A blog for students of Professor Kagan's Digital Marketing Strategy course to comment and highlight class topics. From the various channels for marketing on the internet, to SaaS and e-commerce business models, anything related to the class is fair game.
Wednesday, June 01, 2011
Online retail is growing at a healthy double digit pace, but many questions seem to remain unanswered. After the class, I’d like to share with you some of my concerns:
• How big can continue growing multichannel retail? We have seen in first session techniques to create traffic on websites, and we discovered how expensive this could be. These investments have impact on online sales but also on offline sales. How efficient are the current metrics to measure the latter? How should we adapt digital marketing to foster sales in general and not only online sales?
• Will market place growth, especially Amazon, continue at the same incredible pace? Today it is not rare that 10 to 20% of brands website traffic is generated by market places. Market places are taking a percentage of each transaction. In the long run, shall brand try to avoid them and keep their margins, or will market places become even more unavoidable?
• It seems that there is an increased level of skepticism around the role of social networks in driving sales. This skepticism seems as strong as was the excitement a while ago. However social networks are inexpensive tools, and seem a good way to both gather information about customers and better target them. How should retailers and brands use efficiently facebook and twitter? Can brands expect to drive commerce from social network soon?
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