ATG Study Reveals Mid-Sized Merchants Seek Better e-Business Tools for Segmentation and Targeting to Drive Web Growth

To fuel growth, one-third of mid-sized merchants will invest in a new e-commerce platform, while others will explore web optimization tools and add mobile and social commerce capabilities

NEW YORK--(EON: Enhanced Online News)--ATG (Art Technology Group, Inc., NASDAQ: ARTG), the premier provider of cross-channel commerce solutions, today announced the results of an e-commerce research study that examined web growth priorities among mid-sized and fast-growing merchants in a variety of industries. ATG polled e-commerce executives at mid-market companies to analyze their technology investment priorities. It also gathered data about current tools being used, as well as their plans to incorporate emerging sales channels, such as mobile and social commerce capabilities, into their overall web and cross-channel strategy.

“Our study reiterates the strategic role of online channels in growth strategies for mid-sized companies”

The survey found that 80% of mid-sized merchants see e-commerce growth as very important or critical to their overall business in the next 1-3 years. Yet, while it is clear that driving web revenue is a primary business objective for mid-sized companies, on average 40% of the merchants surveyed said they are not satisfied with their site’s current shopping experience, as it pertains to maximizing revenue potential. In fact, one-third of respondents said they plan to re-platform and re-launch their sites in the near future.

The findings revealed that 98% of mid-sized merchants said segmentation and targeting are important to their overall web and cross-channel merchandising strategy, yet the majority are not satisfied with the business tools they use. The data highlights a clear demand among mid-sized merchants for better business tools and underscores their need to merchandise to key segments using technologies and services that personalize everything from promotions, product recommendations, and search results, to customer service.

“Our study reiterates the strategic role of online channels in growth strategies for mid-sized companies,” said Nina McIntyre, ATG's senior vice president of marketing and chief marketing officer. “It’s clear many mid-market brands are recognizing the need for more agile and sophisticated business tools that can help them target customer segments efficiently and effectively. Given the importance of e-commerce growth to mid-sized business today and the high dissatisfaction with current business tools and platforms, it’s not surprising that a large portion of the market is planning to re-platform their e-commerce infrastructure.”

When merchants were asked which aspects of their website’s shopping experience they would like to significantly improve in the next 6-24 months, more than half (52%) cited dissatisfaction with the business tools they use for merchandising and promotions. Specifically (respondents could choose multiple answers):

• 62% said they would like to improve their ability to offer, control, and manage cross-sells and up-sells to encourage more sales
• 60% said they would like to improve their site search functionalities
• 55% said they would like to improve their ability to offer, control, and manage promotions
• 37% said they would like to improve the “help” and customer service features on the site

In examining the challenges mid-sized merchants face with their current merchandising and promotions tools, respondents stated:

• 66% said they are too manual, not automated enough
• 38% said they are difficult to use
• 30% said they do not have enough control over site content
• 23% said they do not have enough control over the product catalog

When asked how they plan to improve customer experience and their site’s performance to drive additional growth in the near future, merchants responded with:

• 53% plan to improve by experimenting with emerging sales channels, such as mobile and social commerce
• 42% plan to improve by investing in add-on services, widgets, and tools they can implement on their existing site
• 33% plan to improve by completely replacing their existing commerce platform and re-launching their web store

This online study polled 60 executives responsible for their company’s e-commerce initiatives, at mid-market retail, telecommunications, consumer manufacturing, high-tech, and other companies with overall revenue up to $500 million and web revenue up to $100 million. The study was commissioned and deployed by ATG, throughout a period of eight months in late 2009 and early 2010.

For the full report, “e-Commerce Technology Investment Priorities for the Mid-market: The Merchant View” visit: http://www.atg.com/ecommerce-statistics.

About ATG

ATG (Nasdaq: ARTG) provides the most advanced cross-channel commerce software and services to fuel the growth of the world's best brands. Offering the industry's leading commerce solution, ATG works in partnership with clients to drive sales via a personalized customer experience - unifying and optimizing interactions across the Web, contact center, mobile devices, social media, physical stores, and other key channels. Exclusively focused on online and cross-channel commerce, ATG is uniquely capable of powering the most innovative and successful commerce experiences, with results that outperform industry norms. ATG Commerce is the commerce platform and business user application solution top-rated by industry analysts for powering results-driven, personalized, and innovative e-commerce sites. ATG's platform-neutral optimization solutions for live help, lead performance, and product recommendations can be easily added to any website to quickly and measurably grow revenue, boost loyalty, and unlock profits and insight. ATG is headquartered in Cambridge, Massachusetts, with additional locations throughout North America and Europe. For more information, please visit http://www.atg.com.

© 2010 Art Technology Group, Inc. ATG and Art Technology Group are registered trademarks. All other product names, service marks, and trademarks mentioned herein are trademarks of their respective owners.

This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause ATG's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important risk factors affecting ATG's business generally may be found in its periodic reports and registration statements filed with the Securities and Exchange Commission at www.sec.gov.