I was having lunch the other day with a web analytics friend of mine. He shared with me the fact that several of his clients who are in the online luxury space all have one thing in common – visitors who are subscribed to a newsletter have the highest conversion rate.

Hmm, ok. Well I suppose that’s interesting, but it’s not the sort of Avinash inspired metric that I’d want to tweet about.

The following day I asked our services team, “what is the main value that Sitebrand (personalization) brings to our online luxury customers today?”

It comes down to this: luxury companies typically have a multi-visit shopping cycle, and they look to us to help influence and shorten that cycle.

Depending on which stage of the cycle a visitor is at, we can target personalized messaging to persuade them to the next stage of the cycle. This shortens the process and reduces the chance that they fall out of the cycle.

Why do they have a multi-visit shopping cycle?

If I’m buying a ring, or any high-end product in any vertical, typically I want to research the product, I want to be an informed buyer – I’m not spending $50 here, we’re talking hundreds or thousands of $$$. In some cases it’s a once in a lifetime decision – like how many times in your life will you be buying a wedding ring (once hopefully)?

What can you measure?

So if you’re an online luxury e-tailor, and your visitor opts into your newsletter, it’s a measure of their commitment to you, you’re one of the contenders. So a newsletter is simply one more checkbox to fill along the multiple visit sales cycle. There are many other customer indicators that indicate commitment, willingness, and interest. Have a look, correlations between purchasers and other high-value tasks exist - your analytics will tell you these.

How does personalization help influence and shorten this cycle?

So now you know the business objective and you have the measurements in place.

“So what… so what do you do about it” (Sorry, another Avinash quote)

Some would argue that you can shorten the sales cycle by discounting the product or offering up deals earlier on in the process. I suppose, but isn’t this trying to fit a square peg in a round hole? For one thing, you’re leaving money on the table, and secondly, you’re trying to force something onto a customer that he or she is not ready for. This could result in lower margins on sales and potentially returned sales.

So I say - Focus on the customer!

Make them feel comfortable. Build confidence. Build a relationship. An opt-in newsletter is only one method to build that trust. Customer testimonials through text, imagery, voice and video; product reviews from both vendors and customers; customer support, email and live chat are but a few examples that do this.

If you’re ‘number of visits to purchase’ rate is 4.5, then spend the first 4 visits building that confidence and trust. This is the time to build brand, loyalty, trust, it is the time to focus on the customer and not on the sell. In visits 4, 5 and 6, offer them the incentive, persuade them towards the cart.

With Sitebrand, promoting that newsletter in a timely and effective manner is just one small example of how we can influence and shorten that sales cycle. Remember, not all of your visitors are at the same point in the purchasing cycle, so make sure you speak to each differently and gently help persuade each visitor segment to that next stage and subsequent purchase.

Rely on your analytics to determine your rates and correlations.

However, don’t rely on measurement alone. Rely on optimization and personalization to continuously improve the right message in front of the right person at the right time.

It’s always interesting to read an eCommerce success story to understand the lessons learned, strategies involved and of course, the magical combination of technologies used for sales and conversion rate wins.

Sadly, there isn’t one single combination to guarantee results and certainly that’s no revolutionary thought.  Everyone’s trying to figure out what technologies are needed and what’s not.  My needs don’t match your needs, so the bad news is you still have to keep on top of new tools and technology that solve your challenges.  It’s almost a job in itself.  I guess that’s the true challenge for marketers and vendors in any space, especially in the online marketing world.

Think about it.  You probably have a number of the following tools/solutions running in conjunction with your site right now: in-site search, recommendations, live chat/customer support, customer/product reviews, multivariate or A/B testing, affiliate marketing, email marketing, CMS and of course, web personalization.  I know you all have web personalization integrated into your web strategies.

All these technologies plugged into your website no doubt have the ability to raise your conversion rates and enhance the visitor experience.  I’m sure they all do, but when you have 3 or 4 of the above solutions running at once, are they all working in unison or like 3 or 4 separate products?  You probably don’t have the time or bandwidth to properly setup, run, modify and analyze each solution on a weekly basis and I’m guessing the solutions don’t naturally play well together.  Software is great like that, right?

Is it fair to expect a 1-3% conversion lift from each of the solutions listed above; or at least most of them?  Sounds reasonable if used properly and to the maximum capability.  So, if you are running 3 or 4 of these solutions, why isn’t your conversion rate nearing double digits or higher?  Are these different solutions converting the same visitors?  And would your conversion rate suffer without these solutions?

I’m really asking what the impact of these solutions are.  Are they worth the money you pay when they contribute to a conversion rate that’s less than ideal?  You’ve outsourced a good chunk of your website for tools and solutions that do something better than you can, but do the results justify having the solutions?  Especially if they are converting the same visitors.

For example, a visitor goes through an in-site search to a product that’s been delivered via a recommendation engine.  Score one point for both the search and the recommendation tool, but it’s not like your conversion rates show’s it; nor does the ROI.  Would the conversion happen with only one of the solutions?  Or perhaps without either solution?  How do each of these tools show individual value over another?  My boss will probably say I’m arguing a war of attribution, but let’s see what you guys have to say!

I’m looking forward to all different thoughts, insight and opinions on this subject.

Stay classy, internet marketing tools.

“Change we can believe in”. The famous words that were spoken by Barack Obama during many of his speeches while he campaigned across the United States on route to becoming the 44th US President.  And with that change, cell phones have become an integral part of the marketing world.  We see advertisements on TVs, magazines and newspapers on a daily basis, so it only makes sense that marketers push mobile announcements on our most personal piece of technology.

Mobile marketing is changing the face of media; it offers a sense of intimacy and loyalty that other media outlets struggle to achieve.  There are over 200 million cell phone users that live in the United States (that’s 1 out of 4 Americans) and we’re now beginning to see this exploited, from Time Magazine to Barack Obama.  Over 2.9 million cell phone users downloaded Obama’s phone application and received frequent updates about his campaign and whereabouts his next event.  Each cell phone user was specifically geo-targeted, so a Californian didn’t get the invite for the Florida rally, etc…   So yes, even Obama’s optimizing his messages.

Obama optimizes messages, do you?

With 2009’s economic downturn in full effect, businesses struggle to remain relevant in budget friendly ways, while cutting through all other clutter.   Companies have begun to use mobile marketing as a means to do that, distributing coupons, surveys, reminders, links and landing pages to stay connected and boost conversion rates.  Marketers have to create an engaging message to a specific audience if they hope to be successful.  They need to optimize, target and execute properly.

Newspapers and magazine readers are declining and people want a faster way of getting to information.  A mobile marketing campaign can be cheap and inexpensive from the other types of advertising; a company could boost its marketing strategies and send messages more frequently while spending less money.

But do we as cell phone customers have a choice of receiving these advertised messages, optimized or not?  Why should we have to pay for advertisements once they are streamed across our screens?  Marketers have to constantly be out there and in our personal lives to be effective.  Since mobile messaging is so new, is this something we should be concerned with in the long term?  And what might be the ramifications to one’s brand, sales and marketing campaigns?  Only time will tell…

So here we are. It’s “Cyber Monday”, a fairly recent term that was coined by the National Retail Federation trade group back in 2005. It’s the Monday after the US Thanksgiving holiday and also thought of as the unofficial kickoff for what’s always hoped to be a busy online retail season. Just check out cybermonday.com and you’ll see the stuff I’m talking about!

Now I realize the term was coined in the US and kudos for that, but to keep it a US only “thing” seems limiting especially since we’re talking online retail. Last time I looked, “online retail” lives on the “World Wide Web” and as the name implies, there’s world-wide reach. Just looking at North America, the one continent where the US sits, US eTailers seem to be forgetting a whole country called Canada and the whole segment of Canadian consumers that go with it.

On the flip side and to be fair, Canadian eTailers are forgetting they need to be competitive with US websites who always seem to be leap years ahead in terms of innovation. After all, everyone surfs the web looking for the perfect buy, and since we’re bouncing in and out of both CDN and US sites, why isn’t there more Cyber Monday hype here in the north? Why not take advantage of an increasingly well known shopping blitz?

So just why does it make sense to think about Canadians (not to mention other geo-areas) as an additional market segment for Cyber Monday penetration? Let’s consider the following:
 
1. Are Canadians online? Yes, big time.
2. Are Canadians browsing websites for online deals and special offers? Yes, .com’s and .ca’s.
3. Are Canadians feeling angst and urgency around holiday shopping lists right now? Yes. Even though our Thanksgiving was in October, a lot of us are gearing up for the big red guy on Dec. 25.

Given the above, what I’m seeing is a half-baked online marketing strategy that completely ignores the full power of the web and all its glorious technological wonders…with technologies like Segment&Serve – Sitebrand’s web personalization platform – it’s really crazy that Cyber Monday is being so limited to the US.

All this said, I’m seeing US retailers coming up with all kinds of great Cyber Monday deals, rebates and discounts. Just look at these 2 examples: 

Cyber Monday Promo

The deals are endless, but considering holiday sales (both in-store and online) are expected to be crappy this year, is further discounting to US consumers really going to save the day? Considering it gouges an already thin margin that’s typical in the eTail space, it’s a tough one. BTW, this is why Sitebrand encourages our online marketing customers to promote the service side of their business too. 

And this brings me right back to a Cyber Monday strategy that taps into geo-targeting. It’s a strategy that should apply to both US and CDN eTailers…at a minimum. Baby steps I’m suggesting…

As for popular Canadian sites or anyone selling online, why aren’t they piggy-backing Cyber Monday urgency? Not one of the following major .ca Canadian eTail sites say anything about Cyber Monday: Zellers, Canadian Tire, Best Buy, Wal-Mart and Sears. Considering the rate we pop in and out of sites comparing prices etc, it’s another missed opportunity. 

Online stores are global regardless of where they’re based, so why not market accordingly – geo-targeting being a good start, emphasis on service versus discounts being a second smart move – “we ship to Canada” being an effective message.

I guess this leaves us open to debate the big question – why can’t Cyber Monday become a global kick-off to online shopping? Thinking outside the border. It’s quite a thought.

PS - a big thanks to my fellow Sitebranders for all their forwarded websites and emails = they helped a lot!

feelbest.com

For online stores like feelbest.com using Sitebrand’s Segment&Serve Web personalization technology, creating more relevant experiences is comparable to having a virtual sales assistant. The concept behind Web personalization is very much based on what consumers have come to expect from the traditional brick and mortar shopping experience. Consider the traditional brick and mortar store where a sales person
easily observes and responds to variousshopping behaviors and body language. If someone is a repeat customer, they get to know their buying habits. If someone is a new customer, they work to build a level
of trust by offering helpful suggestions, sharing information about a hassle-free return policy, showing the layout of the store and so on. If someone is looking at high end fashion apparel, they look to cross-sell high end accessories. If someone is looking at sale items, they show them all the sale areas and so on.

Understanding visitor intent

But move online and suddenly the visual cues are gone. However, thanks to Web analytics, there are other cues the online marketer can follow. From the moment a visitor arrives, there’s intent to do something – to research, to buy, to register etc. And every move is monitored through Web analytics. The bottom line is that every move a visitor makes tells a story – from how they arrive to what they click and how long they stay on any given page. If someone arrives using the keyword “sunscreen”, they’re looking for sunscreen. If a Web site responds appropriately by showing a selection sunscreen and the visitor clicks to learn more or buy, they are that much closer to buying. They are being guided through the sales funnel. But if they bounce out of the site before converting – either pre-checkout or during check-out – something went wrong. And it likely relates to lack of guidance and direction from the Web site.

Responding to classic e-commerce challenges

Feelbest.com is Canada’s largest online health and beauty aid store and it faces many of the classic ecommerce challenges, including low conversion rates. As such, it is always looking for innovative ways to convert a higher percentage of Web traffic into buyers. The company also wants to recognize and respond to visitors’ geolocations; especially in terms of seasonality trends associated with many of its product categories, such as sunscreen. And it wants to create a superior, personal online experience that makes feelbest.com the online retailer customers turn to when they can’t find what they need in a regular store. The company actively encourages customers to tell it what they are looking for, no matter how obscure it may seem. The retailer specializes in finding and offering hard to find health care and beauty aid products. “If there’s demand – even from just five or ten customers – and the product is available somewhere in the world, we’ll go directly to the manufacturer and make it available to our customers,” says Darrin Pickard, feelbest.com’s sales and marketing manager.

The need to convert more traffic into buyers

The retailer’s approach is quaintly reminiscent of the corner-store owner who would get to know his/her customers one person at a time and stock accordingly. Although this personal approach to serving customers is like those of days gone by, the scale of the operation is surely different. Products are shipped to clients around the world with roughly 65% heading to the US. That’s also the nub of the challenge: motivating feelbest.com to explore an alternative strategy for further customizing and personalizing the Web experience of all visitors. The explicit goal was to find a solution that would convert a higher percentage of new and repeat traffic into sales. “Back in the late 1990s, it was easier to stake your claim as a top online retailer. But today, it’s much more competitive and you can never be complacent,” says Pickard.

Changing each visitor’s experience in real-time

Feelbest.com chose Sitebrand with its promise of superior traffic conversion to literally change the experience of every visitor in real-time while on a Website. What the retailer particularly appreciated
about the Sitebrand solution was the extensive support provided to help get up and running with a customized solution quickly. “Sitebrand is like a natural extension to our marketing team,” says Pickard. “It’s not a one-strategy-fits-all approach. What Sitebrand does is analyze your traffic and provide you with customized solutions based on your business goals and what your customers are looking for.” In the case of feelbest.com, the Sitebrand solution resulted in recommendations for the type, placement and frequency of marketing campaigns to target specific customers and boost sales in specific product categories. In Pickard’s words, “I think any online retailer worth their salt knows you can’t mass market on the Web and expect to achieve success. As best you can, you must try to speak to each site visitor as an individual. When you show people you are interested in getting to know them, they’ll show interest back. It is “Customer Service 101” and we’ve seen this with the personalization campaigns we’ve built with Sitebrand.”

Leveraging best industry practices to create smart content

All Sitebrand’s recommendations are based on industry best practices, backed by hundreds of successful implementations in similar industry sectors. This enabled feelbest.com to quickly develop “smart content” for specific customers and product categories. With the Sitebrand solution, specific areas of a Web page are allocated for the strategic placement of ads or campaign messages. Campaigns are developed around various criteria, including geo location, keyword searches, seasonal promotions, product categories, and many others.

Salvaging underperforming segments and sales

Campaigns result in a highly customized and personalized Web experience for all visitors from the moment they land on the Web site. In doing so, online retailers like feelbest.com report immediate and measurable increases in sales lift, superior click through, and higher conversion of existing traffic. “We see an immediate increase in the number of existing visitors converting in the checkout process,” says Pickard. “Seeing success around existing customers in currently established product categories makes us want to leverage Sitebrand to build campaigns around new, underperforming product categories. These new product awareness campaigns will be designed for existing and new customers,” he adds. In this way, feelbest.com will be able to test different offers with respect to new product categories. This ability to raise the profile of lower performing product categories will be designed to help increase average cart spends and total sales.

Close-up of first-time visitor promo

Recognizing a first time visitor has its rewardsTapping into underperforming segments, like first time visitors, has also proved highly successful. The first time visitor needs a different experience than the repeat visitor. They want a feeling of trust. They want to feel reassured they’re on a credible site.

When this first time visitor segment is served personalized messaging that reinforces credibility and trust versus the control group segment that receives no reinforcement, the personalized messaging always sees higher revenue per impression.

In the case of feelbest.com, the revenue per impression lift for personalized first time visitor campaigns is 207% higher than the default control group campaigns with no personalization.

Increased ROI from the feelbest.com e-newsletter

Sitebrand also provided feelbest.com with specific recommendations for print ads and its e-newsletter to create a more holistic and integrated marketing program. The company sends monthly emails to roughly 25,000 opt-in subscribers to promote the e-newsletter. Sales generated from the newsletter had begun to drop. Once the Sitebrand solution was integrated with the email program, feelbest.com saw an increase of 34% in the number of orders received within five days of the newsletter being broadcast. “Whenever we send emails, there’s an instant spike in Website traffic,” says Pickard. “It’s going to get even more interesting when we start adding more automation into the mix.” For an online health and beauty aid store, it will be a highly beneficial to trigger purchase reminder emails, i.e. “Your 90-day supply of vitamins is almost gone. Don’t be disappointed. Buy more now…”

The power of personalization for unique market segments

“The way I see it, not having a personalized approach to online marketing is like calling every one of your customers ‘Bill’. Worse yet, it’s like expecting them all to take advantage of a deal on mint toothpaste. But in reality, your customer’s name might be ‘Susan’ and she wears dentures…” says Pickard. “Website personalization allows you to find these unique market segments so you can serve up relevant offers that will convert visitors to buyers.”

NOTE: This post is also a featured article I contributed to the October 2008 issue of ”Direct Marketing” - a Canadian publication about interactive marketing and sales. Since it’s print-only (odd for an interactive pub, and apparently a website is in the works…but hey!) All that said, I felt compelled to share it online. I hope you enjoyed the read and I welcome your comments!