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Multichannel Retailers Take Notice: National Survey Reveals Frustrating Web Experience Impacts Online Sales, Brand Perceptions and, More than Ever, Offline Sales

Business Wire, Jan 29, 2007

* Year-over-year there's been nearly a 50% increase in consumers who report that a frustrating online experience would make them less likely to shop at that retailer's physical store

* Overwhelming 82% of consumers surveyed reveal a frustrating shopping experience will make them less likely to return to a retailers' site

CAMBRIDGE, Mass. -- While e-commerce sales for the 2006 holiday increased by 26% from the previous year totaling $24.6 billion (source: comScore Networks), online sales still only account for 6% of total holiday retail sales (source: JupiterResearch). So why aren't people buying more online? In its second annual "Holiday Shopping: Online Customer Experience Survey," Allurent, Inc. sought to better understand consumer online shopping behavior.

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The survey revealed that a growing number of consumers (41% in 2006 compared to 28% in 2005) said a frustrating online experience would make them less likely to shop at that retailer's physical store. And 59% reported that when they have a frustrating shopping experience online, it negatively impacts their overall opinion of the retailer/brand. In 2005, this number was 55%. The percentage of consumers who said a frustrating shopping experience online makes them less likely to shop at the retailer's physical store remained at an overwhelming 82%, the same as 2005.

"The line between off- and on-line brand experience is blurring. An online store needs to provide the same exceptional customer experience as the store's physical location in order to build and maintain customers' familiarity and resulting loyalty with the brand," said Graeme Grant, VP of sales and operations at Allurent. "Retailers not only leave money on the table when they provide an inadequate customer experience online, they risk overall damage to their brand that can have a direct impact on their other sales channels."

But A More Engaging Shopping Experience Holds the Promise for Better Results

Survey results also found that if the online customer experience is improved, people will buy more. Specifically, consumers said they were much more likely to buy from sites that offer more interactive and engaging features. The following lists the features in which consumers have expressed the most interest:

1. The ability to click on an item to create a popup window with more details about the product including price, size, colors, inventory availability, etc. (74%)

2. The ability to click on an item and add it to your cart without leaving the page you're on (70%)

3. The ability to "feel" merchandise through better imagery, more product descriptions and details (68%)

4. The ability to enter all data related to your purchase on one page, rather than go through several checkout pages (64%)

5. The ability to mix/match product images on one page to determine whether they look good together (47%)

Holiday Shopping Results - Continued Growth

Consumers purchased more holiday gifts online this year than they have in the past. Fifty-three percent reported having bought more of their gifts online than they did last year. And based on their online shopping experience this year, 66% plan to shop online more during the 2007 holiday season.

About The 2006 Holiday Shopping: Online Customer Experience Survey

The 2006 Holiday Shopping: Online Customer Experience Survey is a national survey designed to provide insight into the online customer experience and how that experience affects brands. The survey was conducted in January 2007 via Zoomerang, an online survey services provider, and is based on 638 respondents. The survey is sponsored by Cambridge, Mass.-based Allurent. A Research Brief providing detailed information on the findings is available at the Allurent Web site, www.allurent.com.

About Allurent

Headquartered in Cambridge, Mass., Allurent partners with leading retailers to create the most compelling online shopping experiences imaginable. Our innovative e-commerce products deliver rich interactions throughout the shopping lifecycle, from browsing to choosing to buying. The result is a superior shopping experience leading to more satisfied customers and greater sales. Our deep experience developing world-class e-commerce software helps us deliver intuitive and engaging products that are easily configured to match your brand and integrate with your existing infrastructure. For additional information please visit www.allurent.com.

Business Services Industry

Multichannel Retailers Take Notice: National Survey Reveals Frustrating Web Experience Impacts Online Sales, Brand Perceptions and, More than Ever, Offline Sales

Business Wire, Jan 29, 2007

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