When I was a young lad, nobody in their right mind said, “When I grow up, I want to be in the infomercial business.” But nearly 25 years after starting in this industry, that’s just where I find myself. And boy, am I glad!
As Electronic Retailer magazine and ERA celebrate the 25th anniversary of the infomercial, we wanted to give all of our readers the opportunity to share their stories and memories.
Here are mine…
It was a snowy day in December of 1986 when I reported for duty on my first day as an inbound call agent for National Instant Consumer Exchange, then known as NICE Corporation. Today, it goes by the name Convergys, and it’s one of the largest contact centers in the world. At that time, I was a skinny teenager making minimum wage. NICE Corporation was a little company whose entire inbound call center fit in one room in Ogden, Utah. And the infomercial business was in its infancy…but just getting ready to explode to a scale few could have imagined.
In those days, the phones were ringing non-stop for blues records, stop smoking products, diet pills and a wide range of other products. The 30-minute “infomercial” format had just hit the airwaves one-year prior. New upstart cable networks had hours and hours of time to fill, and the long format gave them something to broadcast while adding to the bottom line. And the American consumer was enraptured with the whole idea of watching a 30-minute advertisement, then calling to order a product, which would be delivered right to their home. They were doing it by the millions.
Yes, the industry has grown by leaps and bounds since that time. So has my career. And my waistline…but that’s a different story.
In the 24 years I’ve been in the business, I’ve worked for call centers large and small. I’ve done creative production for short form and infomercials, product marketing, international distribution, product sourcing, e-commerce and more. Starting in 1999, I’m proud to have been (and continue to be) one of the pioneers on the forefront of new technologies in the electronic retailing space. My team was the first to stream infomercial video online (years before YouTube existed), was the winner of the very first “Best Website” award ever presented by ERA in 2001, and I’ve continued to introduce new tools and concepts to the industry through my articles in Electronic Retailer magazine, and speaking at dozens of industry conferences. Whether it’s the shift from “Call Now” to “Visit our website,” SEO, innovative shopping carts or social media marketing, this industry is always changing…and always fascinating.
Here are a few of my “remember when” memories from 1986:
“COD” was the payment option of choice for most consumers calling to order.
Orders were mailed or faxed from the call center to the fulfillment center. There was not data transfer!
For really big clients, we sent a reel-to-reel magnetic tape every couple of days containing their orders.
The “Golden Girls” were big on TV. (Twenty-five years later, Betty White is still hot on TV.)
A gallon of gas was 89 cents.
Richard Simmons made his FIRST appearance on QVC.
When they weren’t watching infomercials on TV, people were watching “The Cosby Show” and “Magnum P.I.”
There was only one “toll free” prefix…and it was 1-800.
One last memory of the past 25 years: The friends I’ve made in the business are second to none. To this day, I have business relationships stretching back to the very earliest days of my career, and I’m proud to call these same people my friends these many years later.
So now it’s your turn. What are YOUR favorite memories of the DRTV / Infomercial / Electronic Retailing business? How did you get started? What “remember when” highlights would you add to the above list?
Please leave your thoughts in the Comment section below and let the reminiscing begin!
Marty M. Fahnckeis a consultant, speaker and writer working with companies around the world to increase the effectiveness of their marketing strategies. Fahncke is a regular contributor to Electronic Retailer magazine, and is a member of the Magazine Advisory Board. Be sure to check out his blog at http://www.MartyFahncke.com.
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.
Before booking your travel to Las Vegas or San Diego, you may first want to get a few tips from “Saturday Night Live” travel expert Judy Grimes.
Did you miss out on the recent networking receptions in NYC and L.A.? Click here to view pictures from various events at Electronic Retailer’s Buzz page!
Microsoft’s new search engine has garnered a lot of media attention as it seeks to directly compete with Google, especially in a time when it seems no one in their right mind seeks to compete with Google.
The giant of the search-engine industry has its fingers in every possible pie, and it’s very rare that it doesn’t come out ahead. So what are Bing’s advantages and disadvantages?
Here’s two ways of gauging its chances of survival:
1. The Product Advantage
Bing is supposed to yield more relevant search results, which may actually sway consumers over to its side. The advantage to advertisers in that relevance is more precise, target marketing, which could change their game plan as well - if, that is, Bing’s searching is in fact superior to Google’s.
The content-driven approach helps sell that relevancy claim, as the system also adds consumer comments and reviews on the search results, e.g. getting customer reviews on a restaurant from services like Yelp.com.
2. The Marketing Advantage
Google has rarely spent money on advertising its own products. Consumers are ready to jump on just about anything that Google puts out, which means that the usual big spenders in a marketing budget are moot - television ads, for example. Microsoft’s Bing may have an advantage here, as the company seems to be willing to pour a near-endless stream of funds into promoting its new product.
It’s not a bad strategy, especially since nothing short of full media saturation is likely to sway loyal Google enthusiasts. Since they have no competition in many of their outlets, it might just give Bing a chance to play with the big boy.
Peter Koeppel is a Wharton MBA and president of Koeppel Direct, a full-service media buying agency based in Dallas.
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
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.
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.
ARLINGTON, Va.–June 28, 2009 – The Electronic Retailing Association (ERA), the leading trade association for direct-to-consumer commerce, issued the following statements on the death of Billy Mays, one of the pioneers in the direct response television (DRTV) industry:
“DRTV has grown to be a $300 billion business during the last 20 years, and Billy Mays played a key role in making this possible,†said Julie Coons, president and CEO of ERA. “His dedication to DRTV will be remembered by those of us in the industry, as his animated approach to marketing dozen of products, such as Orange Glo and OxiClean, will be remembered by millions of consumers. Our thoughts and prayers go out to his wife, Deborah, and to his family and friends.â€
“This is a sad day for those of us that were lucky to know Billy,” said Nathan Fagre, chairman of ERA and senior vice president and general counsel of 
ShopNBC. “He worked hard, cared about his family and friends and he will be greatly missed.”
Watch as ERA CEO Julie Coons delivers a sneak peak of what attendees can expect from ERA’s upcoming 2009 D2C Convention in Las Vegas September 13-15. Register now!Early bird ends July 1!
The California Supreme Court’s recent decision to uphold Proposition 8, which bans gay marriage, has sparked statewide protests. As discussed on this blog before, social media has changed the way in which people organize their efforts for a united front.
The recent Prop 8 protest in West Hollywood was publicized by blogger Perez Hilton via posts and tweets and brought out not only celebrities, but also readers that may have otherwise been unaware of the protest. As can be backed up by abysmal ratings, the only reason Hilton’s recent spat with Miss California over gay marriage got any traction at all was through social media, not because hordes of people actually watched the Miss USA pageant live. Either way, utilizing social media to organize and reach mass audiences for marketing purposes or otherwise may soon be considered a luxury for U.S. citizens.
Ahead of the 20th anniversary of the bloody crackdown on Tiananmen Square this week, Chinese authorities have rounded up dissidents and shipped them out of town. Now, they’ve even shut down Twitter.
Along with their usual methods of muzzling dissent, the authorities extended their efforts today to silence social networking sites that might foster discussion of any commemoration of the events of June 3-4, 1989.
The action is a new sign of the government’s concern of the potential of such technology in an authoritarian society where information is tightly controlled.
China has the world’s largest online population, and Internet communities have proven increasingly influential in spreading word of events to everything from student protests to group shopping excursions.
People are going outside the normal, controlled channels to set up communities online, spreading information about campus unrest and other potentially subversive activities taking place in this vast nation.
Government Internet monitors have shut down message boards on more than 6,000 Web sites affiliated with colleges and universities, apparently to head off any talk about the 1989 events, according to the Hong Kong-based Information Center for Human Rights and Democracy.
Numerous blogs maintained by edgy government critics such as avant-garde artist Ai Weiwei have been blocked and the text-messaging service Twitter and photo sharing site Flikr could not be accessed within China on Tuesday. Video sharing site YouTube has been blocked within China since March.
Additionally, CNN reports that even the U.S. military is now using social networking sites to reach out to non-traditional audiences by documenting the war efforts in Afghanistan. One thing’s for certain- whether organizing protests or simply shooting marketing messages out to consumers, it will be interesting to see how social media’s role within our lives continues to evolve.
When I was a young lad, nobody in their right mind said, “When I grow up, I want to be in the infomercial business.” But nearly 25 years after starting in this industry, that’s just where I find myself. And boy, am I glad!
In the first half of this year, I talked about retailers 
Click here
In addition to its upcoming 
Microsoft’s new search engine has garnered a lot of media attention as it seeks to directly compete with Google, especially in a time when it seems no one in their right mind seeks to compete with Google.
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.
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.
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.
Statement from the 
The California Supreme Court’s recent decision to uphold Proposition 8, which bans gay marriage, has sparked statewide protests. 
