New Marketing Avenues Generate Big Increase in Online Revenue

With VAT set to rise to 20% in 2011, the retail sector will welcome the news that online sales jumped by 22% in May, compared to 2009 levels.

The online market has become a key sector for businesses, in part due to the financial limitations imposed by the recession. Companies have found marketing and selling their products online to be a very cost effective way of generating revenue and attracting customers, with the latest figures showing that shoppers spent 4.5bn online during May alone.

The research, conducted by the International Media Retail Group (IMRG) found that companies who utilised a range of sales channels had the most success. For example, retailers with both physical stores and online facilities saw year-on-year sales rise by 28%, compared with a rise of just 1% for online-only retailers.

Many companies have been keen to explore new marketing channels over the last few years, including online sales, interaction with social media sites, and promoting their brand through membership programmes to increase sales revenue and customer retention. Tina Spooner, director of information at IMRG, believes that companies willing to branch out in this way will see positive results.

She said: "High street retailers with an online presence are playing an increasingly significant role in the e-retail sector. Retailers with a diverse multi-channel offering will no doubt continue to reap the rewards of their investment in the online space."

Companies who produce membership clubs offering free promotional opportunities for brands, have seen their partners benefit from utilising a diverse range of sales opportunities. Brands they've partnered with have enjoyed increased revenue, customer retention and web traffic through appearing in physical club guides, as well as a range of online pages, newsletters and targeted e-shots.

Andy

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New Marketing Avenues Generate Big Increase in Online Revenue

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