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Sitebrand Talks

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Screenshot of geotargeting with day of weekGeotargeting is starting to generate some buzz. Just today Jack Aaronson, a ClickZ columnist, published a story called Geotargeting Comes of Age in E-commerce. It’s a great story that speaks to the incredible power of personalizing web content based on a visitor’s geo-location. In fact it references a Sitebrand customer, BedBathStore.com, for its leadership in this still fairly uncommon use of technology. To add to the ClickZ story, it’s also interesting to consider how BedBathStore.com goes a step further by pairing day of week strategies into the mix. In talking with Alok Ahuja, the Sitebrand account manager working with BedBathStore.com, he said they are seeing some amazing results that relate to the combination of geotargeting with day of week targeting.

Even though these day of week geo campaigns (floating divs like the screenshot above) are only being shown 4 times per month (since there’s typically 4 weeks in a month), they are proving to outperform other geo-target only type campaigns that run ALL month long. This retailer is especially blown away by the Sunday geo campaigns. Apparently these Sunday geo campaigns are a massive success. Who would have thought?! Obviously it’s a popular day to shop from home.  

So geotargeting is one great way to boost conversion, but pairing geotargeting with day of week immediacy and urgency is proving to really ramp things up!

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Per my Shop.org blog post a few weeks ago, I see an eCommerce market that is still getting ready to fully embrace personalization, but still focusing more on the plans behind inputs (traffic) and outputs (customer retention/upsells). 

Based on the recent analyst reports, thought leaders in the blogosphere, and topics covered at trade events however, web site optimization (of which personalization is a part) will be the number one focus of online business in the coming years.

With that in mind, I did a Google search this morning that was a total headscratcher.   Click here to see the results.

The fourth link down is a CNET article from 5 years ago explaining the failure of web personalization.

” Companies trying to get personal with their Web site visitors in hopes of increasing sales are wasting more money than they’re earning.”

The third link down is a blog post from over 4 years ago discussing the steps required to build an actionable plan around web personalization.  This blog was well written, insightful, and would work just as well today as it would have in 2004 (advances in technology notwithstanding).  That said, it discussed the concept of personalization in terms that imply everyone is doing it, something almost all current practitioners will disagree on.

This is my favorite quote from the piece:

“It’s a tired old yarn, but if you hope to implement a web personalization strategy, the first and most important step is to develop and mature your business goals and requirements”

Wasting Money? Tired old yarn?  How can the ‘next big thing’ in eCommerce have this kind of historical background?

I blame Google. (in a tongue-in-cheek kind of way)

If you look at the writing trends in 2004 about eMarketing, you see a fairly equal split between traffic generation and website optimization.  With the increased competition that emerged online in recent years, traffic generation became so important that it completely dominated.  The chart below is a Google Trends report for “PPC” vs “Personalization” to illustrate this point.

Google Trends - PPC vs Personalization
PPC is in blue, Personalization is in red

So…after a brief lapse, the hottest concept of 2003 is gearing up to be the hottest concept of 2009.  Everything old is new again. 

Now don’t get me wrong.  There have been some major changes in the personalization space in the last 5 years.  There are some great vendors out there to power different aspects of personalization (I know a great company called Sitebrand), and the analytics space has matured to the point where it is possible to reap great rewards from a properly executed personalization initiative.

This couldn’t be made any more evident by the following point:  The CNET article referenced above cites a Jupiter Research article from 2003 called “Beyond the Personalization Myth”.  Recent reports from Forrester and Aberdeen are of the opinion that this myth has become a profitable reality.

As a personalization analyst, I would like to welcome you back to the discussion about optimizing your website and growing your business.  We missed you.

Cheers,

Jim

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We’ve talked about the power of integrated marketing campaigns because the combined message creates a sense of credibility and trust among the buying public. After all, if you do not trust the merchant then you will certainly not buy from them. Customer loyalty is another method of measuring and assessing how much trust your customers place in you. However, many Marketers drop the ball on creating this sense of trust. It’s easily done with some integrated marketing tactics.

Consider the use of customer testimonials. Clients leave them all of the time. At worse, you simply need to ask for them. It’s amazing how much people like to share and to talk. An integrated campaign will take that quote and create a case study. The case study then gets pitched to a major and trusted publication usually tied in to some human interest angle. That leads to a press release announcing the happy customer, or event, and referencing the case study and the industry coverage. Accordingly, you inform your opt-in email list of the great news and perhaps associate a short-term promotion tied to the event. Your email service provider utilizes the Forward-to-a-Friend feature to allow your email subscribers to share the news, and the positive branding, with their friends. Now suddenly your relevance in the search engines increases proportionately to the multiple references. Your higher rankings, and your supporting mentions, combine to nurture the consumer with a positive experience of your brand. Said another way - your integrated marketing leveraged one piece across multiple marketing channels. That’s what I’m talking about!

So where is the Word of Mouth we alluded to? Simple. It’s the by-product of your campaigns. People like to talk. Why do we want them to talk? Because online sales tools only nominally augment the likelihood to convert according to a study by the Pew Internet & American Life Project.

Pew Internet Purchase Decisions

The study goes on to say that 64% found out about the product from friends, family, or co-workers.

So how do you encourage word of mouth because we know that will increase actual online conversions? Simple - you create a personalized, one-on-one experience for each consumer or visitor and then you complement the experience with integrated marketing. Combined, you create credibility and trust — and buzz!

So! How goes the integrated marketing?

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ecommerce 

With eCommerce competition at an all-time high, it’s an advantage to find the right balance of mass customer appeal (acquisition) and niche customer segmentation (retention and loyalty). According to Shop.Org’s State of Online Retailing report for 2008, online retailers allocate 53% of their marketing budgets to online customer acquisiton. But sadly only 21% of marketing dollars go to online customer retention and loyalty. As marketers, we should be embarrassed with such a split. Let me explain…

Just out of the gate is the MarketLive Performance Index: Building Loyalty in a Maturing Market. It’s a very insightful report that reminds us of the importance of customer value - especially as it relates to retention and loyalty.  It pulls together some amazing stats that can’t be ignored. I think one of the most interesting stats relates to the fact that more than 1/3 of online shoppers have been buying online for 7 years or more (Source: Forrester). So naturally, these shoppers have increased expectations that can only be achieved by websites that put some thought and investment into the online experience via relevant, personalized content/offers.

The significance of these loyal, savvy shoppers is two-fold to say the least:

1. With respect to loyalty, let’s first explore customer value. MarketLive compares the value of new vs. return vs. loyal customers. Loyal customers are by far the most valuable of the trio - they’re more engaged (more visits to carts and adding at double the rate of new buyers) and their avg order size is nearly 10% higher than new customers. It’s called cross-sell, up-sell baby and it’s an enticing segment worth maximizing.

2. With respect to being savvy shoppers, expectations are high and this segment demands nothing less than relevant, meaningful experiences that appeal to their quest for unique finds, time savings, cost savings, etc. Each of these appeals can be addressed through personalized content and response potential is well documented. From the MarketLive report, Forrester found ”that of the 54% of shoppers who perceived that offers had been tailored to their personal preferences, 77% found the recommendations useful and 34% made a purchase on those recommendations.”

Point 2 really answers part of the “HOW?” re point 1, don’t you think? Consider the facts. 

MarketLive qualifies a loyal shopper as someone who has made 3 purchases or more. With that in mind and the general state of web shopping (lots of pre-buying research and browsing time), I think it’s also fair to classify these loyal shoppers as savvy shoppers.

The other great way to tap into the loyalty segment is via email. Actually email can be segmented in virtually unlimited ways - depending on your database of course. For example, it might be worth segmenting lapsed customers with a win-back email. After all, they bought once and that means they might buy again…IF you message them appropriately with personalized, relevant offers - both online and in the inbox.

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If you talk to ten different eCommerce sites that are using Analytics, the odds are good that at least five of them are using Google Analytics.  If you talk to ten different Google Analytics (GA) users, probably only one of them is using their Goal tracking for anything other than cart conversions.  Long story short, an awfully large percentage of retailers aren’t getting a lot of value out of Google analytics.

 This is in part due to the fact that most companies using GA don’t tend to have a full time analyst asking specific questions of the website data, and also due to the fact that while GA is great free software, there is no vendor support in terms of best practices for tool usage.  (If you want an analytics vendor with a top-notch customer support/analysis team, look no farther than our friends at Coremetrics)

Here are two alternate goals, and one new way to look at them using Google Analytics. They are easy to set up and monitor, they will give you a lot more visibility into website outcomes, and will help you start asking the right questions about what you can be doing to optimize your website for increased conversions. 

For additional information about how to set up goals in Google Analytics, click here. 

Goal 1: ‘About Us’ page visitor conversion 

If a visitor cares enough to want to learn about your business, they are that much closer to converting.  Set up a goal funnel with the first page being the About Us page URL, and the last page being the transaction completed page.  You now have an report that shows you the conversion rates of people who visit your ‘about us’ page as part of a session.  Once you have the results in, you can start applying changes to this page in an attempt to increase conversion outcomes.

Goal 2: Micro Conversion Points 

A micro conversion point is a non shopping cart transaction.  Examples include newsletter signup, catalog request or wish list signup.  Better understanding of how many visitors choose these micro-conversions will give a better understanding of what a visitor really wants from your site.  Also if any of these micro-conversion points has multiple steps, you can build a goal funnel and look at step abandonment, just like for your shopping cart.

Goal Tip: Use filters to segment your goal results 

By filtering your Google results based on different traffic source segments, you can get a much better understanding of how visitors from different sources convert for different goals.  For example, what does the cart abandonment funnel look like for direct type in visitors vs. paid search traffic?  Setting up funnels is also fairly straightforward, and you can see a more detailed posting from the team at Lunametrics on how to accomplish this by clicking here.

A better understanding of site outcomes equals an ability to optimize them over time.  Taking the steps above will add invaluable marketing insight to your analytics tool.

Cheers,

Jim

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webinar promo

As part of Sitebrand’s monthly webinar series, I’m very excited to tell you about our upcoming webinar because the very insightful Jason Burby from ZAAZ is my co-presenter…

Our topic is ~ Web Personalization: Putting the “Cha-Ching” Before and After the Check-Out. Isn’t that intriguing? If you’re like amost people I’ve told, it’s the cha-ching after the check-out that has you screaming for more.

So do yourself a favour and register today.

As added incentive, be one of the first 25 people to register and you’ll win yourself a free copy of the book “Actionable Web Analytics: Using Data to Make Smarter Business Decisions” by Jason Burby and Shane Atchinson.

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Online shopper with mouse

Online sales are continuing to outpace catalog sales. Consider the recent announcement by the marketers at Bloomingdales (parent company being Macy’s Inc) who have just called it quits for the catalog side of business and you can start predicting the future with relative ease. That is…if marketers dare to think differently. Tried and true may no longer apply…

I call it putting your money where the mouse is.

Not just where it starts (as in search and email) but where it travels (which is the entire click-stream process, not to mention visits that might happen over a period of time pre- and post-conversion). And this new emphasis on travel can really be related to improving the overall online experience which is exactly the plan for the Bloomingdales.com web site. 

Bye-bye catalogs will also mean bye-bye direct mail to some degree. I’m sure not every retailer will completely abandon the catalog, but there will be fewer and fewer printed every year. So it’s not a matter of if they will abandon catalogs, it’s more a question of when and by how much? For the catalogs that don’t get fully axed, I believe the distribution won’t be automatic - rather, it will be very much an active request by the consumer.

But over time, with more emphasis being placed on positive online experiences, who will even request a catalog? I mean seriously, the catalog will be archaic. As today’s youth move into consumer-hood, they’re already in tune with online shopping. Hell, they’ve been buying in the onlines stores of webkinz worldclub penguin and numerous others since they were 3!!! And trust me, these sites don’t offer print catalogs.  

On top of consumer demand for positive online experiences, there’s also the green thing / the environment thing. This is like the cherry on top for any marketer looking to phase out the catalog. Save some trees. Gain some customers. It’s all good.

Two questions:

1. Have you noticed fewer and fewer retail catalogs?

2. Are you a retailer considering the fate of your catalog?

I’m curious for comments on this topic…so share your thoughts and let’s start a conversation.

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MarketingSherpa Logo 

It’s not everyday Ottawa marketers have the opportunity to see and hear a MarketingSherpa thought leader and influencer in person. But thanks to OCRI (Ottawa Centre for Research and Innovation) and its popular Zone5ive series, that’s about to change.

At tomorrow’s event which is still open for registrations, the guest speaker is Stefan Tornquist, Research Director at MarketingSherpa, and you can bet there will be plenty to learn. With a focus on B2B marketing, he’s promised to share 7 proven tactics for success in 2008. The usual suspects like email and search are a given – but business technology marketing is also listed as a point of discussion and this is open to lots of direction.

Of course, Sherpa does publish a “Business Technology Marketing Benchmark Guide” and from what I can see it offers “practical data on: search, email, PR, direct mail, lead generation, trade shows, podcasting, telemarketing and budgeting.”

Since B2B marketing is very web-centric, I’m really hoping there will be some mention of persuasion tactics like web personalization because this is the technology that is truly capable of heavily influencing online engagement and conversion. BTW Conversion for a B2B marketer might not mean an immediate “close” especially depending on the value of typical B2B deals. Meaningful conversion on a B2B site might be more of a relationship/credibility builder – maybe a whitepaper download or a demo request or a newsletter sign-up. Something to keep a prospect engaged at their liberty without feeling the pressure of a sales person. Something that can keep you front of mind with that prospect.

Sitebrand works with some B2B companies including CableOrganizer.com and they use our web personalization technology to do tons of cool things. To give you a sense of what I mean, here’s an excerpt from our case study:

“CableOrganizer.com has also had great success with key customer campaigns where Sitebrand is used to personalize the site based on the organization’s domain. “It surprises them [our customers] when they show up and see creative that is associated with their logo. I am sure they ask, ‘how did they know that?’” says Shields. Many of these campaigns improved CableOrganizer.com’s conversion rates by almost 10% against control groups that did not see Sitebrand enabled targeted content.”

It’s a great example of savvy B2B marketing so if you want a head start on business technology that’s changing the online landscape, you should read the full case study.

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Looking at online sales cycles is a Pandora’s box.  Once you decide to look into your analytics to truly understand what steps a visitor needs to go through in order to convert, you always end up with more questions than answers.  There are a number of ways you can look at what it takes for a visitor to become a customer. You can go the:  

Engagement route: Understanding how and why a visitor moves through your site in a given session towards conversion. 

Recency and frequency route:  Understanding separate sessions and time between sessions as steps towards conversion. 

Micro and macro conversions route:  Looking at how pre-transactional conversions like newsletters, wishlists and downloads move a visitor towards a conversion. 

I could go on for a while with other options, but the purpose of this post was to make things even more confusing by injecting a new term into the mix: Dayparting. (place maniacal cackle here). 

Dayparting is a fairly established term in the offline marketing space, used for managing media buys in radio and television.  An example of this is selling radio ads against the morning daypart so that you can have the largest audience (people in cars). 

Dayparting is now making it’s way into online media buys, and there are some great articles and whitepapers on the web about how to optimize your search spend based on time of day.  It makes pretty good sense.  Look at your conversion rate based on the hour of the day (one click in Google Analytics by the way), or even the day of the week.  Look at where conversion is higher.  Plan keyword spend accordingly. 

Using this concept for in-site marketing makes for a very compelling case.  We have a few customers at Sitebrand who run personalization campaigns based on the day of the week, but imagine if you tweaked your website so that: 

  • in the mornings you ran your normal site messaging, as people are looking at you as they drink their morning coffee and aren’t buying
  • during lunch hours and early afternoon your site pushes your wishlist instead of a sale, because people are looking for products on your site that they will buy later at home.
  • From 5-10 pm you ran aggressive sales messages, knowing that people are on the home computer and much more likely to convert.
  • From 10pm to 7am you run more discounts and promos, because you might get some ‘midnight special’ bumps to conversion.

Especially if run against a control group, this would make for a very interesting look at conversion from a dayparting perspective.  That is, until another way to look at online sales cycles catches my eye…. 

Cheers, 

Jim 

PS.  Note that I didn’t even TRY to bring time zones into this.  Neo, there is no spoon.

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I Love Blogging 

I had an interview earlier this week for Contact Magazine and the topic was corporate reputation management…especially in an age where consumer voices can really SCREAM thanks to social media and Web 2.0 realities.

Create a bad customer experience for someone today and you can almost bet that person will end of blogging, emailing, online chatting or youtubing about it. Never mind the just talking about it! And just as quickly they post and forward those emails, you can bet there will be a trail of media waiting to pounce.

But if you play your cards right and keep your head above the sand, you can use the good and the bad comments to your benefit. After all - it’s not just what you know, it’s what you do with what you know. It’s kind of like web analytics. It’s not just what the data reports, it’s what you do in terms of actioning the data.

To help tackle the beast and better manage corporate reputation, ClickZ just reported that Neilsen Online is about to launch a new services group to help marketers manage their reputations online. Part of the management process includes how to appropriately engage with social media. They’re not the first to step up, but the fact they’re doing it speaks to the significance of paying attention to what’s being said about your brand online.

Taking a step backwards this means really managing customer expectations - with exceptional service, quality, etc. And this applies to both online and offline. Do a good job here and you’ll minimize the bad comments while maximizing the good comments.

After all is said and done, you need to think about taking that step forward. And by this I mean, it’s impossible to please everyone all the time. So be ready for the bad comments. Anticipate them and have a plan. Be proactive vs reactive. Turn negatives into positives.

One of my favourite stories is told in a post I did on the return-o-meter over at shoeline.com. It’s easy to think that lots of returns are a bad thing…but not in this case. Take a read and you’ll see the power of turning negatives into positives.

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