The National Retail Federation reports on Connexity’s Managed Services

Appliance-Zone-Repair-ConnexityThe NRF conducted an in-depth interview with Appliance Zone CEO Jim Allen on his experience as a client of Connexity’s Managed Services program. Since Connexity took over product listing ad (PLA) management, Appliance Zone has seen a 65% reduction in cost of sale. 

“The online marketing is responsible for 70 to 80 percent of our entire revenue,” he says. “From Day One I’ve been doing it myself, personally, every day. I wouldn’t even think of turning it over to our most senior employees. Just based on my knowing the products and the customer base, I honestly did not think an outside company could do it any better than I could do it.”

“The results have been excellent. Our margins are much better — our cost of sale has dropped 65 percent since Connexity started handling the marketing, [Allen says]. The cost of what they charge is just such a worthwhile investment.”

“This space is moving so quickly, particularly with the search engines updating their algorithms, that it’s extremely difficult to keep up with. We need somebody in the industry who understands those changes and can help our business take advantage of them. That’s what we get from Connexity.”

Click here to read the entire article on National Retail Federation.

BizAdvisor: Keep Buyers Online and Out of Competitors Stores

BizAdvisor FebruaryThis month in the 2nd edition of BizAdvisor, Bizrate Insights reveals surprising stats about buyer reliance on in-person shopping—and the tools that can help reduce that dependence.

In a single page, you’ll learn:

  • 2 tools that will help half of online buyers purchase without needing a retail store.
  • What % of online buyers live near the retail store of the brand they purchased from online?
  • 3 simple tips for reducing reliance on in-person shopping.

Read our the exclusive report here.

The Limited: Our Core Value is Putting the Customer First

In June 2014, The Limited implemented Bizrate Insights, our customer feedback platform. Today, The Limited receives ~1,000 completed surveys each week, providing insights into their customer experience that helps them improve their IT, e-commerce, stores, promotions, planning, operations, merchandising, products and much more. The Limited started with asking simple questions: What do customers love? Is there consistent feedback on a particular product? Do customers understand promotions and return policies?

The Limited

Dawne Brookes, The Limited’s Supervisor, Ecommerce Contact Center & Operations spoke with us to share how Bizrate Insights supports The Limited’s goal of listening to their customer, and provides context for their customer feedback.

“Good listening is the first step of serving customers better, and will lead to long-term growth. Over the past few years, retailers have become very promotional, but we continue to focus on our customers’ needs. What really will differentiate a retailer is listening to the customer, and providing excellent service based on what we hear,” said Ms. Brooks.

For more key takeaways on The Limited’s journey to find the voice of the customer, click here.
 For a transcript of Dawne Brooks’ full interview, click here.

Almost 1/4 of Shipping Club Members May Cancel Due to Late Delivery

Most shipping club members look for one, primary benefit in their membership: short delivery times at no incremental cost. Considering the importance of this benefit, we decided to examine how well shipping club sponsors, retailers or other entities providing this service, live up to delivering on this promise.

Bizrate Insights collected nearly 6,400 responses from online shoppers who participate in shipping clubs to learn more about late deliveries and how they affected buyers’ intention to renew.

Shipping Clubs: Why On-Time Delivery Matters

ShippingClubGraph-General33% of surveyed buyers reported being members of a shipping club
, the most popular memberships being Amazon Prime (28% of all respondents) and Barnes & Noble (5% of all respondents). Of this 33%, 28% report that their membership is a free trial.

Of all shipping club members, 43% reported they may not renew their memberships; nearly a quarter of that group (9.7% of all shipping club members) said it was specifically due to late package deliveries in December 2014, while the additional 33% were considering non-renewal for other reasons.

Members of the two biggest shipping clubs—Amazon first, followed by Barnes & Noble—report that 21% and 8% of orders in December 2014 were delivered late, respectively.

Free Trial Members More Prone to Cancel

When we compared free trial vs. paid shipping club members, there was a notable difference in buyer’s reluctance to renew.

  • 73% of free trial members may not renew
  • 31% of paid members may not renew

Of those who may not renew…

  • 24% of free trial members may not renew due to late deliveries
  • 22% of paid members may not renew due to late deliveries

A Closer Look at Amazon Prime

ShippingClubGraph-AmazonPrimeWe examined responses by Amazon Prime members, who represent 74% of shipping club memberships, and found that not only did 21% of Prime members report receiving a package late, but the number may in fact be 50% higher, given that 31% of respondents agreed that some of their items ordered through Amazon Prime arrived in more than two days.

These numbers were higher than average amongst Generation Y; 26% reported at least one Amazon Prime order arriving late in December 2014, and 35% report that some of their Prime items arrived in more than two days.

Late delivery was also of notable importance to Amazon Prime members; out of 41% of Prime members considering non-renewal, 9.6% (about a quarter) were considering non-renewal specifically due to late deliveries. The other three quarters were considering it for other reasons.

26% of December 2014 Amazon Prime members report that their membership was under a free trial.

The bottom line: on-time delivery is very important to the longevity of shipping club membership. In fact, it’s deeply important to all buyers. We see this in the high correlations between on-time delivery and key loyalty metrics, as well as the power of reliable delivery to entice shoppers to convert online, as reported in our January BizAdvisor; 37% of online shoppers would buy a greater percent of 2015 Holiday purchases online if they have guaranteed on-time delivery.

These buyer sentiments no doubt make a difference in the bottom line of any retailer or service that provides shipping club memberships, and should be a key priority to consider in the coming year.

About This Study

This Shipping Clubs and Late Deliveries Study was conducted via the Bizrate Insights survey platform and offered to online buyers immediately after purchasing from the Bizrate Insights Network of over 5,000 e-commerce retailers in the US and Canada., Inc. is not a member of the Bizrate Insights Network. Data from the study was collected from 6,396 online buyers from January 7-14, 2015.