Uplift in sales worth possible £8bn
Retailers who do not embrace social commerce will collectively lose 20 per cent of the market over those who work with the technology, a survey has warned
Reevoo: £8bn “up for grabs” in UK retail sales online
Wednesday, February 23 2011 by Kate Billinghurst
Retailers and leading brands that work with reviews and recommendations in online retail strategies will see a sales uplift of 18 per cent, according to a brand new survey.
This uplift in related sales is worth a possible £8 billion to UK retailers, adding to the UK’s already-impressive £44 billion in online retail sales, Reevoo explained. This should certainly be noted by managed emarketing initiatives, otherwise there could be a lot to lose.
Eleven per cent of this is due to website conversion improvements, five per cent is down to the average order value and another two per cent will be gained through repeat visitor takings. However, those not embracing the reviews and recommendations stand to lose 20 per cent of the market.
Reevoo discovered that when reviews are read by consumers, conversion rates increase by 177 per cent, average product purchase value nearly doubles and visitor return rates rise by 13 per cent.
Chief executive officer and co-founder of Reevoo Richard Anson said: “Social commerce should now be a core strategy for every retailer, one discussed right at the top of the company – or it will, eventually, have serious consequences for the bottom line.
“With average disposable income likely to become tighter and tighter, there is no room in anyone’s wallet for ‘buyer’s remorse’; people will increasingly adopt a buying process that minimises the likelihood of such regrets.”
He added that there is now a major opportunity for a step-change in the website promotion mindset as trusted reviews put at the centre of a marketing strategy must be integrated and simply not bolted on as an “afterthought”.
Reevoo came to the conclusion through data collected via work with over 100 partners who generate £1 billion in online sales per year between them.
This month, the IMRG Capgemini e-Retail Sales Index discovered that UK shoppers spent £5.1 billion online in January, registering a year-on-year increase of 21 per cent.
Living Streams “Improving clients’ profitability through better use of the internet”.