, and 90% of all adults live in a household with at least one working cell phone. Though cell phones are now ubiquitous in American homes, the level of engagement with the phones does vary widely between generations. Almost half of adults own an iPod or other mp3 player, and 42% percent of all adults age 18 and older own a game console. However, Millennials are by far the most likely group not only to own most of the devices studied, but also to take advantage of a wider range of functions.

According to new research by Bold Software, a live-chat software vendor, 77% of e-retailers that use live chat considered it a critical communication method during the recent holiday shopping season, up from 69% of e-retailers who said the same thing in 2009. In addition, 23% of the e-commerce sites surveyed said that of those customers that engaged with them in a live chat, more than 40% converted to an active lead or sale, while 54% reported a conversion rate of 20% or more. And for those who used proactive chat over the holidays (where an e-retailer invites a chat with a customer based on his on-site behavior), 55% said that it yielded higher conversion rates than chats initiated by the website visitor. “These results further demonstrate that live chat is a highly effective communication channel that facilitates meaningful engagements between people, bolstering both sales and service efforts as a result,” said Steve Castro-Miller, president and CEO of Bold Software.