Americans For Financial Security

If your small business doesn’t market online, you could be missing sales at your bricks-and-mortar store.

New research shows that online product research conducted by consumers during the past year was responsible for driving $180.7 billion in offline spending. And that offline spending compares to just $106.5 billion in direct online consumer spending.

Those findings come from The American Interactive Consumer Survey conducted by The Dieringer Research Group in 2004. And small-business owners should give the numbers careful attention.

The survey figures clearly show that many consumers consult the Web before purchasing a product or service. They look for information. They compare prices and products. Even though they browse online, they make many of their actual purchases offline.

“The new annual spending data indicate that at least $1.70 is spent offline after doing online research for every consumer dollar spent directly online,” says Thomas E. Miller, senior consultant at The Dieringer Research Group.

The research shows that nearly 15 percent of total U.S. retail spending (excluding gasoline, food services and inventories) is currently influenced by the Internet.

The study also found that Internet-influenced offline spending is now growing faster than direct online spending. Internet-influenced offline sales grew 31 percent last year. Direct online sales grew 14 percent.

“The data confirm that the Internet’s role as a consumer product information utility is much larger than its role as a direct selling medium,” Miller says.

So how can you put these findings to work for your small business? Here are four ideas:

1. Promote your Web site
Many consumers clearly want to evaluate your offerings online before they set foot in your store. So steer them where they need to go – to your Web site.

Promote your Web site on all of your marketing materials. Prominently display your Web address on all of your advertising – from your Yellow Pages ad to your product and service brochures. Print your Web site address on your business cards, on in-store shopping bags, on customer receipts, on invoices and statements.

2. Improve your Web site
When consumers visit your Web site, they’re looking for information. The more information you provide, the better your chances of enticing shoppers into your offline store.

Here some tips to help you make your Web site a shopper’s delight:

Provide details about your products and services – from pricing and features to availability.
Use reviews and endorsements on your Web site. Are some of your products rated #1 in their categories? Highlight that information. Are your products or services endorsed by a well-known individual or organization? Tell shoppers about the endorsement.
Post customer testimonials prominently on your Web site.
Offer comparisons. Help shoppers decide what merchandise to purchase by offering product comparisons. Compare cost and other features of similar products. Offer guidance to shoppers by suggesting other products that might satisfy their needs.
Display photographs. Enlarged photos of products let shoppers get an up-close look at your merchandise.
Make it easy for customers to find what they’re looking for. If possible, let them search your site by product category, price and brand.

3. Evaluate online advertising
Online pay-per-click advertising may not be right for your small businesses. But you won’t know unless you investigate the possibilities. Educate yourself. Find out if pay-per-click could be a cost effective way of driving shoppers into your store.

4. Join comparison-shopping search engine programs
Millions of shoppers use these sites to compare products. You pay only when users click your listing. Three to check out:

(Posted November 2004)

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