Report: Email remarketing boosts e-commerce conversions, revenues
Boston – Email remarketing to online customers who visit e-commerce sites but do not make a purchase can significantly boost conversion and revenue rates for online retailers. According to a new report from the SeeWhy Conversion Academy analyzing 80 Demandware-based e-commerce sites, “The ROI of Email Remarketing for E-commerce and Brands,” on average, 97% of visitors to e-commerce sites don’t make a purchase.
Sixty percent e-commerce visitors will click on at least two pages before leaving without making a purchase. The most popular reason non-buying e-commerce visitors give for not making a purchase is they are not ready (52%). In addition, only 0.25% of first-time visitors make a purchase, but a little more than 2% of repeat visitors make a purchase, as do almost 19% of visitors who get as far as the online shopping cart.
The report finds that email remarketing to visitors who do not make a purchase is an effective means of driving return visits, which leads to the previously higher conversion rates, resulting in an average 5.4% lift in e-commerce revenues.
Overstock makes executive moves
Patrick Byrne has relinquished his role as chairman of Overstock.com and Stormy Simon was named president of the online discount retailer.
Byrne will continue to serve as CEO while current executive vice chairman Jonathan Johnson assumes the chairman responsibilities Byrnes has held since 2006. Johnson’s prior responsibilities as corporate secretary will be assumed by Mark Griffin who serves as SVP and general counsel. Simon, who previously served as co-president of the company was named president and retains her seat on the board while David Nielsen will continue in his role as co-president.
"I have long maintained that simply as a matter of good institutional design, the roles of chairman and CEO should be split,” Byrne said. “For that reason my father held the position for years, as much as his health and other duties permitted. It has been back in my hands for some years, but for the completion of many of the duties of chairman I have come to rely more and more on Jonathan Johnson, another long-termer at the company who has made enormous contributions in the areas of finance, legal, and government affairs, and who has also had, at one time or another, nearly every piece of the company reporting to him.”
Byrne said Johnson understands the complexities of the company and the legal environment in which it operates and has the respect of the board.
“Now is the right time for Jonathan to assume the position of chairman, for which he has been in preparation for so long,” Bryne said.
Regarding Simon’s appointment as president, Bryne called her the company’s secret weapon whose ideas and leadership have been crucial to Overstock.com’s success.
“Stormy walked in off the street for a temp job, but within a few months was building our early B2B business, then dreamed up, wrote, and produced our famous ‘Have You Discovered the Secret of the Big O?’ commercials and the vast majority of our ads since then,” Bryne said.
Simon ran the company’s marketing through its high growth phase, ran customer service, developed a supply chain organization and overseen human resources.
“Most importantly, Stormy is an empath who, like Star Trek’s Deanna Troi, wanders through our organization psychically tuning it up wherever it is needed. I am just along for Stormy’s ride,” Byrne said.
Simon joined the Overstock board in May 2011 and Johnson was named executive vice chairman last May.
Stein Mart reports positive March sales despite bad weather
Stein Mart said that its March sales were unfavorably impacted by the shift of pre-Easter selling from March to April this year, as well as cooler-than-normal temperatures in many parts of the country early in the month.
Stein Mart’s total sales for the five-week period ended April 5 were $136.3 million, compared to total sales of $135.4 million for the prior-year period. Comparable store sales increased 0.9%.
Geographically, Florida and the Southeast had solid comparable store sales increases, while Texas, the Gulf States and the Northeast were more challenged.
The company operated 263 stores at the end of March this year compared to 262 stores last year. One store was opened this month in Las Vegas, Nev., and two stores located in Hendersonville, N.C., and Overland Park, Kan., were relocated to improved sites.
Stein Mart’s focused assortment of merchandise features current season, moderate to better fashion apparel for women and men, as well as accessories, shoes and home fashions.