I’ll admit it- I’m single. My friends and I have debated at great length the notion of taking our relationship aspirations to the web. But isn’t online dating creepy and weird? Well, maybe…but how is it any more creepy than meeting someone random at a bar? Regardless of your online dating opinions, from a business standpoint, we can at least all agree that these sites serve as an interesting, optimized e-commerce model!
I invite you to join me at the eRetailer Summit in Miami, March 1-3, to hear Greg Waldorf, CEO and founding investor of eHarmony.com, deliver the keynote address. Waldorf will share his extensive experience working with high-growth companies as an entrepreneur, investor and executive. Waldorf will speak on the growth of eHarmony, as well as the effectiveness of leveraging a multichannel marketing approach in growing a company, among others topics.
Furthering its theme of connecting you with the right people, the eRetailer Summit opens on Sunday, March 1, with the Solution Zone where ERA’s session speakers will make themselves available to answer attendee questions one-on-one. And in response to attendee requests for the maximum opportunity to network with peers, ERA is launching a three-hour Pool Party Extravaganza immediately following the Solution Zone from 3:00-6:00 p.m. The party will feature lively music, fabulous food and drinks, massage stations and henna tattoo artisans.
While I still have yet to actually take the plunge into online dating, perhaps Waldorf’s keynote address will change my opinion? I’ll keep you posted.
P.S. - Before booking your Miami travel plans, I suggest you check out this recent “Saturday Night Live” skit featuring travel expert Judy Grimes. Move over Tina Fey!
I’ll see you in Orlando, just kidding, Tampa, just kidding, Miami.
Click here for more details on the eRetailer Summit.
The following are photo highlights from ERA’s networking reception held January 27, at the Casa Del Mar in Santa Monica, Calif. Check back often, more photos will be posted soon!
Don’t miss out on future ERA networking, education and fun!
The Newspaper Association of American (NAA) recently reported newspaper revenue fell almost two billion dollars in the third quarter 2008 – that’s down 18 percent. The loss includes both print and online revenue, also down for the second quarter.
Signs of a downward spiral
This loss is no big surprise given the newspaper industry has faced various long-term challenges. The floundering economy has only made things worse.
“No one should be surprised that the worse economic crisis since the Great Depression, with its downdraft in consumer confidence and spending having an immediate impact on advertising, is reflected in the latest data on newspaper advertising,” says John F. Sturm, president and CEO of the NAA.
Numbers don’t lie
The numbers do look grim. Total print ad revenue dropped from 19.26 percent to 8.2 billion. Online ad revenue fell 3 percent to 749.8 million dollars. National ad sales were down 18.4 percent, classifieds down 30.9 percent and retail fell 11.7 percent.
A glimmer of hope
Still, Sturm remains optimistic, especially with the newspaper industry’s online presence saying, “The expanding position of newspaper websites in the digital information space – a demonstration that our industry’s transition to models that serve the future is underway – delivering what tomorrow’s audiences want today.”
What do you think the future holds for the newspaper industry?
As the economic situation in the U.S. brews with uncertainty, infomercials have increasingly become the talk of the town in the media. As a resource, we’ve compiled a few of the more noteworthy articles below.
Late last week, the Federal Trade Commission (FTC) granted a request for a 60-day extension filed by ERA and other prominent advertising associations. Our request focused on the significance of the changes for direct marketers and for “new media.†These changes could dramatically affect both industries, so it is essential any changes are made with caution. The period for comment will now last until March 2, 2009. The previous deadline was January 30th. The vote for the extension was unanimous. This extension is only the first step in our advocacy efforts. Moving forward we will lead a coalition of trade associations to seek a solution that is beneficial for our member companies and for consumers. If you would like to learn more about this issue, please click here. Do not hesitate to contact me if you have any further questions.
Tomi Turner is ERA’s legislative manager. She can be reached at (703) 908-1022 or via e-mail at tturner@retailing.org.
In the online marketing world, a lot of time and resources are spent buying media, tracking pay-per-click (PPC) campaigns, driving organic traffic via search engine optimization (SEO), and installing and customizing web analytics software to properly track all online marketing activities.
Dedicated in-house or agency staff craft keyword lists, write ad copy and manage keyword bidding to achieve the proper profitability, cost per action (CPA) and return on investment (ROI). Copywriters adjust our sales copy to improve click-through rates (CTR).
But we’ve almost completely ignored our website and landing page. Sure, we occasionally do facelifts, or even wholesale redesigns of our sites. But these changes are rarely tested and are simply assumed to improve the situation. They are just a cost of doing business.
Missed Opportunity
In almost every other area, performance is scrutinized under a microscope as we drill down on mind-numbingly detailed reports. Once someone converts, extensive retention e-mail campaigns are set in motion to persuade visitors to deepen their level of engagement.
We worry about every single word in our e-mails as we test headlines and offers. We analyze “bounce rates,†“open rates†and “unsubscribe rates†with almost religious fervor in order to extract the last penny of revenue and profit possible over the lifetime of our interaction with someone.
Even though we spend obscene amounts of money to buy traffic, the effort devoted to the landing pages to which that traffic is sent is negligible. A couple of hours of a graphic designer’s and copywriter’s time are often all that the landing page merits. With a cursory review by the higher-ups, the landing page goes live.
Worse yet, we assume that the quality of the landing page can’t be changed, so we don’t even look for ways to improve it. We turn all of the other knobs and dials at our disposal and continue to neglect the biggest profit-driver under our control—the conversion efficiency of the landing page.
This is costing a lot of money in the form of missed opportunity. Double- or triple-digit conversion rate gains are routinely realized through engagements. Yet, there’s still a widespread perception among online marketers that their landing pages are already solid and can’t be improved through testing.
What’s Wrong With This Picture?
There are three important activities in online marketing:
• Acquisition: Getting people to your website or landing page. • Conversion: Persuading them to take the desired action(s). • Retention: Deepening the relationship and increasing its lifetime value.
But not all of these receive equal weight or attention in most companies.
Because of the large amounts of money spent on acquisition and retention, sophisticated systems have been created to maximize the ROI of these activities. But the efficiency of the website or landing page has been largely neglected. Many companies are beginning to understand that website and landing page conversion can have a dramatic impact on online marketing program profits. That’s where the new battleground is in the coming years.
You can meet with Tim Ash of SiteTuners as he optimizes e-commerce sites for increased revenue live at ERA’s eRetailer Summit on Monday, March 2, from 3:00 p.m.—4:00 p.m. Register here! To have your company’s website considered for a makeover, contact Ashley Cavell at acavell@retailing.org or via phone at (703) 908-1020.
We’ve heard the reports, seen the numbers and heard the ba humbug! This past holiday season was one of the most dismal for retailers in years. Stores were slashing their prices to get rid of merchandise and still weren’t seeing the sales of years past. So how does a company compete and distinguish itself in such a tough economy? Obviously, red-lined prices aren’t making an impact, but great customer service leaves a lasting impression.
Take in point one of our customers, Drugstore.com, an online drugstore. This holiday season it decided to launch a chat feature for a subsidiary site Beauty.com. Not just a place to sell beauty products, Beauty.com features what’s hot this season, a video library with demonstrations and now with the new chat feature, Beauty.com is replicating the beauty experience consumers have at the makeup counter in their local department store. Trained beauty experts, all with esthetician or beauty counter experience, can now engage in chat sessions with online shoppers to share immediate advice on the best products for their needs from the convenience and privacy of their homes. For example, experts provide specific recommendations regarding budget, skin tone, color coordination or new products.
And what’s interesting is that Beauty.com is converting approximately 40 percent of chat sessions into product orders. Drugstore.com is depending on excellent, personalized customer service to keep sales up as opposed to brand or price. For me, a big online shopper, it was great. It gave me the personalized attention to help me find the perfect shade of red for the big holiday party all from the comfort of my home.
You can meet withSuzy Meriwetherof RighNow Technologies at the eRetailer Summit’s Solution Zone on Sunday, March 1, from 12:00 p.m.—3:00 p.m. and hear her speak on Monday, March 2, from 9:00 a.m.—10:00 a.m. Register here!
In what has to be a first, the Electronic Retailing Association (ERA) was mentioned in a blissful wedding ceremony this past Saturday night as ERA’s 2008 Volunteer of the Year, Jeff Meltzer wed Barbara Kaufman at Manhattan’s Gotham Hall. During the ceremony, the reverend noted that the night of last year’s ERA awards gala, amid the hoopla of Jeff’s perfect night, he proposed to Barbara. As this accompanying photo attests, for at least one DRTV practitioner par excellence, “Wait! There really is more!” And to think, it didn’t even take three easy payments to make Barbara this radiant— just a simple dose of the Monsieur Meltzer magic!
Rick Petry is a freelance writer who specializes in direct marketing. He can be reached at rick.petry@me.com.
This product was a topic of discussion at my aunt’s house on Christmas morning. I believe my uncle said something along the lines of: “If someone wore that to a Steelers’ game, they’d be shot.†You too, may have recently been involved in a casual conversation about it. ERA member Allstar Marketing Group’sSnuggie has made a splash in both traditional and new media. Electronic Retailer’s Tom Dellner was recently quoted in a Time magazine article devoted entirely to the Snuggie and DRTV.
While “The Cult of Snuggie†YouTube video is pretty harmless, others don’t take it so lightly on the product.
This video withstanding, I’d tend to agree with Allstar’s CEO Scott Boilen as he was quoted in Time’s article saying, “Publicity is publicity. At least people are talking about it.â€
Currently, the FTC is proposing changes to its guidance on consumer testimonials. These changes will directly affect you and the way you do business. There are several reasons why honest marketers, particularly in the direct response world, should be worried.
If these changes are approved, the FTC will no longer allow for the general use of a “results not typical†claim. Marketers may instead offer clinical evidence of the typical performance of the product, or in some cases, offer an extreme level of detail about how the product was used—but generally, they may face liability without the more stringent type of disclosure. Here marketers will be asked to remove claims that are factually accurate and adequately documented.
As you know, in most cases, it will be extremely difficult or even impossible to provide the evidence the FTC is looking for. It is likely that companies will lack the resources to do a comprehensive study, so the consumer will be left with absolutely no idea of whether the product works at all. This gives them little incentive to try the products put forth by honest advertisers who wish to comply with the fullest extent of the law. Or worse, because the FTC does not propose very stringent standards for the type of clinical evidence needed, dishonest marketers will be rewarded. For example, today Mary says she has lost 20 pounds by following an exercise regime and the consumer is clearly reminded that most people will not have the same results she had. Tomorrow, if these guides are approved, less honest marketers will risk running afoul of the FTC’s guidance and say “the median weight loss for women under 30 who remained in the program for more than one year was 15 lbs.†when, in fact, a more accurate description of the product’s performance would be “the mean weight loss for program participants was 2 lbs.†The exact same product could appear to produce vastly different results by altering the study design.
The FTC also plans on amending rules that apply to talent and aspiring actors who do testimonials in the hope of gaining exposure. These alterations would impose liability on “experts†or celebrities for certain types of claims. It would also add to the disclosure requirements. Additionally, the changes could impose liability on bloggers and other new forms of advertising. The full proposal can be read here.
ERA is involved in presenting a forceful response to this proposal. We will be submitting comments to the FTC and continuing our advocacy on the Hill. Please don’t hesitate to contact me if you have any questions or would like to learn more about this issue.
Tomi Turner is ERA’s legislative manager. She can be reach at (703) 908-1022, or via e-mail at tturner@retailing.org.
Even with the political spend that came in this year to boost cable ad sales, the third quarter of 2008 felt the backlash from the troubled automotive and financial service industries.
But even in the midst of these unexpected obstacles, the spot cable firm, NCC, has managed to reach $1 billion in sales for the very first time.
The benefits of cable ad placement
NCC allows its clients to purchase local cable spots and utilize any of 209 individual markets and thousands of targeted geographic zones. NCC gives marketers exposure to 99 percent of all wired cable homes.
The firm’s eBusiness suite is what really drives its hyper-targeted ad placement. “Every spot we sell is a web-based transaction, so not only does it streamline the process, it also helps save paper,†explains Andrew Capone, senior vice president of marketing and business development at NCC.
Streamlining the process, lowering overhead, saving paper—nothing wrong with this picture for advertisers and media buyers alike.
Political ad spots save the day
Capone realizes that political dollars are what kept NCC from falling victim to an unpredictable year. Political dollars brought in around $2.16 billion with local cable only accounting for 15 percent or $32 million of the total.
Connecting with clients
NCC’s business platform strives to create an open-ended dialogue between firm representatives and media buyers.
Industry insiders agree that NCC’s approach—one of “getting it done†in a way that takes everything—not just sales—into account is one that is working. Now more than ever, making the most of advertising money and looking to make every buy a “meaningful buy†is good business…very good business.
There is no question about it—the world is going through an economic downturn. Consumers are cutting back on their spending and businesses are facing tough decisions, perhaps the strongest signal for a stormy period to come. According to Forrester, a leading technology analyst, “Risks have grown that the U.S. and other major countries will experience a longer and deeper recession than we had expected. If so, the hi-tech market would see several quarters of declines in purchases, not just two or three quarters with little or no growth in late 2008 and the first half 2009.â€
With these findings in mind, what can e-commerce merchants do to keep their e-business boat afloat during times when budget cuts and financial declines are the daily routine? What should they particularly focus on to keep sales revenues at a decent level? The following are five navigation rules by a payment service provider for sailing in the e-commerce world in 2009.
Rule 1 – Increase your customers’ loyalty
This is the time when customer loyalty becomes more crucial than ever, as end-users will be acting very cautiously in regards to their spending and will most likely prefer to go back to a website with which they feel familiar and comfortable rather than to a new vendor. Knowing your customers and monitoring their purchasing behavior can turn your online business into a highly profitable operation.
VIP customer tools for merchants are able to differentiate between their “good†customers that should preferably be allowed higher purchase amounts and small, occasional or new end-users who should be limited to only certain purchase amounts. Having a VIP customer tool is a highly beneficial decision—it acts as a supporting device, allowing you to define the profitable customers VIPs and increase costumer loyalty.
Rule 2 – Expand your sales reach
Targeting new end-user markets is always significant when trying to keep revenue growing. The ideal payment processor should provide you with all major currencies; while at the same time allowing processing and settlement currencies to be kept identical, allowing you maximum processing flexibility. A payment service provider that provides all major currencies—while keeping processing and settlement currencies identical—allows you maximum processing flexibility. In addition, your PSP should have sophisticated risk management, enabling traffic from high-risk countries typically blocked by acquiring banks.
Rule 3 – Secure your online payments
As you enter 2009, you should be aware of the risks involved with acquiring a bank, no matter if your traffic is local or international. Finding the connected payment-service provider that has an array of acquiring banks in its portfolio and matching it with the specific processing needs of e-commerce operators is what makes the crucial difference. Any payment processor that offers you a solution with more than one merchant account with several acquiring banks under one roof spreads your online risks.
Rule 4 – Reduce payment processing costs
Your payment service provider can help you identify specific activities that can lower costs. They should offer direct merchant accounts with solutions that focus on accurate fraud prevention. In other words, they need to differentiate between suspicious transactions that will eventually lead to profitable sales and those that will lead to fraud and loss.
Thorough and accurate fraud prevention is a crucial factor in achieving high sales goals. Blocking fraudulent transactions and approving legitimate transactions while converting them to profit is an example of this. At the end of a processing day, the fraud prevention tools aim not only to increase sales, but also to prevent unnecessary chargeback fees and fines.
Rule 5 – Increase your traffic conversion
With an active online operation, every e-merchant seeks tactics to increase traffic. Your online payment service provider can play a crucial role in increasing online traffic conversion. Instead of employing a rough scrubbing system, which in most cases, cuts down valuable traffic due to a resolute filtering policy, a “Traffic Management†tool analyzes the traffic most accurately and improves the approval ratio of profitable transactions.
Well-established partnerships with leading acquiring banks allow your PSP to control incoming transactions by splitting them between the banks according to pre-configured ratio parameters and country attribution. This assists you, as online operators, in receiving higher approval ratio, thus in receiving higher sales conversion.
Sharon Gal Franko is SafeCharge’s director of marketing and sales.
Recently, I opened up my community newspaper to learn that my favorite shoe store was going out of business—another victim of the economic meltdown. Another blow came a few days later when my husband and I drove to one of our favorite neighborhood restaurants only to be greeted by a sign on the door that read: Thank you for allowing us to serve you these past few years. Unfortunately, we have closed our doors.
Although for several months, we’ve all heard the news reports about companies and industries in dire straits, the reality is much more sobering when you literally see the signs in your own backyard. And while some companies are bracing themselves for rough seas ahead, it’s refreshing to hear about companies that have been able to prosper despite such difficult times.
Take, for example, the company featured on this month’s cover, Zappos.com. This online shoe store reached the $1 billion mark in sales for the year. How has this nine-year-old company been able to do it? According to CEO Tony Hsieh, by focusing on building an enjoyable corporate culture and enhancing the online customer experience—whether it’s through free shipping or complimentary upgrades.
However, Zappos isn’t the only e-tailer to pull out all the stops for customers. Retailers plan to make online shopping more appealing to Christmas shoppers. In fact, a 2008 eHoliday Study conducted by Shop.org shows that 78 percent of retailers plan to offer free shipping with conditions. What’s more, to attract holiday customers, they have invested in new site features to augment their purchasing experience. Such features include:
• 42.9 percent of retailers have added improved site search to help customers navigate sites more easily;
• 24.6 percent added product video; and
• 32.7 percent offered customer reviews.
These online retailers are well aware that tight budgets will force people to hold out for the best deals. Perks like free shipping with conditions is just a snippet of what e-tailers are doing to entice budget-focused shoppers. According to the Shop.org study:
• 27.1 percent of retailers have added and enhanced clearance sale pages;
• 31.3 percent added featured sale pages; and
• 25 percent of online retailers added a Facebook page.
Why do more shoppers prefer purchasing online rather than shopping at brick-and-mortar retailers this holiday season? The study reveals that 58 percent of consumers cite 24-hour shopping convenience as one of the primary reasons. Their desire not to battle crowds is another reason consumers give for their online shopping preference.
This year, brick-and mortars like Mervyns and Linens ’N Things have succumbed to the weakening economy. However, other retailers refuse to rely solely on in-store traffic to generate holiday sales. Retail giant Walmart, for instance, integrates its online and retail efforts with its Site-to-Store program, where customers can order their merchandise online and pick up their purchases at a nearby Walmart location. As an added incentive, the retailer offers free shipping. Other retailers like Toys “R†Us and Borders focus on coupon promos and online deals.
Of course, these are challenging times for our industry. But what companies like Zappos teach us is that it’s possible to overcome those obstacles if you remain consistent with your marketing message and stay focused on ways to best serve your customers.
I’ll admit it- I’m single. My friends and I have debated at great length the notion of taking our relationship aspirations to the web. But isn’t online dating creepy and weird? Well, maybe…but how is it any more creepy than meeting someone random at a bar? Regardless of your online dating opinions, from a business standpoint, we can at least all agree that these sites serve as an interesting, optimized e-commerce model!
The Newspaper Association of American (NAA) recently reported newspaper revenue fell almost two billion dollars in the third quarter 2008 – that’s down 18 percent. The loss includes both print and online revenue, also down for the second quarter.
As the economic situation in the U.S. brews with uncertainty, infomercials have increasingly become the talk of the town in the media. As a resource, we’ve compiled a few of the more noteworthy articles below.
Late last week, the Federal Trade Commission (FTC) granted a request for a 60-day extension filed by ERA and other prominent advertising associations. Our request focused on the significance of the changes for direct marketers and for “new media.†These changes could dramatically affect both industries, so it is essential any changes are made with caution. The period for comment will now last until March 2, 2009. The previous deadline was January 30th. The vote for the extension was unanimous. This extension is only the first step in our advocacy efforts. Moving forward we will lead a coalition of trade associations to seek a solution that is beneficial for our member companies and for consumers. If you would like to learn more about this issue, please 
In the online marketing world, a lot of time and resources are spent buying media, tracking pay-per-click (PPC) campaigns, driving organic traffic via search engine optimization (SEO), and installing and customizing web analytics software to properly track all online marketing activities.
We’ve heard the reports, seen the numbers and heard the ba humbug! This past holiday season was one of the most dismal for retailers in years. Stores were slashing their prices to get rid of merchandise and still weren’t seeing the sales of years past. So how does a company compete and distinguish itself in such a tough economy? Obviously, red-lined prices aren’t making an impact, but great customer service leaves a lasting impression.
In what has to be a first, the 
This product was a topic of discussion at my aunt’s house on Christmas morning. I believe my uncle said something along the lines of: “If someone wore that to a Steelers’ game, they’d be shot.†You too, may have recently been involved in a casual conversation about it. 
Currently, the FTC is proposing changes to its guidance on consumer testimonials. These changes will directly affect you and the way you do business. There are several reasons why honest marketers, particularly in the direct response world, should be worried.
There is no question about it—the world is going through an economic downturn. Consumers are cutting back on their spending and businesses are facing tough decisions, perhaps the strongest signal for a stormy period to come. According to Forrester, a leading technology analyst, “Risks have grown that the U.S. and other major countries will experience a longer and deeper recession than we had expected. If so, the hi-tech market would see several quarters of declines in purchases, not just two or three quarters with little or no growth in late 2008 and the first half 2009.â€
Recently, I opened up my community newspaper to learn that my favorite shoe store was going out of business—another victim of the economic meltdown. Another blow came a few days later when my husband and I drove to one of our favorite neighborhood restaurants only to be greeted by a sign on the door that read: Thank you for allowing us to serve you these past few years. Unfortunately, we have closed our doors. 
