Retail executives are failing to consider offline effects when they calculate their return on investment (ROI) from online investments, according to Forrester Research. A new report claims that retailers will find that investments in online technology will pay off if they take a disciplined approach to site investments and ROI analysis.
“The problem today is that even sophisticated retailers become myopic when it comes to calculating the ROI of selling online,” said Evie Black Dykema, senior analyst at Forrester. “Since the returns on internet investments extend beyond online sales alone, retailers must begin to measure company-wide ROI, which factors in the web’s impact on offline sales and operational efficiencies.”
Retailers that do not consider the effect websites have on offline purchases are neglecting the value of the web as a marketing and service channel, Forrester goes on to say.
One way to damage the company-wide ROI of selling online is to either over- or under-invest in a website, says the report. With the cost of some online stores approaching $52 million (£39.5 million), retailers must calibrate spending with the level of site sophistication and class of goods being sold.
