Archive for the 'Customer Acquisition' Category

Using Facebook for eCommerce

Published
by
David Thiel
on August 28, 2007
in Customer Acquisition
. 1 Comment

Facebook Wishlist AppsI received an unusually high traffic boost yesterday on the mere mention that Twitter might be useful for ecommerce. This in mind, it occurs to me that there might be a dearth of information about how etailers can capitalize on the more popular (but as-yet-uncommercialized-except-for-ads) online sites where we waste spend so much of our time as users.

Social Networking Meets Shopping

Facebook is one such site. While there are Facebook applications like Garage Sale which allow items to sell their “treasures” through the site, there is really no strong commercialization strategy for online retailers that has yet emerged — until I saw this article which referenced Chapters-Indigo’s use of an “Add to Facebook” button for their site. Make no mistake, this idea is genius.

Add to Facebook Wishlist Buttons

Many sites have wishlists, but sharing them is difficult (and makes users look like they are milking their associates for gifts). Further, the current wishlist paradigm makes the implausable assumption that a particular retailer is at the center of a user’s consumption space — that is, that 100% of their wishes can be fulfilled by a single store. While this conceit is almost certainly a source of delusion for the retailer, it forces wishlists to be stored in multiple locations all over the Web, which further reduces their utility.

Facebook is at the Center of Many Users’ Consumption Space

The idea of posting favorites, wishlists, and gift ideas on a person’s Facebook profile is both a natural act for the user and an easy connection for the gift-giver. Facebook becomes the aggregator of wishlists (note that it already notifies friends of your upcoming birthday). Wishlists are an aggregation of things from your site, and increasingly, Facebook is an aggregation of user preferences from the entire Internet, it is all about this act of aggregation, and there are two easy ways in which retailers can take advantage of this phenomenon:

  1. Build a Facebook App just for your store, as people like Amazon and EBay have already done. Or, work with the developer of an existing “generic” wishlist to enable more direct linking/sharing from your site.
  2. As a retailer, encourage people to discuss your product and share links to it. In the past, traditional “send to friend” functionality has been a must-have on ecommerce sites. Today, that functionality is best represented in the use of Facebook’s “Share” link/bookmarklet. Embed it into ALL of your product pages.

Ultimately, recognizing that user’s center their consumption patterns around online behavior — rather than particular online stores — unlocks a world of possibilities for more effectively leveraging social networking into etail. This Facebook opportunity is but one example.

Brand Importance: Product Descriptions vs. Retailer Identity

Published
by
David Thiel
on August 20, 2007
in Customer Acquisition
. 0 Comments

The need for brands was initially spawned by national companies who wished to compete with local manufacturers – an opportunity brought on by mass production and Rail’s ability to distribute products more widely. Brands have since evolved from a “logo and mark” to complete personalities which capture the essence of how businesses wish to relate to their customers.

But, as consumers gain increasing control over the sales process, and as the Internet broadens the reach of even small organizations, branding is undergoing a dramatic change. Just recently, the CEO of Proctor and Gamble said that customers don’t remember brand attributes, they remember brand experiences. He’s right.

While great advertising can suggest that a customer place a particular brand in consideration, only a positive experience with the brand will cement the value proposition. Positive brand experiences represent opportunity and advantage by raising barriers to competitors, reducing price pressure, and extending the length of the customer relationship.

Remarkably, brand experiences come in only four flavors: 1) direct product interaction 2) interaction with brand representatives 3) events and 4) environments. Also remarkable, the Internet is the only medium which can provide all four. As an etailer, it’s critical that you build each of these types of experiences into your strategy.

Suddenly, consumers can experience brands directly: through online events, interaction with products, or by visiting the online environments of brands; or they can experience them vicariously: through an eBay Seller’s feedback, a compelling blogger, or a reviewer on Amazon who seems to share their likes and dislikes.

As the online channel becomes the primary delivery point for brand experiences, it’s critical that etailers take advantage of the enormous growth opportunity this trend presents. If your company will participate in this new branding paradigm, it needs to be ready for the voyage. And such a voyage begins with the recognition of which brands matter most to consumers right now.

In the old days, we chose first where to buy, and then (if there was a choice) subsequently what brand to buy. The brand that mattered was the personality and promise of the store owner or clerk.

In the Internet age, consumers increasingly choose the product or brand they wish to purchase first, and then they choose where to buy. Shopping comparison engines bank on just this tendency.

As such, the tools you use to bring these sought-after brand attributes to life should be those which would most quickly and clearly capture the users’ interests in a particular brand or product. After you capture their desire for a particular product or brand (through detailed, relevant, and carefully presented product details, consumer reviews, and other site features) then get them to return to your store next time (based on experiences which are unique to your own brand).

Niche Selling and Marketing Strategies (for the Large and Small)

Published
by
David Thiel
on August 10, 2007
in Customer Acquisition
. 1 Comment

Etail Dtail has a solid post which provides an introduction to online marketing for new online sellers. While it’s a very basic overview, it’s the basics that we all sometimes forget. I’ve often found that keeping things simple (i.e. sticking to this list) is an excellent process/plan for niche marketers — even these basics provide rapid growth in the face of the dramatic increase in Internet usage.

In terms of niche markets and products, Volusion has some good advice on on-site factors as well with their post Increase Your Online Sales by Marketing to a Niche … in which they provide advice for niche sellers as well as some tips for mass marketers to better reach niche markets.

Finally, it’s clear that niche sellers can benefit strongly from WOM created in blogs. In one of my own businesses (BetterCoffee.com) I’d estimate that 15% of sales come from participation in one or two blogs. Taking this one step further is the concept of blog advertising (via Elastic Path).

Merging Brand and Direct Marketing.. an Important Opportunity for Etailers

Published
by
David Thiel
on June 2, 2007
in Customer Acquisition
. 0 Comments

DM News discusses the merging of direct and brand marketing in a new report. Since etailers often use direct marketing strategies (mail and direct email, as well as catalogs, telesales/service, etc.) as the primary way to reach their customers, it follows that those interactions are the primary mechanisms through which brand is built, so this DM revelation is an important one.

Or it is just old news? It’s nice to see the DM community recognize the nascent opportunity in all these customer interactions — though, in my opinion, they are relatively late to the party. Ultimately, this leads me to a few reactions:

  1. Well… duh! Brand should be merged with virtually every aspect of the business — it should be imbued across the corporate culture, the operational strategy, and the marketing communications.

I once had a customer who, while I was doing some background research on their brand to inform a relatively tactical project, informed me that “we’re not doing brand on this one.”

So… while my “well, duh” reaction is an honest one, it’s probably as unrealistic as it is pejorative; the truth is that most organizations do fail to integrate brand throughout, so it’s reasonable to assume they’ve not embedded it into tactical marketing strategies such as direct marketing efforts.

  1. My second reaction is “I smell opportunity.” I’m a believer that experiences are what drive brand beliefs, and brand beliefs drive customer loyalty. As such, the opportunity to form a partnership with direct marketers is an exciting one.

Imagine: brand marketing that is focused on customer acquisition and conversion and drives real value in the business in a measurable way. (The obvious reply to this point is that “doesn’t it already?” … but my observations of typical brand strategists and branding agencies has shown that, sadly, it usually does not.)

The challenge, of course, is that brand marketers and direct marketers speak very different languages. Bridging the gap between these disciplines will take real investment from both kinds of marketers — learning the skills, talents, and approaches of the other — and it will take a bit of gumption as well.

An Opportunity for Etailers

Etailers and multichannel sellers have the most to gain from making this dream of DM/Brand integration a reality. Delivering a reliable and consistent brand experience across all channels and customer touchpoints is one thing — doing it in a way which makes the cash register ring is something better.

Etailers and consumer retail brands should lead the way — forcing their agencies and partners to better integrate brand into their DM strategy, and forcing them to make brand campaigns more conversion and measurement focused.

What’s next?

Now… I’m waiting for someone (perhaps it’s me?) to write an article with the same message but the opposite bent: that brand marketers should embrace tactical models such as direct as a primary method through which the brand can be experienced. Then we’d be getting somewhere.