Shop.org Blog

Cyber Monday Satisfaction Up From Last Year

While we have all probably seen the sales figures for Cyber Monday and we are feeling good about that, but theres more. Sales tells us about our success yesterday and today. Satisfaction tells us about our success going forward. A satisfied customer is a long term loyal customer, one that will buy more and recommend us more. And the Cyber Monday news was good.

Well, we crunched our data (from more than 38,000 satisfaction surveys completed by holiday shoppers on Cyber Monday and over the previous holiday weekend), and we found that online shoppers were actually more satisfied (using the American Customer Satisfaction Index technology) with their experience on Cyber Monday 2007 than they were in 2006. Satisfaction rose a point over last year, a statistically significant amount given the numbers we’re dealing with. I think this is in large part because retailers were better prepared for volume (we saw higher scores for elements like site performance and functionality than we have in previous years on Cyber Monday) and because retailers are being a lot more consistent with free shipping offers, 2-day sales, and other attractive promotions.

The other really interesting thing, in my opinion, was that we saw future behavior scores for likelihood to buy online and likelihood to buy offline BOTH increased this year. This means that the online channel is actually doing a good job driving both online and offline sales, where as in previous years, we’ve seen it primarily driving one or the other, but not both. This is a great indication to me that retailers are finally starting to figure out the multichannel (or merged channel) implications of the increased traffic they see during the holidays.

You can read more about the findings in the press release.

This year marks the third anniversary of Cyber Monday, a term coined by Shop.org. It’s had quite an active life in its first three years. I am a proud supporter of Cyber Monday because I think it’s good for the online retail industry. It creates excitement about the online holiday shopping season and it supports Shop.org’s Ray M. Greenly Scholarship Fund. And, as long as the data support the Monday after Thanksgiving as an important day for online retail, I plan to support and, if necessary, defend Cyber Monday.

As background, Shop.org coined the term Cyber Monday in 2005 based on the results of our eHoliday survey in which 77% of retailers told us that their sales increased noticeably the Monday after Thanksgiving. We gave it the Cyber Monday name and were as surprised as anyone at the media coverage that has followed the past three years.

Cyber Monday has come to represent the ceremonial kick-off of the online holiday season marked by many online retailers offering specials and promotions. It was selected as the “kick off” day because it represents the first significant spike in online holiday spending.

Yet, each year, Cyber Monday faces naysayers, who I like to call Cyber Monday grinches. These Cyber Monday grinches include columnists, reporters, bloggers, Wikipedia contributors, researchers and others. Why they are inspired to discredit Cyber Monday is a mystery to me. But, I thought I would use the Shop.org blog to dispel some of the common criticisms of Cyber Monday.

Criticism #1 – Cyber Monday is *not* the biggest day for online shopping.
This is absolutely correct. If anyone can tell me who has made this claim, I’d like to hear from them to understand why they believe this. Fortunately, this criticism has been mostly clarified. I saw a number of Cyber Monday stories this year clarifying that the biggest online shopping day comes later in the season.

Criticism #2 – Cyber Monday is an outdated concept because there is no reason to shop at work when so many people have broadband Internet access in their homes.
This is a logical argument. However, based on the data from our BIGresearch study, the percent of people planning to shop online at work during the holiday season is increasing despite more broadband access in homes. This year, according to a BIGresearch survey conducted for Shop.org, 54.5 percent of office workers with Internet access, or 68.5 million people, will shop for holiday gifts from work, up substantially from 50.7 percent in 2006 and 44.7 percent in 2005.

Critcism #3 – Thanksgiving and Black Friday, not Cyber Monday, are the “real” first spikes in online holiday spending.
According to comScore, Cyber Monday’s $733 million in online sales this year were 28% higher than Black Friday and 171% higher than Thanksgiving.

Criticism #4 – Increased shopping on Cyber Monday or any Monday is a “myth” because online shopping is stronger in the middle of the week.
Looking at comScore data again, this doesn’t seem to be the case. Two of the top three days of online retail spending in 2006 were Mondays. The biggest day was Wednesday, December 13, which was merely 1% higher than the second biggest day. The second and third biggest days were, respectively, Monday, December 11 and Monday, December 4.

Criticism #5 - Cyber Monday diminishes worker productivity because people are shopping at their computers when they should doing work.
There’s a great article from the Washington Post last November that provides a good perspective on this issue. The article argues that as work increasingly blends into employees personal lives via Blackberrys and home email access, employers have found that doing personal work, such as shopping, at work, helps increase productivity.

Holiday 2007 is ramping up! Though Monday probably isn’t the largest online shopping day of the year, we did see big sales jumps across many of our clients in the PPC channel, and overall.

We’ve posted some aggregated median stats by category at our blog:

Median CyberMonday Sales Up 32% (and other 11 benchmarks): Compare Your Results By Category

What did YOU see on Monday? Share what you can in the comments.

A great Q4 to everyone –

Alan

Every year for the past seven years, I (Ron Teixeria, executive director of the National Cyber Security Alliance) have done the majority of my holiday shopping online.  Why wouldn’t I?  Shopping online is a warm and convenient way to buy gifts, and helps me escape the crazed holiday crowds.  That’s why it doesn’t surprise me that more consumers are predicted to shop online this holiday season than ever before.  In fact, according to a Forrester Research Study, online holiday sales will generate $33 billion this year.   

While most Americans will shop online from the safety and security of their home or work, that doesn’t mean they can let their cyber security guard down.  Like in the physical world, cyber criminals don’t take a vacation during the holiday season and the increase in online shopping sales only entices them to get a piece of the holiday shopping pie.  However, online shoppers can protect themselves and dramatically decrease the liklihood that a cyber Grinch steals their holiday by following a few simple cyber security tips. 

That is why the National Cyber Security Alliance and the Federal Trade Commission published 10 online holiday shopping tips this year that provide simple and practical advice online shoppers can take to better secure their computers and personal information during the holiday season.

1. Check out the seller. If you’re thinking about shopping on a site with which you’re not familiar, do some independent research before you buy.

• Find and call the seller’s phone number and contact information, so you know you can reach them if you need to. If you can’t find a working phone number, take your business elsewhere.
• Type the site’s name into a search engine: If you find unfavorable reviews posted, you may be better off doing business with a different seller.
• Read the site’s privacy policy to learn how it uses and shares your personal information.
• Consider using a software toolbar that rates websites and warns you if a site has gotten unfavorable reports from experts and other Internet users. Some reputable companies provide free tools that may alert you if a website is a known phishing site or is used to distribute spyware.

2. Read return policies. Despite your best intentions, some gifts may need to be returned or exchanged. Before you buy, read the return policy. Some retailers give customers extra time so gifts can be returned or exchanged after the holidays; others give purchasers as little as a week — if they accept returns at all. A number of retailers offer shorter return windows for certain products and some charge “restocking” fees. Find out who covers the shipping cost — the customer or the merchant — on a return or exchange, and if your online purchase can be returned to a brick-and-mortar store.

3. Know what you’re getting. Read the seller’s product description closely. Name-brand items at greatly reduced prices could be counterfeit.

4. Don’t fall for a false email or pop-up. Legitimate companies don’t send unsolicited email messages asking for your password or login name, or your financial information. But scammers do. In fact, crooks often send emails that look just like they’re from legitimate companies – but direct you to click on a link, where they ask for your personal information. Delete these emails. They’re an attempt to get your information and to facilitate identity theft or other crimes. In addition, just clicking a link in a fraudulent email could install spyware on your computer.

5. Look for signs a site is safe. When you’re ready to buy something from a seller you trust, look for signs that the site is secure, such as a closed padlock on the browser’s status bar, before you enter your personal and financial information. When you’re asked to provide payment information, the beginning of the Web site’s URL address should change from http to shttp or https, indicating that the purchase is encrypted or secured.

6. Secure your computer. At a minimum, your computer should have anti-virus and anti-spyware software, and a firewall. Security software must be updated regularly to help protect against the latest threats. Set your security software and operating system (like Windows or Apple’s OS) to update automatically. Visit OnGuardOnline.gov or and staysafeonline.org to learn more about security software, firewalls, and other ways to secure your computer. To sign up for free cyber alerts and tips from the Department of Homeland Security visit: US-CERT.gov.
 7. Consider how you’ll pay. Credit cards generally are a safe option because they allow buyers to seek a credit from the issuer if the product isn’t delivered or isn’t what was ordered. Also, if your credit card number is stolen, you generally won’t be liable for more than $50 in charges. Don’t send cash or use a money-wiring service because you’ll have no recourse if something goes wrong. Credit cards generally are a safe option because they allow buyers to seek a credit from the issuer if the product isn’t delivered or isn’t what was ordered. Also, if your credit card number is stolen, you generally won’t be liable for more than $50 in charges. Don’t send cash or use a money-wiring service because you’ll have no recourse if something goes wrong. 

Credit cards generally are a safe option because they allow buyers to seek a credit from the issuer if the product isn’t delivered or isn’t what was ordered. Also, if your credit card number is stolen, you generally won’t be liable for more than $50 in charges. Don’t send cash or use a money-wiring service because you’ll have no recourse if something goes wrong. 

8. Know the full price, and check out incentives. If you’re looking for the best deal, compare total costs, including shipping and handling. The holiday season is prime time for online retailers, and many are offering incentives like free shipping. But some “free” shipping deals may come with strings attached, such as requirements to spend a minimum amount or buy certain products. Consider whether one company offers a more generous return policy. If you use a price comparison site to find a bargain, enter the product’s model number, and be as specific as you can about its features.

9. Keep a paper trail. Print and save records of your online transactions, including the product description and price, the online receipt, and copies of any email you exchange with the seller. Read your credit card statements as soon as you get them to make sure there aren’t any unauthorized charges.

10. Turn your computer off when you’re finished shopping. Many people leave their computers running 24/7, the dream scenario for scammers who want to install malicious software on your machine and then control it remotely to commit cyber crime. To be extra safe, switch off your computer when you are not using it.

I had the opportunity to attend Google’s CommerceThink ’07 last week at the Google headquarters.  CommerceThink ’07 brought together a group of dedicated online and multichannel retail executives who ventured out of their offices in November to hear Google’s perspectives on search and multichannel retailing and to talk to each other about common challenges and what’s in store for the future.

It’s always a pleasure to get out of the office and think.  Sometimes, just 6 hours of uninterrupted time from a cross-country flight in and of itself is enough to get re-charged.  But, when you can be in a roomful of smart retailers in an environment that oozes innovation, it’s even better.  For me, there were a few key takeaways.

First, as much as our industry has grown and made progress, the challenge of measuring the off-line impact of online is still in its infancy.  Anyone who can crack the code on this can secure their retirement.  I’ve been in this industry for almost nine years and I’ve seen the conversations about this topic become more frequent and arrive in boardroom.  But, they haven’t changed.  Retailers remain frustrated with their ability to measure the impact of the Internet on anything except for online sales.

Second, even with a quarter billion dollars in online retail sales in 2007, the full impact of the Internet on retail has yet to be felt.  How much commerce is prevented simply because someone looking to buy a something still doesn’t know where they can get it when they want it?  If I’m home at 8 pm with a craving for a particular Spanish wine, wouldn’t it be great if I knew that there is a store 15 minutes from my house with a collection of Rioja that is also open until 9 pm?  What if I unexpectedly get tickets to see the Penguins v. Capitals hockey game in Washington DC and I need to find a store that sells Penguins merchandise so I can taunt the Capitals’ fans (believe me, they deserve it)?

Third, in order for retailers to be more relevant to customers both online and off-line, they will need more information about them.  If there is one thing clear from the recent behavioral targeting town hall meeting hosted by the FTC, it’s that there is more work to be done to get everyone comfortable with this equation.