The 2010 Retail Survey
Posted on Tue, Mar 02, 2010
This year's retail survey as usual offered some surprises, along with the things we had hunches about that turned out to be right on target. Because of the amount of responses and because the responses keep on coming in, I am going to report on eight of the 15 questions and finish the survey next week.
Let's get to the first question and see how you compare to majorities.
Question #1: Are you using Facebook on a regular basis?
This was one of those questions that surprised me a little bit. Yes, I have preached about the benefits of Facebook but I have also listened to the retailers who have been overwhelmed with the prospects of learning and mastering Facebook. It didn't surprise me that 32% surveyed used Facebook on a daily basis and 16% that use it on weekly basis. That totals 48% or close to a simple majority of the retailers that responded. It is pretty significant because a year ago 40% of the retailers responding had never heard of or were vaguely familiar with Facebook. Then you add in an additional 23% that use Facebook once in a while you have 71% using this tool. That even impresses me! Facebook is no longer on the fringes of retailing-- it is an accepted way of communicating with your customers.
The real shocker to me was the fact that they were only 12% who expressed no interest at all. As hard as it might be to believe, I feel that a year from now those Facebook numbers will even improve. I also am of the belief that Facebook is replacing the traditional website. So my question is, what were those 12% thinking? Certainly there is an application that they could use. But I don't think that's the reason for the 12%. I believe there are many retailers who are simply intimidated by new technology. I might add justly so because we have been trained that new technology doesn't always work and Facebook to them is a new technology.
We will be doing more programs over the next 12 months solely dedicated to Facebook and relationship building between retailers and their customers.
Question #2: Have you created any videos on YouTube for your customers benefit.
I believe by the end of the year Youtube will be used by retailers in multiple ways that are 10 times more effective than traditional advertising and far more cost-effective. Having said that I am a bit surprised that only 5.6% surveyed have created more than five videos. The interesting part of this question was that 33% were not sure exactly how it applies but are curious.
I plan on writing a column and a webinar just on the use of YouTube. But let me give you a couple of quick points on how this can apply to your business. A customer walks into the store and comes right up to the counter to give you a compliment about the last shopping experience in your store. Instead of wasting that testimonial, pull out the camera and make a quick one-minute testimonial about their experience at your store. You can add that your website, put it on Facebook, play it in the store on one of those inexpensive widescreen TVs that can help you and the vendor sell more merchandise. The other way of utilizing YouTube is to prepare a 3-minute educational tip about something you sell and the customer needs to know. Customers will appreciate the fact that you are offering it. Lastly you can create short videos that can be embedded into an e-mail and sent out to your customers personally inviting them to a store event. It's powerful!
Questions #3: Do you sell from your website?
This question definitely surprised me the most. Maybe the reason I was so shocked at the results is because I remembered just a few short years ago when the retailers battle cry was that customers had to see it, hold it, and touch it before they would buy. I guess those days are over because the survey says, 41% are currently selling online and 36% plan on selling online in the near future. That is a whopping 77%-- a far cry the 5 to 10% or two ago! However, there is a solid 22% that have no interest in selling online at all.
My feelings are there is always some product you can offer your customers online even if it's just a book from Amazon's affiliate program. There's lots of opportunity out there.
Question #4: What percentage of your business are you doing online?
There were no surprises at least to me here. Although the majority of retailers trying to sell online over 83% admit that represents less than 5% of the business. It's as if lots of people are starting to jump on the online selling band wagon but the majority are not doing the biggest part of the business. That's a good sign that traditional brick-and-mortar stores still have a strong place in the marketplace. The interesting coincidence is that the number of 6% is often used for the amount of total retail sales being done online which would put that number in pretty close proximity.
There is some inspiring news within this question and that is 5% (that number keeps coming up) are doing 21% or more online. There is business that is being done there. It's encouraging to know that there is opportunity out there for those that are willing to make the commitment to Web sales and it is a commitment.
Question #5: I am pleased with my website?
I think the answers to this question surprised me the most. I think I've asked myself about 50 times if there was another answer that I could have included that might've made a difference in the response. I'm not sure because I can't think of any specific answer I could have or would have inserted. Having said that, it surprises me that over 62% of the businesses checked off pleased but feel they can do more. I think the term feel they can do more is a relative term and means different things to different people. However I think what people are saying is my site looks good to me but it's not working the way I hear about other business sites.
The thing that's interesting here is that less than 10% considered their sites to be excellent and works really happy. This is where I believe my job begins. The website reviews that I have now been doing for almost 2 years have exposed some sensational and pitiful websites. One thing I've learned is that the prettiest site is rarely the best site.
Question #6: How many various tools that Google offers for free do you employ?
I am not going to respond to this question in this article because I am planning on writing a complete report about Google and all of the free and fee services that they offer. I believe after you read my report on Google, the numbers could change significantly.
Question #7: How is business?
There are a few ways I can interpret responses to this question. I could look at it as if the glass is half-full and tell you that 62% of the businesses responding say their business ranges from I see a little uptick in business to it isn't bad but you have to work much harder to business is great. (As you can see over 13% said business was great.) So considering the depth of the recession that we lived through I suppose that's not bad.
However, almost 38% are saying that the recession isn't over and business is still rough. Let's not kid ourselves-that's scary. It's scarier than we realize because the majority of the people who read my newsletter are considered more proactive retailers. But when you think about it, it really doesn't matter because we have to be proactive retailers in order to survive. We must generate reasons to come to our store or a websites all the time.
#8. When should you markdowns slow selling merchandise?
Boy, things have changed the most is when it comes to markdowns. At one point the retailer would not reduce the price of any merchandise until he came close to the end of the selling cycle, which in many cases was a season or three months. Only about 8% responded that they would hold the merchandise for one month without any activity. The other 92% reported a more flexible attitude toward markdowns. 35% agreed with me that the time to markdown a piece of merchandise was the second you realize it was a dog.
64% did not back themselves into a corner or any rigid archive policy. But they would take markdowns at a time that they believe is appropriate. That's not necessarily a policy that I endorse, however it is a policy that I do respect
That wraps it up for the first half of the 2010 Retail Survey. Look for next week's response to the remaining seven questions and my special report on using Google. Have a great week and remember the Winter Olympics are over and spring training starts this week. There is a light at the end of the tunnel and I think it might just be sunlight. Hopefully we will all remember what it looks like!
