Significant Return on Investment

• The efficiencies and cost savings that are being realized by the proper use of the internet are staggering. USFoods' (through its acquisition of Alliant Foodservice) online purchasing system lowers their internal costs from $107 to $30 and boosts the average order size by over 30%. These remarkable savings allow USFoods to serve their customer better, improve profitability and shareholder value.
  
• According to a May 24th, 2004 Forrester Research report, “Retailers lose billions when their shoppers research online and then defect to other brands when they buy offline.” This is even more prevalent when consumers are shopping for individual brands online with the intention of buying and are somehow diverted from the brand due to lack of availability or competitive influences.
  
• The cost of a lost sale is astronomical if it means the defection of a customer, regardless of how long they have been a customer. “Long term customers are a vital source of profitability. They purchase more each year and often pay more for products and services because they trust you. A typical order at Dominos Pizza averages $12.58 however the value of that customer exceeds $5,000 over the life of a 10-year franchise contract”, according to a study by the Harvard Business School, “Companies can boost profits by almost 100% by retaining just 5% more of their customers.” Their report on customer defections included analysis of more than 100 companies in two dozen industries and shows that a reduction of defections by just 5% translates to a boost in profits of 25%.

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