Posts Tagged ‘e-commerce’

The iPhone Impact

Friday, March 27th, 2009

david-head-shotthumbnailIn my last blog post, I cited a factoid regarding 17 million iPhones having been sold to date. In fact, Apple’s App Store is downloading and/or selling approximately 3 million applications every day. Of course, this is America, and where would be without over-reactive pendulum swings? Some are asking if the App Store paradigm is the wave of the future and if the mobile web is dead? The answer, of course, is a resounding NO.

The App Store is not the future- it’s the present, and only with respect to the iPhone. The appeal of the iPhone is the App Store. To Apple’s credit, they were really smart when the copied their iPod and iTunes template when they launched the iPhone. Further, they were downright brilliant when they made each and every hardware component on that phone i.e. the microphone, speaker, screen, camera and GPS chip available to the developer community via open APIs and a well thought iPhone software development kit. Layer on Apple’s typically brilliant marketing and voila: two years later we have 17 million phones, tens of thousands of apps and another Apple success story.

Ok, so now let’s put this in context. First, while 17 million iPhones have been sold worldwide, there are more than 2 billion non-iPhones out there. Second, let’s be real, the App Store is a walled garden and walls are always salacious targets in the same way that buttons compel pushing. Think AOL… So, as we all think about developing our mobile applications, know that it is imperative to develop a WAP application first and foremost. I would of course, encourage the development of an iPhone app too as iPhone users are rabid consumers of applications and the mobile web. Also, cell phone manufacturers, take note: Start defining standards across your line of handsets. Publish APIs and SDKs that allow developers to write apps and/or mobile web applications. And watch the mobile web tsunami explode!

David Gould is CEO of mShopper.

Don’t be a Gilly! Follow ERA, Silly.

Wednesday, March 18th, 2009

Don’t be a Gilly! Instead, get to the head of the class and ahead of your competition by attending ERA’s webinars, receptions and meetings. You’ll learn about best practices, new trends and also network with your industry peers in a fun, relaxed setting.

Upcoming Events:

ERA Webinar- Optimizing Your DRTV During a Downturn: Your 2009 DRTV Stimulus Package—March 19

ERA Chicago Networking Reception—March 22, 2009

ERA Government Affairs Fly-In—April 20-21

ERA Toronto Networking Reception—April 29, 2009

Re-think, Revamp and Reinvigorate Your 2009 Marketing Mix

Tuesday, February 10th, 2009

adam264.JPG Retailers are facing one of the toughest economies in recent history. Experts predict that the first half 2009 will be dismal in regard to consumer spending. Therefore, retailers need to work even harder to engage their existing customers in order to stay top-of-mind during what is likely to be a difficult first quarter. Now, in the wake of a challenging holiday season, businesses must re-think, revamp and reinvigorate their marketing mix in order to succeed in the coming months.

Budgets are tight, so begin by finding free or low-cost ways to engage new customers (particularly those acquired over the holiday season) and give them incentive to return again and again. Among the freshest new tactics are social networks, gadgets/widgets, and community toolbars, which can be used to distribute coupons, release “how-to” videos, announce sales, deploy online surveys and more.

The key to success with this “Web 2.0 marketing” is to increase the amount of interaction you have with your customers and they with each other. For example, one retailer, Incredible Technologies (makers of the Golden Tee golf game), is using a branded community toolbar to activate community building by sharing specials and promotions that they think will appeal to their customer’s interests. They also showcase their customer forum, user international tournament stats, and their Golden Tee YouTube channel where users can post video of their best golf shots. Golden Tee did all of this for no cost.

Not a techie? Don’t worry about it. All this stuff is really easy to use. Give it try? What have you got to lose but customers?

Adam Boyden is president of Conduit.

Increasing Sales With the Personal Touch

Monday, January 19th, 2009

suzy-meriwether.jpg 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 with
Suzy Meriwether of 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!

5 Rules for e-Merchants to Navigate Through the Recession

Thursday, January 15th, 2009

sharon-gal-franko.jpg 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.”

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.

‘Twas the Season for Online Shopping

Friday, January 9th, 2009

vipaynichnew1thumbnail.jpg 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.

Vi Paynich is Electronic Retailer magazine’s editor-in-chief.

To view the entire December issue’s interactive, online format, click here.

How Traffic Drivers, Profit Drivers and Loyalty Builders Work Together to Increase Profit Margins

Monday, December 22nd, 2008

pontusk_avail.jpg By drawing on the experience of traditional retail, and taking advantage of the unique opportunities presented by the Internet, e-retailers can look brightly at the future in spite of a gloomy economy.

Although Internet sales is one of the few retail channels that is actually growing, plenty of e-retailers are preparing to launch major Christmas sales despite the traditionally generous spirit of the season. The urge for posting flashing sales banners both here and there, of course, stems from the gloomy economic climate and grim prognosis for the future.

But in the face of an economic recession, it takes more than a traditional sale to continue to drive profits while still retaining current customers, as well as recruiting new ones. E-retailers have a unique advantage in the undertaking of this task, but to be successful they must learn from traditional strategies often applied by the brick-and-mortar grocery stores around the world. A typical example is when these stores divide their product ranges into the following categories: traffic drivers, profit drivers and loyalty builders. A traffic driver is a product that the store’s target audience needs to purchase often, and that it perceives as being expensive. Profit drivers are other products that are important to the target audience, but which they do not purchase as often and thus, are not as price sensitive towards. And finally, loyalty builders are the more luxury oriented consumption products.

The logic is simple. By offering a reduced price on the so-called traffic drivers, you can attract more customers to the store, and once they are there, they may as well pick up the profit drivers. During their visit, they will be exposed to the luxury goods—creating a positive experience and thus, urging the customer to revisit that particular store again in the future. This strategy allows the retailer to maximize customer acquisition, whilst only reducing the price of the traffic driving products.

E-retailers can also apply a more sophisticated version of this strategy. By allowing their most popular, top-selling products to act as traffic drivers by exposing them in sales campaigns, they can drive a maximum number of visitors to the site. This is where their advantage over the brick-and-mortar stores comes in. By using behavioral-based marketing, the e-retailer can control the extent to which the customer also picks up those important profit-driving products during his or her visit. By exposing the customer to products that one knows other visitors with similar behavior are interested in, and all the while applying business rules to regulate which products should be presented depending on profit margins, etc., the e-retailer can control exactly which products are exposed to each individual visitor—in real time.

Through the application of old and tested strategies combined with the latest technology, e-retailers can increase turnover and market share while not sacrificing any profit margins. And this during times when most physical stores are struggling with sales banners and red price tags.

Pontus Kristiansson is CEO and founder of Avail Intelligence.