Brands Missing Out on Sales as Consumers Led Astray Online
September 28 2011 - 12:52PM
Business Wire
Melbourne IT Digital Brand Services (DBS) (ASX: MLB)
Key Findings:
- 44% of consumers shop online a few
times a week or month; 6% shop online daily
- 74% are likely to go online to find a
better deal than what they found in-store, before buying
- When trying to find the official
website of an advertised product or service, 67% of consumers visit
a different website than the one they had intended after using a
search engine
- 49% prefer to visit websites that
remember preferences and display relevant information
- 80% think online brands should better
help consumers tell the difference between websites selling genuine
goods from websites selling counterfeit or fake goods
A new consumer survey about online shopping, navigation and
trust reveals the obstacles brands face in having offline marketing
efforts materialize with online sales. Three quarters of consumers
are likely to go online after visiting a store to find a better
deal before buying, and most start with search engines. Such habits
equal a tall order for marketers today, who must get consumers to
their website amid online distractions, phishing scams and
lingering trust concerns – then offer the best deal and get
personal.
Sponsored by Melbourne IT DBS, the online survey of 1,000 U.S.
consumers was designed to uncover consumer behavior online and
provide insight to businesses as they engage with consumers on the
Internet. The research was conducted in response to ICANN’s
approval of the application guidelines for its new generic
top-level domain (gTLD) program, which will allow organizations to
apply for their company and product names as a .brand domain (e.g.
Canon has signaled it will apply for .canon).
Search and Navigation – Mobile and Google Effects
As marketers spend millions on cross-platform advertising
campaigns, the research highlighted the challenge of capturing
customer leads online.
When asked how they usually navigate to the websites of products
or companies advertised on TV, radio or in print, very few go
direct: 35% of consumers type the advertiser’s brand or product
name into a search engine and navigate from there; 26% begin by
typing the web address into a search engine. However, when trying
to find the official site of a product or service they had seen or
heard advertised, 67% of consumers admitted to ending up on a
completely different website than the official site they had
intended to visit, via a search engine.
“Marketers strive to capture online shoppers from offline
marketing efforts, yet with the majority of consumers using a
search engine such as Google to find a company’s site, the risk is
most users get side-tracked. It is a real concern for the brands
that spend millions on TV and radio ads, sponsorship, and direct
mail to get those leads to the right website to buy, without losing
them along the way,” commented Tim Callan, CMO, Melbourne IT DBS.
“No matter how they access the Internet, consumers want to easily
find companies online. Companies owning a .brand domain can offer
short memorable Web addresses, so that customers and prospects can
easily navigate to their favorite brands vs. relying on search
engine results, which serve up many competing products or
companies.”
Online Security and Fraud
Fraud remains a concern for consumers online. A third of
consumers have trouble differentiating between websites selling
genuine goods or counterfeit items. Of those who do not shop online
regularly (< several times per year), 36% are concerned about
the security of their information or money and 19% about buying
fake products. Even when banking online, nearly half of consumers
rely on website appearance for authenticity, fueling phishing scams
that collect sensitive data by masquerading as a trustworthy
entity.
“Amid a sea of new domains, our view is a .brand will emerge as
a trusted site. Over time, customers can be encouraged to disregard
sites without the .brand suffix,” said Callan. “Global brands that
are successful in applying for their own .brand can make it the
centerpiece of their long-term brand protection strategy. By
creating and owning a unique piece of online real estate, brands
are able to exert full control over who resides in that space,
making cybersquatting moot.”
For more information on the new .brand top level domain program,
visit www.melbourneitdbs.com.
Survey Methodology
The polling company, Inc. conducted the nationwide online survey
of 1,007 American adults, ages 18-55, in September 2011. The survey
instrument contained 17 substantive questions and 9 demographic
inquiries with ±3.1% margin of error. Press interested in a full
report of the survey findings should contact Liza Colburn at
+1-781-562-0111.
About Melbourne IT Digital Brand Services
Melbourne IT Digital Brand Services (Melbourne IT DBS) helps
organizations manage, protect and optimize their brands online to
maximize the value of their online assets. The company helps
clients minimize risk and make smarter decisions in managing their
online presence. Headquartered in Mountain View, CA, Melbourne IT
DBS has 15 offices in 10 countries and 3,500+ clients, including
some of the world’s top brands. Melbourne IT DBS is a division of
the listed Melbourne IT Group (ASX: MLB).
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