"Creative Good Says Dotcom Ad Bonanza Will Drive Consumers to E-Commerce Disappointment and Holiday Hangover".Editor Note: The attached reference to an audio clip contains an Interview of Phil Terry, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Creative Good by Russ Johnson William Russel Johnson, better known as Russ Johnson, is a Minor League Baseball utility infielder for the Pittsburgh Pirates. He was born on February 22 1973 in Baton Rouge, Louisiana. of 1Webcast at Comdex '99 on 11/16/99. http://media.1webcast.com:7070/ramgen/1webcast/CreativeGood.rm NEW YORK--(BUSINESS WIRE)--Nov. 23, 1999-- Post-Holiday Hangover Begins Now $6 Billion Revenue Gap Exacerbated by $3 Billion Ad Spend Creative Good, an internet strategy consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , predicts that the day after Thanksgiving Thanksgiving annual U.S. holiday celebrating harvest and yearly blessings; originated with Pilgrims (1621). [Am. Culture: EB, IX: 922] See : America Thanksgiving national holiday with luxurious dinner as chief ritual. [Am. Pop. -- traditionally the busiest shopping day of the year -- will frustrate many online buyers and kick off a disappointing, but much hyped e-commerce holiday shopping season. "Even before the holiday egg nog A drink make from eggs beaten with milk, cream, and sugar, often spiked with rum or other alcoholic liquor, and sometimes seasoned with cinnamon; usually spelled eggnog sp>. It is a traditional drink served at social gatherings during the Christmas season. See also: Nog is consumed con·sume v. con·sumed, con·sum·ing, con·sumes v.tr. 1. To take in as food; eat or drink up. See Synonyms at eat. 2. a. , we will experience an industry-wide hangover," says Phil Terry, CEO, Creative Good. "Collectively, e-commerce companies are spending billions in advertising, attracting millions of potential customers to their sites and then driving most of them away with a bad customer experience -- confusion, frustration and, ultimately, no sale." Three billion dollars will be spent this year in dotcom advertising, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Advertising Age while conversion rates (the rate at which visitors convert to buyers), have tended to go down or remain constant for many e-commerce firms. At the same time, Creative Good estimates that $6 billion of potential revenue will be left on the holiday table because of poor customer experiences. In essence, companies are spending more money to convert fewer customers. "This gap will create cash flow problems for startups and large companies alike. This is why Levi's pulled the plug on its web efforts. This is the hangover that could push consumers right back to brick and mortar See bricks and mortar. retailers," added Mark Hurst, Creative Good President and Founder. What is causing many of these sites to fail? Poor navigation, confusing con·fuse v. con·fused, con·fus·ing, con·fus·es v.tr. 1. a. To cause to be unable to think with clarity or act with intelligence or understanding; throw off. b. search features and inefficient check out processes, among other factors. Principally, however, it is a general lack of focus on the customer experience. Creative Good examines these issues in its Holiday '99 E-commerce report which is free for download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. at: http://www.creativegood.com/holiday99/ You can hear Phil Terry, CEO of Creative Good, talk about this at an interview at last week's Comdex show at: http://media.1webcast.com:7070/ramgen/1webcast/CreativeGood.rm An Internet strategy consulting and research firm focused on the customer experience, Creative Good numbers among its clients Gateway, Macys.com, Travelocity, and Flooz.com. Research customers include Microsoft, Amazon, AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. and many other online leaders. Creative Good also publishes both the ZDNet e-commerce best practices website (www.zdnet.com/enterprise/e-business/bphome) and the web's leading customer experience site, GoodExperience.com. Editor Note: The attached reference to an audio clip contains an Interview of Phil Terry, CEO of Creative Good by Russ Johnson of 1Webcast at Comdex '99 on 11/16/99. http://media.1webcast.com:7070/ramgen/1webcast/CreativeGood.rm It is indexed as follows: 1:04 The good and bad news about the upcoming holiday e-commerce season. 1:44 Huge Problem: The industry is leaving $6 billion on the table this season. 1:50 There is a 1400% increase in advertising this year -- $3 billion compared to $200 million last year 2:05 At the same time billions more are being spent in advertising, the conversion rate of new shoppers to customers is actually going down. 2:14 Not only are they going to leave $6 billion of unrealized sales on the table this year -- but the $3 million of their spending in advertising will largely go wasted. 2:26 The various factors causing this to happen. 2:49 E-retailers will make some more money in gross revenues this year, but will not generate the kind of marketing efficiencies they'll need for their ad spend. 2:59 The Holiday "Hangover". 3:34 What causes a bad customer experience online? 4:08 The Creative Good mission. 4:28 Key drivers for success online. 4:54 How to facilitate success online. 5:25 The two biggest opportunities to improve on an e-commerce site. |
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