A report by the Retail Council of Canada suggests just two-thirds of Canadian retailers are adopting technology like e-commerce and social media to increase their online presence with customers.
The report, Retail Technology in Canada, says 65% of mid- to large-sized businesses surveyed had an e-commerce site, but the websites generated less than 5% of total sales.
“Data from various external studies value online sales in America at 3.6% to 6% of total sales,” states the report. “Canadian e-retailers in our study seem optimistic about online sales for 2010, expecting to see a healthy rise. More than half of the respondents said that they anticipate online growth between 1-10% this year.”
The survey found that most mid- to large-sized retailers will have an e-commerce site in the next five years. “One commonly offered explanation for Canada’s lower e-commerce sales is that Canadian consumers have less of a catalogue-shopping mentality compared to Americans. In addition, there is a greater number of U.S. e-retailers and U.S. companies offering retail services in Canada.”
About 68% were using social media like Facebook and Twitter in marketing and promotional campaigns.
“While many retailers are involved in social media, some issues still persist,” states the report. “Determining ROI remains a common complaint of social media, with retailers uncertain as to how much they should be investing in the efforts and what kind of pay out they can expect. Many retailers simply accept social media involvement as a necessity in today’s marketplace. As one survey respondent stated, ‘social media is the cost of doing business.'”
About one-quarter of respondents said they have no concerns about using social media, while 38% said they “lack a knowledgeable person… to handle the work” and another 24% said social media “requires too much work to maintain.”
The report also says businesses are looking at how to use mobile phones to reach their customers, though just a handful of retailers surveyed said they use mobile technology.
