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contact Pat Cauley, eMedia editor, at (703) 908-1030 or via e-mail at
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There’s no denying that the main objective for any e-commerce sales or retail marketing executive is to maximize the total value of visitor traffic on their site, simply put— turning web browsers into buyers and clicks into cash. Search is certainly leveling the playing field as well, so how do companies stand out from the crowd? And why are some sites still failing to deliver compelling and relevant content to their customer base?
In today’s saturated marketplace, retailers can no longer rely on the traditional marketing techniques and media vehicles to manage customer interaction and drive home sales. In order to achieve greater web interaction optimization, e-commerce and retail sites must recognize the inherent value of social behavioral merchandising and effectively increase the relevance of communications by automatically promoting the most relevant products to each visitor, thereby maximizing conversion rates and average order values.
By making websites more customer-centric via these “recommendation engines,” retailers can essentially optimize customer interaction through improved content and messaging based on a customer’s specific needs and behavioral patterns.
We all know who Amazon.com is. Besides the millions of SKUs at Amazon.com, the site is easy to use and “steers” browsers in the right direction when they need help (recommendations, user reviews, etc.). The addition of recommendations from other customers can build a sense of trust and community between new and returning customers—and probably better than any 17-year old working the floor at Border’s Books.
Given the wide variety of tools available in the market, online retailers must familiarize themselves with the different points of customer contact and approaches towards reaching interaction optimization. The Customer Interaction Cycle, shown below, depicts the many different points—from initial landing page through transaction—where collective intelligence can be applied to maximize value.
Every morning I listen to the radio while I’m getting ready for work. Today was kind of interesting in that there were several sound bites from the president and would be presidents about various ideas to solve the “energy crisis.” While I have chosen a specific candidate for whom I am rooting, I have to say that my candidate’s response did not impress me. In fact, none of the proposed suggestions impressed me. Each seemed to be a half assed suggestion designed to get votes that would end up costing us more money in the long run and would not present a real solution to the problem.
After the politicians got done railing about things government could doto solvethe problems, there was another story that caught my attention. It seems the Rockefeller family is demanding that Exxon Mobil invest more money into research on alternate fuels sources. You see, the Rockefeller family has a $4 billion stake in Exxon Mobil and they have this crazy idea that maybe the company should do a little work to develop potential revenue streams in case the public has actually gotten the notion that dependence on a finite resource for all of their energy needs is sort of a bad idea, or in case that finite resource reaches the ultimate fruition of its finiteness. While this is obviously an instance of the Rockefellers wanting to remain rich (and who can blame them?), it is refreshing to see someone stepping up and saying “Hey, you know what, we have a few billion dollars in record breaking profits this year, let’s get ahead of the curve, stop waiting for government subsidies to support this research and let’s just knuckle down and build something.” In other words: getting America back to the business of doing business, instead of hiding in a corner bitching about foreign competition, waiting for someone to hand them a subsidy, a tax break, and a tariff to cover their ass…
By now you are sitting there thinking, “What the hell does this have to do with electronic retailing?” Well, hearing about the Rockefellers take action made me wonder: Although I don’t have $4 billion invested in a single chunk with a company I can influence, let alone $4 billion, I started wondering if there was stuff I could be doing that would make a little dent in the fuel situation. The consensus seems to be that fuel prices are being driven higher by demand. So, the solution would be to stop buying gas. Well that’s all well and good, but I already use public transportation to get to work (a luxury we have in DC), so the only reason I ever really use my car is to go shopping.
That was when it occurred to me that shopping online or over the phone is the equivalent of carpooling to buy stuff. Here’s the scenario: on my street there is never a parking space… (more…)
After talking with clients and mobile advertising firms over the past year, I wasn’t surprised to see that, in addition to its mobile website, Amazon will now offer a more interactive buying experience. In the new TextBuyIt program, customers text Amazon (262966) with the item name, UPC or ISBN code of a product they want to buy and Amazon replies with product information and prices.
What really caught my eye about Amazon’s new program is the method used for order completion—a phone call. While mobile is all the buzz, the challenge for direct marketers has been how to translate that buzz into real sales activity. Amazon’s approach is similar to one AIS uses with its mobile marketing partners and clients, which blends the ease of the mobile’s “click to call” with our IVR platform to allow prospective customers to complete their transaction quickly and easily via a phone call. (Please note that mobile Click-to-Call is NOT the same as online CTC.)
Research shows that customers are already using mobile as a way to respond to ads they see on TV and that number is growing. For certain age groups, mobile texting far surpasses traditional phone and e-mail as the primary method of communication. But when prospective customers try to buy, they are often directed back to the online website or to a mobile website transferred directly over from an online site, with little consideration to the size limitations of the mobile screen. And almost always, there’s no clear and easy way to buy.
Amazon’s introduction of a phone component to its mobile offering and feedback we’ve received indicate that the nascent mobile e-commerce component is still a work in progress. That’s where the direct response industry can take the lead—bringing clarity and years of acquisition experience—to help mobile marketing deliver sales, not just buzz. With higher click-through rates than online and a captive audience, mobile has great potential to capture customers at the moment they want to buy.
That is to say, after a 50 plus-year reign of supremacy, has broadcast media begun to slide down a slippery slope to be consigned to history with the telegraph and Morse code? More and more evidence seems to be mounting that broadcast is facing troubled times. First, the market was segmented when cable came of age. The “Big three” were suddenly faced with actual competition and they lost significant numbers of eyeballs. This didn’t do a lot for programming initially, the song “500 Channels and Nothing on” sort of summed up the early cable landscape (with the possible exception of MTV, in the early days). But eventually, the industry found its footing and went the way of the magazine industry with channels dedicated to niche markets—think the History Channel for old men, the Food Network for people who like to eat, the Travel Channel for people who want to see the world without leaving their house, and Animal Planet for people who can sit through six hours of Ron Reagan commentating the riveting action of a dog show.
And while radio has always been a bit of a wild-west environment, the world reacted to the homogenization of content with satellite radio and our friends (soon to be friend) XM and Sirius (maybe Xirius, quick run out and register that URL). Once again we have channels that are designed to appeal to a much narrower demographic based on the inescapable logic that there may not be enough of an audience to make a radio station devoted entirely to the delta blues genre in any one metropolitan area, but if you take all of the people from all of the metropolitan areas in the country and add in the smattering of people in between those places, suddenly you have a potential audience that rivals the legions of Britney Spears fans that used to exist. And Clear Channel had to go running to a judge to make sure its leveraged buyout isn’t plagued by nit picky questions from a lot of bean counting bankers.
So, we see the broadcast universe moving to a model of medium-casting, with content appealing on different channels to smaller groups of people. But where do we go from here?(more…)
I was having lunch the other day with ERSP Program Analyst Bob Hilleman and our former ERSP colleague Tessa Barrera. Soon, the conversation turned to the subject of traditional television and print advertising and how these promotional vehicles (though still packing a powerful punch) will soon be considered the advertising models of the past. We discussed how new outlets such as Facebook, MySpace, YouTube, Second Life and Twitter have arisen as new outlets for marketers to explore. Yes, marketers are realizing that as technology advances so must marketing, and these examples are just the tip of the iceberg. However, perhaps looking at why traditional marketing campaigns succeeded can help guide the jump into exploring the new media.
Think back to the advertising campaigns that you remember: M&M’s “Melts in your mouth, not in your hands”; Wendy’s “Where’s the Beef?” and Campbell Soup’s “Mmm…Mmm good.” All catchy taglines tied to successful advertising campaigns that appeal to the consumer’s feelings of trust, quality and security. By building a recognizable brand, the advertising worked to reinforce and create the connection with the consumers by appealing to their emotional sense of quality, fairness and connection. What makes a successful brand and a successful advertisement is that emotional connection. Consumers have to invest themselves into the subject, the character or the product.
More and more, new technology is on the rise. YouTube or Vimeo features short, digestible clips. Twitter issues one-sentence updates. Tumblr is built for short and quick blogging. The focus is on content, quick, constantly updating, but never in-depth. This speed, this bite-size focus is being heralded as the wave of the future, but it doesn’t allow for the building of a brand. It’s focused on tiny bits of information ready now, not to be stored away but to create a temporary quick fix for a need of information. It’s exciting, it’s constantly moving, it’s cutting edge. Yet, it is also, as of now, fairly impersonal. Consumers are there for the speed of changing content, not for the emotional ties to others. Tubmlr is attempting to incorporate those two aspects—building on the social connections of a Facebook, but still on the speed of a Twitter. Yet still, even with the social networking tie-in, the speed of the information has not yet been harnessed to achieve emotional connections. (more…)
My piece of the new media landscape mainly involves mobile, so it is limited but definitely offers insight into something everyone is at least beginning to think about and many have started. I agree with a lot of the articles I’ve been reading toward embracing the rush to all these new emerging channels, but I’m concerned that something could get lost in the shuffle: the relevance to the customer. I’ll paraphrase a quote from a newsletter I get every week. The quote was about marketing to the customer as if you were the customer—i.e., “Let’s think, what entices us to buy?” It’s so simple, yet actually quite brilliant and extremely relevant, as we rush into these new media platforms.
What entices me to buy is different than what entices my kids to ask me to buy for them, and it is also different than what entices my wife to buy. Instead of breaking these enticements by offers, let’s look at them in regards to what actually cuts through the clutter and reaches us (offering the chance of enticing them to buy).
I have given up checking my personal e-mail. I know if someone needs me or if I want to hear from people, they have my cell or work e-mail. My wife, on the other hand, funnels all of her e-mails accounts into one master account and at least sees all of them. Unless I get home early, our direct mail is already in the recycle bin. That’s just my house as an example. Every house is different, which is what’s making our jobs increasingly tricky. (more…)
There’s no denying that the main objective for any e-commerce sales or retail marketing executive is to maximize the total value of visitor traffic on their site, simply put— turning web browsers into buyers and clicks into cash. Search is certainly leveling the playing field as well, so how do companies stand out from the crowd? And why are some sites still failing to deliver compelling and relevant content to their customer base?
Every morning I listen to the radio while I’m getting ready for work. Today was kind of interesting in that there were several sound bites from the president and would be presidents about various ideas to solve the “energy crisis.” While I have chosen a specific candidate for whom I am rooting, I have to say that my candidate’s response did not impress me. In fact, none of the proposed suggestions impressed me. Each seemed to be a half assed suggestion designed to get votes that would end up costing us more money in the long run and would not present a real solution to the problem.
After talking with clients and mobile advertising firms over the past year, I wasn’t surprised to see that, in addition to its mobile website, Amazon will now offer a more interactive buying experience. In the new TextBuyIt program, customers text Amazon (262966) with the item name, UPC or ISBN code of a product they want to buy and Amazon replies with product information and prices.
That is to say, after a 50 plus-year reign of supremacy, has broadcast media begun to slide down a slippery slope to be consigned to history with the telegraph and Morse code? More and more evidence seems to be mounting that broadcast is facing troubled times. First, the market was segmented when cable came of age. The “Big three” were suddenly faced with actual competition and they lost significant numbers of eyeballs. This didn’t do a lot for programming initially, the song “500 Channels and Nothing on” sort of summed up the early cable landscape (with the possible exception of MTV, in the early days). But eventually, the industry found its footing and went the way of the magazine industry with channels dedicated to niche markets—think the History Channel for old men, the Food Network for people who like to eat, the Travel Channel for people who want to see the world without leaving their house, and Animal Planet for people who can sit through six hours of Ron Reagan commentating the riveting action of a dog show.
I was having lunch the other day with 
My piece of the new media landscape mainly involves mobile, so it is limited but definitely offers insight into something everyone is at least beginning to think about and many have started. I agree with a lot of the articles I’ve been reading toward embracing the rush to all these new emerging channels, but I’m concerned that something could get lost in the shuffle: the relevance to the customer. I’ll paraphrase a quote from a newsletter I get every week. The quote was about marketing to the customer as if you were the customer—i.e., “Let’s think, what entices us to buy?” It’s so simple, yet actually quite brilliant and extremely relevant, as we rush into these new media platforms.
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