eBay Gears for Major Marketing and Incentive Push to Repair Consumer Confidence
Following the cyber-attack in May which compromised the personal data of 145 million of its customers, eBay is planning a significant marketing push in the second half of this year to regain consumer confidence and claw back a return to double digit growth.
The online retailer has admitted that the disastrous hack had an "immediate and dramatic" impact on sales volume - slower active buyer growth and lower conversions caused eBay's operating margin and gross revenue to drop by 7% in June.
eBay launched a reassurance campaign which instructed affected customers to change their passwords after news of the attack broke, however 20% of impacted customers have yet to do so.
Despite a "significant investment" in couponing, seller incentives and increased marketing spend, the 80% of customers that have changed their passwords have not returned to their previous level of buying activity.
Additionally, YouGov's BrandIndex (which measures positive and negative things said about a brand) has shown that the hack caused eBay's Brand perception to lower, while Impression and Quality metrics have also seen a decrease.
Senior Director for UK marketing at eBay, Sarah Chalcott, commented on their plan to turn the tides: "We are redoubling our efforts to reach and reward our most loyal customers, to inspire new shoppers to visit eBay and to support our UK business priorities, particularly our recently expanded Click & Collect service with Argos."