Interested in contributing an ERA Minute? Contact Dave Martin at dmartin@retailing.org or (703) 908-1033.Â
Archive for July, 2009
ERA Minute: Bosley’s George Fettig
Friday, July 31st, 2009
ERA’s 2009 D2C Convention Education Tracks
Friday, July 31st, 2009Here’s a sneak peek at what attendees can expect from the education lineup at ERA’s upcoming D2C Convention September 13-15, in Las Vegas.Â
Track One: Direct Response Success
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Track Two: Digital Marketing IntelligenceÂ
Meltzer and Wechsler Jam Out For ERA’s D2C Convention!
Friday, July 31st, 2009Â
Meltzer Media Productions’ Jeff Meltzer jams out with Lockard & Wechsler Direct’s Dick Wechsler. Jeff and Dick will be performing live along with other industry musicians during ERA’s Opening Reception at the D2C Convention in Las Vegas. For more information on the D2C Convention, click here!
A Road to Better Receivables Recovery - Quantitative Metrics and Scoring Tools
Friday, July 31st, 2009
When it comes to the hard declines that almost every retailing campaign is going to endure, a forecast of bad debt is always established prior to launch to gain an idea of what the potential profitability will be. For the receivables themselves however, would a competent forecast in order to derive the ultimate work strategy towards recovery be as useful? The answer: Absolutely.
Measuring factors such as demographics, geographies, socio-economics and applying other predictive probability metrics is going to allow the proper strategy for both the lettering and calling to be as effective and impactful as possible. More importantly, if you can say that ten times fast you can surely follow the rest of the formula!
As an example: If I were to take a group of debtors that owe an average balance of $150 each and break down their respective state residence and compare that to historical data on the same type of balance within the same geographic location, I now have a better understanding of who will probably pay what over what time frame. If I further my analysis and add other probabilities such as median income and median debt to income ratio within that geography I can now begin to create a tier-level effect and a resulting rank ordering of a portfolio of debtors. Working that ranking allows more recovery, faster and smarter.
Where this all sounds potentially overwhelming and even almost unnecessary to the untrained eye, I assure you it is a very effective approach towards maximizing recovery of the receivables.Â
A $150 bill may not sound like much, but multiply that by several thousand debtors who have hard declined your campaign and I would imagine a very mathematical, almost scientific approach, towards hundreds of thousands of dollars owed becomes much appreciated. It can make the difference between a 10 percent return and a 20 percent return.
My question always is, if we take so much time to test, analyze and measure the campaign prior to making the bulk of our advertising, manufacturing and operational investment, why don’t we approach the money owed with the same cautious and calculated approach?Â
Come to think of it, this is America. We see the caloric value of the cheeseburger is 1270 but we order and eat it anyway! I say we change our thinking just a little bit; maybe we can shed some pounds and recover more money all at the same time?
When choosing an agency to partner with for the recovery of your receivables, make sure to inquire about the quantitative decision making tools they use or don’t use for their work strategy.
Louis DiGioia is a leading expert and analyst for the recovery of consumer receivables. He can be reached at ldigioia@retrievalmasters.com or 914-592-0055.Â
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Location, Location, Location
Thursday, July 30th, 2009
I just returned from New Zealand—a land known for its geographic isolation—where I met with one of the nation’s premier web development firms. While the work done in New Zealand is on par with the best in the world, the price based upon current currency disparity makes it anywhere from 35- to 40-percent less expensive. Savvy e-marketers should look beyond the proximity of any opportunity when making any cost-benefit decisions. Prior to my voyage I attended the sixth annual E-Commerce Best Practices Conference.
As usual, this year’s program addressed a wide array of current issues facing the e-commerce industry, an industry that has shattered any remaining business barriers caused by geographic isolation. They covered user-generated content, and the monetization of both that and other social media. On the legal front, we learned about the issues surrounding minors’ online activities, e-commerce patents, content aggregation and trespass issues, new threats to cybersecurity, as well as cutting-edge litigation strategies for online businesses. E-commerce companies were advised about affiliate marketing over the Internet, doing business in China. We were educated about best practices for U.S. Internet companies establishing online stores in other jurisdictions.
My general impressions were that the world we are living in is indeed flat. E-tailers are no longer constrained by geographic locations. Rather, a reasoned analysis could open a plethora of money-making opportunities based upon a number of factors.
But for me, perhaps the most exciting part of the conference was the panel titled “Best Practices for Drafting Terms of Use.â€Â Not because I have any particular love of or interest in the finer points of contract law and negotiation (I let our lawyers handle that), but because the law firm tasked with moderating this particular panel, DLA Piper, recently did some work for my company, E-Commerce Island and the related UVI Research & Technology Park (RTPark). It was work which could also directly and significantly benefit profitable electronic retailers, such as those who are providing newsletters, SaaS, online games, ringtones and/or music subscription, digital photo hosting and licensing, online education, ad serving for online marketing, online dating, video streaming, customer support and other online products and services.
DLA attorneys analyzed existing federal tax code for guidance relevant to the types of businesses the RTPark is ideally set up to serve and attract (given one of the largest concentrations of global bandwidth and an historical role as a crossroads of commerce). Several business models with standing income sourcing guidance were found, and they approached the Treasury in May and June of 2006 seeking its affirmation that the RTPark interpretation of federal law was correct. The Treasury responded favorably with temporary regulations in September 2006. Then, in April 2008, the Treasury’s permanent regulations were issued. Because USVI is a territory of the U.S, additional benefits of USVI-based e-commerce efforts include FDIC insurance as well as jurisdiction and IP protection under U.S. federal law.
So what does this mean for electronic retailers offering the above-mentioned kinds of online products? Up to 90-percent federal tax savings for income sourced in the (near-shore) USVI. These impressive benefits are all the more valuable given the administration’s recently toughening stance on off-shore corporate tax savings.
As is often the case, identical companies can significantly increase their value simply by the locations they choose to source portions of their activities from.
Steve Rohrlick is the master marketing agent for ECommerce Island, otherwise known as St. Croix, the largest island in the U.S. Virgin Islands, where superior infrastructure and tax benefits under the U.S. flag offer an ideal new home for eCommerce businesses.
2 ERA Members, ERSP Representative to Testify Before the Senate
Tuesday, July 21st, 2009
Tomorrow, the Consumer Protection Subcommittee of the Senate Commerce Committee will hold a hearing entitled “Advertising Trends and Consumer Protection.†The hearing will consider several issues in advertising, including the use of the word “free†and Endorsements and Testimonials. This is part of a broader reevaluation of the FTC’s powers and funding. An explanation of tomorrow’s hearing is really not complete without an explanation of last week’s hearing. Last week, from the first opening statement to adjournment, the hearing focused on testimony from consumer groups and emphasized that consumers are targeted by scams and needed additional protection from the FTC (P.S.- You can watch this hearing and kind of see me in the background on C-SPAN here). On a panel of four, a lone dissenter, Tim Muris, former FTC chairman, claimed that the FTC did not need a major expansion in order to effectively protect consumers.
In contrast, this week we have two ERA members testifying and one representative from the National Advertising Review Council (NARC), which administers the ERSP program (ERA’s independent self-regulatory program). We look forward to hearing some dynamic testimony from Guthy-Renker’s Greg Renker and Product Partners’ Jon Congdon. We worked hard to make sure our industry was represented and that this hearing would be more balanced than the last. We’re certain that Renker and Congdon will provide effective counterpoint claims that the FTC needs more authority on the testimonials issue. They can show that our industry is enthusiastic about creating an environment that protects consumers. They are our customers for Pete’s sake! They will also show how effective principled self-regulation is in promoting honest business practices.
For more information or to watch tomorrow’s hearing live or immediately upon completion, click here. (The video may not post until the conclusion of the hearing)
Follow me on Twitter for my live updates from the hearing: Tomi_ERA
Tomi Turner is ERA’s legislative manager.
Mobile Rules of the Road for E-Retailers
Thursday, July 16th, 2009
Mobile devices like the iPhone and G1 are letting consumers take advantage of the growing number of high-speed networks, an opportunity that e-commerce retailers are recognizing as users are increasingly using websites for shopping from mobile devices. Some people are even using their mobile devices as their primary online browser.
Any retailer looking to the growing mobile audience for new revenue should deliver shopping sites that are mobile friendly. This means paring back content – or re-organizing it – so that users can access relevant items more easily.
While wireless devices have come a long way, their screen size limits what can be displayed and still be read by the average user. Features such as panning and zooming can only compensate so much for the smaller real estate available on handhelds.
Most websites are still using cascading stylesheets (CSS) optimized for personal computers. Designing and embedding CSS specifically for mobile users will help ensure that the user experience on handheld devices is high quality. The CSS Mobile Profile 2.0 developed by the W3C (the standard-setting World Wide Web Consortium) is now available, giving retailers a widely supported standard to follow.
Other common shopping features, such as large tables of product images and Flash animation, also need to be rethought. Just a decade ago, many websites were built successfully without these features. As screen resolutions and bandwidth grew, these were added to create richer online experiences. Handheld devices may not support all of these technologies, so the emphasis should be placed on simplicity, clarity and speed. And make sure that commonly accessed features, such as viewing the shopping cart are readily reachable.
While the technical aspects of mobile are important to consider, retailers must also focus on marketing fundamentals, such as understanding the needs of this changing audience. Research and analysis on what users want and how they want to interact with your site are critical. One quick tip: use the mobile device itself to gather research information, rather than relying solely on traditional research channels.
Retailers that can use messaging, web content, e-mail, and social networking in an integrated fashion, centered on the handheld device, let users engage with their brands. A basic practice: rather than just asking for e-mail addresses on your sites, permit users to give you addresses for text messages as well, and let them know about special mobile content.
One last piece of advice: do not let mobile marketing become a new outlet for spam. Mobile devices give unprecedented access to retail customers; respecting your customers’ time will lead to longer, two-way relationships.
David King is CEO of Fulcrum, a leader in advanced analytics, technology and multichannel program solutions for marketing.
True Blood and Burger King Take a Bite Out of DR
Tuesday, July 14th, 2009
Direct response has become so prevalent lately that even TV shows and restaurants are using it as fake marketing bait. As a fan of HBO’s “True Blood†on Facebook, from time to time teaser items will appear on my News Feed. Recently it tempted fans to check out an infomercial from The American Vampire League, a fictitious vampire rights group in the show. It’s interesting that an infomercial was considered the appropriate marketing vehicle to further entice fans. Perhaps vampires were simply following in Obama’s footsteps!Â
Aside from social media marketing, “True Blood†has made a big splash in traditional media too. In L.A. alone it was hard to miss the second season debut as stars Anna Paquin and Stephen Moyer graced everything from the entire side of a Sunset Strip office building, to busses and even bus stop benches.
 But in the end, it looks like the intense mixed marketing effort paid off. According to The Hollywood Reporter, the second season premiere of “True Blood†was the most-watched program on HBO since “The Sopranos†finale. An article in Sunday’s New York Times went so far as to say that “True Blood†has brought HBO out of its slump!
Consequently, Burger King has released a new ad campaign that utilizes a home shopping format to distinguish the value of the Whooper JR.
For direct response professionals, while these campaigns are drenched in irony, they still salute to the fact that DR is a mainstay marketing force to be reckoned with.
Pat Cauley is Electronic Retailer magazine’s eMedia editor.Â
Does This Calvin Klein Ad Go Too Far?
Tuesday, July 14th, 2009
A large Calvin Klein billboard in Manhattan’s Soho neighborhood has managed to raise some eyebrows. As discussed in an MSNBC article, fashion advertising often pushes the envelope, but some wonder if this has really gone too far. Obviously there were people on both sides of the debate:
“I think it’s obscene,†said Rachelle Brunn, who was passing by the extremely large billboard in Manhattan’s Soho neighborhood. “They always have ads that are pushing the envelope, but this one is the worst I’ve seen since I’ve been here. My biggest concern is that it gives teens the wrong idea.â€
But Carmen Guzman wasn’t bothered by the ad. She said Americans see this kind of advertising everywhere, especially in the Big Apple. “This is really nothing new,†Guzman said.
Loading ...Optimizing Video for Search
Thursday, July 9th, 2009
Using video on your website is a powerful way to reach you audience. A well-crafted video with a catchy title can quickly go viral and is an excellent way to bring links to your site. In turn, links will help give your site search engine authority and ultimately higher search rankings.
The problem with video is that you can have great content full of all the keywords you are targeting, but search engines are going to have no idea what that content is. Here are some tips to help optimize your video content:
• Transcribe your video. Transcribing your video is a great way to let the search engines know what your video content is. There are many affordable transcribing services that will do this for you.
• Keep it short and sweet. Internet users have a short attention span. Keep your videos under six minutes. If you have a longer video that you can’t edit down to a reasonable time, consider breaking the video into chapters.
• Use catchy titles. Using a catchy title will give you much higher click through rates on your videos. Even if your subject is dry, be creative in how you title your video.
• Understand 3rd Party Hosting. Posting your video on video sharing websites like YouTube, Meta Cafe and Vimeo is a great way to increase your video views, but understand that these sites will have very high authority and will likely out rank your site. If the video becomes popular, the links will point to the hosting site instead of your website. One way to combat this is optimizing the on page factors on your site using the desired keywords. If you decide to post the video on a sharing site, change the titles and tags as not to compete with your site. Also, be sure to include a watermark of your website name as part of the video being posted on hosting sites.
• Offer the option to embed your code. Offering the code so visitors can post the video on their blog or website will help to make your video viral. Be sure to require a link back to your site for people who use the code.
• Use a good thumbnail image. Using a compelling thumbnail will greatly increase the chances of your video being viewed.
Dean Wicklund is Tower Media’s digital media manager.
Internet TV: All You Want – For a Price
Wednesday, July 8th, 2009
Time Warner is planning to end access to free content online by making consumers of Internet TV prove they’ve already paid for it.
As the largest owner of cable networks, which include TNT, Cartoon Network, CNN and HBO, Time Warner has been closely watching broadcasters ABC, CBS, NBC and FOX work through the process of distributing TV online. Bewkes, Time Warner CEO, is planning to provide cable programming on the web in places like Hulu, MySpace, Yahoo TV and even YouTube.
The catch: To view the content for free, you have to be able to prove that you subscribe to pay TV through cable, satellite or Telco.
Free access for those already paying for service. Beweks told Advertising Age, “If you want to watch your favorite TV network or shows through broadband on any device – PCs or mobile – you can do it as long you subscribe to any multi-channel provider.” He goes on to say, “It’s a natural extension of the existing model.”
What’s the benefit? Some media experts are skeptical of Beweks’ plans, but there are also many who feel like a change is in order. After all, a year ago most doubted Hulu would be found appealing to online users. Some fear online programming distribution could soon replace cable TV and destroy the industry.
Time Warner’s cable CEO Glen Britt sees the phenomenon of viewers dropping cable for free content online as a significant growing problem.
What do you think?
Peter Koeppel is a Wharton MBA and president of Koeppel Direct, a full-service media buying agency based in Dallas.
Online Strategies Magazine Launches New Site
Monday, July 6th, 2009
Electronic Retailer magazine’s sister publication, Online Strategies, has launched its own homepage. Check it out here!
