Tips on Improving the Performance of Scarce Online Retail Real Estate

bigsaleThis week I read two excellent blog posts that I wanted to share. The topic of the first post is retail signage, namely the relationship between the display of messages in online stores and the use of signs in brick and mortar stores. Here’s the main point that author Kevin Ertell is making:

“In brick and mortar retail, we use promotional signs in our windows to draw people into the store, where we expertly display lots and lots of product to customers the moment they walk in the door. We certainly reinforce our promotional messages with signage throughout the store, but we never block the product with the signs. On our sites, our promotions seem to be more important than our products. What message are we sending to our customers about the value of our products when promotions get more prominence than the merchandise?”

If you’re running an online store I recommend you read the entire blog post because Kevin has put his finger on something that could be costing you money–distracting customers with too many signs about offers and discounts–as well as something that could make you money–getting the right balance between products and offers.

You probably don’t need me to tell you that striking the right balance is not easy. You have loads of great product shots, testimonials, deals, discounts, offers, and so much more that you want to put in front of people who land on your site. No wonder it seems like there’s never enough real estate on the screen. Of course, if you’re driving people to your site with targeted email or ad campaigns you can create landing pages where the content is chosen specifically for that target audience. But in general you can’t control which page of your site people land on.

One solution is to give up trying to show all messages and offers to all site visitors. Instead, just show different content to different visitors on the same page (which incidentally is one way to describe what Monetate does). If you segment your traffic into different groups which see different content you don’t have to cram all the signage for all your offers onto a single page; you can show just those offers that are appropriate for each segment. This is true for even the most basic segmentation: new versus returning visitors. Some offers are more appropriate for new customers. Returning customers need fewer messages about how the site works, and so on.

map-jigsThe second post that caught my eye was “8 Applications of IP Geolocation” and it delivered just what you would expect from the title: eight different ways in which online retailers can use geolocation information to vary content according to the physical location of the site visitor (based on IP address).

As you may know, Monetate greatly simplifies the process of creating geolocation-based campaigns, so it was great to see an article that illustrates the many possibilities that geolocation technology opens up. Of course, one of those possibilities is economizing on web site real estate by varying your signage according to the location of the site visitor. For example, point out the availability of international shipping to a non-domestic visitor, but use that space for something else when the visitor is domestic.

For more information on this topic, we have a geolocation case study here and geolocation was the subject of one of our press releases, picked up by several publications such as this.

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Is That a Coupon Box I See Before Me? If so, it could be hurting revenue

Image by CheyI want to ask you a question to which I don’t yet know the answer: If you have an online store, when should you display a coupon box on your checkout page?

Before you answer that, consider another question: Has this ever happened to you? You Google something that you want to buy, for example, “Adirondack Chair.” You see a promising link in the first few search results and click on it: “Voila!” you arrive at a site that offers exactly what you’re looking for, and at a fair price. You click “Add to cart” followed by “Checkout.”

Three cheers for online shopping! You are now just a few keystrokes away from cheerfully and efficiently completing your purchase. Then it happens [cue dramatic clash of cymbals]. Suddenly something troubling materializes before your very eyes: A box labeled Coupon Code. How do you react? Think carefully about your answer because it could be the clue to a whole bunch of lost revenue.

Personally, my first thought is this: “If I had a coupon code then that “fair price” could be even fairer.” Two other thoughts then fight for second place: “Is someone else–someone who has a coupon code–getting a better deal on this chair than me?” versus “Where do I get a coupon code?”

And if I act on either of those two thoughts, you can pretty much bet I will be leaving the checkout page, either to open a new browser window and search for a code, or to navigate back to the home page of the site to see if I missed something about a coupon.

Now, if you’ve been selling stuff online for any length of time you know this: You do not want people leaving the checkout page for any reason (except maybe to grab their credit card). Here’s why: … Read the rest of this entry »

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13 Ways Amazon.com is Out to Eat Your Lunch

amazon-lunchsHave you studied the Amazon.com home page lately? If you’re an e-retailer you should. By my count it now contains 13 pieces of personalization, 13 ways in which Amazon is addressing me personally, and I don’t just mean “Hello, Stephen Cobb.”

The fact that Amazon.com happens to know my name is not nearly as important as the other things that Amazon.com knows about me, like what products I’ve looked at lately and what things I purchased in the past. But why is this important to other e-retailers? Because if you’re not controlling and customizing the experience that visitors get when they visit your web site–personalizing that experience based on what you know about them–then there’s a good chance Amazon.com will eventually get those visitors. And Amazon.com is very good at turning visitors into loyal Amazon customers.

In this blog post I will examine the implications of Amazon’s growth for other e-retailers and what they teach us about the best ways to protect and grow e-commerce operations today. Read the rest of this entry »

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Segmentation in Action: Google pitches Chrome to Microsoft IE users

If you haven’t used Microsoft’s Internet Explorer browser lately you’re missing a good example of visitor segmentation and behavioral targeting. 

Anyone browsing the web with IE6 or IE7 lately has found themselves subjected to technographic segmentation when they visit google.com. This segmentation is visible as an invitation to upgrade from Microsoft IE to Google Chrome, the web browser made by Google and currently available as a free download for Windows users.

Don’t let the technical lingo fool you, this post is all about marketing. It might even help you find some more revenue, even if you sell clothes and not software.

What makes this marketing approach possible is a form of personalization. In this context, personalization means the customization of web pages based on known data about individual visitors. So what does Google know in this case, and how does it know it? 

Read the rest of this entry »

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Join Our Table: The Monetate Roundtable at Shop.org Online Marketing Workshop

Hopefully you’ve seen today’s news release about the roundtable on May 6 at Shop.org’s Online Marketing Workshop in Scottsdale, Arizona. We’re pretty excited about it and we’d love to see you there.

Shop.org chose “Optimizing Your Online Business” as the theme of this workshop and they chose our roundtable proposal from among many. The title is “Map Your Path to Online Optimization: A whole new way to reach your goals.”

We’ll be talking about an effective new way of looking at your ecommerce data to prioritize the biggest opportunities for improving the bottom line. Our CEO, David Brussin, will be leading the roundtable, which will feature an online retailer who has had impressive results with the techniques that David will be sharing. David will show you how to perform this analysis and teach you how to do it yourself, using tools and data that you already have.

The news release “Finding Best Opportunities to Improve Online Retail’s Bottom Line” is now online at PRWeb or you can download a .pdf version of release here.

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60 Second Post-click Marketing Integration Guide Published

Do you ever ask yourself “Exactly what does it take to get started with post-click marketing?” If so, you’re in luck! We have answered that question in a new publication.

Our 60 Second Post-click Marketing Integration Guide is now available for downloading (in .pdf format, no registration required, just right-click the image on the left to save the file).

I should warn you that that the file downloads very quickly (go ahead and try it). That is not an error. There is a reason for that speed: the file size is just 25 kilobytes.

In fact, the whole integration guide is only one page in length and you can probably read it in 60 seconds, hence the title. So what have we ommited from this slender integration guide? Read the rest of this entry »

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Bazaar Tricks Lift Conversion: Discounts, hooks, and segmentation

They did it in ancient bazaars beside the Euphrates and they do it in the massive Internet emporiums of today: Discounting.

It’s probably the oldest trick in the world of retailing: offer a discount on the price of whatever it is you’re selling. Yet when I talk to online retailers today I get the feeling that few things worry them more than the fear they’re giving too much discount to too many people.

In the old-fashioned world of face-to-face retail, controlling the amount and number of discounts or offers was something merchants did themselves. You could mentally assess each customer and decide–on a case-by-case basis–who got offered what. Ironically, opening a store on the World Wide Web makes offers harder to control because, unless you’re careful, you’re extending offers to just about everyone. Inevitably that includes some people who would have bought without a discount (and as the traders in the bazaar will tell you, that’s like giving money away).

The answer is to do just what canny traders in the markets of old used to do: Segment your site’s visitors and extend offers selectively. To get a clearer picture of how this strategy works in practice, I want to share a case study involving the difference between offering a blanket discount of “10 percent off” to all site visitors and restricting the offer to a specific group of visitors. Read the rest of this entry »

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The Search for Revenue: From pre-click to post-click

As you probably know, Search Marketing Expo (SMX) is a series of search marketing conferences and expos backed by Search Engine Land. In other words, it’s all about search, about getting people who are searching for something to click on a link to your web site. For most e-commerce sites, search plays a central role in traffic generation, bringing visitors to the web site.

But what happens when those visitors arrive? How does the web site hold their interest and convert visitors into customers after that click? That is the world of post-click marketing. So, it was pretty interesting to me that Gordon Hotchkiss, the CEO of Enquiro, one of North America’s leading search marketing vendors, reportedly had this to say at SMX West in Santa Clara this month:

“post-click marketing moves the needle for our clients more than any other aspect of search marketing.”

This observation, delivered as Mr. Hotchkiss was moderating a panel on Advanced Landing Page Strategies, is interesting for several reasons. First of all, one could argue that post-click marketing is not really search marketing at all. Sure, you can link search-derived traffic to post-click campaigns, but you can also run successful post-click campaigns that are entirely independent of your search marketing campaigns. Read the rest of this entry »

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Treasure Mapping Reveals Path to Lost Retail Revenue

You don’t need to be a pirate to double the revenue from key segments of your online traffic, you just need a treasure map; and unlike treasure maps in the movies, this one requires no sword fights or bloody sacrifices. In fact, it’s free.

These are trying times for online retailers, but if the year-end press releases are true, the brightest and best were still able to capture double digit gains during an otherwise dismal holiday season. How do they do it?

One trick to beating the odds and coming up trumps in a down economy is to find the hidden value in the traffic you already have. And one way to do that is to picture your site activity as something other than a series of graphs. Try thinking of it as a landscape, a topographical map if you will. Then ask yourself, where are the low points? Where do you see traffic coming and going without conversion?

Here’s what we found at one US-based retailer. Despite the fact that the company was not actively pursuing international sales we saw that its site was attracting a considerable number of visitors from outside North America. With a simple messaging campaign that required no discounting, the retailer was able to double the revenue from that segment.

Here’s what we observed after our initial survey of the sales landscape:

  • 20 percent of the visitors were from outside the U.S. (even though the company has never targeted international markets).
  • Very few of these “foreign” visitors were converting.

So why were these foreign visitors spending time on the site without buying? After studying the site from sea level, so to speak, we realized overseas visitors could easily miss the fact that the company does ship internationally. This was understandable. Because the retailer was not focused on foreign sales there was little apparent incentive to devote precious web site real estate to advertising the international shipping option.

We decided to find out what would happen if the availability of international shipping was made more apparent to foreign visitors. We created a set of campaigns that displays messaging about international shipping in the form of banners and overlays, but only to people who are visiting the site from locations outside North America (thus getting the point across without requiring dedicated web site real estate). For added effect, the campaigns target visitors by country and inform them that the retailer is more than happy to ship to their specific country.

The results? Measured against a control group, this campaign produced a 100% lift in conversion rate and 100% lift in revenue from this segment, a segment that was one fifth of the entire site traffic.

Bear in mind that these campaigns are not “offers” of free or reduced shipping. The customer still pays the shipping. The campaign simply serves a relevant message to the appropriate traffic segment. In other words, that segment’s revenue doubled without the retailer having to cut prices or give anything away.

In addition, the site saw a 167% lift in new customer acquisition from this segment. That means more than two and a half times as many visitors were converted into new customers, with no need to discount prices.

We think this example demonstrates how small changes in your website marketing and merchandising can have dramatic effects. By looking at the sales map, a low-lying area of under-performing web traffic was identified. A campaign of welcoming and reassuring messages changed that, and the buried treasure–the segment’s true potential–was uncovered, resulting in a very significant boost to this retailer’s bottom line.

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