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Published
Aug 5, 2010
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Looking for Growth : Go Digital

Published
Aug 5, 2010

Deloitte produces recent report: Looking for Growth, Go Digital

As more and more users continue to conduct commerce online, or have their purchases influenced by online media, it will be imperative to ensure a scalable eCommerce strategy is in place. This is a critical juncture for eCommerce, as companies work on re-architecting multi-channel communications and sales, frame eCommerce globalization plans, and seek to tap into the full power of the Internet ecosystem. Supporting globalization and multichannel eCommerce, and tapping the value of the Internet through co-creation with customers will become increasingly important to growing revenues.




Realizing the full potential of eCommerce investments will require CFOs to ask tough questions of their IT and eCommerce leaders to ensure that processes, operations and incentives are aligned to generate revenues. What questions should CFOs ask of their IT and eCommerce folks before loosening the purse strings?

Report extract :

Despite a challenging two years of recession, there is hope for the economy – in eCommerce. The Census Bureau of the U.S. Department of Commerce estimates retail eCommerce sales grew by 2%, to $134.9 billion, in 2009, while total retail sales fell 7% during 2009, to $3.7 trillion. While retail eCommerce sales are only 3.7% of total retail sales, their share is growing.1 Even so, more important than eCommerce sales is the actual influence of online activities on offline purchases.

One research study of a retailer showed significant lift to sales in areas where they exposed users to online ads – both for the items advertised and for “impulse” purchases. For this retailer, in geographic areas where there was a per capita income over $33,000, there was a 4% sales lift to offline sales.

Forrester estimates that online media will grow to infl uence in-store sales of $1 trillion by 2012. As iPads and new mobile devices continue to proliferate in 2010, we can expect the influence of digital media and online spaces to grow substantially as the year goes by.

ComScore’s “2009: Digital Year in Review4” reports this continuing growth in the use of online media, finding:

• A 21% growth in display-ad impressions as the online advertising sector increased its share of media spending in 2009

• Nearly four out of five Internet users visited a social networking site on a monthly basis in 2009

• 16% growth in the U.S. search market, with a 6% gain in unique searchers and a 10% gain in search queries per searcher in 2009

• Six out of seven U.S. Internet users now view at least one video online every month

• Increases in Smartphone ownership from 11% to 17% of mobile users, and increases in 3G phone ownership from 32% to 43%, expanding the base of mobile access to the Internet

As managers look to additional investments to support penetration into digital spaces, what questions should CFOs ask of their IT and eCommerce folks before loosening the purse strings? This is a critical juncture for eCommerce, as companies work on re-architecting multichannel communications and sales, frame eCommerce globalization plans, and seek to tap into the full power of the Internet ecosystem. Three areas for consideration are outlined in the full report.

Click here for Deloitte's full report



Source : Deloitte

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