It has been an exciting week in the world of net neutrality. This week, Julius Genachowski, the Chairman of the FCC, announced the Commission’s intention to enter into a formal rulemaking process to codify the four principles of net neutrality currently in use and to add two more principles. The additional principles include a statement that consumers must be able to access the lawful content of their choice, subject to reasonable network management. Essentially, ISPs cannot block traffic to say, NBC Video, just because they have a partnership with Hulu. However, they still may prioritize all video content over all file sharing in order to manage the use of the network. In addition, networks must be transparent about what they are doing to manage traffic. This would give small business and direct response marketers more information about how consumers are experiencing online offerings like video advertising. Specifically, if you are providing an application for wireless devices or making videos available on sites like YouTube, you will know if some of the network providers are slowing certain services during peak hours. You will then be able to adjust your content delivery accordingly.
In the first half of this year, I talked about retailers revamping their marketing mix in the wake of the 2008 holiday season. Now as we approach another holiday season, online retailers have the benefit of knowing more about how their customers react and respond in tough economic times. Now is the time to harness that awareness and strengthen your bonds with customers. Whether you are a marketer, or business owner who wears the marketer hat, you can introduce some new ways to deepen the customer connection.
Expand beyond the walls of your website: September signals a flurry of activity running the gamut from back-to-school functions to various business networking forums. So take this approach and apply it to the online world. For example, many retailers are developing portable widgets that link to their content and services and finding other “outposts” across the web to place the widgets. In addition, the concept of an app store, such as the Conduit Marketplace, is one venue that allows businesses such as eMusic, Cartoon Doll Emporium and Pretentious Pooch to distribute their content and services beyond the walls of their websites. Customer acquisition and overall satisfaction get a boost with this expanded online presence, as more and more customers laud the efforts of retailers who develop convenient applications to meet their needs.
Make information easy to access: Time and again, one popular method retailers use to try to keep consumers satisfied is discounts. Once you understand your customers’ needs and the factors driving their decisions, you need to alert them to the promotion without spending so much time and money doing so that it drains your coffers. Savvy online shoppers know to search for coupons and promotions on sites such as RetailMeNot and A Thrifty Mom. As a matter of fact, these sites have even created customized applications on which shoppers can receive updates via their browser. These sites go the extra mile to be on the same page as consumers by not only lending a virtual helping hand with coupons and discount codes, but also providing a simple conduit to the information their users covet.
Provide convenient forums for feedback and questions: Social networks such as Facebook and Twitter offer another means to gather feedback and answer questions about your company and products. Don’t be shy about utilizing these avenues, but you must plan to be diligent about updating and responding so that negative comments don’t go unanswered. If you decide to create a business Twitter persona, or already have one, decide whether the primary function will be to serve as help desk or a personality that provides color and commentary within your industry. Then make sure that you have a consistent voice as you disseminate messages and responses. Make sure you aggregate all of your social networking tools on your website and create a conduit to customers with a branded community toolbar. Pretentious Pooch, an upscale pet supply store based in Baltimore, is a great example of a small retailer that has been able to deploy social media, content, and e-commerce in a single location to drive loyalty and sales.
When utilized correctly, YouTube is quite the sales force to be reckoned with. On a recent conference call with ERA’s Internet & Emerging Media Council, certain members discussed how some direct response products have found success simply from videos being uploaded to YouTube.
Creative YouTube videos are a great way to drive incremental sales, if even on accident. If you’re Chris Brown, a singer recently convicted for felony assault against ex-girlfriend Rihanna, how do you get a year-old single onto the top 10 most purchased songs on iTunes? Oh, by being an integral part of a wild fire-spread YouTube video. Unless you’ve been living under a rock, you’ve probably seen this “Forever” wedding video.
While perusing iTunes when this video hit viral fame a few weeks back, I noticed that Chris Brown’s “Forever” was listed in the top 10 purchased singles. A web hit featuring one of his songs couldn’t have come at a better time for this artist whose image is tarnished in the press. I too, drank the Kool-Aid. I watched the video and loved it, logged onto iTunes and purchased.
Consequently, aside from user-generated content, YouTube also plays host to professional content, sometimes to the chagrin of the content creators. Monty Python’s producers found their content all over the web illegally, however they decided to be proactive and take control of their content in these channels, which turned out to be a very good idea. According to a recent release:
The Pythons created a YouTube channel in November 2008 just to stop their content from being released illegally on the Internet. “We felt the time had come to deal with the ‘YouTube problem.’ On the one hand, we were surprised at the number of clips that had been uploaded to YouTube in clear infringement of our copyright, and while we didn’t want to be spoilsports, it was getting pretty much out of control and we could see no real benefit. So I arranged a trip to meet the YouTube guys on the Google campus in San Jose and discovered that they had a program that would enable us to have our own Monty Python channel on YouTube where we could put up clips from the movies and TV shows of far greater quality and order that might also encourage viewers to want to see whole movies or TV episodes via links to Amazon and iTunes and expand our Monty Python fan base,” says Monty Python producer John Goldstone.
When Goldstone launched Monty Python’s Channel on November 14, 2008, he took advantage of YouTube’s click-to-buy program. The Python’s DVDs quickly climbed to No. 2 on Amazon’s Movies & TV bestsellers list and DVD sales increased 23,000 percent. “The click-to-buy ability was exactly what we were looking for to make the link from video to the right Amazon page much more effective than the URL by the side of the video description. We are only now beginning to address premium advertising, which is only possible when you can show the size, composition, and consistency of your viewers,” he says.
I guess the moral of the story would be that while YouTube may be struggling to support itself with a successful advertising platform, it currently sits as a lucrative marketing channel for the opportunistic, inventive marketer.
Don’t take the initial setup phase for granted - Clients sometimes rush or don’t put enough effort into the initial setup phase of the fulfillment engagement. This can lead to miscommunications and mistakes that have long-term ramifications. It’s especially important to communicate who all of your vendors are, and make sure all offers and file exchanges are thoroughly tested.
Understand how the decline cycle works - Companies who are outsourcing their payment processing and fulfillment need to have a clear understanding of how the decline cycle works. New clients who don’t understand the difference between soft and hard declines, or that multiple charge attempts are being made always surprise me.
Make sure your refund policies are clear and reasonable - I see many situations where clients try to save money by imposing strict or unclear refund policies. These can lead to increased chargebacks and customer service calls, as well as BBB and FTC complaints.
Consult with your fulfillment company regularly regarding packaging - Packaging is very important when it comes to freight costs. Your fulfillment company can help you come up with the best packaging to keep your freight costs down. Remember, once a package is above one pound, an extra ounce can push you to the next weight tier.
Work with customer service to plan for call spikes and backorder situations - Avoid backed up call queues and long hold times by proactively planning for call spikes and backorder situations. Fulfillment centers don’t have infinite numbers of customer service agents, so you need to work with them in advance to make sure that staff is properly allocated. In backorder situations, sometimes it is better to outbound clients or send them e-mails to let them know what is going on and thereby reduce inbound customer service calls.
Be prepared for dry spells and unanticipated storage costs - Many DRTV marketers think they will never have a dry spell and are often caught flat footed when retail orders dry up or campaigns slow down. If they have over-ordered inventory, they can end up with higher than expected storage costs, which can definitely impact their bottom line. My advice is to develop a contingency plan and build adequate cushion into your budget for storage.
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
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 Rohrlickis 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.
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.
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.
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.
It has been an exciting week in the world of net neutrality. This week, Julius Genachowski, the Chairman of the FCC, announced the Commission’s intention to enter into a formal rulemaking process to codify the four principles of net neutrality currently in use and to add two more principles. The additional principles include a statement that consumers must be able to access the lawful content of their choice, subject to reasonable network management. Essentially, ISPs cannot block traffic to say, NBC Video, just because they have a partnership with Hulu. However, they still may prioritize all video content over all file sharing in order to manage the use of the network. In addition, networks must be transparent about what they are doing to manage traffic. This would give small business and direct response marketers more information about how consumers are experiencing online offerings like video advertising. Specifically, if you are providing an application for wireless devices or making videos available on sites like YouTube, you will know if some of the network providers are slowing certain services during peak hours. You will then be able to adjust your content delivery accordingly.
In the first half of this year, I talked about retailers 
Click here
When utilized correctly, YouTube is quite the sales force to be reckoned with. On a recent conference call with 
Don’t take the initial setup phase for granted - Clients sometimes rush or don’t put enough effort into the initial setup phase of the fulfillment engagement. This can lead to miscommunications and mistakes that have long-term ramifications. It’s especially important to communicate who all of your vendors are, and make sure all offers and file exchanges are thoroughly tested.
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.
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.
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.
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 
 But in the end, it looks like the intense mixed marketing effort paid off. According to 
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.
