Kevin Ertell: What I think is really interesting about Monetate

We’re delighted to announce today that Kevin Ertell, one of the most-widely respected innovators in online retailing, is joining Monetate’s Strategic Advisory Board. In conjunction with that announcement we’re posting a short video that we recorded last week in which Kevin talks about the challenges facing online retailers. He explains why he thinks Monetate is “exactly the right solution for retailers to create a great customer experience that is right for every individual customer.” Take a look:

For those readers who are not familiar with Kevin, you can read more about him in today’s news release. Kevin has spent time running some serious online retailing operations such as borders.com. We can heartily recommend his terrific blog: Retail: Shaken Not Stirred. And you might want to follow him on Twitter.

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Bryan Eisenberg on how Monetate takes marketing to the next level

Chances are, you already know that Bryan Eisenberg is a recognized authority and pioneer in online marketing. What you may not know is that he recently joined Monetate’s Strategic Advisory Board. In this short video, Bryan talks about testing, online retailing, and how Monetate is “taking this to the next level.” Here’s what he has to say.

Obviously, we are very excited about Bryan’s enthusiasm for Monetate. When you spend years developing a radical new approach to a seemingly intractable problem it is very rewarding when an established expert in the field validates your approach. And with Bryan’s insight and input we will be able to make Monetate even better.

BTW, if you don’t know who Bryan is, a good place to find out is the news release about his decision to join the Monetate Strategic Advisory Board.

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Retail Rebounding? Sold out NRF event and other hopeful signs

If consumer spending does in fact drive the American economy, and if the economic recovery is to be driven—as President Obama and others have suggested—by innovation, then I have some good economic news to report.

I’m not just talking about the latest Fed report which suggests consumer spending was stronger in February and might have been even stronger if half the country hadn’t been snowed in for half the month.

Consider the title of the event we are sponsoring in San Francisco this week: The Retail Innovation & Marketing Conference. I think that pretty much covers the consumer spending and innovation factors, right? Now consider this: The event is full, at capacity, sold out.

And it didn’t sell out at the last minute. The event was already sold out last week. And this event is not being held at the Motel 7 by the airport. It’s at the Westin St. Francis. Not what you’d call a small hotel.

Furthermore, this is not some annual junket that’s been on everyone’s calendar for years. In fact, this is the first time this event has been held, ever. It was created late last year by the NRF (National Retail Federation) as a joint effort of RAMA (the Retail Advertising and Marketing Association) which is NRF’s division for marketing professionals, and Shop.org, NRF’s digital division. You can follow news from the event via the hash tag #innovate10 on Twitter.

So what does it mean if you put on a brand new conference about retail innovation in March and it sells out, despite the fact that there was another big show for electronic retailers (eTail West) just the week before? I think it’s a strong indication that retailers are feeling bullish about consumer spending, particularly in the second half of the year.

Right now many retailers are putting together their strategies for that critical sales period, the fourth quarter. They want to make sure they are up to speed on the latest developments, from mobile marketing and smartphone shopping, to recurring purchase systems, customer reviews, private shopping sites, localized delivery, geo-targeting, post-click optimization, and so on.

As a supplier of what we think is pretty innovative retail and marketing technology Monetate just had to sponsor this event. And we were delighted when retail industry veteran Bob Myers, formerly of QVC, agreed to join our roundtable on real-time marketing. What we didn’t know when we signed on as a sponsor last year was whether or not anyone would attend. The fact that there’s a sold-out crowd at the St. Francis right now strikes me as good news all round.

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The Marketing Wisdom of the Late Sy Syms

Sy Syms (1926-2009) photo SYMS Corp.When Sy Syms died last month at the age of 83, the world of consumer retailing lost a true pioneer. Fortunately for us consumers, the chain of discount clothing stores that he created lives on, as does the slogan which encapsulated his progressive attitude toward marketing:

“An educated consumer is our best customer.”

I think these are great words to do business by, whether your business is selling to consumers or other businesses. I was impressed to learn that Sy Syms not only created that slogan but delivered it, in person, in TV commercials which started running in 1974.

Back then a lot of advertising was still taking a “dumb it down” approach to the consumer. Sy saw things differently and by all accounts his respect for the customer played a big role in the success of his stores. Even 35 years later the slogan still sounds fresh; the company still displays it in the store and prints it on their packaging. Read the rest of this entry »

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E-retailing to the Rescue?

ir500-20091I was particularly happy to see the Fedex guy today because he was  dropping off my personal copy of Internet Retailer’s Top 500 Guide: 2009 Edition. I know I will be  thumbing through this hefty 432-page volume for the next 12 months, until the 2010 Edition is published. At that point 2009 will be moved to the bookshelf, next to the heavily highlighted and dog-eared copy of 2008 that I am retiring right now. 

As you probably know, these guides are chock full of stats about online retailing and articles that put those stats in perspective, starting with the Publisher’s Letter, penned by Jack Love. This year he describes the motivation behind the publication: “the firm belief that the more everyone knows about the nation’s 500 largest e-retailers, the faster e-retailing will advance as an industry.”

I think everyone who works in this industry is thankful to Mr. Love, not only for publishing this information, but also for articulating exactly why the industry that it serves–and he serves and we serve–is such an important industry: 

When you consider that e-retailing has been the fastest growing segment of the American retail market for more than a decade, this directory is a vital publication indeed, especially when the recovery of the American economy is dependent on consumer spending at the retail level.

And there are numbers to back that up. As Mark Brohan, Research Director at Internet Retailer, notes in his Overview: “overall web sales were responsible for 20% of the growth in total retail sales last year while accounting for about 6.5% of sales.” In other words, while 2008 was not a growth year for bricks-and-mortar retailers, online retailing kept the cash registers ringing. And the role of the Top 500 can be assessed like this: Top 500 sales grew 11.7% last year, which is more than 8X the overall U.S. retail sales growth in 2008.

There are many things to enjoy in online retailing, like the efficient matching of buyers with sellers, facilitating the smooth delivery of goods from manufacturers to consumers. The idea that you are doing your part to help America recover from its economic woes is an added and welcome bonus.

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The Turducken Disconnect: An SEM Fable for the Holidays

Insights into online marketing can come from strange quarters, even from strange recipes. Bear with me while I tell a story that began at a wedding reception in Toronto a few months ago. I was standing beside a delicious buffet served in a wonderful Canadian garden when a young lady asked me if I had ever heard of turducken.

Why did she ask me? Did the rate at which I was consuming bacon wrapped chicken livers suggest I’d be a turducken aficionado? Perhaps she mistook my gray hair as a sign of wisdom (actually, it’s just a sign of advancing age). In fact, until she uttered the word, I had never heard of turducken. But I didn’t want her to know that, so I bluffed: “Turducken? In what context?”

(For all I knew, Turducken could be the name of a band, or a dance, or something you do in night clubs when you’re not dancing. The last thing I wanted to do was appear uncool. I mean, if the kids were going turducken later, I wanted to be invited along.)

Fortunately, my bluff was not called. A handsome young guest, whose cool factor was apparently not in doubt simply blurted out, “What’s a turducken?” That’s when the young lady said: “Turducken is a chicken cooked inside a duck cooked inside a turkey.”

In a further stroke of luck the young man decided this turducken thing was a hoax and he began to question the lady’s sincerity. That gave me a chance to whip out my Treo and Google it, earning several cool points as I flashed the result with great chivalry. The young lady was right. Google had spoken. Turducken is real.

And so the story would have ended, were it not for two things: my wife’s health, which has not been too good lately; and Thanksgiving, which kind of crept up on us this year. That is why, a few days ago, I was sitting at my computer wondering: “What could Stephen cook for Thanksgiving dinner?” In the past I’ve managed to cook several chickens; a few Christmases ago I roasted a goose, but to be honest I have never tackled a Thanksgiving turkey. That’s when turducken came to mind!

So I Googled it. As expected, the search results were sprinkled with words that suggested one could order turducken online, for immediate delivery, pre-cooked if necessary. Indeed, it looked like several vendors were vying for my turducken business. So I began to click away.

And that’s when I found the turducken disconnect. If you are trying to sell turducken online, anyone who searches for turducken and clicks on your paid search placement should be greeted by what? Yes! Turducken. It doesn’t have to be an animated turducken. It doesn’t have to be a talking turducken. It doesn’t even need to be a specially-priced turducken (although that could be a good way to convert first-time visitors into first time buyers). The point is, we should see a turducken not a sausage. And we shouldn’t have to scroll down the page to find our search target. Most online shoppers are not lazy, they’re just busy. If I Google turducken, show me your turducken and I may well order one.

Now, I realize that turducken is not, as yet, a major segment of the online food market. So is it fair to pick on fledgling e-tailers who haven’t yet learned to hook their search engine marketing efforts to custom landing pages and behavior-based visitor-metrics? Maybe it’s not fair, but the turducken disconnect is not confined to regional cuisine.

When I Googled “cooked turkey” I got a paid ad proclaiming “Roasted Turkey…Gourmet Prepared Turkeys. Memorable Meals since 1957.” It took me to a page totally bereft of turkeys. Of course, it’s not just online food retailing that suffers from this problem. Time and again when shopping online I click a search result that leads me to a page only vaguely connected to my search string.

Given the amount of money companies are spending to be at the top of the search result stack, it’s a real pity they don’t spend just a little more on converting that initial click into an engagement, a conversation, and a better chance at conversion. Merchants who don’t keep an eye on what happens post-click are not going to get results as good as those who do.

And thus endeth the fable.
The moral is hopefully clear.
Don’t waste your money on search results
If you don’t know how to take it from there.

Happy Thanksgiving!

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That Which Connects Us

Kaila Colbin’s Search Insider post amusingly titled ”What Do Search And Toilet Paper Have In Common?” actually concludes with a very thoughtful sentence:

The president-elect said, “That which connects us is greater than that which divides us.” I don’t think he was talking about technology — but it would certainly apply.

Indeed it would, and probably should, given the game-changing role that the Internet played in the election and continues to play in the transition. I find myself finally daring to hope that the new administration “gets” connectivity to a degree unprecedented in government and public service, at a level that can command respect in the garages and basements and cubicles of startups where the geeks and coders and emerging gurus of enterprise are pushing the envelope of connection.

A few years ago, very few people would have dared to believe that a change in government could inspire those who are driven to make information technology deliver the most benefit to the most people. When the president-elect said “spread the wealth around” some people thought the phrase could be taken–out of context–and used against him. They were wrong. Why? One reason might be the large number of people who have been happy to “spread the technology around” for many years. Few things can generate wealth like technology and few technologies enable spreading better than search and the Internet.

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