When it comes to market research, multichannel retailers tend to be do-it-yourselfers: Sixty-five percent of the companies surveyed by Multichannel Merchant say they conduct market research in house. A quarter of the respondents used an outside research firm or consultant, 8% don’t know how it’s done, and 19% say they don’t do market research. Our March e-mail survey of nearly 50 readers finds that Web/e-mail surveys are actually the most popular type of research: More than half (51%) of respondents say they conducted an e-mail or Web survey in the past 12 months.
The companies now conducting research see the value in it: 31% plan to maintain their level of market research activity in the next 12 months, 29% plan to increase their level, and none plan to decrease research. Then again, 21% have no plans to start a market research program in the next year, and just 4% do plan to start one; 15% say they don’t know their plans for research in the next 12 months.
When asked about using outbound telemarketing to contact customers, 43% of respondents say they’re doing it; 53% are not, and 4% don’t know. Among those survey participants who are doing outbound telemarketing, how are they using it? Most (65%) say they perform customer surveys, 55% check on service levels, and half try to sell products via outbound telemarketing.
Just about 36% of respondents say they have a preferred or frequent buyer program; 60% do not, and 4% say they don’t know if their company has such a program. Those who do have preferred or frequent buyer clubs offer member customers lower prices (offered by 56%); newsletter or other information devices and special product offers (each offered by 44%); and point redemption programs and product previews (each offered by 25% of respondents).
How do marketers contact their best customers, in addition to regular catalog mailings? Most (64%) use e-mail offers, while newsletters and sale catalogs are used by 30% of respondents, 21% use special targeted catalogs, and 15% use item-offer solo mailings. Nearly 20% say they have “other” types of communications to reach their best buyers; 11% have none, and 6% do not know.
About half of the survey respondents say they do not conduct customer lifetime value studies. Why not? Thirty percent say these studies are too time consuming, while 26% say they are too expensive. Another 26% admit they don’t know how to conduct lifetime value studies, and 17% say they see no need for them; 26% say “other,” and 21% do not know why they don’t conduct lifetime value studies.
How did near-term value — typically a time frame of two to five years — studies fare among survey participants? Twenty-seven percent say they conduct near-term value studies, 33% do not, 9% are considering it, and 31% say they don’t know if their company is calculating near-term value of customers.
As for international marketing, 17% have an active program, and 11% are testing overseas. Which foreign markets are the most lucrative or most attractive? The markets closest — in proximity and culture — to the U.S., Canada and the U.K. tied for the top, both rated a top market by 62% of the respondents pursuing international marketing, followed by continental Western Europe and Mexico (54% each), and Australia, with 46%.
Why aren’t merchants pursuing international marketing? No real surprise there: The plurality (30%) say they don’t have enough staff, while 23% say it is too expensive. About 33% have “other” reasons for not marketing overseas, and 20% say they don’t know why they aren’t pursuing international programs. Given the weakness of the U.S. dollar, now might be a good time to consider targeting overseas customers who will get more bang for their buck.
| Web/e-mail surveys | 51% |
| Direct mail questionnaires | 36% |
| Phone surveys | 33% |
| In-depth one-on-one interviews | 28% |
| Focus groups | 23% |
| Mail intercept surveys | 8% |
| Other | 5% |
| None | 5% |
| Do not know | 10% |
| Totals do not equal 100% due to multiple answers | |
| Offer discount coupon toward first purchase | 35% |
| Offer free shipping and handling | 26% |
| Send personal letter with catalog request | 22% |
| Offer free gift with first purchase | 17% |
| Refund catalog subscription price with first purchase | 7% |
| Other | 17% |
| We do nothing special to entice prospects | 26% |
| Do not know | 11% |
| Totals do not equal 100% due to multiple answers | |
| Determine overall customer satisfaction | 49% |
| Determine your rank as compared with competitors | 31% |
| Rate your company’s service level | 31% |
| Ascertain demographics | 26% |
| Determine viability of other product lines | 23% |
| Evaluate creative | 18% |
| Ascertain psychographics | 13% |
| Determine viability of current catalog concept | 13% |
| Determine viability of electronic catalog concept | 10% |
| Determine viability of new catalog concept | 8% |
| Other | 18% |
| Currently use | Have tried | Never tried | |
|---|---|---|---|
| Deferred billing | 18% | 9% | 73% |
| Dollar-off coupons | 26% | 28% | 46% |
| Free gift wrapping | 7% | 9% | 84% |
| Free gifts or premium with purchase | 33% | 11% | 56% |
| Free shipping and handling | 43% | 19% | 38% |
| Frequent-buyer discounts | 26% | 15% | 59% |
| Frequent-buyer program | 26% | 13% | 61% |
| House credit | 17% | 11% | 72% |
| Lower shipping and handling on large orders | 18% | 16% | 67% |
| Preferred buyer program | 28% | 13% | 59% |
| Special Website offers | 45% | 19% | 36% |
| Sweepstakes | 9% | 24% | 67% |
| Volume discounts | 54% | 17% | 28% |
| Totals do not equal 100% due to rounding | |||