FREEDyourMind

How Will the Economy Affect E-Business?

From RIS News:

 “It is a sign of tough economic times. Retail store closings are up in 2008 by 25 percent year-over-year as the national economy continues to deteriorate. The International Council of Shopping Centers estimates there will be 5,770 store closings in 2008 compared to 4,603 in 2007. Surging gas prices, higher food costs and powerful inflationary forces are squeezing consumers and retailers alike.”

 And from the San Jose Mercury News:

Electronic commerce has grown about 22 percent in the past two years, said Hal Varian, [Google’s chief economist], who spoke at a forum on the state of the Internet economy at Google's new  Washington office. Ed Garrubbo, chairman of the Electronic Retailing Association, said online sales jumped 17 percent in the first quarter of this year. 

"The lesson here is that the economic slowdown is not an Internet slowdown," Varian said. "The Internet is looking pretty strong compared to other sectors."

I wonder if the slow down for brick-and-mortar retail is actually a boon for the e-commerce industry.

Research published in Claes Fornell’s recent book, The Satisfied Customer: Winners and Losers in the Battle for Buyer Preference, he proves that a customer’s ability to spend is not necessarily a predictor of his willingness to spend. The best predictor, as crazy as it may sound, is whether or not that customer is satisfied. A satisfied customer will spend even if they don’t have the money.

Study after study shows that the online channel is the bright spot in any industry in terms of customer satisfaction. In the February release of the ACSI, we saw online retail (81.6 on the ACSI’s 100-point scale) trounce offline retail, which scored 74.2. Our study with Forbes about online financial services showed that customer satisfaction with online banking (82) outpaced satisfaction with banking overall (78).

So, in general, websites satisfy people more than other channels. Add that to increasing gas prices, and I think we have a few good reasons for people to move more and more of their business online. They can conduct business anytime, anywhere, and they don’t have to worry about inconsistency in service. And if the companies they interact with online are doing a good job satisfying customers, it might not even matter how much money they have!

My bet is that we will continue to see growth in the online channels of industries that are starting to feel the pinch of tough economic times, gas prices, and inflation.

New Google Search Feature

Internet Retailer had a story earlier this week about a new search feature at Google:

“Google has launched Search Within a Site, a feature that enables searchers to conduct site searches of content, retail and other web sites from a Google results page. A search of “Newegg,” for example, brings up the Newegg.com home page as the first result. Previously, the results page would present listings of links to any number of sites that include references to Newegg. Now, the results page still brings up all those listings, but a search window labeled “Search newegg.com” appears immediately below the first listing, the retailer’s home page, enabling searchers on Google to conduct a new search that focuses not on the web at large but exclusively on Newegg.com.”

It’s controversial because 1) on the Google results page for a site search, a competitor’s ad might show up. 2) it seems unlikely that Google can present a search as thorough as going to the site itself and doing a search from there.

It’s just the next step (one we probably should have been expecting) in building loyalty to Google instead of the retailer/auto dealer/ manufacturer’s site. We’ve done a lot of research on the value of different methods of customer acquisition (promo emails, shopping search engines, referrals, etc) and our research shows that search engines drive people who are substantially less loyal and less likely to buy.

What do you think? Is Google going too far? If you run a site, do you think this will help you or hurt you?

What is All That Fuss About in Ann Arbor? Appalachian State Isn't Back In Town . . .

We’re an international company (we’ll soon be opening offices in the UK), but we get a lot of attention in our home town of Ann Arbor because of the new jobs and investment we’ve brought to the area at a time when lots of companies are leaving Michigan. One of the local media outlets came and did a feature on us that you can see on their website or on YouTube. Yes, that is me in the blue shirt. Doesn’t the background music make us look like a young, hip place to work? Aren’t you enticed by the happy-go-lucky employees lunching by the lake?

Jobs, Jobs, Jobs!

I can't resist trying to use the blog to try and recruit some new people. We're growing like crazy, opening up new offices, and hiring lots of new people, most notably web research analysts, inside sales, direct sales, and a VP of sales.

Check out our website for a full listing of openings and please send over anyone who will do a great job! 

The Fourth of July

Happy Fourth of July!  Celebrating independence.

Well, what about the Internet consumer - is it time to celebrate the independence of the internet consumer?

Yes - Yes - Yes

The internet has changed the world, in many ways. The internet has brought knowledge to the consumer. And with knowledge comes great power. The consumer has the power.

Happy Independence Day to all.

Relay For Life

Help us fight cancer on June 9th and  10th

This year, my wife and I have decided to participate in the West Bloomfield Relay for Life. The Relay is an overnight event that celebrates survivors, remembers those that lost their lives to cancer and raises money for the fight against cancer. Funds raised during the event go to cancer research and patient services such as transportation to and from treatments and respite care.

Since the death of my father, Jack, in 1995 we have given financial support to the American Cancer Society, but this year we felt a need to do more. It seems like every time we turn around someone else we know is facing cancer, either themselves or with the illness of a loved one. Enough is enough!

In addition to honoring my dad’s memory we’ll be participating in honor of our friends and family who are personally fighting the disease. Some of their treatments are among the most cutting-edge in medicine and would not have been available only a few years ago without these types of fundraisers.

The Relay for Life will take place this year at West Bloomfield High School starting Saturday, June 9th at 10:00 a.m. and run through 10:00 a.m. Sunday, June 10^th — we’ll be there all 24  hours.

I also hope you’ll consider helping us support this great cause. Checks can be made payable to the “American Cancer Society” and sent to me at 4330 Windridge Ct., West Bloomfield, MI 48323. To make a contribution on-line using a credit card, please visit our Relay website using the link below.

Thank you for your help and support of our efforts to help find a  cure for cancer.

Larry

Follow  This Link to visit my personal web page and help me in my efforts to support  Relay For Life of West Bloomfield

http://www.acsevents.org/relay/mi/westbloomfield/thefreeds?faf=1&e=1081995739