Top-Rated Products: An Online Merchant’s New Best Friend

I have a special treat for the eTaildTail community to end the week.

Our friends over at PowerReviews and Buzzilions, most notably Jay Shaffer, have some great insights for online merchants using reviews to power customer trust and loyalty, which leads to sales.

There are some great references to what works and does not work, so I hope this read is helpful.

SPECIAL NOTE TO eTaildTail READERS:

The below commentary is part of eTaildTail's ongoing guest commentary series for 2008. If you would like to share you insights with the eTaildTail community, please email me at (chip at eTaildTail.com) and let's help online merchants grow their business. 

International folks are encouraged to share their thoughts as well!

Have a wonderful weekend and "God Bless" our troops, please remember them in your prayers.

-- Chip

Move over Best Sellers, a More Powerful and Proven Enticement Has Arrived!

"As a former merchant, (former VP of Marketing at Wine.com) I understand the power of merchandising and the important role that the merchandising of most popular and best selling products play in getting your customer’s attention. 

That’s why I am thrilled to be sharing with the eTaildTail community the latest “hidden gem” that comes from leveraging customer reviews on your websites:

I want you all to meet Top-Rated Products.

The marketing of best sellers, up to now, has probably been the surest and easiest way for merchants to generate quick sales.

Let’s face it, somewhere at the core of our buying public is the notion of “having what everyone else has,” so advertising what is most popular in the form of best selling items is a “no brainer” of sorts.  There are some inherent problems with this approach, however, as a product’s selling popularity can be due to a myriad of reasons, the most often being discount or sale pricing.  So while best sellers can often drive sales, they don’t often drive matching profits!

Now let’s meet Top-Rated, or as my friends at Mountain Gear say, "User-Approved Products" -- you have got to love that one!

These items all have one thing in common – customers rave about their off-the-shelf performance.  And one thing we have heard over and over, and over, again from our clients is that shoppers are willing to pay for guaranteed performance. 

These items, then, are often sold at full price with no need for coupon or discount incentives to drive heightened consumer interest.  They garner attention simply by being rated as standouts by the customers that use them.

Here are some interesting data points and/or general trends associated with Top-Rated vs. Best Seller email and website campaigns, as shared by clients including: Brookstone; Staples; REI; Onlineshoes; and Mountain Gear.   

Highlights of top rated merchandising include:

• Open rates with Top-Rated subject lines outperformed Best Seller campaign and open rates for email Equal and or increased click-thru rates for email campaigns
• Mountain Gear saw a 50% higher AOV with Top-Rated email campaigns
• For website merchandising efforts, REI saw their Top-Rated category outperform corresponding Best Sellers by a $20 higher AOV as top-rated items are often sold at full price (yea!)
• Top Rated as a presentation sort on category pages (dropdown menu choice) is becoming the preferred customer experience

The rate at which our clients are sharing these wins with Powerreviews is all the proof I need to say to the rest of you online merchants out there: "Let me introduce you to your new best friend – Top Rated Products."

I hope this helps get your Q2 ’08 off to a rousing start!"  -- Jay Shaffer

If you would like to contact Jay directly for more advice, please do. Also ask him about Buzzillions, a site that lists reviews and works in concert with Powerreviews.

Here is Jay's information and tell him eTaildTail sent you!

Jay Shaffer
VP Sales & Marketing
PowerReviews.com
(jay at powerreviews.com)

Revealing Personal Information Still Inhibits Online Shopping

Some good insights about online shoppers behaviours and where we are heading with online shopping into the future.

A good (and quick) read from our friends of eTaildTail over at MediaPost Publications.

- Chip

Revealing Personal Information Still Inhibits Online Shopping

by Jack Loechner, <<<CLICK HERE>>> for full article, which has some excellent statistical analysis for all online merchants. It is easy and good reading.

"According to a Pew Internet Project survey, released in February, 2008, most online Americans view online shopping as a way to save time and a convenient way to buy products. At the same time, most internet users express discomfort over sending personal or credit card information over the internet.

• 78% of online Americans agree that shopping online is convenient.
• 68% of online Americans say they think online shopping saves them time.
• 75% of Internet users agree with the statement that they do not like sending personal or credit card information over the internet.

John B. Horrigan, Associate Director of the Pew Internet Project and author of the report, says "These inconsistent notions about the online shopping environment show that... people's confidence in the security of online shopping remains as an issue... "

More specifically, the report says:...."

<<<CLICK HERE>>> for full article, which has some excellent statistical analysis for all online merchants. It is easy and good reading.

Revealing Personal Information Still Inhibits Online Shopping

Complimentary Webinar January 31: 3 Steps to Extend Marketing Online Consumer Awareness Footprint

January 31, 2008 Free Webinar for all Online Merchants <<<CLICK HERE>>> to register:

3 Steps to Extend Your Online Consumer Awareness Footprint

With the rapid growth of "new and diverse" online marketing channels, retailers need to analyze and perfect marketing strategies to compete and gain market share.

As part of MerchantAdvantage’s A.M.M.O for 2008 series, January’s Webinar will cover:

-- Defining Your Current Target Consumers
-- New Online Marketing Opportunities:
       a. Case Study: Mobile Shopping by mPoria.com
       b. Case Study: "COUParison Shopping(tm)" by MyCoupons.com
-- Implementing a Diversified Online Marketing Strategy

Space is Limited, Click Here to Register Now! or call 800.550.9466 for more information about this event.

Join us for this insightful 30 minute MerchantAdvantage Webinar presented by:

Chip Arndt, EVP and Co-Founder, MerchantAdvantage and with guests

Greg Stoltz, President, MyCoupons.com and

Dan Wright, CEO & Co-founder, mPoria, Inc.

to arm you with the information you need to succeed in the fast growing online retail and mobile commerce world.

Don't miss the opportunity to attend this complimentary Webinar. We look forward to seeing you there!

<<<CLICK HERE>>> to register...it's FREE!

-- Chip

Online Shoppers Value Convenience, Price, Product Selection

This is exactly the type of information that small to mid sized etailers need to know going into 2008 to make their web storefronts and interactions with customers the best that it can be and the article comes from friends of eTaildTail over at AuctionBytes.com

I post the article in its entirety as it has some very helpful information for you all! You can also click over to AuctionBytes for th article and other great information.

-- Chip

Survey: Online Shoppers Value Convenience, Price, Product Selection

by Ina Steiner, contact her directly at ina@auctionbytes.com
full article at <<<CLICK HERE>>>

"Ecommerce trade publication AuctionBytes.com has published results of its December 2007 online buying survey. Over 900 respondents participated in the survey, and they give an interesting perspective on what buyers deem important when shopping online. Highlights of the survey follow, and full results are published in the January 6th issue of the AuctionBytes-Update newsletter, available online now.

Online-Buying Survey Highlights:

The biggest advantage to online shopping was convenience, respondents said, while the biggest disadvantage was not being able to closely inspect items before purchasing them. It's not surprising to learn that 61% of respondents bought from online auction sites and 55% of them bought from Amazon, given that 83% of respondents sell online. But it's interesting to note that 50% of respondents bought from major retail sites - and 29% purchased from "mom and pop" sites. Only 3% did holiday shopping on classifieds sites.

A relatively small percentage of respondents said they shopped online primarily for price (6%). Instead, most said the biggest advantages to shopping online versus going to a mall or traditional retailer was the ability to shop at their convenience (45%) and because it was easier to find what they wanted (27%).

When asked which one factor was most important when deciding where to shop online, top answers were Product Selection (20%), Price (17%) and Security (17%).

Many said the biggest disadvantages to shopping online was that they couldn't closely inspect the item before purchase (44%), shipping costs (17%) and risk of non-delivery of item (11%).

When asked what method they employed most frequently to find items, 44% said they used search engines, and 39% said they went directly to a retail website. Only 7% used comparison shopping sites most frequently. When asked to rate various methods by how often they used them to shop online, 65% used Search Engines "frequently" and 25% "sometimes," while 18% used comparison shopping sites "frequently" and 34% "sometimes."

When asked which services they used to help them find products, 90% said they used Google, followed by Yahoo (22%).

Sixty-five percent of respondents "sometimes" (33%) or "frequently" (32%) use consumer reviews (such as Amazon Buyer Reviews and eBay Reviews & Guides) to help them make their buying decisions.

When asked to rate their level of satisfaction with their overall online buying experience, 61% said they were "Very Satisfied," and 36% said they were "Satisfied."

AuctionBytes also compared results from respondents who currently sell online with those who do not sell online. These results and many more interesting facts from the survey can be found in a two-part report in the January 6, 2008, issue of the AuctionBytes-Update newsletter, including which factors are important when buying from unfamiliar websites, and how shoppers found items online this past holiday shopping season."

Part 1:
http://www.auctionbytes.com/cab/abu/y208/m01/abu0206/s02

Part 2:
http://www.auctionbytes.com/cab/abu/y208/m01/abu0206/s03

Post your comments on the AuctionBytes Blog:
http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/pl/2007/12/1197738015.html

Beanbasket Announces New Gift Modules: Online Retailers Can Give Consumers More Choices with Easier Setup with Gift Certificates, Gift Guide, Gift Reminders, and Flexible Gift Wrapping tools

Just in time for the holidays...or at least all of the holidays after this month and into 2008!

I always love it when shopping cart platforms expand their offerings to better leverage what consumers and online merchants are clamoring for everyday. 

Just this week, eTaildTail friends over at Beanbasket introduced some excellent new features to help differentiate their online merchant offerings to customers from other shopping cart technology platforms. 

These new features are excellent for site functionality, site "stickiness," better service offerings, and up selling opportunities. 

Also, online merchants can market some of these new features into many online marketing channels, as shopping desintation sites, comparison shopping engines, and marketplaces to encourage and entice customers to come to their online storefront to shop! 

If you need help doing this give MerchantAdvantage a shout. We can help and yes, I am a co-founder of MerchantAdvantage, so I am a little bias on how we can, help but seeing how we can help is FREE so you have nothing to lose and everything to gain!

So....some please check out some great upgrades from Bean Basket and thank you Beanbasket for sharing them with the eTaildTail community.

-- Chip

From my fiends at Beanbasket -- and call Jim O'Neill at 920-954-0807 ext 204 if you have any questions or are interested in their products -- tell Jim, "Chip sent you!" 

(getting to be a familiar phrase! Isn't it? LOL)

"Beanbasket.com, a leading e-commerce service provider, announces the new, enhanced gift modules with its latest software release.  These modules include gift certificates, gift guides, gift reminders, and flexible gift wrapping options.  With the gift giving season upon us, merchants will be able to offer consumers more options when buying gifts online.  Says Mike Harper, Beanbasket’s president, "This new gift module suite is focused on putting more tools in our merchant's hands to help increase conversions and create a deeper relationship between our merchants and their target audience."

Gift Certificates, a proven money maker for retailers, make it easy for consumers to choose a sure-to-satisfy option.  Gift certificates create loyalty, repeat business, and are almost always redeemed in excess of the original purchase.  Consumers may redeem the certificate in whole, partially, or in combination with other credit card check-out and options like PayPal.

With the Gift Guide, consumers can receive suggestions regarding gift ideas based on budget and number of recipients.  Merchants can preselect options to ensure hot sellers and/or overstocked items are promoted.  Corporate buyers will especially appreciate this useful and time saving tool.   

Gift Reminders offer another way to encourage loyalty.  Consumers can quickly and easily save important dates like birthdays and anniversaries and an email from the merchant will make sure that the consumer avoids an embarrassing oversight and that the merchant's products are top of mind. 

Flexible gift wrapping options allow busy consumers an easy way to save time.  Merchants can predetermine which items can be gift wrapped and whether or not a charge will apply.  Consumers can also enter gift messages for added personalization. 

The combination of options with the new enhanced gift modules allow merchants to easily offer their customers a way to set reminders, select multiple gifts, have them wrapped, and checkout with their own gift certificate.  Or make gift giving super easy by choosing to add Gift Certificates to their gift list!

About Beanbasket:  Beanbasket.com provides a high performance, extremely flexible, search-optimized eCommerce platform to fit almost any business model.  Serving retailers in almost every industry, Beanbasket.com offers two platforms for merchants of almost any size to maximize their sales potential. 

Beanbasket Business Builder:   Built upon reliable, enterprise-class servers, Beanbasket BB is the right solution for businesses looking to provide an attractive, efficient, and functional web store. Beanbasket.com's store model allows seamless integration into your new site design - easy to manage and update - with high-level product administration, inventory reporting and tracking, shipping options, customer notification, affiliate tracking and much more. Plus it is backed by 128bit SSL security and 24X7X365 support.

Beanbasket Enterprise:   All the features of Business builder but with Multi-Channel Order Management System for web stores, call centers, direct mail, and demand TV.  Incredible flexibility allows profit center management, call center scripting, campaign management, multiple warehouse fulfillment, and "every touch" CRM system and much more.  Beanbasket Enterprise is designed to take you to the next level of eCommerce sales."

High-End CE Sales Online, Part 2: New Shopping Tools and Trends For Online Merchants

It is fun to work with industry experts.  Here are some experts from an article released at E-Commmerce Times today, that might help small to midsized online retailers for 2008.

-- Chip

For full article <<<CLICK HERE>>>

E-Commerce Times, by Andrew Burger

"The best way for the consumer to determine the best deals is to use review sites and then shop around. While my merchants might not like to hear me say 'click away' to compare pricing, that is part of the fun and games of online shopping," said Chip Arndt, executive vice president and cofounder of MerchantAdvantage.

"Though opinions are mixed, industry experts and economists expect a reasonably good holiday retail sales season this year despite an economy struggling with higher oil and import prices, decreasing home values and the after-effects of mortgage market problems. Online holiday sales, in particular, should do pretty well, though the outlook is more clouded for sales of high-end consumer electronics products, as Part 1 of this series discusses.

"Even though there is talk of recession, the GDP (gross domestic product) for third quarter 2007 in the U.S.A. was up over 3.5 percent, which was unexpected. This growth, in light of high oil prices, a housing credit crunch and a decrease in housing starts and sales was driven by consumer spending," noted Chip Arndt, executive vice president and cofounder of MerchantAdvantage.

"It is my belief that as the Fed eases interest rates for the last quarter of 2007, we will see that this GDP growth will remain constant with consumer spending leading the drive as the marketplace comes to terms with housing and credit crunch issues. Furthermore, as online shopping and search sites such as eBay, Amazon, Ask.com, Google, Travelocity, Expedia, Orbitz and others increase their off-line spending in traditional forms of media as television, print, billboard, radio and the like to drive consumers online to find products, travel deals and services, this will have a positive residual affect for all online merchants selling products this holiday season," he added.

Going Into the Holiday Season

Shoppers intended to buy less in the way of consumer electronics this year as compared with last year, according to year-to-year third quarter research on consumer electronics purchase intentions conducted by Parks Associates .

"Based on these results, I think that we -- along with folks in the economist community -- have some trepidation in looking at the holiday season given the credit crunch, home values declining and news about weakness in the economy," Kurt Scherf, Parks Associates' vice president and principal analyst, told the E-Commerce Times.

"I think it is going to be easier for consumers to consider upgrades of products they already own -- particularly computers, digital cameras, video camcorders, and music players, as opposed to thinking about a totally new product purchase. After all, the price for the portable devices continues to fall, and you can buy a significant upgrade to cameras -- improved megapixels, etc. -- for not a whole lot more, or even less, than what people spent on the original product. PC sales should be solid, either because people are finally going to upgrade to a Vista system, or because XP systems will be very cost-effective as upgrades," he noted.

'Tech for Tots' and Other Themes

There are several "themes" that consumer electronics manufacturers are looking towards to make for a happy, healthy holiday sales season. The digital home office and entertainment center are two; the introduction of new iPhones, iPods, smartphones and other handheld  devices makes portability a third...

<<<CLICK HERE>>> to read entire article

...Based on online sales data from MerchantAdvantage's "electronic centric" products category, Arndt believes that holiday consumer electronic sales will grow 10 percent year-to-year and come in line with the Consumer Electronics Association's forecast of US$22 billion.

"To complement these positive trends, more online consumers are comfortable with shopping online and as they want to save a few 'gas' dollars and as online merchants offer shipping discounts, I predict these two factors will help push online sales past the year-over-year growth of 10 percent, comfortably. Also, while new to the U.S. consumer, the advent of mobile shopping sites -- mPoria, which deals with most major carriers; iSave.com, powering iPhones; and mShopper, powering Sprint -- should help add to the online shopping holiday push."

"The best way for the consumer to determine the best deals is to use review sites and then 'shop' around. While my merchants might not like to hear me say 'click away' to compare pricing, that is part of the fun and games of online shopping. People learn by exploring and the shopping comparison sites are great places to start and also review sites as Powerreviews.com or Buzzillions.com," Arndt commented.

For e-tailers, particularly smaller online merchants who may not be able to match the cutthroat price discounting that typically occurs during the holidays, creative pricing strategies and delivering excellent customer service are keys to attracting and holding on to good customers and differentiating themselves from the pack, according to Arndt.

"The big boys and girls deluge the marketplace with ad words and advertising, and then usually the lowest pricing as they are volume players. One client I can't name who does very, very, very well actually keeps their margins high by providing the best, and I mean best, customer service," Arndt elaborated.

"This starts with being advertised everywhere and then when you call in from their Web site or e-mail them, the customer simply is treated so well that you want to buy your products from them. I call it the 'Disney or Neiman Marcus effect.' When everyone in your organization understands that at anytime that they speak to anyone, I mean anyone, outside of the company that that person is a potential customer," he added."

<<<CLICK HERE>>> to read entire article

Holiday Commentary: Online Shopping Should Be Good For Electronics and Other Insights

Even though there is talk of recession, the GDP for 3rd Q 2007 in the USA was up over 3.5%, which was unexpected.  This growth, in light of high oil prices, a housing credit crunch and a decrease in housing starts and sales, was driven by consumer spending. 

It is my belief that as the FED eases interest rates for the last Q of 2007, we will see that this GDP growth will remain constant with consumer spending leading the drive as the marketplace comes to terms with housing and credit crunch issues.  Furthermore, as online shopping and search sites such as eBay, Amazon, Ask.com, Google, Travelocity, Expedia, Orbitz and others increase their off-line spending in traditional forms of media as television, print, billboard, radio and the like to drive consumers online to find products,  travel deals, and services this will have a positive residual affect for all online merchants selling products this holiday season.   

To compliment these positive trends, more online consumers are comfortable with shopping online and mobile commerce and as they want to save a few “gas” dollars, and as online merchants offer shipping discounts, I predict these two factors will help push online sales past the year over year growth of 10%, comfortably.  Also, while new to the US consumer, the advent of mobile shopping sites as mPoria (deals with most major carriers), iSave.com (powering iPhones) and mShopper (powering Sprint) should help add to the online shopping holiday push.  The recent annoucement of Verizon partnering with Shop.com also shows that the major wireless carriers are getting savyy, and are committed to, mobile commerce. 

As I speak to association and organizations, which specialize in understanding online shopping behavior patterns going into the holidays, especially the Consumer Electronics Association (“CEA”), I find that there is an emphasis on certain products per age range.

For all online electronics, sales, as I look over what sells through MerchantAdvantage and our “electronic centric” clients, we concur with CEA that almost $22 billion will be spent on all electronics for the holiday season, which began November 1. 

For the younger 15-25, of course iPods, games, MP3 Players, computers and cell phones are the key items.  For the “older” folks, who have full time jobs, flatscreen TV’s are very popular and the various accessories that come with it.  Now that is the fun side. 

With the advent of home offices, I find that online merchants that market their electronics, or better yet bundle offerings, in way that helps the 25 year old plus build their dream home office, that online electronic merchants will do well. What is very important to note, all across the world, is that people are designing their homes to support a “complete” home office, as they work out of their house or flat (apartment), and/or they want to come home, after their long day job, to a comfortable “fun office feel” to have fun online, play games, or finish up some work they did not get done at the office. 

Also for all buyers of electronics, we find that people tend to forget that often the best selling items are “support” products that accompany more expensive purchases.  One of our clients reminds us that sometimes the best success is selling a flat screen TV for a “reasonable” margin, with free shipping, to capture the client and then upsell them on all of the “goodies” that go well with a wonderful TV purchase. This includes vcrs, video recording devices, cables, and the highest margin item -- mounting products and tables on which to put the TV.  This analogy carries over into building a home office.  No one just buys a computer and works on the kitchen counter anymore.  They are building self supporting media/business/entertainment areas in their home.

If there is any back lash to spending online, it won't affect electronics. I think that electronics will do well into the holiday season. Other type of online products, as garden equipment, tools, high end clothing, bath products and home accessories would be the categoris that suffer the brunt of an online shopper wanting to conserve money.  The main reason is that electronics are fun and everyone wants the next best thing – at least that is how USA consumers usually act.  There is perceived, and real ongoing value, to having electronics and people who buy them are always using it. So if you are not selling electronics, those online merchants will have to be more creative to grab the attention of the consumer.

All online retailers of electronics usually sell their products differently because they have to differentiate from so many online merchants selling electronics.  The big boys and girls, deluge the marketplace with ad words, advertising, listing at many shopping comparison sites and then usually offer the lowest pricing, as they are volume players.  But not all of them are just attracting attention and long-term value via the lowest pricing.

One client, I can’t name, who does very, very, very well, actually keeps their margins high by providing the best, and I mean best, customer service.  This starts with being advertised everywhere and then when the customer calls in from their website or emails them, the customer simply is treated so well that you want to buy your products from them.  I call it the "Disney" or "Neiman Marcus" affect.  When everyone in your organization understands that at anytime that they speak to anyone, I mean anyone, out side of the company that that person is a potential customer.

A Real Time Tip

Always be prepared to offer “additional” products to support the product purchased. These support products often are offered at some discount.  Here is the philosophy and I like it.  So you get an inquiry for a flatscreen TV, MP3 player, or digital camera.  The price is competitive but not the lowest on line.  The online merchant follows up immediately with the customer via an email back, a phone call, or an onsight offer for additional items  that pops up next to support the product desired (such as a robust memory card for a digital camera or special carrying case), to ensure that the customer knows about specials on products to support the original product.  The customer then reasons that they might be able to get the original product at a lower price but certainly not the accessories.  Because the customer follow up is so good, they buy the product AND the ancillary items and the online merchant manages their margins better.  And the best part, you have a customer for life if you continue to treat them right!

Most electronics sellers are willing to lower their prices during the holiday season and definitely offer deep shipping discounts.  I am not a big fan of the former practice, as it decreases ROI and relies on volume, per above. 

On the other hand, a sales in hand is some one to market to into the future, and as long as you protect your margins, it may not be a bad thing to do.  But remember, low pricing is NOT the only way you gain trust and customers.

Be creative in how you market.  For instance, create specials to get people to buy now and guarantee delivery on a certain date and offer discount pricing on items if they are bought by November 30, or December 3 etc…..and make sure you upsell other items at the same time associated with the original product purchase, see above. This is always helpful as the consumer can then get a good price, ideas for associated products and know it will be delivered in time for the holiday. Netflix and BockBuster do this very well, as they suggest other film titles when a conusmer comes on line to buy a product. 

All online retailers also should remember that the best way for the consumer to determine the best deals is to use review sites and then “shop” around.  While my merchants might not like to hear me say to consumers that should “click away” to compare pricing, that is part of the fun and games of online shopping. 

People learn by exploring and the shopping comparison sites are great places to start.  Review sites, as Powerrevies.com or Buzzillions.com, are also good. These are both partners of MerchantAdvantage and friends.  So I suggest online merchants should get their product catalog to these sites. 

And if you need a list of shopping comparison sites to list your products to, check out MerchantAdvantage, as they support over 100 of them, all the way from PriceGrabber, Shopzilla, Yahoo! Shopping (the biggies) to PlanetOnline.com, MyCoupons.com, PriceForSure.com and Smarter.com (smaller ones).  Oh yeah, and if you really want niche, check out GolfPricer.com and ToolCrib.com, very niche sites but the consumer can find great products, pricing, and special offers because they are niche shopping sites, that attract a devoted clientele, that you will find no where else.  So listing your products at these sites might be very beneficial.

All in all, people have fun shopping online, so for all online retailers should play into this "known" behaviour pattern and make it fun, easy, and practical to buy products from you.  It is soooo easy to hunt around and compare prices, reviews, and services that online merchants should be aware that the "Holy Grail" is not the "one time sale" when using comparison shopping engines, review sites, or other online shopping sites, but capturing a potential client for the future!

My Parting Advice....to online retailers who spend lots of money, time, and energy to get "leads" to come to their sites via the various marketing channels and search engines:

Focus on what to do when the potential client is at your site.  This includes how they navigate your site, ease of finding products, offering specials, coupling product offerings and offering coupons and discounts for the future when they buy from you for the first time.

When online retailers care about their ongoing business, not just the one time sale, consumers will be very, very loyal to you and come back to your site time and time again.

Here is to a wonderful holiday shopping season for us all!

-- Chip

Prepared For the Holidays Properly? Last Minute Hints for Online Merchants to Grow Sales

Okay, much of the following information probably has been addressed by each of you, but it is worth noting again as you still have time to ensure that you have least considered some merchandizing tips for the holiday season, which may be helpful to bring in more sales and new loyal customers.

There is no question that shopping online during the holidays has increased and with the advent of mobile commerce it will grow. I am one of those who do not agree with Wall Street analysts and Research companies that online shopping is going to level off by 2010. It will continue to grow as the next generation of young folks “lives and breathes” online and on their cellular devices.  As long as online retailers continue to be innovative to reach them and understand the power of the functionalities of new cellualr devices (as the Iphone ....and others will follow) = online retail will grow. Period. 

But that is 2010 and it is now 2007.  So what can you do right now to make online shoppers’ experiences more robust so they buy more products from you? 

Some of the tips are obvious, others may not be, and I sure you all have ones that I have not thought of, so, at the very least, I hope the following stimulates conversation within your company to make your shopping season the best that it can be!

1. Comprehensive Content for Product Descriptions on Storefront AND Data Feeds to Marketing Channels, Shopping Destination Sites, Comparison Shopping Engines and Affiliate Sites

This seems so obvious yet many online merchants fail to think like “all” consumers and instead list products how they would like them listed, often missing important information that a buyer might want to see before a purchase.

Tip: Every detail is important to list: good pictures, side view pictures of products, product number (especially if it is electronics), manufacturer name, unique product descriptions (descriptions provided by the manufacturer are often boring and if you use them without providing your own “twist” what differentiates you from others selling the same thing?), easy to read and understand shipping costs, all in cost, product review(s), and “hacker safe” site logo(s), to name just a few.

2. SEO, Keyword Buys Should Mirror Your Product Catalog and Be Directed to Proper Landing Pages on Your Storefront

Sounds obvious right? 

It is astonishing how many online merchants spend lots of money on SEO and keywords yet fail to have the “linked reference” that pops up on a search engine or shopping comparison site direct back to the properly optimized and exciting offers on your storefront.  Think of it like walking into a brick and mortar store through the supply room.  Would you be excited to buy a product if that was the entrance? 

Of course, you need to direct the consumer to a landing page with the product they are looking for, but that landing page can have “helpful” ideas for other products, specials, upsell promos, and other exciting marketing language to draw customers deeper into your storefront. 

Tip: For a perfect example of what I am referring to see www.Cooking.com

3. Avoid all “Controllable” System Roadblocks to a Consumer Buying a Product

We are all human and by definition are imperfect, but we can certainly try to eliminate things that would turn off any customer.

Tip: Pretend you are a customer and go through the entire process and all possible options to buy a product from you. 

a. call your 800 number and see what they do, feel how they treat you, listen to what they say on the phone, hear the tone in their voice, and then determine if the person answering that call is presenting your company in the best light, and, most importantly,  do they make it easy for you to take the next step to purchase a prodcut and if you don't want to purchase make you want to come back?

b. Make an online purchase on your storefront, make two, make three = go through the entire process and determine if it is efficient, the shopping cart is efficient and easy to use, the payment process system is easy, there is excellent follow through, polite email or personal follow up, and on time delivery.

c. Know your inventory levels and, if you run out, make sure you have a system in place to guide an excited customer through the proper channels to get them that product "soon" and/or guide them to another “suggested and similar” product and let them know when and if the product will be available.

d. Try new technologies, as online live chat, for excellent customer follow up, product education and the like. AND make sure that these new ideas do not interfere with executing what you are already doing very well, ergo, only adopt new technologies if you have the time, money and resources to execute them well and not leave behind what you are already doing well.

Remember, human beings are imperfect so excellent customer service cultures are not easy to build and they are even easier to destroy.

4. Promotions Might Sound Great But They Can Destroy Margins

This is a hard one as we all want to “give away a freebie”, but these freebies, if not controlled properly, can destroy profits and frankly make your business look cheap, from the marketing side.

Creative solutions, discounted shipping, free shipping, special promotions for purchases over a certain dollar amount, special follow on coupons, and many other things are all great and need to be managed properly.

Tip: There lots of ways to do this, be savvy, think, do your research on how others do it and check out www.LLBean.com -- this is not the only site to look into but they do a nice job of packaging a sale with clicks and links to gift cards, promotions, gift wrapping and the like.

5. MultiChannel..If You Can

Simple.  If you have a brick and mortar location, offer an off line, in-store pick up option online = this brings the customer to you twice!

6. MultiChannel Marketing…IfYou Can

Simple. Use and test more than a few marketing channels, affiliate sites, comparison shopping engines, shopping destination sites, and other areas to market your storefront product catalog.  Try a new type of fun marketing effort called "couparison shopping" over at www.MyCoupons.com -- I kind of like it and it is different = it just may lead to great sales and branding.

If you are confused by what I mean check out www.MerchantAdvantage.com and see what they can do to help guide you, they also have a comprehensive lists of shopping destination sites to test and see which ones may work best for you.

7. Gift Cards….Gift Cards….Gift Cards….Did I say Gift Cards?

They work.  How is that for blunt?

Gift cards work because they are often bought in addition to a purchase, instead of a purchase (by indecisive people like me…LOL) and best of all they are cash upfront in your pocket.

Again see how www.LLBean.com does it for reference purposes. 

Tip: Yes, you have to have a good system in place to manage this promotion and yes, some people redeem gift cards months later, but sometimes they don’t and you still made money.

Oh yeah, always have an expiration date on the card for easier management purposes (some say no…I say yes…you decide what is best for you).  If you do use gift cards let them expire in a 8-12 months – 6 months is too short.

AND FINALLY THE MOST IMPORTANT TWO:

8. Establish Cut Off Dates for Holiday Deliveries

Simple....and make sure that you make it easy to read and the language is clear.  For example:

Last Day to Ship to Arrive Before December 20 is _________
Last Day to Ship to Arrive Before December 21 is _________
Last Day to Ship to Arrive Before December 24 is ___________.....you get the point.

Tip: Place a nice little “box” with this information on the original landing page, the shopping cart page, and the final check out page (prominently on the last two).

9. Be Nice, Follow Up, Be Human, and Love Your Customer

Emails are easy ways to communicate and bond with your customer and professionally cover the following important follow up items:

1. thank you for visiting our site and looking at our products
2. thank you for your order = order confirmation
3. tracking information to follow order
4. delivery confirmation (always a nice touch)
5. exposure and awareness of new product launches, specials, and promotions
6. thank you for being a customer, loyal customer, preferred customer
7. newsletter follow up (if you have one)
8. Other?!?...be creative!

Tip: Never underestimate the power of the 3 P’s to customer follow up in any form of direct electronic or personal direct communication: Polite, Prompt, and Precise!!!

Good luck as you prepare for the holiday shopping season.

Abandoned Online Shopping Carts: One Approach to Learning How to Decrease Abandonment Rate

No online merchant likes a purchase to be abandoned mid-stream.  You have probably spent a lot of money on adwords, key words, pay per click campaigns and other marketing methods to get a customer to your online site and the worst statistic is to see, that after all of that hard work, a customer leaves your site in the middle of a purchase.

Why Do Customers Abandon A Shopping Cart?

While there a lot of factors attributed to shopping cart abandonment, the most common are:

1. High shipping costs
2. A customer coming to a site for a special offer that is “not so special” once they come to the site and read the fine print in regards to the offer, and
3. Complexities related to checkout (which often times are the fault of the shopping cart technology you are using)

Just because you did 90% of the work to get a customer to come to your online storefront, the last 10% of effort to get them to make a purchase is the most important.  So it is imperative that any online merchant focuses on what happens when a customer comes to their online storefront before spending money on marketing campaigns to get a customer to their site.

Any shopping cart technology that you use will say it is not their fault, as they are merely processing a transaction.  The fact remains that shopping cart abandonment is a problem and the technology side of the check out process may be a part of the issue. But it probably is not the only issue…so what might the problems be?  Here are some examples:

1. The check out/transaction process may be cumbersome
2. Language you used in your marketing campaigns to get customers to your storefront may not be consistent to what you “actually” offer on your site and thus you are perceived as being “dishonest”
3. You are marketing products that are no longer available, or
4. It simply takes to many clicks to purchase a product. 

And these are just a few trouble spots.

One Way to Find Out Why Customers Abandon Their Shopping Experience

I often find it interesting that executives sit in a room and hypothesize about these issues when they simply can ask their customers to help them out. 

Many companies are hesitant to ask their customers for input, because they feel it may be intrusive.  That may have been true, to some degree, in the “old world” way of brick-and-mortar shopping, but In the world of the internet, customers expect it.  They actually love it and many just can’t wait to have their opinion heard.  If you think I am joking, check out companies built around reviews, such as www.PowerReviews.com , www.Buzzilions.com and www.epinions.com

And if you only want to follow the leader, online survey tools and feedback have become a popular choice among large online retailers such as WalMart and Petco.

Companies use simple survey tools to collect information from would-be customers who didn’t make it through the virtual checkout line. By asking a brief series of questions about why the customer chose to leave the site prior to completing the transaction and collecting some key pieces of demographic data, retailers can obtain information that can inform and improve their e-commerce strategy.

A friend of mine emailed her sample questions and advice:  Here it is:

”In order to retrieve credible data that can be analyzed and sorted for key trends and issues, online surveys must be short and sweet. Some tried-and-true survey questions include:

• Why did [you] decide to leave the website? This question can be open-ended or include choices such as cost, browsing purposes and user experience.

• What can [we] do to encourage a future purchase? This question can be open ended or offer similar options mentioned previously.

• What is your biggest concern about shopping online? This question may be open-ended or give choices such as: security, online price versus in-store price, etc.

• How frequently do you complete purchases online?

• How frequently do you comparison shop online?”

She also went on to add:

”Many online surveys also allow retailers to deploy hidden fields within the survey – fields which provide visibility into SKU numbers, Web pages visited and products viewed – all without customer knowledge.

Retailers may also consider inquiring about customer reactions to incentive offers. Sometimes promotions drive customers from Web site due to strong messaging that may seem like pressure to complete a purchase. Other times customers are driven to a Web site by an incentive offer, only to find that it was not the offer they thought it was once they read the terms on the site.

Using feedback directly from customers, information obtained via hidden fields and demographic data, companies can get a good sense of customer profiles and make deductions and inferences about why customers are leaving prior to purchase. As companies begin to learn about their customers and understand the reasons behind their actions, they can begin design plan of improvement. However, the only way the truth can come out is to get direct feedback from shoppers themselves. After all, the customer is always right.”

Survey Tools: Where Can I Find Them?

Big companies spend millions on consultants to help them better understand the marketplace. Now, small businesses can grab a piece of the action – and expand beyond the simple suggestion box – by designing their own online surveys. They can choose from a dozen or so low-cost Web-based offerings, with prices as low as $10 per monthly subscription.

Some of the more popular packages include the following:

• Prezza Technologies
• QuestionPro
• SurveyMethods
• SurveyMonkey
• WebSurveyor
• Zoomerang

Each company provides resources to help users design and distribute a survey, and some include tools to automatically generate charts and graphs to analyze the data.

HELPFUL TIPS FOR THE DAY:

1. There is no magic answer as to why people abandon their shopping cart before completing their purchase...maybe they had to walk the dog! BUT, you can learn from your customers through simple surveys.

2. Surveys are NOT intrusive, most people can't wait to give their opinion, especially in this day and age of the internet and bloggers..so use them!

3. There are cost effective tool based survey applications in the marketplace available to you that you can customize to tailor to your site....see above!

Inexpensive Site Search Tool for Small to Mid-Sized Online Merchants! A Great Product? Looks Like It is A Winner!

"New Google fee-based service, Custom Search Business Edition, lets users build search pages for their own Web sites!" -- PC Commerce

I am excited for small to mid-sized online merchants by this announcement of the Google Custom Search™ Business Edition.  There are wonderful companies that do sophisticated on site search, such as www.SLISystems.com, but now many, many small businesses can experiment at a price they can afford.

This tool can be used by any online website, but we will limit comments for the www.eTaildTail.com community to how it helps small to mid-sizd online merchants who want more sales and branding.

For the possible naysayer out there: Yes, it is Google that is launching this product. Yes, they are a billion dollar company that seems to be controlling most aspects of our online life. Yes, they are leveraging their existing technology. Yes, they are introducing news ways to get their adwords campaigns used more to make even more money, but so what…this new product is useful and might really help online merchants retain more customers and sell more product. 

The best part of about this new product is that the onsite search product is very affordable to try. And if it does not work for you then stop using it. How easy is that? 

Here is an overview for you and how you can implement this onsite tool right away.

What Is This Onsite Search Service All About?

Custom Search Business Edition is a feed-based service that visitors to your online storefront can use to search within that web site, on a customized search page, for relevant products.

Google has a version of this product, that was introduced last October and is FREE, but ad-supported. A key difference with the paid edition is that businesses can customize the search page with their own logo and color scheme. They can also modify results by manipulating an XML (Extensible Markup Language) feed of the raw search results, to guide visitors toward products the company wants to sell.

Custom Search Business Edition uses the same index Google uses to deliver its other search results, and Google's own servers are used for searches. To set up the service, customers follow a set-up wizard and copy a small amount of code to their Web site. They get access to a reporting graph with daily and monthly views of how many times people used the search engine and what search terms they used.

Google markets the product this way: “In three simple steps, businesses can sign up online for the hosted service, and in less than 10 minutes customers and visitors are able to search their site using the power of Google's search technology, for more relevant results.”

What Will It Cost Me?

Small to Mid-Sized Online Merchants: The service is priced at $100 per year for Web sites with up to 500 pages, and $500 for up to 50,000 pages.

Larger Online Merchants: Google also sells the Google Search Appliance, starting at $30,000 for 500,000 documents, which indexes material in file servers, content management systems, databases and other sources. It also offers the Mini Search Appliance starting at $1,995 for 50,000 documents.

How Do I Start?

To set up the Custom Search Business Edition, businesses simply:
1. Identify the site(s) to search, and select either all or selective searching of content
2. Add the search box and customize the appearance by adding logo and matching the site's look and feel
3. Further customize search results with refinements that reflect site content (such as sectional groupings)

What Are The Benefits of On Site Search?

With the Custom Search Business Edition, small businesses get:

• Site search hosted by Google, eliminating the need to install and maintain their own technology
• Power and reliability of Google's infrastructure
• Relevant results and sub-second query response times characteristic of Google.com
• Ability to easily set up, purchase, and manage results online
• Full customization of search results available through an XML API
• Reporting features that give insight into visitor behaviors
• Options for email and phone support available through the Google Enterprise group
• Choice about whether to include ads or not

What If I Need More Help Setting Up and Using This New Service?

For more information about Custom Search Business Edition and other enterprise search products, visit http://google.com/enterprise/csbe Google is pretty good at supporting their products!

Helpful Hints for the Day:

1. This quotation below sums it up pretty nicely and no I don’t own any Google stock!

"Millions of businesses have a web presence but offer users no ability to search their site," said Dave Girouard, vice president and general manager, Google Enterprise. "While many of these businesses invest in search advertising and search engine optimization to help customers find their business, customers are left on their own to navigate content once they land on a site. As Google continues to make search technology more accessible to businesses of all sizes -- first with our appliances and now with hosted search services -- we are reducing the hurdles of cost, complexity and time so that small businesses can help customers find what they need every step of the way."

2. Remember that site search can help retain customers and lead to more sales.

3. If you don’t like the product, the risk/cost to you is $100-$500 for 1 year to experiment with an online site search tool that might really help make your site more user friendly and lead to more sales and better customer interaction. 

4. This is a no brainer, if you have some time to spare to implement it.  My suggestion: "Make the time."

Prepare for Back To School/College Online Shopping Surge: Do's and Don't

Okay -- once again eTaildTail.com found someone who speaks to the end of summer online selling surge, and the ups and dowsn for retailers, in a very articulate way, so I wanted to share it with all of you as soon as possible. 

My advice: prepare now...if you haven't already...and if you have...read the below and tweak that online selling strategy a little bit to get the best results!!!  - Ed

"Retailers are preparing for the second biggest shopping event of the year -- "Back to School/College" -- according to Datavantage/CommercialWare, a leading provider of technology solutions for the specialty and general merchandise retail industry.

The National Retail Federation (NRF) ranks "Back to School/College" as the second largest shopping season of the year (after the winter holidays) with an estimated $54.2 billion spent in 2006, heavily focused on electronics and apparel.

As with the winter holidays the convergence of all shopping channels will play a crucial role in the way consumers interact with retail brands, with online shopping in particular creating and influencing more consumer demands. With an expectation of 24x7x365 access to pricing, availability and selections -- instant gratification is a top priority.

Consumers expect seamless customer service whether purchasing, exchanging or returning merchandise online, in store, by mail, call center or kiosk. Today's savvy shopper expects that merchandise is available when and where they want to acquire it and if not that a retailer should immediately be able to tell them if it's on hand in the warehouse or at another store, and offer them options to hold items or have merchandise shipped directly to them.

Bottom line: lack of a seamless experience across all channels results in frustration for consumers who expect retailers to have transparent operations. With the rapid rise of bloggers and web sites where consumers post reviews and opinions, a negative interaction with a major retailer or brand can quickly become a liability.

"To meet the demands of today's shopper, companies must offer superior service across all channels. A poor experience in one means a lost customer in all," said Jane Cannon, Chief Operating Officer, Datavantage/CommercialWare. "Retailers who recognize this and deliver a top notch shopping experience in every aspect of its business will be the most successful."

How can retailers help give consumers a happy shopping season? Consistent Experience

The customer experience needs to be superior -- and the same -- whether via web, in-store, catalog, call center or kiosk. Shoppers expect that their favorite retailers "have their acts together" when it comes to purchases, pick ups, returns and exchanges. Whether buying a gift card online then using it in a store or ordering from the catalog, but returning to the store, consumers expect to be able to interact with retailers whenever and wherever it's most convenient for them.

Purchase Recommendations

Only half of consumers who shop online know what they want to purchase and have not yet settled on a brand, make or model. This presents a huge opportunity for retailers to help make buying decisions. With immediate access to loyalty programs and customer history, retailers can make online shopping consumer friendly and interactive. Current orders can automatically apply loyalty program qualification or allow customer service associates to suggest additional items for cross-sell and up-sell opportunities.

Safeguard Personal Information

With fines reaching $100,000 per month for non-compliance of credit card security measures and best practices, consumers do not want to hear that their retailer is being fined because their personal data has been compromised. Consumers expect retailers to safe guard their personal data when transacting with a merchant whether at the point of sale, over the Internet, on the phone or sending information through the mail."

If you would like to learn more about this area please contact the folks below...they wrote the article and are the exeperts! -- Ed

CONTACT: Jan Jahosky of KMC Partners for Datavantage/CommercialWare,
+1-407-331-4699, jan@kmcpartners.com
Web site: http://www.datavantagecorp.com/
http://www.commercialware.com/