Emails That Target Customer Behavior Without Using Big Data

The ever increasing volumes of data used by companies like Target, Walmart and Amazon to carefully target their customers is cumbersome and difficult to manage. Analyzing patterns to find the right trigger that will motivate an individual to buy requires gifted statisticians that combine art and science into marketing magic. But what if you are not quite ready to use big data in your business? Can you still reap some of the benefits?

The ever increasing volumes of data used by companies like Target, Walmart and Amazon to carefully target their customers is cumbersome and difficult to manage. Analyzing patterns to find the right trigger that will motivate an individual to buy requires gifted statisticians that combine art and science into marketing magic. But what if you are not quite ready to use big data in your business? Can you still reap some of the benefits?

Fortunately for companies that don’t have a team of statisticians standing by, customer behavior and activity can be used to increase sales without the challenges that come with big data. It’s as simple as watching for specific activity or changes in customer behavior and being prepared with a customized response to encourage people to buy.

If this is your first venture into customer behavior marketing, start with the people who are the easiest to identify. Seasonal and discount shoppers are relatively easy to recognize because they have very specific buying patterns. Creating customized marketing for them increases their response and reduces costs. The dual benefits make this a logical place to begin.

Seasonal shoppers are the people who purchase items at specific times of the year. Traditional RFM (recency, frequency, monetary value) analytics flag them as top buyers shortly after a purchase and then systematically move them down the value chain. When they place the next order, they move back to the top and flow down again. Creating a marketing plan that sends materials when they are most likely to buy reduces marketing costs without affecting sales.

Discount shoppers only buy when there is a sale. This segment can be further divided into subsets based on how much discount is required to get the sale. If the marketing is properly tailored, this group of people serves as inventory liquidators. Minimizing the non-sale direct mail pieces they receive and heavily promoting sales increases revenue while reducing costs.

Both groups respond well to promotional emails. Capturing email addresses should be standard operating procedure. It is especially critical for seasonal and discount shoppers because they tend to be more impulsive than other segments. The emails that remind seasonal shoppers that it is that time again and tell discount buyers about the current sales are economical and effective.

The next step after targeting shopper segments is adding specific product category information based on the individual’s shopping history. When my daughter was younger, my shopping behavior with American Girl included two orders per year for regular priced items and sale purchases in between. The two full price orders were placed just before Christmas and her birthday. Sale purchases were impulse driven and triggered by emails announcing clearance items.

Bitty Baby was the category of choice in the early years of buying from American Girl. The shift to the character dolls didn’t happen until my daughter was nine. She received her first Bitty Baby at two. During nine years of systematic purchases, no one recognized that I only ordered certain things at specific times. How much would your company save if your marketing was tailored to customer purchasing patterns?

What about targeting people who haven’t purchased from a specific category?

The ability to predict what people want before they know it is one of the advantages of analyzing trends and activity in big data. Before moving to that level, start with the information that shoppers are providing. This trigger email from Amazon was sent two weeks after I searched for soda can tops on their site without purchasing.

The email avoids the creepy factor by saying, “are you looking for something in our Kitchen Utensils & Gadgets department? If so, you might be interested in these items.” Instead of, “because we noticed that you spent 14.34 minutes searching for soda can tops you may be interested in the ones below.”

The best practices included in this email are:

  • It doesn’t share how they know that the shopper is interested in a specific category or item.
  • The timing from the original search to email generation is long enough to allow time to purchase, but not so long the search is forgotten.
  • It makes accessing the items easy by providing multiple links.
  • The branding is obvious with links to my account, deals and departments.

Targeting customer behavior can become very complicated very quickly. Starting simple with specific segments and activity allows you to test and build on the lessons learned. The return on investment is quick and may surprise you.

Boost Your Website Sales: 8 Simple E-commerce Tips That Really Work

OK, so you’ve won half the battle. You’re driving traffic to your site. Now what? How can you get your visitors to convert? This is a challenge that most every website that sells a product faces. The following are some tried and true tactics that, over the years, I’ve seen make a difference. Some may seem simplistic, but they DO most definitely impact your online conversion rate.

OK, so you’ve won half the battle. You’re driving traffic to your site. Now what? How can you get your visitors to convert?

This is a challenge that most every website that sells a product faces. The following are some tried and true tactics that, over the years, I’ve seen make a difference. Some may seem simplistic, but they DO most definitely impact your online conversion rate.

Here are a few things you could do to boost online sales and gain loyal customers. These can be applied and refined for most any business, industry or niche:

1. Make Sure Your SSL Seal And Other Consumer-Trust Logos Are Prominent. SSL or secure socket layer is a sign that the site is encrypted … that the information consumers enter, such as personal and credit card information, is protected. Most e-commerce sites must file for an SSL certificate from vendors such as VeriSign, GoDaddy, eTrust, TRUSTe and others. It’s a good practice to display the vendor’s logo on your order page, as well as make sure in the browser window the “https” or image of a lock is present. This is a clear and comforting sign to consumers that they can order online with confidence. Other logos that are in plain view and are anchors on each page of your website can also instill confidence with potential buyers. Some may require membership or purchase, when applicable, and may include Better Business Bureau (“BBB”), PayPal Verified, Authorize.net Verified Merchant and virus protection software (i.e. “McAfee Secure”). Also, if you accept credit cards and have a money back guarantee, there’s nothing more powerful than strong, eye-catching graphic image icons, such as “100% Money Back Guarantee” or “We Accept All Major Credit Cards” (than have images of Visa, Mastercard, Amex and Discover).

2. Encourage Online Sales vs. Other Response Mechanisms. Offer special “Internet Only Pricing” to customers. It could be a discount of 5 percent to 10 percent if they order online versus by phone, fax or mail. This reduces any potential overhead costs for staffing fees, such as telesales or order entry personnel. These Web-only specials can be highlighted on your homepage via a banner ad, as well as on your product pages near qualified items.

3. Offer Free Shipping. Many e-tailers already factor all or a portion of shipping into the retail price of an item as part of their COGS (cost of goods sold). If you are truly offering free shipping, already factored shipping into the product’s cost, or are simply having a limited time free shipping special—if you’re offering it, mention it—big and bold on your home page. Free shipping offers have a huge psychological affect on consumers when they’re comparing competitor’s products and websites. In addition to product quality and value, offering free shipping can make all the difference regarding the final purchase decision.

4. Use Buyer Feedback To Your Advantage. Have an area on your website or indicate next to select items “Customer Favorite” or “Hot Item.” Also, have some glowing customer testimonials or reviews next to the product itself for potential prospects to see. Sites like Amazon, Babies”R”Us and others are pros at this strategy as well as using ratings and ‘Likes’ to convey a product’s popularity. Consumers like to feel good about the item they are about to purchase. as well as see that it’s popular with the masses. Seeing a great testimonial and knowing that others purchased the product provides validation and a feeling of comfort to a consumer. In addition to helping the conversion rate, this tactic also helps reduce buyer’s remorse and product returns.

5. Advertise Products in Google Shopping (formerly Google Product Search, and before that, Froogle). http://www.google.com/shopping is a free product information platform from Google where you can post a single item or submit a data feed. Your products will appear in Google Product search and may also appear in Google.com search results, depending on keywords used. This is simple and easy way to increase your product’s visibility and market share.

6. Make Sure Your Product Pages are Optimized for Search Engines. Sounds obvious, but many folks overlook their catalog and product pages. After doing some keyword research on actual search behavior for your product, refine your meta description, meta keywords and title tag of your product pages. This will help consumers find your product in the organic listing of search engine results.

7. Have a Special Coupon Code “Call Out” On Your Home Page. This is a best practice with online fashion retailers who typically have a banner ad or interstitial ad on their homepage stating something like, “Summer Blow Out Sale, Use Coupon Code 1234.” But this concept can be applied to virtually any industry. This is another great way to offer a special discount for your online customers that makes them feel good about the purchase. You can also encourage viral activity by having “forward to friend” or “share” create viral marketing. Make sure to have some great intro copy mentioning how customers should “pass on the great savings to friends, family and colleagues.”

8. Consider Payment Plans. For higher-ticket items, consider setting up extended payment plans that allow customers to pay for an item over a few payments. HSN.com and QVC.com have mastered this. If an item is, let’s say, $200, you might want to offer a flex pay option of “6 easy payments of $33.33” that is conveniently auto-billed to their credit card. Just be diligent when calculating your payment prices, as well as creating your return/refund policy for these items. The general rule is that your actual production costs/hard costs should be covered in the first one to three payments.

It’s all about being strategically creative and taking the consumer’s point of view into account regarding e-comm strategies. Remember to keep testing methods that help improve sales and drive prospects to your storefront.

Make note of when you implement new tactics and then after a month of being live. Compare sales results year-over-year to see if your efforts had made an improvement. I’m confident that you will see a positive difference in your online conversion rates.

Best Online Marketing Practices For A ‘Bionic’ Business: Part III

My last two posts, part one and part two, focused on real-life questions I’ve gotten from business owners, as well as my responses. Topics that were covered included free online press release distribution best practices and social marketing secrets for stronger visibility.

My last two posts, part one and part two, focused on real-life questions I’ve gotten from business owners, as well as my responses. Topics that were covered included free online press release distribution best practices and social marketing secrets for stronger visibility.

This final post in the series will share some powerful, yet easy, ideas to help build your list and boost website performance.

Enjoy!

Question: What can I do to start building a list of qualified leads?
Answer: Creating free content is a great way to give something and get something in return. You’re offering free, powerful editorial content. And, in return, you’re asking for an email address from the reader. Creating this type of content isn’t just good for acquisition efforts, it’s also good for branding and establishing you as an expert within your niche. You can then leverage your free content to build your list (prospect database). Your list is your key to future sales. Growing and cultivating your list through editorial is a proven business model from top online publishers. It’s a great way to bond with … and cross-sell to … your readers. And this helps create a loyal following. And, from there, the sky is the limit!

Question: What are some tips to boost sales and eCommerce performance?
Answer: No matter what you’re selling, whether it’s products or a service (i.e. copywriting, freelancing, consulting) you should always have a variety of price points for customers at every level. Offering front-end products and back-end products gives you room to bring in a customer at a low level and up-sell them. As far as eComm ideas:

  • Make Sure Your SSL Seal is Prominent. This is a sign that the site is encrypted … that the information consumers enter, such as personal and credit card information, is protected. Most eCommerce sites must file for an SSL certificate from vendors such as VeriSign, GoDaddy, eTrust, TRUSTe, etc.. It’s a good practice to display the vendors’ logo on your order page, as well as make sure in the browser window the “https” or image of a lock is present. This is a clear and comforting sign to consumers that they can order online with confidence.
  • Encourage Online Sales vs. Other Order Mechanisms. Offer special “Internet Only Pricing” to customers. It could be a discount of 5 percent to 10 percent. This reduces any potential overhead costs for staffing fees such as telesales or order entry personnel.
  • Offer Free Shipping. Many eTailers already factor shipping into their published price, so when there’s a big, flashing banner next to the item saying “free shipping” it gives consumers that extra little push to move forward with the transaction. It boils down to basic psychology. Everyone likes to feel like they’re getting something for free.
  • Use Buyer Feedback To Your Advantage. Have an area on your website or next to select items that says “Customer Favorite” or “Hot Item.” Also, have some glowing customer testimonials next to the product. Consumers like to feel good about the item they are about to purchase. To see a great testimonial and knowing that others purchased the product is a validation and comforting feeling. In addition to helping the conversion, this tactic also helps reduce buyer’s remorse and product returns.
  • Make Sure Your Product Pages are Optimized for Search Engines. After doing some keyword research on actual search behavior for your product, refine your meta description, meta keywords and title tag of your product pages. This will help consumers find your product in the organic listing of search engine results.
  • Have a Special Coupon Code Banner on Your Home Page. Something like, “Summer Blow Out Sale, Use Coupon Code 1234.” This makes consumers feel good about the purchase. In addition, encourage viral activity by having a “forward to friend” text link that opens an Outlook email window with the coupon or coupon code. Make sure to have some great promotional copy mentioning how customers should “pass on the great savings to friends, family, and colleagues.”
  • Consider Payment Plans. For your higher ticket items, consider setting up extended payment plans that allow customers to pay for an item over a few payments. If an item is $200, you might want to offer a flex pay of “6 easy payments of $33.33” that is conveniently auto-billed to their credit card. Just be diligent when calculating your payment prices, as well as creating your return/refund policy for these items. The general rule is that your actual production costs/hard costs should be covered in the first one to three payments.

Finally, Online Shopping With Friends

Don’t you just love shopping with friends? I do. I love getting opinions from them about what items of clothing look good on me, what would be considered a good value, what would
make a great gift and so on. When shopping with friends, I bet I also spend
more.

Don’t you just love shopping with friends? I do. I love getting opinions from them about what items of clothing look good on me, what would be considered a good value, what would
make a great gift and so on. When shopping with friends, I bet I also spend
more.

That’s why I was
interested in a new, free widget called Shoplication
that I received a press release about recently.
Placed in the checkout areas of
online retailers’ websites, the widget — which says, “Shop With Friends”
— enables shoppers who click on it to shop and share products with their
friends in real time. And online retailers can drive more sales.
The widget is the brainchild of Josh Bochner, CEO of Boston-based FriendShopper, a social platform that allows web shoppers to chat with their friends while shopping. The chat function docks to the right side of browsers to create an interactive shopping environment, and the dialogue feature allows users to converse and share with multiple friends simultaneously.

To use the tool, shoppers add the FriendShopper bookmark into their browsers’ toolbars, surf any
online storefronts and click the bookmark button whenever they find items
they’d like to save or share with friends.

The Shoplication widget takes this experience to the e-tailer.

Here’s how the widget
works: After FriendShopper members click on the Shoplication widget, they see a
pop-up featuring that product’s data that can be used to save the item, share
it with friends or both. If they’re currently shopping with a FriendShopper
member, that product data is added to the conversation. Users can also share
the online merchant’s store with FriendShopper friends by clicking the
“Add New Store.”

If consumers who aren’t members click on the widget, they see a co-branded pop-up window that
says the online retailer’s store has partnered with FriendShopper to bring them
a new shopping experience. Consumers can then sign up. Then they’re offered the
option to have the item be discussed in their “My Items” pages so
they can share it with their friends.

There are also some cool search options available for retailers. When they add the
widget to their sites, for example, they’re listed on the FriendShopper portal.

I thought this was a great way to allow friends to shop together and help online retailers expand
their reaches.
What do you think?