Bigfoot Interactive Survey Results Reveal Email Attitudes and Purchase Behaviors among Retail Consumers

Leading Retailers Wal-Mart, Sears, JC Penney, Gap And L.L. Bean Included In Survey Results

NEW YORK & PALM SPRINGS, CA – February 23, 2004 – Bigfoot Interactive, the leading provider of strategic, ROI-focused email communication solutions and marketing automation technologies, today announced the results of a nationwide poll of retail consumers. The Bigfoot Interactive OmniTel telephone survey, conducted by NOP World Research, examines consumers' perceptions, interests and satisfaction of email communications from major retailers over the 2003 holiday season.

The survey explored consumer perceptions about a mix of leading retailers including Wal-Mart, JC Penney, L.L. Bean, Sears, and Gap. Overall 86% of all adults, and 94% of all adults who currently subscribe or have received a permission-based email in the last 3 months, said they made a purchase from at least one of the retailers referenced in the study. As expected, mass merchant Wal-Mart was the most frequently mentioned retailer with more than two-thirds of all respondents citing they had made purchases from Wal-Mart (69%) in the past 3 months. Slightly more than one-third (36%) of shoppers made their purchases at Sears, as well as at JC Penney (33%).

Email and Satisfaction:
Over the past 3 months, 28% of all adults and 40% of all adults with Internet access indicated they currently subscribe or have received an email communication from a retailer. Among shoppers who received email from a retailer, two thirds (66%) expressed general satisfaction. Approximately one half agreed (strongly/somewhat) that they found "the emails relevant and targeted to their needs". However, two in five (40%) "believe the retailer could do a better job sending more targeted offers based on their interests and past purchase behavior."

"Consumers are growing increasingly impatient with marketers who fail to understand their needs, preferences, interests, and buying behaviors," said Al DiGuido, CEO of Bigfoot Interactive. "The research findings support a growing trend that relevance and value will be the critical factors to email marketing success in the next few years. The leading retailers of tomorrow will be those who quickly leverage this shift in the marketplace to create real competitive advantage and higher customer loyalty in a crowded marketplace."

The study also found significant differences in the level of agreement among shoppers who subscribe or have received a permission-based email from retailers and those who have not. Those who received the emails are more satisfied overall, more likely to make purchases and recommend the retailer to others. Some of the highest rated statements across both groups were:

-- "Satisfied with the retailer" (90% vs. 83%)

-- "More likely to buy more products from this retailer in the future" (91% vs. 84%)

-- "Likely to recommend the retailer to others" (88% vs. 81%)

Email Delivery Concerns & ROI Implications
The study also explored consumer perceptions on the critical issue of delivery. Approximately one third (34%) of adults who currently subscribe or received an email they requested from a retailer expressed concern about not receiving an email due to an ISP Spam filtering or blocking mistake, a "false positive." A slightly larger percentage stated they would consider switching ISPs or Email Service Providers if they did not receive critical communications due to an ISP or Email Service Provider filtering or blocking mistake.

According to a recent Jupiter Research (Overcoming the Spam Effect, January 26, 2004), the cost of erroneously blocked permissioned email (i.e. "false positives") cost marketers $230 Million in 2003 and is expected to increase to $419 Million by 2008.

"Email delivery is a top concern for permission-based marketers and retailers specifically who have effectively and efficiently leveraged this channel to drive online transaction," continued Al DiGuido. "This research sheds light on the serious need to protect the email medium and to create an assured delivery solution for legitimate marketers and the consumers they serve. Bigfoot Interactive continues to support efforts to create a comprehensive solution against spam which combines technology, authentication, education, legislation as well as the creation of a financial barrier or commercial solution."

The Bigfoot Interactive retail email study is the second in a series of commissioned vertical market research examining consumer email perceptions and trends. For a complete summary of findings, including the executive summary, please email Michael Della Penna at mpenna@epsiloninteractive.com . The results contained in this report are based on interviews conducted from January 16-18, 2004. A total of 1,019 interviews were completed among adults 18 years or older. 528 respondents were female and 491 were male.

About Bigfoot Interactive
Bigfoot Interactive (www.bigfootinteractive.com) is the leading provider of strategic, ROI-focused email communications solutions and marketing automation technologies. Through its combination of innovative technologies, professional services and vertical market expertise, Bigfoot Interactive helps marketers acquire, grow and retain profitable customer relationships through highly relevant and personalized email communications. The company's end-to-end suite of industry-specific products and services includes scalable email campaign technology, delivery optimization, marketing automation tools, turnkey integration solutions, strategic consulting, and creative expertise to produce email programs that generate measurable results throughout the customer lifecycle.

Since 1997, Bigfoot Interactive has developed successful permission-based email programs for more than 150 top companies, including Expedia, American Honda Motor Co. and The Washington Post/Newsweek Interactive.  Privately held and based in New York, the company's investors include JPMorgan Partners, Flatiron Partners, Hudson Ventures, Mitsui & Co., Grey Ventures, HPJ Media Ventures and Syndicat Technologies.

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