InternetRetailer.com has an interesting story on recent findings from comScore, which point to staggering growth in mobile internet usage among U.S. consumers. Sure, it’s been widely reported that in Europe and Asia accessing the Internet via smartphones and other mobile devices is commonplace. This new data suggests that the U.S. is finally catching up – something that we regularly remind Web merchants they should be thinking about.

According to comScore, the number of people using mobile devices to access the Internet on a daily basis more than doubled from January 2008 to January 2009, with 63.2 million people—29% of the U.S. population age 16 and over—accessing the Web on their mobile devices during the month of January 2009. 22.4 million, or 35%, went online on their mobile device on a daily basis—an increase of 107% over the 10.8 million who did so in January 2008.

Cross-channel capabilities have become critical to selling, and the growth in mobile use is a big part of that. The consumer buying cycle, once limited to a simple visit either in-store or on the Web, now typically spans interactions across multiple channels. A consumer may start on the Web, contact the call center for assistance, look up information on a mobile phone, and then buy in-store or back on the Web. As more and more U.S. consumers become accustomed to their phone as a primary device for emailing, social networking, blogging and absorbing multimedia content, it’s clear that m-commerce will rise, as well.

Like many eTailers this holiday season, you’re likely looking for some fresh e-commerce ideas to take you through the next few weeks. We recently spoke with Lauren Freedman, president of the e-tailing group and a visionary in the field of multi-channel retailing and e-commerce. She recently completed the 3rd annual “Mindset of the Multi-Channel Holiday Shopper” survey. In this interview, she shares some survey highlights and significance for this holiday season and beyond.

ATG: OK Lauren, so what IS the state of the retail industry this holiday season?

FREEDMAN: There is no question it’s a tense time for both retailers and consumers. Traditional holiday ’08 sales are expected to be up a meager 2.2 percent versus the 4 percent we saw last year. Accessory and home goods retailers will face particularly difficult times, and every day there are new surprises, so it’s hard to predict. The good news — and we certainly don’t want to forget about the good news — is that online sales are expected to grow 9.0 percent in 2008. While that may be slow by e-commerce standards, it’s still a lot stronger than total retail sales, so this is where the opportunity lies and the investments are still taking place. The reality is that the number of new customers coming online has really slowed down. So retailers need to ensure their customers are loyal not only during the holidays, but throughout next year. It’s more about retention than acquisition now.

ATG: What were your study’s key findings about today’s multi-channel holiday shopper?

FREEDMAN: For the first time, the Web has surpassed the store as the preferred way to buy holiday gifts. We believe that the customer understands the Web and once she’s hooked, she invests more time and does more shopping this way, because ultimately it saves her time.

There are a lot of different online customer types out there, and it’s essential that we understand who they are so we can market to them effectively. Whether it’s the cross-channel shopper who prefers to research online and purchase in a local store; or the convenience-seeker, who’s saying to herself, “It’s crazy busy this holiday season and the Web is just so convenient.” We also have that last-minute customer. He’s certainly out there. Every year, our merchants tell us that people are going to shop earlier in the season, when in fact, the week before Christmas garners the greatest share of wallet. From a surgical shopper point of view — it’s all about efficiency, and online tools help them make the right decision. From a gifter perspective, they really need the right tools to find the right products and the other little touches that simplify their life. Retailers need to make sure that they put those in place. If not for this holiday season, then for 2009. Lastly, from an enthusiast’s perspective, they want to know what’s new and what’s hot. That means bringing new products forward, and keeping that customer coming back throughout the season, letting them know what’s new, what’s available – and even what’s recently been marked down.

ATG: What’s most important to online holiday shoppers when it comes to gifting?

FREEDMAN: Every year, people say it’s going to be about money, but at the end of the day, the reasons for buying are mostly saving time for 88 percent of the folks. For many of us, avoiding the crowds at the mall and just being off the highways in general, are also huge benefits. Free shipping is also a customer favorite, and once we put it out there, it’s very hard to take away.

Gifting tools were also important to consumers. Gift certificates and gift cards, the gift methods, the convenience of knowing that you can type a personal message when you’re placing your order, are all important. But not all gift messages are created equal. The ones that get sent on your order forms aren’t as engaging as the ones that take a more customer-friendly approach.

And as time starts running down, we all get a little bit crazed. At the end of the season, customers really want to know what’s hot, what they need to buy, and when they can expect to receive it. The customer expects that the products advertised online are in stock and that they’re going to receive them in time for Christmas gifting.

ATG: With the focus on convenience, what other capabilities are online shoppers looking for?

FREEDMAN: The customer likes a little bit of hand-holding, and our job online, I think, is really to replicate the best of an in-store personal shopper experience.. As I mentioned earlier, consumers are spending more and more time researching products online. In fact, 72 percent said that they plan to research some products online prior to purchasing a gift. So retailers really need to ensure that their site is up to speed and that the shopper has access to the information they need. Many of us don’t really have the time to go from store to store. So we’re doing our homework online before we go to the store. Merchandised search results and sorts are essential. Many times, particularly with gifting, people want to sort by price point. They might say, “I have 25 dollars. I’m going to sort lowest to highest.” And then if they’re still unsure about their purchase, the ability to compare products side by side is a real value-add.

ATG: Lastly, based on your study’s results, how would you advise retailers to make the most of their promotional efforts this season?

FREEDMAN: Tough times mandate promotional creativity and I don’t think it gets any tougher than what we’re facing today. I think it’s going to be interesting to watch and monitor what happens with free shipping, the customer’s favorite. Sales and specials are another favorite among the merchant community. We’re already seeing a lot more of those earlier on this season and would expect this pattern to play out throughout the remainder of the season. And don’t forget about returns’ handling. Allowing online purchase and in-store return really plays into customer convenience. Plus, customers don’t like to pay for shipping twice.

Combining early calls to action with conditional free shipping is another area that consumers respond to. For example, “Spend 49 dollars or more, you’ll get free shipping and you can tackle your entire holiday list.” Deliver deferred payments is another hot area this season – especially given the economy.

Relevance is also important in these tough times. The ability to suggest multiple products and integrate them into the same shopping experience is the kind of relevance that gets shoppers to add to their shopping carts.

And finally, don’t forget about the stores. With 93 percent of the business still being done in retail stores, driving traffic there is still essential. You can really take advantage of e-mail promotions to drive both online and store traffic. For example, some retailers encourage online consumers to shop at their stores right after Christmas for special sales. Others do a nice job of letting consumers know it’s not too late. They can still shop online and pick up their order at their local store in time for the holiday.

Happy Holidays from the e-tailing group!

In the newest installment of our Q&A series, we invited Kurt Peters to share his thoughts on the state of Web retailing today. Kurt is the editor in chief of Internet Retailer and is also the executive vice president of Vertical Web Media LLC, the magazine’s publisher. In addition to overseeing editorial content for Internet Retailer and InternetRetailer.com, he works closely with many of the biggest and brightest stars in Web retail, managing the Internet Retailer Conference & Exhibition each year as well as two special publications that are considered “go – to” sources: the Internet Retailer Top 500 Guide and the Guide to E – Commerce Technology.

ATG: What do you see as the “next big thing” in online retail? Is there anything you view as over – hyped or not quite ready for primetime?

Peters: The next big thing will be something we’ve seen developing already, though it is not very common: the breaking of the linear approach to navigating a web site. Until now, moving through a Web site has been a lot like looking through a book, magazine or catalog (which is natural, given how long humans have interacted in that fashion with a vehicle that contains content, i.e., scrolls, books, etc.). But the development of Web 2.0 approaches and technologies breaks that navigation open and allows the Web experience to become something completely different from what we’re all used to. In retail, that means shoppers will be able to view details about a product, compare products, match one product up with another, view reviews, and see what’s in the shopping cart, all without having to toggle back and forth between pages. That will make the experience more interesting and gratifying than what it is today.

The other next big thing: E – commerce everywhere. That has two aspects to it: E – commerce that does not take place on a computer, such as on mobile devices and TV. And e – commerce that takes place on Web sites other than retail sites – social networking sites, other content sites, and so on. Retailers will have to get used to – and figure out how to make the most of – the fact that consumers can and will buy when they’re in the mood.

Over – hyped: the notion that online retailers can maintain an infinite depth of product. That may be true for digital products (music, movies, books, software) but it is far from the case in hard products. There is a cost to maintaining hard inventory and retailers would be well served to correctly analyze the costs of storing, finding, packing and shipping hard products that result in only a few sales a year. It’s one thing to have episodes of the Mickey Mouse Club on a server to download to a consumer or written to a DVD on demand; it’s a completely different issue to have the Annette Funicello angora sweater in stock just for the person or two who might want to buy it each year.

ATG: What is the biggest challenge facing e – tailers today? The biggest opportunity for them?

Peters: The biggest challenge facing online retailers is the state of the economy. Online retailing has had a good ride so far, carried along first by the novelty, then by the convenience. The novelty is gone; the convenience remains. But as the economy gets worse, online retailing will face the same pressures that offline retailing faces: consumers looking for good prices. E – retailers will have to be hyper aware of their prices in relation to their competitors’ and make sure that the price they charge reflects value – value either in absolute terms (i.e., price) or in relation to whatever additional value a consumer gets from buying at that particular site. They also are going to face increasing competition from big chains who will be looking to online for sales. When they finally start to bring their big resources to bear, the nature of the game will change and everyone will need to be ready for competition to move to a whole new level.

ATG: Do you think that most retailers are in tune with what their customers want and/or expect?

Peters: It’s hard to generalize on this one. Numbers tell the story. The percentage of sales to repeat customers is a good indication of whether a retailer is in tune with its customers, as is overall sales growth. A couple of things that online retailers could be doing better and that indicate that they are out of tune with customer needs:

1) Site search. For all the attention that effective site search has received over the years – and it’s been a topic for a long time – a lot of site search is still really bad. For instance, I was looking for a dehumidifier for my basement recently, and when I searched at a certain site, I got room humidifiers along with dehumidifiers. At another site, when I searched on refrigerator, the first result was a small wine cooler – that seems like a mighty specialized result for the first listing on a broad term like refrigerator.

2) More responsive customer service. Some retailers take 24 hours after you’ve submitted an e – mail to answer it and some never reply at all. Some keep their 800 numbers hidden.

3) Better product descriptions. When I was in the market for a digital camera, I narrowed my search down to a few, and then did a Google search to find out more about each camera from the sites that were selling them. All the sites used the exact same language – obviously, the manufacturer’s wording – to describe the cameras. No site gave any indication that their people had any actual knowledge of the cameras. What’s the incentive for me to buy from any particular site? Such an approach provides no additional value to consumers and forces all decisions to be made on the basis of price.

ATG: What will be the hottest topic in Web retail in the next 6 months? The next year? The next five years?

Peters: 6 months: the economy; 1 year: the economy; 5 years: I hope not the economy, rather, how to create an experience compelling enough to move shoppers out of stores. That will require big leaps in helping the shopper find the product fast, giving the shopper enough information to replicate the touch – and – feel experience of the store and make the shopper comfortable buying ever more things online, and stellar execution of the order, including accurate, super – fast (by that I mean one day, maybe even less) delivery.

ATG: Given the current U.S. economy, and projections about the retail industry in general, should e – tailers expect a strong or weak holiday season?

Peters: Weak relative to previous years, but still stronger than offline. If the first half was any indication, consumer spending will grow much more slowly than in recent years – but online sales will outstrip offline sales and that will mean gains for online at the cost of offline. In the first half, total retail sales were up 2.8% while online sales were up 13.6% compared to a year earlier. We will probably see much the same pattern during the holidays, meaning Web – only retailers need to gear up for competition from huge offline competitors and offline retailers better get their online act together if they are going to capture any of those sales.

ATG: Anything else you’d like to add or comment on?

Peters: Retail chains need to gain a better understanding of the role of the Web. Most do not include Web site sales in same – store sales, but they should because doing so creates a fuller picture of the retailer’s operations and can paint a much different picture of a company’s financial status. In addition, the Web accounts for much of the growth at some chains. When chains fail to take that into account, they risk investing where the return is lower (stores) just because that’s what they’ve always done, and ceding the future of retailing to competitors who understand the importance of the Web.

[tags] Internet Retailer, online shopping, eCommerce, Ecommerce, economy, retail [/tags]

It is my great pleasure to present the interview below with Kelly Mooney, president and chief experience officer at Resource Interactive, as the latest installment of our Q&A series. In addition to her day job at Resource, Kelly is also a highly regarded speaker and author. Her latest book, The Open Brand, is the basis for today’s discussion. (Oh, and in her “free time” Kelly keeps a great blog at www.mooneythinks.com.)

Kelly, in your book “The Open Brand,” one of the themes we found particularly compelling is this notion of the “rise of the icitizen.” More and more consumers whose behavior and contributions to online communities would have made them “early adopters” just a year ago, are now part of the norm.

You highlight certain ways that these “icitizens” have come to expect different things from brands – that they expect to be involved in every stage of a product, from its creation to its promotion and beyond. Can you give us some examples of ways that brands can tap into the opportunity to engage consumers early on?

The first step is to support consumers’ chief web 2.0 behaviors—creating, sharing and influencing. It’s important to engage consumers wherever their passions lie, from software code tinkering to creating ratings and reviews to creating the perfect chocolate chip cookie. Web 2.0 is ultimately about using technology to enable, expand and catalyze marketing mixes that only get better with more cooks in the kitchen. Find their passions and meet them there. Enable their interactivity. Create ways your brand can make their goals (and lives) easier, more efficient. I realize it’s a new concept for marketers—but there’s a lot of buzz around marketing and customer service becoming one. Think about it—it’s pull marketing, not push.

The bar is being raised by innovators like Ning, FriendFeed, Jott, Loopt and Twitter, which are redefining cultural relevance, paving the way for brand co-creation, social networking, citizen journalism and more. Now all brands are expected to provide faster and more customizable experiences, more enhanced content, and more opportunities.

Consider tapping into your consumers as early as product development. Ask them for their feedback. Use it. Jeff Jarvis and Dell Hell may be the oldest example in the web-made world, but as a result, Dell created IdeaStorm, an entire online community dedicated to an open sharing of ideas and consumer feedback—ultimately ending in an ideal open branding scenario—it led to actual product improvement.

As for a more current example, I know of no better model for marketers than the Obama campaign. Regardless of what side of the red/blue coin you choose, the campaign is an example of open on all counts. The campaign homepage states emphatically that the goal is “ONE MILLION PEOPLE TO OWN THIS CAMPAIGN”. It’s a whole different mindset.
So what’s open about Obama?

• Information is given on-demand, via mobile, video, blog, social network, and by topic areas (not all or nothing)
• The campaign site is personal with so many videos, pictures and comments from real people that it gives the feeling of ownership outside the campaign itself.
• Barack Obama himself is a key engaging factor, but the campaign itself (not unlike other campaigns) is built on outside participation.
• Supporters aren’t just asked to tap their own networks, the campaign networks them too. For example, when someone makes a donation online, the campaign introduces them (with permission) to other supporters.

Have you ever considered having such an open dialogue with your consumers that they feel part of a larger ownership of your brand?

What about threats? What are the negative consequences of the increased emphasis on interaction between consumers and brands?

The real threat lies in inaction and ignorance. Brands are at risk of losing cultural relevance in the web-made world because they’re adopting trendy technologies without developing fresh insights. Even worse, some brands are simply waiting for this open season to pass, or at least to seem less chaotic, less of a threat to the completely choreographed success they’ve long enjoyed. Confronting accelerated change and the lack of appropriate resources to keep pace, marketers’ resistance to the brave new world is understandable.

Negative reviews and posts are a natural part of a fair and free-wheeling exchange with and among consumers, and have to remain visible, in all their bruising glory. Besides, they can be the source of the brand’s most valuable consumer insights, and can arguably build brand credibility over time more effectively than a set of purely (and suspiciously) positive reviews. But brands do have rights—and ways to keep the conversation constructive.

While some online advocates promote anonymous posting as a form of free speech, for brands, requiring mandatory log-in before contributing falls in the category of an ounce of prevention trumping a pound of cure, ultimately reducing the burden of liability for the brand or company hosting the user-generated content. Along with Terms & Conditions, mandatory log-in can help protect brands from renegade user behavior.

Brands can also steer consumers in a positive way, by prompting topics for discussion that can benefit the community at large, as well as the brand. What’s good for the engaged consumer is good for the brand. The people behind the prompting and listening occupy some of the newest positions in marketing—Toyota has a Corporate Manager of Consumer Generated Media—and some of the oldest but increasingly valued positions, including consumer affairs and public relations.
Ultimately, the community itself is the most effective tool for shaping and policing user-generated content. When empowered with reporting mechanisms, users freely report objectionable content to the proper authorities (often, the online policy enforcers employed by many large content sites). Users also vote online with simple “Was this information helpful?” feedback polls that can drive poorly ranked content to the bottom of the bin.

In short, transparent (but requisite) policies and log-ins and a self-policing user base can be the best tools for brands seeking to enable consumer- (or employee-) generated content without suffering collateral damage in the process.
But remember, the real risk for brands today is in not opening.

You present continuum from the “everyday” to the “elite” icitizens and talk about the opportunity for the everyday to “ascend” the ranks. Do brands play a role in facilitating this ascension? Is there any benefit to them in doing so?

Yes and yes. In a world where a talented nobody can rise to the top on American Idol, the masses are empowered as never before to generate, celebrate and venerate their crowd-made stars. And therein, naturally, lays an opportunity for marketers.

All icitizens are uniquely passionate and transparent about their expertise but some of these snowflakes soon snowball into larger-than-life personalities. Their notoriety achieves critical mass, and their influence gains momentum and reach in a way that is particular to the web.

Because of the trust and familiarity existing between everyday icitizens and their closer-knit networks, they are best leveraged for driving trial and purchase. Elite icitizens can be used to build broad awareness of a brand. They might even be positioned as the next face or voice of a brand, where brands can play a key role in their ascension to web celeb. Online ”auditions” and voting, coupled with studies of social media archetypes, can help identify an elite icitizen with plenty of network charisma and attributes highly compatible with the brand. The benefit is mutual—an icitizen climbs the ranks of internet fame while bringing greater awareness to the brand. Just be sure the icitizen’s profile—private and public—is compatible with that of your brand.

I realize the concept can be a bit overwhelming, so consider breaking it down into smaller steps:

How strategic is your brand’s relationship with the icitizenry? Do you have one at all?

Do any of the icitizenry’s main motivations (competence, collectivism, cultural change and celebrity) align with your consumer segments or consumer personas? If so, how are you marketing to this motivation?

Have you identified your icitizen truth tellers and tastemakers? Are you mining the blogosphere for the most influential and charismatic among them? Identifying the icitizens and spheres of influence most valuable to you as a marketer?

Do you know how and where your consumers interact with everyday and elite icitizens? Have you discovered their common traits, and learned how to capitalize on them?

How are elite icitizens influencing your consumers’ awareness of and opinions about your brand?

You also talk about the four motivations for icitizens (competence, collectivism, cultural change and celebrity) and challenge brands to align their customer segments and personas to these motivations. Have you seen any specific examples of merchandisers doing this particularly well on their e-commerce Web sites?

Known for their creativity (not just in their clothing), Free People isintroducing its shoppers to Jaime, a brand fan who works at the Ardmore, PA store. The site offers an interview with Jaime, a list of her favorite products, blog entries, video, and 28 product reviews (her screen name is FPJaime806 and her entries are also denoted as “fp employee”).I love this apropos approach to engagement. Leveraging the authentic passion of a member of the Free People family, the brand provides relevant emotional experiences that are inspiring, entertaining and contextual. Wonder if she’ll boost conversion online as well as she does off?

(Full disclosure, Free People is a long-standing ATG customer.)

Victoria’s Secret PINK is another great example. The brand held an open contest call for students to spend their summer as an intern at PINK’s home office, announcing the winners on their site. PINK has even taken the love triangle offline, by meeting its customers at their point of passion—on college campuses nationwide. Not only did the brand partner with universities to create an exclusive collegiate collection, PINK also plans to hire brand ambassadors at 15 campuses. Aspiring ambassadors submitted their resumes, and the chosen girls will go through a training program before promoting PINK on campus. They’ll also provide strategic insights, contribute their ideas—ultimately influencing the brand’s overall strategy for seasons to come.