November 27 2006

39% of consumers say nothing holds them back from spending more online

A limited understanding of the online environment is holding back nearly a third of companies (30%) from increasing investment in internet marketing, according to a survey by the CBI and Google.

The survey of 500 businesses and 500 consumers investigated different aspects of online marketing and shopping behaviours and found that:

two in five businesses feel their online presence does not live up to the competition

half of firms are unsure what impact their internet strategy is having

The lack of measurement by companies is effectively leaving their internet strategy "rudderless" said WebTrends.

Meanwhile, consumers say that the internet has given them more power as consumers, with 43% saying that companies are becoming more accountable as a result of the internet. 72% agree that reading other people's experiences of a brand or product helps inform their decisions.

However, various factors are holding consumers back from buying more online:

the inability to 'try before you buy' is holding back 44% of consumers

40% say it is the cost and hassle of returning goods

25% say security is the issue

But, 39% of consumers said that nothing in particular is holding them back from spending more online.

The 52-page pdf can be dowloaded here

Emma Herrod