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Logan Tod & Co.’s annual Online Shopping Index predicts a sales increase of more than 20% for Christmas 2010 equivalent to £1.26 billion

Logan Tod & Co.s annual Online Shopping Index predicts a sales increase of more than 20% for Christmas 2010 equivalent to 1.26 billion


The 2010 Logan Tod & Co. Annual Online Shopping Index has revealed the public intend to do 23% more shopping online in the run up to Christmas 2010.


The findings from the survey of over 1,000 UK consumers complements the figures released last week by the IMRG, which show that e-tailers experienced a growth of 17% up on the previous December.


The fourth annual index from Logan Tod & Co. found that shoppers purchased over half of their gifts online this Christmas. The research, which reviews and predicts consumers attitudes towards online Christmas spend, still found that cost was the most important factor with just under 70% choosing to shop online due to competitive prices.


Customer loyalty and retention essential


Matthew Tod, chief executive at Logan Tod & Co., explained: 2009 was a tough year financially for everyone, so it is not surprising to see cost play such an integral part of the purchasing process. That is why its extremely positive to see that online retailers were so successful over Christmas.


It is important to note that consumers are still concerned with the experience that they have online with 65% of consumers, indicating they will go to stores they have had previous good experience with. Search continued to be a big influence this Christmas, with 42% visiting online stores through search engine results. Moving forward retailers will also have to look at the broader influences on their sites, from back-end functionality to third-party recommendations; it all impacts the customer journey!


As with the last two previous years, the 2010 Index showed the largest group of growth is the adopters group, aged over 45, who are becoming increasingly comfortable shopping online. These shoppers are more focused on convenience, with the primary reasons for shopping online being: prices; store opening times; home delivery and avoiding crowds. Over 70% of this demographic researched online before purchasing. However, this group was less tolerant to customer experience issues and, as the richest and fastest growing demographic, it will be increasingly necessary for retailers to consider their habits.


Choice, availability and options most important


Once at an online site the most important elements for conversion were listed as: delivery options (68%), site search and product availability (67%), and well written copy (50%). It would appear that online retailers have been taking heed of these trends with 42% of UK adults stating that this years online shopping experience was better than last year.


The biggest shoppers (those who bought the majority of their Christmas shopping online) were most affected by delivery options and search which varies from last years research, which found crowds and opening times most important.


Interestingly one third of all online Christmas shoppers used click and collect this Christmas, therefore this should be a key part of any high street retailer's strategy.

Tod concluded: The shift in the mindset of the consumer has produced a savvier shopper. The public is planning to do yet more search and is looking for money-off vouchers and promotions.


By Christmas 2010, 60% of shoppers stated that research will be crucial in their purchasing decisions, however a third of consumers will abandon sites that are not good enough quality. Retailers will need to be more intelligent than ever to target the more considered purchaser the overall customer experience from search to purchase will be under scrutiny.