ECommerce Fast Start

March 7, 2011

Facebook for eCommerce

Filed under: ECommerce — Tags: , , — Admin @ 3:23 pm

Facebook is a social networking site that lets people connect and communicate with family, friends and coworkers, and share messages, photos, videos and games. With Facebook’s widespread reach, the idea of leveraging its popularity to promote businesses is catching on like wildfire. Facebook has become a marketing tool that provides business owners an opportunity to effectively engage customers, without a spending a fortune on advertising.

The fact is that people spend a lot of time on Facebook and as a business owner, you can use it to communicate with your most loyal customers. Unlike individual or personal accounts that can only have a maximum of 5,000 online friends, a fan page is not bound by any limitation as to how many people can “Like” it. Thus, depending on how you promote your page, you can direct an infinite number of fans and their network of friends to your online store (case in point, as of this posting, there are 19,874,022 people who “Like” Starbucks while Coca-cola has 22,899,244).

For easy recall and for use on your website and especially print collateral, be sure to secure your business’s Facebook username. When you first create your page, the URL is the Facebook domain, followed by you page name and a long string of number. Not easy to remember (e.g., www.facebook.com/pages/your-fan-page-name/123456XXXX00000). You can change that to a much simpler www.facebook/yourbusinessname once you reach at least 25 likes.

We all know that word-of-mouth advertising is far more effective than anything a business owners could advertise themselves, short of giving stuff away (which they often do on Facebook). It is fair to say that the people who hit the Like button on your fan page are loyal customers or at least interested in your products. Since all wall posts and messages will be seen by these fans, you are assured that you are reaching the right audience, and that your message will be spread virally (the phenomenon that occurs when word-of-mouth meets the web).

Another way businesses are using Facebook is as a customer service tool. As long as you are keeping up with customer feedback regularly, you can address customer concerns right away. What people are saying about your product, or business in general, can inform your future marketing efforts and how you conduct business.

Lastly, if you wish to spend additional advertising dollars, Facebook can help target your advertising to particular segments and charges either by impressions or click throughs. Creating a Facebook ad is as simple as clicking on the sidebar promoting this offering (usually on the right side). Next, upload your image/ad, then select age, location, gender, education, occupation, relationship status, interests and languages. Facebook gathers these details from user’s personal profile and presents the number of users who match these criteria.

Facebook is where the people are, so it’s only natural for many businesses to take advantage of its marketing opportunities. Make the most of it and you can stay connected with your customers while promoting your business. Like?

February 28, 2011

Email Marketing: Content is King

Filed under: ECommerce,SEM — Tags: , — Admin @ 9:26 am

One of the most powerful marketing tools for an eCommerce business is email marketing. Email marketing is inexpensive compared to other forms of advertising and is inherently trackable as emails contain embedded links to your site or a designated landing page.

One of the more frequent questions I get asked is “How often should companies be sending emails?”  This really depends on your company and the type of business you’re in. Generally speaking, you don’t want your readers to experience “email fatigue” and unsubscribe from your list.  You can’t keep people from opting out but by segmenting your list, you reduce the likelihood that a reader will unsubscribe.

One good way to segment your list is to group the subscribers by the date of the customers’ last activity or by what they purchased (or category of the purchase). By segmenting your lists, your email marketing efforts will be more targeted and hopefully, more relevant to your customers.

It’s important to create compelling emails that will entice your recipient to open your message.  Most people already have nightmarish quantities of emails to sift through so your email subject line needs to grab their attention. Getting readers to open your message is half the battle. A nice touch is to address the reader by their first name but ultimately, it’s about tailoring your content or offer to the customer.

There are a number of occasions to use email marketing: reaching out to past customers, offeri special deals to current customers or just to let customers know about current specials, promotions, contests, new store openings and other company news.

There are some types of emails that can run on auto-pilot, once set up. These include drip campaigns that offer up a series of strategic product promotions relevant to your customers.  Order confirmation, shipment confirmation and abandoned cart emails should be triggered when a set action has taken place. These should be set up as auto-generated form letters to work behind the scenes so you don’t need to worry about them on a daily basis. These email templates should be reviewed on a periodic basis to ensure they are still up-to-date and relevant to the recipient.

Timing is Critical

There is one category of emails that needs to be sent promptly and that is the order confirmation email. Immediately after a customer checks out, send a follow up email thanking them for their purchase, along with a receipt or billing status, order status, tracking and shipping info, if available. Again, this type of email should be set up to automatically go out after a customer has completed a transaction. Providing this information is an ecommerce best practice that customers have come to expect. It also reduces the volume of “where’s my order” calls that can tie up your customer service department.

Give customers a reason to sign up

There are many ways to incent people to sign up to receive your emails: Give away a shopping spree on your site, hold a contest where customers submit photos/videos products in their home, innovative product use, etc., allow customers to share their experiences with products and services (product reviews) and involve them in discussions.

Test and optimize landing pages

Email campaigns that contain promotions and sales of certain items should direct readers to a special campaign landing page on your website instead of just linking to your home page. Why? Because you don’t want to force your visitors to search for the promotion. In addition, a dedicated landing page provides more information about the promotion, keeping your email short and to the point. Lastly, the landing page can help you track conversions and measure how effective your email blast is in converting sales. Make sure your landing page and email match, from look and feel, to language and tone. It doesn’t have to be identical, but the messaging should be aligned, to avoid a disorienting change when a reader clicks from your email to the designated promotional landing page.

Once you have mastered the basics, there are some additional elements you may want to incorporate into your email campaigns. Social media, embedded product video and personalization are some of the more advanced tactics. So, if you haven’t started email marketing yet, the key is to just get started. Learn from your buyers’ behaviors to see which email campaigns are most effective. Integrate email campaigns into your overall marketing and growth strategies instead of the occasional email blast. If recipients forget they signed up on your list because you send an email once in a blue moon they may see it as spam and unsubscribe. Be consistent!

Types of Email Campaigns

  • Drip Campaigns
  • Newsletter (talks about your company, new products, your customers as a community)
  • New Product Announcement
  • Order Confirmation
  • Shipment Confirmation
  • Abandon Cart Emails
  • Promotions and Sales

Email Best Practice Checklist

  • Personalized emails
  • Accurate, catchy subject lines
  • Compelling content (Focus on Offer, Expiration – creates urgency)
  • Calendar (schedule of email campaigns in advance)
  • Metrics and tracking (open rate, #of emails sent, conversion rate, sales revenue)
  • Take advantage of holidays to send emails
  • Clear call to action
  • Send both image and text only emails
  • Test all links for errors and to ensure links open the proper page
  • Ensure the images are linked correctly as well as coded for alt tag (text description)
  • Clear/easy unsubscribe from email list
  • Add Social widgets like Facebook & Twitter to enable easy sharing
  • Segment list Test Email Through Spam Filters before sending out
  • Optimized creative and landing pages

Getting to “eCommerce heaven” is a marathon, not a sprint – but you can get better every week.

February 21, 2011

The Connection Between Loyalty Programs and Customer Satisfaction

Filed under: ECommerce — Tags: , — Admin @ 10:57 am

Building repeat business is a sure-fire way to increase a store’s revenue. As business owners, we naturally tend to focus on getting new customers; taking steps to court existing customers is a promising strategy as well. Typically, it is less expensive to keep an existing customer than attract a new one.

For online storeowners, however, getting repeat business can be tricky. Return clientele is a rare gem in eCommerce since customers hardly return to a site after making a purchase. Fortunately, there are some tools that can be used to increase the chances of bringing visitors back – namely, a loyalty program. Of course, this type of program can only be effective if good customer service and products are already in place.

Loyalty programs, which are common among brick-and-mortar stores, can be effectively used by ecommerce merchants to keep customers coming back. These programs can take various forms and involve all or some of the following components:

  • Percentage discount off of certain purchases
  • Electronic coupons for frequent shoppers
  • Rewards points redeemable for products
  • Free/reduced shipping for members

As nice as these perks may be, an effective loyalty program should do more than just give things away. Retailers must focus on providing consumers with a satisfying experience, be it in the overall service they receive, personal touches such as a birthday promotion or priority notification on desirable items.  It may seem counter intuitive but rewards alone won’t make customers commit to your program, let alone create loyalty. Genuine customer loyalty is earned through positive experiences with your products,  customer service and brand.

Ask yourself: Is there enough value in my products? Is my site accessible and user-friendly? Am I taking care of my customers?  Evaluate how you run your business and remember that no matter how glamorous your loyalty program is, it won’t make up for substandard products or poor customer service.

Building customer loyalty may be difficult in the highly competitive ecommerce business. But customer satisfaction can always tip the scale in your favor. So whatever you do, think about your customers and how you can improve their shopping experience. A loyalty or rewards program should be the icing on top of the cake.

Below are some of the basic yet effective elements your business should deliver:

  • Easy navigation to complete transaction (easily found “check out” button)
  • Detailed and accurate product descriptions with clear images
  • Uncomplicated checkout process
  • Prompt shipment
  • Secured shopping cart software security hacker safe (add trust symbols like Verisign)
  • Helpful customer support (include a tollfree phone number)

Disregard any of these and you can forget about a loyalty program. Strive for an excellent customer experience and watch your program succeed. But how do you measure the success of a loyalty program? Membership increase over time is one metric. After all, more members could mean more conversion, right? Well, not exactly. Although membership growth is important, it’s not the most reliable indicator. To measure your program’s success, study your analytic data. But even without it, you can still tell if your loyalty program is working based on the following:

  • The percentage of “participating” members (i.e., accruing points, spending money)
  • Frequency of spending
  • Customer retention
  • Member’s program engagement (i.e., redemption activity)

A successful loyalty program can strengthen the relationship a store has with its customers. It should also collect useful data that can be studied for patterns in customer purchasing behavior, rate of spending, and so on. This information can also be used to engage “unprofitable” customers using rewards and incentives to encourage participation.

Ultimately, loyalty programs cannot guarantee customer loyalty but they can complement your excellent products and first-rate customer service. Loyalty programs can provide value for regular customers as well as intimate details about customer preferences, which can be used to effectively tailor future marketing campaigns. Because above all, knowing your customers and catering to their wants and needs is the real secret to happy, returning customers.

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