The Internet Marketing Driver: Glenn Gabe's goal is to help marketers build powerful and measurable web marketing strategies.

Thursday, February 14, 2008

Banana Republic Meets and Exceeds My Valentine’s Day Challenge

Banana Republic Exceeds the Valentine's Day ChallengeIn my last post, I traveled across the web to see which online retailers were targeting (and looking to help) Valentine’s Day last minute shoppers. I found a range of targeting (or lack of targeting) during my journey, including some websites without a mention of Valentine’s Day and others with dedicated sections for Valentine’s Day. Of the websites that I visited, Banana Republic was the winner, providing clear calls to action on the homepage, identifying next day delivery for last minute shoppers, and providing a dedicated section for Valentine’s Day gifts. They did a fantastic job.

My Challenge to Banana Republic
At the end of my journey on February 12th, I decided to purchase a gift from Banana Republic, trusting that their Next Day Delivery Service would come through. So, did Banana Republic come through? I know you’ve been eagerly awaiting the results, talking about my challenge at the water cooler, and even picketing outside my office to know the results. OK, that might be a stretch…but here are the results. :-)

Banana Republic not only met the challenge, they exceeded my expectations. Not only did I receive my gift-wrapped Valentine’s Day order the next day, I received it before 10AM. I was extremely impressed to see an online retailer make a promise to last minute shoppers and then exceed expectations. And, I don’t believe we are at the stage yet from an e-commerce standpoint where this happens often…

The Bigger Picture
Banana Republic exceeding my expectations like they did builds credibility and confidence in their company and service. When even the slightest doubt in a consumer’s mind will push them to exit the checkout process, experiences like this will help build confidence, which in turn, will help convert more customers. In addition, during the hiccup I mentioned in my first post, I was able to reach a customer service representative quickly and have my question resolved. I wasn’t thrilled with the answer, but she was polite and pointed me in the right direction fast. This also helps build confidence.

The Bottom Line for Online Retailers
If you target holiday shoppers (and I mean truly target holiday shoppers…) and want to follow an online retailer that’s doing a great job, check out Banana Republic. I will tell you that they have piqued my curiosity… I’m eager to test out Banana Republic during the Christmas shopping season. If they come through as well as they did here, I might just have to write another post! ;-)

GG

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Tuesday, February 12, 2008

Valentine’s Day Online Shopping, Will Retailers Live Up To Shipping Promises

Valentine's Day Online Shopping and ShippingLet me start by saying that I already purchased gifts for my wife, children, and mother. ;-) But as I viewed various emails coming in yesterday from online retailers, I was shocked to find that only a few were still targeting Valentine’s Day shoppers. Yes, I know that they would only be targeting “last minute shoppers”, but they are still customers, right? And, last minute shoppers will always be there…it’s their M.O. So, I started wondering…which online retailers are targeting Valentine’s Day shoppers heavily? How visible are the promotions, what kind of shipping options are available, and how were they communicating to last minute shoppers? I decided to take a little trip around the web to see what I could find. I visited several of the websites that my wife buys from, and who knows, maybe I’ll be so confident that a gift will get here on time that I’ll make a purchase today! Cue cliffhanger music. ;-)

Sephora.com
My wife loves the website and their retail stores. At first glance, there is not a single mention of Valentine’s Day. Really?? I was shocked to see this…given that they are one of the most popular beauty retailers (with both a strong offline and online presence). I saw a promotion for free shipping over $75 so I clicked through. Nothing about Valentine’s Day. Let me add something to my cart and see if they mention Valentine’s Day shipping…Nope. Wow, so you’re telling me that the hottest beauty retailer is not paying attention to Valentine’s Day?? I think they need to rethink this approach…

Banana Republic
OK, so I’m not out of my mind to think this is a relatively important day to target…Banana Republic has a nice area of real estate on the homepage targeting Valentine’s Day shoppers. Thank you Banana Republic! “Ensure Valentine’s Day Delivery by WED, February 13th” (see visual below). Excellent. Big, red, and clear as day. So I click through the advertisement and I’m taken to a section dedicated to Valentine’s Day. They have a left side navigation breaking down their Valentine’s Day gifts by gender, product category, gift cards, etc. They also provide links to their shipping policy, returns policy, gift packaging, and other helpful tools. Banana Republic gets it...and I’m confident they are reaping the benefits of being so thorough. I just might be back to make a purchase before I end my journey across the web…read on.

Click the image below to see the full size graphic:
Banana Republic Homepage Ad for Next Day Shipping

JCrew
Danger…the homepage had no mention of Valentine’s Day. I clicked through to a few product categories, but still no mention. I went to search the site for any mention of Valentine’s Day and to my complete disbelief, there wasn't an on-site search box on the page...a link to the search box was buried at the bottom of the page. It produced 0 results when I entered Valentine's Day. Then I used a site command in Google, which also showed 0 results. Wow, I guess JCrew believes that their shoppers don’t want to give JCrew products as Valentine’s Day gifts. ;-) Needless to say, I think JCrew can improve their Valentine's Day promotion...

Apple Store
Although not completely apparent on the homepage (it was hidden in the middle of the screen below the hero image), the apple store does provide a Valentine’s Day section. They actually have a gift guide, broken down by product category. They also have a left-side section in the navigation for shipping information (along with a link to their shipping calendar.) It only took me a minute or two to find possible gift ideas and to see if it would arrive on or before the 14th. In addition, the shipping calendar was broken down by product. Very nice. As usual, I like what Apple did here… I might be back before my journey is through.

Amazon.com
Upon hitting the homepage of Amazon.com, I clearly found links and promotional advertisements to their Valentine’s Day “gift central” section of the website. In this section, they break down possible gift ideas by several major categories, including color (yes, red, pink, white, etc.), flowers, chocolate, jewelry, fragrances, then by price, relationship, personality, etc. Within the website template, Amazon also provides a text link in the top right corner about 2 day shipping for Valentine’s Day, but I’m not sure that’s enough. It links to their Amazon Prime service, which is a premium service that enables you to earn fast shipping. But what if I just wanted to view the last day that I can place an order so I can have the products delivered by the 14th? I think Amazon did a great job with their gift guide, including getting you to the gift guide, breaking down the guide by category, etc., but as you approach the big day, you really want to know if your order will get to you on time. I know that it’s tough for Amazon to do this, since you might be purchasing from other vendors and shipping can be dictated by those vendors. That said, when you approach a holiday (which is obviously time-sensitive), you really want to know the final day that you can place an order to have gifts delivered on time. So, if it was a week out, I would say that Amazon did a great job…but being only 2 days out, I would be nervous ordering…

The Journey Ends…
That was my little trip around the web to see which websites were readily handling last minute Valentines’ Day orders and providing clear shipping schedules. Nobody wants to be disappointed on the 14th, so it was interesting to see the differences between online retailers. Based on my journey, the winner is Banana Republic. I think they earned it…they did a fantastic job of providing clear information about shipping for Valentine’s Day, they created a dedicated section for Valentine’s Day gifts, and simply made it easy to find the right gift… So although I’ve already purchased some gifts, I added one more this morning from Banana Republic. They are guaranteeing next day delivery, which means I should receive my order on the 13th.

Now, let’s see if they live up to their promise of Next Business Day Shipping. I’ll write a follow up post to let you know how it goes. :)

{UPDATE}: And just when I spoke so highly of Banana Republic, a problem pops up!… I added some items to my cart and didn’t see any option for next day delivery…it was only showing Standard Delivery of 4-7 days. That’s after they guarantee next day delivery for Valentine’s Day! So I called the 800 number and spoke with a very nice customer service representative. She explained that 2 categories of products in their gift guide cannot be shipped next day… But they are in your gift guide right next to your advertisement about next day delivery? "I know…she says…I’m sorry." Ugh. So I’m going back on the website to see if I can find something else that fits (no pun intended). OK, so I found another gift that I think my wife will like. I just placed the order using Next Business Day Delivery. Yes, this was a little hiccup in the process, but we’re back on track. I’ll let you know how this ends up!}

GG

Read Part 2 of this post, which contains the results of my Valentine's Day challenge to Banana Republic!

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Wednesday, January 02, 2008

An E-Commerce Live Chat Case Study, Can It Help You Increase Conversion and Average Order Value?

Using Live Chat to Increase Conversion on ECommerce WebsitesOver the past year, there have been some studies completed to determine the impact of using live chat to increase conversion and average order value. Some marketers believe that providing answers to questions (via live chat) at critical stages during the purchase process can help increase your conversion rate. In a nutshell, it’s about proactively helping customers overcome barriers so they can make a purchase. A case study that comes to mind is the CompUSA Coremetrics study that showed a 10X increase in conversion when using live chat. That’s a powerful statistic, don’t you think? Let’s take a look at what happened to me the other day…

A Little Upgrade Assistance Please…
A few days ago I sat down to order a software upgrade, and before I knew it, I became part of my own case study! I was ready to place an order (literally having all of my contact and payment information entered) and then I remembered seeing a new upgrade version while quickly clicking through the website. I didn’t want to spend too much time, so I just added the version I knew that I wanted to my cart and started the checkout process. As I was entering my credit card information, a little voice in my head kept telling me to check the other upgrade version just in case… I didn’t want to lose all of the information that I just entered, so I clicked the live chat button (located prominently in the upper right-hand corner of the checkout page template.) I didn’t plan to use live chat during this online purchase…I just didn’t have a lot of time and didn’t want to re-enter my contact and payment information. I was ready to just place my original order when I clicked live chat.

Charles Helping Glenn…or Glenn Helping Charles...
Here is the transcript of my live chat session so you can see how it unfolded. I provide a short analysis of this chat following the transcript. Note, when I clicked the live chat button, I had $375 of software in my cart. Also, the name of the live chat rep and the company have been changed to protect everyone involved. :-)

The Live Chat Transcript:
Please hold as we route your chat to a representative.
Welcome! My name is Charles. May I assist you with your selection today?

Glenn: Hi Charles. I have a quick question.
Glenn: I am upgrading a software package and noticed a new upgrade version available on the website.
Glenn: It looked interesting, so I want to know if I qualify for the new upgrade version.
Glenn: I do own the software packages required for the upgrade, so I’m hoping your answer is yes. :)

Charles: It would be my pleasure to help you with this.

Glenn: How much is the new upgrade version again?

Charles: I'm glad to let you know that you can upgrade to the new version for $1250.

Glenn: Charles, I thought it was closer to $500

Charles: I'm sorry. It will cost you $650 for the current upgrade you have in your cart and $1250 for the new upgrade version.

Glenn: That’s weird; I’m seeing an upgrade price of $375 for the current version since I already own the previous version and then ~$500 for the new upgrade version.

Charles: If you have previous versions of the software package, you can receive the new upgrade version for $475.

Glenn: OK, I got it…that’s what I thought I saw earlier.
Glenn: So, it's $475 for the latest version of the upgrade? I just want to make sure.

Charles: If you have the most recent version of the software, you can definitely get the latest upgrade version for $475 and the one that’s already in your cart for $375.
Charles: Are you ready to place the order?

Glenn: I’m going to think about it for a second. It sounds good, though. Thanks for your help. I appreciate it

Charles: You’re welcome.

Glenn: I’m about to add the new upgrade version to my cart but I’m still a little confused with the language on the upgrade eligibility form. Again, I just want to make sure I’m eligible for the $475 upgrade.
Glenn: It's definitely $475 for the latest upgrade version, right?

Charles: Yes, you are correct.

Glenn: Cool, purchasing now...

Charles: Excellent.

Glenn: Thanks for your help Charles. The new upgrade version seems like a really good deal.

Charles: You’re welcome Glenn, is there anything else I can help you with?

Glenn: No, I’m good to go. I’m downloading the upgrade now…and will be using it shortly. :)
Glenn: Happy New Year!

Charles: Thank you for your purchase today!


My Live Chat Analysis
To clarify, I ended up spending $475 versus $375, but for an upgrade that definitely made more sense for me than my original order. So, have you ever been in a situation like this? You know, where you are sitting on a website debating whether or not to buy something or trying to decide which version of the product to buy. To me, this is where live chat is a killer application for e-commerce sites. Charles (more on him below), definitely helped clarify the latest upgrade, if I was eligible, and waited to ensure the order went through. Charles also generated an additional $100 for the order. So, I ended up a happy customer and the software company ended up just as happy (and with more revenue!) :)

The Live Chat Challenge for Marketers
If you read the transcript carefully, then the challenges you face while implementing live chat are glaringly obvious. In the beginning of the chat, I actually knew more about the upgrade pricing than Charles did. I could have easily taken his word and proceeded with my original order... If you choose to implement live chat on your website, you’ll need to ensure your reps are extremely knowledgeable about your products, pricing, upgrades, and promotions. If not, you’ll end up looking foolish and missing opportunities to increase conversion and your average order value. Heck, you could even lose customers by decreasing the credibility you built up prior to the live chat session. Remember, the point of using live chat in e-commerce is to help visitors overcome barriers so they can move forward with their purchase… Like many things in this world, the very thing that can help you can also hurt you if it’s not used properly.

In closing, I’m a believer in any application that can help you increase conversion or your average order value while also making your customers happy. And it really hits home when it happens to you! Think about this...if Charles and his coworkers can achieve the same result 10 times per day in a 200 day work year, then they could generate an additional $200,000 in revenue for their company.
($100 increase in order value x 10 orders per day x 200 days in the work year = $200,000)

Now think about your business…do you believe that live chat can help you increase revenue while also making your customers happy? It just might be worth a try, right? Just make sure your “Charles” knows your products inside and out! :-)

GG

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Wednesday, October 17, 2007

Enterprise Rent-A-Car : The Story That Everyone Wants to Hear!

Enterprise Rental Car and Extraordinary Customer ServiceIt ends up my blog post from last week about the drivers of word of mouth marketing had an interesting effect... no matter who I've spoken with recently about web marketing, we somehow come back to the 7 drivers listed in my last post! It’s a weird phenomenon. :-) Over the past week I’ve listened to many stories about how WOM has impacted a wide range of businesses, and out of the 7 drivers of WOM that I listed in the post, the “Extraordinary Customer Experiences” listing really seemed to resonate. I believe this is because it’s something that you as a business owner can directly impact. During my conversations about WOM, I’m inevitably asked if I have an extraordinary customer experience to tell. No, not a client example, but my own experience as Glenn Gabe. That’s actually an easy question for me…it’s my experience with Enterprise Rent-A-Car… hands down. When I tell people about my experience, I get the same reaction almost every time. “You need to write a blog post about that!” So, based on popular demand, here it is… Buckle up and enjoy the ride. No pun intended. ;-)

Have You Heard the Joke About a College Grad, a Bus, and a Resume?
I had just graduated college and I was ready and eager to interview with companies in Corporate America. I was hoping to land a great job in New York, living only 40 minutes outside of the greatest city on earth (OK, I’m biased). I received a call from Perrier about a position in their NYC office. I did a solid job on the phone interview, and I was asked to visit the Manhattan office for a second interview. Cool. I’m excited. So, I had 2 decent choices for getting into NYC from where I lived, the bus to the Port Authority and a train to Hoboken where I could pick up the path to midtown. Being completely inexperienced with commuting to NYC at the time, I chose the bus. I won’t explain all of the intricacies about why the train is better, but to me, the train rules. So, it’s a hot and humid summer day in NY (more on this later), I’m dressed in a new suit that doesn’t really fit well, and I’m off to Manhattan for my interview, ready to take on the world.

Summer in NY
It was 90 degrees that day with high humidity, which means I was miserable as soon as I left the air conditioning… I parked my car near the bus stop and waited for the bus to show up. The 10 minutes waiting for the bus felt like I was in the Sahara Desert and knowing that I had to stay in that suit while acing my interview was starting to freak me out a little bit. Remember, I’m right out of college. The bus arrives and we’re on our way. I noticed immediately that it was really hot on the bus. That’s the proverbial red flag number 1. Just a few minutes into the ride, I noticed the smell of burning oil. Uh oh… Red flag number 2. About 10 minutes into the trip, the bus broke down. So, here I was, at least 2 to 3 miles from my car, on a hot broken down bus, and with no idea how long it would take to fix. And, since I was new at the job hunting game, I didn’t leave enough time in case something catastrophic happened, like this… so there was a good chance that I would miss the interview. Great…

Go West Young Man!
Well, it was actually North, but that’s not important. I climbed off the bus and loosened up my tie, now throwing my jacket over my shoulder. I thought I might as well start walking back to my car. Remember, cell phones weren’t very popular at this point… It’s not like I could quickly call a taxi from the side of the road. I had about 45 minutes to get into NYC for my interview. Only a few minutes into my walk, I came across a line of stores, one of which was an Enterprise Rent-A-Car. Not knowing exactly where I was in relation to where my car was parked, I wanted to ask someone if I was on the right path. So, I walked into Enterprise, sweaty and frustrated and asked if I was heading in the right direction. The manager answered, “Yes, but you’ve got a few miles to walk back to your car.” I frowned, thanked him, and turned back to the door when he asked another question, “Are you going on an interview?” See, I actually looked more like a college grad going on an interview than I thought I did at the time! Big shock, right? I was young, wearing a new suit, and held a cheesy portfolio in my hand (of course with nothing in it but a copy of my resume and blank paper!) So I answered, “Yes, but there’s no way I’m going to make it, since it’s in NYC”. He didn’t hesitate and grabbed his keys. “I’ll drive you to your car. Let’s land you a job.” On the way to my car, I thanked him a few dozen times and even tried to pay him! He of course wouldn’t take any money, but he asked that I follow up with him to let him know how the interview went (and if I made it in time). “You bet I’ll follow up!”

An Important Lesson…Nobody Knows What Happened 15 Minutes Ago…
I hopped in my car and drove into Manhattan like a bat out of hell. I was lucky…I didn’t hit much traffic. I flew through the Lincoln Tunnel, parked near Penn Station, and ran into Penn Plaza. I even got to the office with a few minutes to spare. The hiring manager actually needed a few extra minutes to finish another interview. Phew…no problem. :-) “Tell him to take his time”, I said to the receptionist. That’s when I learned a great lesson that I’ve taken with me to this day. No matter what happens before a sales call or meeting, how hard it is to get there, what happened on the way, heck, what happened on your way up the elevator, nobody knows that… You just need to perform to the best of your ability in the moment and deal with any circumstances later. Anyway, I didn’t mention what happened with the bus to the hiring manager, I did a great job on the interview, and I was pushed to the next level, which was an interview at Perrier headquarters with the Regional Manager. To make a long story short(er), I landed the job and spent the next 7 years at Perrier. Those 7 years truly helped build the entrepreneurial platform that I use every single day. They gave me the best training, education, and real-world experience necessary for me to grow professionally. To me, my experience working at a large company that was going through tremendous growth, with the ability to learn, execute, test, while furthering my education, was critical to my success… Those 7 years definitely changed my life.

“We simply work hard to be the best.”
That quote is directly from the Enterprise Rental Car website, and boy, do I believe that! See, what the manager of Enterprise Rent-A-Car did that summer day truly impacted my life. It’s not a corny cliche, it’s real life. He didn’t need to drive me anywhere… I wasn’t a customer at that point, and never had been. But, he went above and beyond…actually he went way above and beyond. Think about it, how many of your employees would do what he did?? Not many, right? I ended up writing a letter to his Regional Manager about my experience and I hope they plastered that story all over Enterprise Rent-A-Car Land. He deserved to be promoted…and that very day. And of course, I followed up with him to thank him another dozen times.

They’ve Earned a Lifetime Customer Evangelist
My Enterprise Rent-A-Car story is truly an extraordinary customer experience, and one that will be hard for any other company to beat (at least personally). So, when I travel and I’m presented with several options for rental cars, you bet I go with Enterprise every single time I can. I don’t think twice. In addition, I also recommend Enterprise any chance that I get, and coincidentally, this is typically during the meetings that I’m traveling to!...so it’s darn targeted. :-)

So, have you experienced extraordinary customer service like I did? I’d love to hear your stories (and they don’t need to be as crazy as the one I listed above!) I know the stories are out there…

GG

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Tuesday, October 09, 2007

7 Drivers of Word of Mouth Marketing (WOM)

Drivers of Word of Mouth Marketing (WOM)Word of Mouth Marketing (WOM) has become a hot topic over the past few years in marketing. The web has helped foster the explosive growth of WOM, since it’s a powerful catalyst for spreading the word to targeted individuals in mere nanoseconds! Many companies hear about “empowering customer evangelists” and they want to jump right in. Of course, it’s not that easy, but it is a powerful marketing channel that I recommend to most of my clients (if it fits). More on that later… In my experience over the past 13 years, I have seen how the power of WOM can impact a business. It can be a powerful driver of buzz and sales, to say the least. So why do some products connect with customers and others sit in what I like to call “WOM Limbo”? Let’s face it, some products seem to start a fire under customers and others wander by, simply as part of a business transaction.

So, what drives WOM in customers?
I’ve thought about this a lot over the past 4 or 5 years as WOM has grown in popularity as a marketing channel. In addition, I’ve helped clients try and harness the power of WOM to grow their own businesses and I’ve also kept a close eye on the industry. Last, but definitely not least, I’m a customer evangelist myself, and proud of it! When I find something that impacts my life, I love to tell people about it. So, my consulting, research, observations, and my own experiences as a customer evangelist helped me identify some of the key drivers that cause people to buzz about their favorite products and services. Note, this is obviously not a complete list of all drivers of WOM, but it’s a good start.

1. The “I can do that?” Factor
Meaning, a product or service enables you to do something that you were never able to do. DVR’s come to mind. How many people are ridiculously busy now with work, kids, social life, etc? VCR’s didn’t cut it, and people were not able to catch the shows they wanted to see. Hello TIVO, and now hello DVR’s from every major cable company. When I bought my first TIVO, you couldn’t shut me up. My wife literally had to put a Hannibal Lecter-looking grill on my face to shut me up! :-) Note, you can read more about my adventures with TIVO and the Comcast HD DVR here. The bottom line: Enable customers to do something that they could never do before, and it can be a huge driver of word of mouth for your business.

2. The Early Adopter
Do you know someone who always wants the latest and greatest product? I do, and these people are buzz engines. For example, they buy the latest gizmo and want to tell the world about it. iPods, iPhones, Blu-ray HD DVD players, HD TV’s, and gaming systems like Xbox all come to mind. Not only do early adopters buzz about their latest gadgets, they typically have a platform to drive the message. Can you say blogging anyone?

3. Extraordinary Customer Experiences
We all know what this means…when your experience was so good that you feel obligated to tell the world about it. For me, BuyCostumes.com, Barnes and Noble, Survey Monkey and Amazon.com all come to mind (online). Offline examples include Honda, Enterprise Rental Car, Marriott, and the Ping G5 Driver, the latest weapon in my golf arsenal. :-)

A Small Business Tangent: When I think about small business WOM, the party supply store in my town called Party and More comes to mind. It’s run by a woman (Denise) who truly gets customer service and word of mouth. The first time I was in her store, she spent time speaking with my 3 year old daughter. She gave her a free balloon and was genuinely interested in my daughter’s stories. Then, I saw Denise after my son was born and she gave me a display of balloons for my wife, and also spoke with my daughter about the new addition to our family. Actually, I didn’t even know that Denise owned the business since she was spending so much time with me and my family! Now every time we go to that shopping center, my daughter asks if we can go see “the balloon lady”. And we often do… I also jump at the chance to tell people to go there.

4. It’s So Close, You Can Taste It….So to speak.
Taste and smell are powerful senses…so it should be no surprise that people love to talk about food. Find a healthy alternative to french fries that tastes great, and you’ll probably tell 50 people about it. Or, if you are part of an online community or utilize social media sites, you might be able to tell thousands of people, and fast… For restaurants, you jump up another level…since service is now part of the picture. Now you need outstanding food and good service. Most people know that restaurants depend on positive word of mouth to survive, and negative word of mouth can put them out of business faster than you can say “Check please!”

5. Health
If a product or service positively impacts the health of customers, they tend to want to tell the world. Stories of people diagnosing a problem on WebMD, even when their own doctor didn’t catch it, will drive more people to the site. Omega 3 pills are another good example, with studies showing the impact on mood, brain power, retention, memory, cholesterol, etc. Diets are another good example, since one person that successfully loses weight can drive hundreds or more to the try the same style of diet. We’ve all seen that happen, right?

Dr. Oz on OprahOr, how about the latest craze, Dr. Oz on Oprah. Now, would Dr. Oz be as popular today without Oprah? Probably not, since she was the catalyst for his explosive growth. That's the power of a famous influencer. More on influencers later in the post... WOM has taken over with Oz and many people are talking about him now. So, it looks like you're not in Kansas anymore Dr. Oz.

6. The Power of Children
If it impacts your children, you’ll shout it from every mountain top. Parents would do anything to help their children. Moms and Dads are big drivers of WOM for children’s products, whether it’s toys, cribs, strollers, bedding, car seats, food, etc. Don’t believe me? Visit the babycenter forums and browse around. You’ll be shocked at how much activity goes on there…and for products you never thought existed. Well, like the Munchkin Fresh Food Eater for Babies. My son loves it...

7. It Gives You an Edge Professionally
Everyone wants to succeed at work. So, new applications, classes that enhance your skill-set, new sources of information, new ways to find leads, etc. can all drive WOM. In addition, influencers within specific verticals can drive a lot of business. If you receive an unsolicited endorsement from a key figure in an industry, watch out. Your website may go down from the explosion of traffic. Seriously, I have seen this happen and it’s amazing to watch. In addition, the people calling after reading that endorsement are typically ready to buy. They tend to feel that if John likes it, and they know John, then it's good enough for them. That’s powerful. Note, key influencers actually apply to all categories, but my last point was focused on professional wom (i.e. a leading consultant for leadership development endorsing a new class.)

So, those are 7 key drivers of WOM. Again, this wasn’t meant to cover every driver of WOM, but it’s a start. I plan to expand on this topic in future posts, so stay tuned.

But I’d like to hear from you now. Does your product or service fit into one of these categories? Or is it in WOM Limbo for some reason? I’d love to hear your thoughts.

GG

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Wednesday, September 19, 2007

Effective Email Marketing with BuyCostumes.com

Buying Halloween Costumes from BuyCostumes.comI love Halloween. It’s my favorite holiday of the year. It’s the only time during the year when I can scare people without the fear of getting arrested! :-) In the past, buying costumes was always something I did at one of those fly by night Halloween stores that pops up a month before the 31st and is gone by November 1st. Thanks to the web, buying costumes has gotten much easier. I’ve been a big fan of BuyCostumes.com for some time now. I’ve been buying from them for 3 years and each purchase has been a great buying experience. So, when I received their latest email, which prompted me to buy 2 costumes and some cool accessories, I figured it would be a ghoul, I mean good time to write a post that I’ve been meaning to write for a while.

Email Marketing and BuyCostumes.com
BuyCostumes.com has always done a good job at keeping in touch with me. And based on my positive experience with them, along with my love for Halloween, I’m also happy to check out their site to see their latest and greatest costumes and offers. Now, I've explained in a previous post how I believe that email marketing to your internal list is the most powerful online marketing channel. How powerful? Here's a good example. I remember speaking with a friend of mine about a month ago regarding Halloween (he also has 2 kids.) I explained that I needed to get moving and figure out what costume I was going to buy and that I just received a good offer via email. He quickly said, “You mean the email from BuyCostumes.com?” That’s powerful. So, I wanted to focus on what I believe are some of the key elements of BuyCostumes.com's effective email marketing.

The Email Creative:
Their email marketing creative always intrigues me enough that I click through to the site. They provide great visuals of their products and always provide excellent offers (like the most recent offer: spend $100 and receive $20 off). I knew I would spend $100, so their offer was a perfect fit. In addition, they always provide their offers in the upper right hand corner in a bold and dark font (easy to see). I also know to always look there to find the details of the offer. The subject lines they use are direct and typically explain the offer.

For example:
“Still time to save - 3 Killer Halloween Offers”.
This was a reminder, so I was already aware of the offers. Their creative always includes html text and images, giving people with connection issues or email clients that block images a way to find out more information. I can’t tell you how many times I have received emails with one block image, which can kill your campaign’s response rate…

They Don’t Bombard Me (Unless it’s Halloween...)
I never feel like they bombard with me emails, but I also don’t feel like they’ve been out of touch for too long. Yes, as we’re approaching Halloween, their email activity has definitely picked up (as you would guess it would), but it’s Halloween and I understand this is their big quarter. They have provided great offers along the way, all with a relatively short lifespan (which is smart). It’s hard to give people a sense of urgency if you give them a month to buy something. Actually, with email, an offer that expires in a month will probably never get used. Your email will drop below the fold in someone’s inbox, never to be seen again. Most email campaigns have a 3 to 5 day lifespan, and I’ve rarely seen a lifespan of more than 2 weeks.

Here’s an example:
BuyCostumes.com sent me an email with 3 great offers, which I left in my inbox. Then, like everyone, I was slammed with work. I made a mental note of one of the offers and moved on to my work. So, a few days later, I received a reminder, which immediately drove me to act. That's smart email marketing. I always recommend blasting a follow up to people that haven’t responded to the first email, if possible. The reason is simple…people are ridiculously busy and it’s entirely too easy for your email to fall below the fold in someone’s inbox. Then it’s history. A reminder is a smart way to take "should-have-been conversions" to "actual conversions".

BuyCostumes.com (the website) Meets Your Expectations
When you click through to a site like BuyCostumes.com, your hope is that it meets your expectations. The website should have a great selection, be easy to navigate, offer excellent imaging functionality so you can see costumes up close and personal, provide fun accessories you might need to polish off your Halloween costume, and of course offer competitive pricing. BuyCostumes.com definitely does not fall short. I’m a big horror fan, so to click Adult Costumes, Horror, and then drill into costumes for men makes it very easy for me to target what I’m looking for. Then they enable you to drill down even further by clicking a subcategory within Horror, like Horror Movies. The costume listing dynamically changes based on your criteria. With thousands of costumes on the website, this functionality makes finding the one you want much, much easier.

Product Detail Page on BuyCostumes.comProduct Detail Page Imaging Functionality (Pan and Zoom)
Once you find a costume, you can easily zoom into an image (which opens in a new window). You can pan and zoom to get a better look at the costume, which is almost essential if you are serious about your costumes (like I am). Although they do have pan and zoom functionality, I actually think BuyCostumes.com can do better in this category. But, if you break it down, the fact of the matter is that you can get a good look at the costume using their current functionality. More on this later in my post.


Ratings and Reviews
They provide ratings and customer reviews, but I didn’t see many reviews… That’s a double-edged sword with providing reviews. It looks really bad when nobody is reviewing your products! So, I’ll help them out here…

Customers of BuyCostumes.com, review your products, let other customers know what you think, and make their buying experience even better! I just added a review so I’ve done my job. :-)

{Update: BuyCostumes.com launched a campaign to drive more reviews, and they added a nice incentive for customers (a chance to win a BuyCostumes-sponsored $150 Halloween Party). I recently received the email from BuyCostumes asking me to review the costumes that I just purchased. More about this later in the post.}

Search Functionality and Breadcrumb Trails
They have excellent search functionality, enabling you to search specific sections of the site and not just the entire site. They also provide a breadcrumb trail so you can easily find your way back to previous screens.

A Great Closer - Easy Ordering Process and Timely Shipping
I have always found it easy to order from BuyCostumes.com. Once you choose "checkout", it’s basically one step to submit your order. Their email correspondence is fast and provides you with all of the information you need (order details, track your order, contact customer service, etc.) Shipping is fast and I’ve never had a problem with the speed at which it arrives or the condition of the packaging. They’ve built up a lot of trust with me, which is extremely hard to gain and very easy to lose.

Possible Improvements for BuyCostumes.com
Don’t get me wrong, as you can see I think they do a great job. That said, there are always ways to improve.

* Segment their email list
I have always purchased horror costumes, yet I always get their general emails (which tells me that they haven’t segmented their list). It would be nice to get an email based on my previous purchases. For example, “Hi Glenn. We’ve noticed that you like our horror costumes. Here are the new horror costumes for 2007. Or, here are the top horror costumes from 2006.” So on and so forth. By the way, there are probably a thousand link-bait ideas for them, being a costume website!

* Provide Better Imaging Functionality
As I stated earlier, they provide good pan and zoom functionality, but I still think there is better technology out there. I think this type of imaging functionality is critical for buying costumes, so it would be a good idea for them to take a look at other solutions.

* Better Ratings and Reviews
This is not easy, since it’s based on customer participation. That said, they could encourage their customers to join the community and improve the site. Actually, it could be a good way to launch a word of mouth marketing campaign. For example, how many customers are as happy with BuyCostumes.com as I am? Probably quite a few. Tapping into passionate customers will only help their business, and WOM has become one of the hottest areas in web marketing. Also, how about a blog?? How fun would that be?

{Update: As I mentioned earlier, BuyCostumes launched a campaign to drive more reviews (very smart.) I received an email asking me to review my costumes for a chance to win a BuyCostumes-sponsored $150 Halloween Party. I explained above that I thought BuyCostumes.com should launch a campaign like this, and coincidentally, they did! And in true BuyCostumes form, they did a great job with the campaign. The email creative was clear and helpful, even providing the actual costumes you purchased with a link to the review form. Once you hit the site, the review form was extremely thorough, which will definitely help future buyers make informed decisions. And my favorite piece of functionality…you can upload photos of yourself (or your friends) in the costume! Fantastic idea… Great User Generated Content (UGC). The results? After browsing the site today, I see many more reviews. The campaign is working and I’m confident that these new customer reviews will help BuyCostumes meet and exceed customer expectations.}

I’ll close my post with two points…
1. If you are a Halloween fan, definitely check out BuyCostumes.com (and sign up for their email alerts). You may never buy a costume from another store or website.

2. If you are a web marketer and want to see a great example of effective email marketing, driving customers to a site that meets (or exceeds) their expectations, then you should also visit BuyCostumes.com and sign up for their email alerts (see link above).

By the way, I’ll be set up outside my house again for those of you trick or treating in my neighborhood…that is, if you dare…{cue evil laughter}. ;-)

GG

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Thursday, September 13, 2007

TIVO HD DVR at $300 - Too Little, Too Late?

TIVO HD DVR Pricing Forces Customer Evangelist To Buy Competing DVRAs I mentioned in a previous post, I was a TIVO fanatic. Notice the word “was”. From the second I bought my first TIVO, I became a word of mouth marketing machine for the product. As a customer evangelist, I was my own viral marketing channel for TIVO (no pun intended). It’s what every company strives for, right? Get people so jazzed up about your product that they find ways to tell the world about it. Whether it’s in a blog post, at a party, at the park with your kids, at work, on a plane, train, etc. You get the point! So, with HD booming over the past few years and everyone buying HD TV’s, how would TIVO respond? If you want HD resolution, then you didn’t want to use a standard definition TIVO box. TIVO fans eagerly waited to see…

Well Hello Competitors!
As cable and satellite companies (like Comcast in my area) introduced their DVR’s at extremely reasonable prices, more and more people started to try them out. They were integrated into the cable box, supported by the cable company, and the installation just seemed “cleaner” than installing a TIVO. Again, TIVO fans waited to see what TIVO would do… Personally, at that time, I loved TIVO and would not give the Comcast DVR a try just yet… I was a loyal TIVO fan.

TIVO Offers Their HD DVR!!!...
…At $800? What? When most HD TV’s range from $1200 - $2500, you want to charge me a whopping $800 for a DVR?? Seriously? No, come on…you’re pulling my leg. There’s an extra zero in there or something. OK, I’m going overboard here, but this was my first reaction. So I was stuck…I loved TIVO, didn’t want to go to the dark side of using a cable company, but I wanted my HD TV!! I really have no idea what TIVO was thinking. They basically thumbed their noses at their top customers…the people that spread the word about their product like wildfire. Forcing them to make a decision like this was dead wrong. And, that TIVO's marketing department thought this was a good idea scares me as a professional.

The Call to TIVO Customer Service
So, reluctantly, I made the move to Comcast’s HD DVR, and overall, I was happy with the product. There are definitely some things I don’t like about it, but overall, I’m happy. Then I had to call TIVO to cancel one of my plans (I have 2 TIVO’s and one would remain hooked up to a standard def TV). The woman I spoke with was extremely nice and customer service oriented. I was expecting the AOL-like method of not letting you cancel the plan, but I didn’t experience that. She was professional, empathetic, and made me feel that I was her first call of the day (which I knew wasn’t the case…) Now, you should notice the word I used above “empathetic”. This is because when she asked why I was canceling one of my plans, I explained that $800 was ridiculous and although I love my TIVO, the smart decision was to make a move to Comcast. Then I waited to here her pitch for staying, why the HD TIVO was worth the $800, so on and forth. But, I didn’t hear that at all…you know what I heard?? “I hear you Glenn…to be honest, it’s hard for us to even afford the $800”. What?? That’s from a TIVO employee for crying out loud!! Now, if that’s not a reason to second guess your marketing strategy, then I don’t know what is.

Months Later, TIVO introduces their “Affordable” HD DVR
Great. Whoopee. Now I feel like they insulted my intelligence. This is what I was asking for months ago… I actually would have paid $400 back then. I said this all along to my wife. “If they were only a few hundred dollars less...” $400 was my limit, but they kept it at $800. Now, after making the move to Comcast, I’m supposed to do a double flip and buy the $300 HD TIVO? I don’t think so. Note that the $300 TIVO is a different product than the $800, but for the average customer, that doesn't matter.

It’s funny. In the past, whenever I heard someone talking about TIVO, I got a warm and fuzzy feeling inside. Now when I hear “TIVO”, it’s a much different feeling, like I just walked into a cheesy car dealership and a guy with a skinny tie, wearing floods, with a toothpick sticking out of his mouth just approached me. “Hey boss, looking for a new car? We've got some great prices...”

It’s funny how a marketing strategy can take someone from being a company fanatic to someone writing a post like this. Ouch. It truly is sad.

So, what do you think? Is it too little, too late?

GG

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Monday, June 11, 2007

Pop Quiz - Trendsetter or e-Commerce Blunder?

Not Your Typical e-Commerce Issue

Online shopping is booming, companies are investing in their websites at a staggering pace, and innovative web technologies are enhancing the e-commerce experience for shoppers. “Click and buy” is now understood by almost everyone sitting at your dinner table…even the grandparents. Based on the first line of this blog post, and the fact that I’m a web marketing consultant, you would think the rest of this post would paint a rosy picture of buying online, right? Although online shopping works well most of the time, there are those times that push my patience to brink. This is one of them.

Here’s the pop quiz:
Based on the photo above, which one of the following statements is true:

A) Glenn decided to be a trendsetter and have the front of his sneakers be different colors. He wants to start a marketing craze where sneakers don’t entirely match.

B) Glenn has always wanted to be mad scientist with a lab in his attic. There he can sew together “Frankensneakers” for the world to buy. {Cue mad scientist laughter}

C) Glenn ordered sneakers online and wasn’t able to view the actual sneakers he would be buying, only to receive sneakers that weren’t manufactured correctly.

Although I do like being a trendsetter and the name “Dr. Frankensneaker” does have a ring to it, the correct answer is C. ;-)

My History with Adidas Trail Running Sneakers:
A quick background first. I love Adidas trail running sneakers. I started running 15 years ago and I’ve tried many of the top sneakers. For me, nothing has come close to Adidas Trails. That said, I don’t like looking like a jogging clown, even though I can juggle and create balloon animals. :-)

You Can Use E-Commerce to Buy Almost Anything, Right?
Based on what I do for a living, and the fact that I buy almost everything online, I decided to visit shopadidas.com and buy sneakers online. Keep in mind that although I’m a huge advocate of e-commerce, it can be tricky if you need something to fit perfectly (especially when you are going to be jogging a lot miles in a pair of sneakers…) I was willing to take the risk.

Buying Sneakers Online at ShopAdidas.com:
The buying process was seamless. ShopAdidas.com has an excellent website, enabling me to find the line of Adidas Trails easily and efficiently. They also provide great zoom and pan functionality once you are on the product detail page. Sure, I couldn’t try them on, but I’ve been wearing Adidas Trails for 15 years. I was confident that the sneakers would fit. I hoped anyway… In 10 minutes, I had found sneakers that I liked, purchased them online, and now I just needed to wait a few days to receive them. They arrived 3 days later (definitely within my e-commerce shipping window of tolerance), and yes, they fit perfectly! Excellent. Keep in mind, my focus was on how they fit and not how they looked. It’s funny how our eyes can play tricks on us… I didn’t even notice the front piece of the shoe, you know, the one that stares you right in the face when you look down!

Are You Kidding Me? This is what went wrong??
Never in a million years would I have thought that an improperly manufactured sneaker would the problem.

I was entirely prepared for the following e-commerce issues:

* A bad shopping experience
* Poor pricing or high shipping charges
* Not being able to track my order properly
* Shipping taking too long
* The sneakers not fitting properly

But none of these things happened. The experience was great until I put on the sneakers, actually went for a run, drank a Gatorade, and then looked down….What? The front of one sneaker is green and the other is grey!

ShopAdidas.com Customer Service:
What would they say, right? The quick facts: I already wore the sneakers, the box is gone, but the sneakers weren’t put together correctly. Let’s see how this goes over at ShopAdidas.com. I called and spoke with a great customer service rep. She completely understood my situation and didn’t care that I wore the sneakers already. Not once did I hear a hint of skepticism, which I was completely prepared to hear… The call took 10 minutes and the customer service rep issued an RMA# (return authorization) which I received via email (with a shipping label) a few days later. Note, I think the email should have arrived immediately, but that’s the way it goes. Also, I would still need to purchase another pair of sneakers online, since they can only credit my account. I think they need to be able to issue a replacement, but their system cannot handle it yet...

The Positive Note:
It is amazing what a good customer service experience will do. At least they stepped up, admitted that it was their problem, and handled it quickly. I think many other companies need to follow ShopAdidas.com when it comes to accountability. I will buy from them again, but for me, there aren’t 3 strikes in my e-commerce game. There are only 2 (and sometimes 1 if the customer service experience doesn’t go so well…) I hope my next experience is a better one.

So what’s the lesson here?
I guess there are a few, and I’ll try and summarize them below:


* Buying online has improved dramatically over the past few years, but don’t get too confident. Until you can reach through your screen and hold the actual product that you are going to buy, there are still times where you can benefit from buying at a brick and mortar store.

* Customer service can make or break a buying experience. If the ShopAdidas.com rep didn’t act so quickly and understand my situation so well, I’m confident that they would have lost my business for a long time.

* The hassle of buying online, waiting for a product to arrive, finding a problem, contacting customer service, waiting for the RMA#, boxing up the product to return, dropping off the package at UPS, and then having to reorder the product again, takes a lot more time than running out to a store and buying sneakers. Aren’t the core benefits of buying online speed, selection, and efficiency? I guess only when it works perfectly, right?

So now I have a decision to make (and one that I’ve had to make in the past – see my post about Best Buy In Store Pickup). Do I purchase the sneakers online again and hope for the best or do I run out to the store and just pick them up? I’m a busy guy, so I might actually purchase them again online.

Am I a glutton for punishment? You’ll need to check back to find out…

GG

{UPDATE} OK, so when I left off, I had to ship my sneakers back to Adidas and then wait for a credit (which I found out could take 30 days after receiving the shipment). I went ahead and trusted that Adidas would follow through and issue the credit, and I ordered a new pair. The funny part was that ShopAdidas.com now didn’t have my size in stock! So, I visited a shopping engine to find out pricing and availability at several online stores. I found the sneakers I wanted in my size (and at a $12 discount from what I originally had paid). They should arrive early this week. As for Adidas, I received an email on Friday explaining that they did issue the credit. So, it all ended up ok. Sounds like an e-commerce soap opera, doesn't it?? The problem is...I don't like soap operas. :-)

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Monday, November 13, 2006

Best Buy's Purchase Online and In Store Pickup, AKA Buy Online And Yell At Your Monitor


There are times that I am working on a tight deadline and don't have time to purchase hardware via the traditional methods I use. That typically puts me in a situation where I need to go to an actual brick and mortar store to buy hardware, like Best Buy or Circuit City. This happened the other day, when I needed a new firewire card and wireless card ASAP. Should I just go out to Best Buy, find what I need, and waste an hour of my precious time? I didn't want to lose the hour so I logged onto BestBuy.com to place an order and saw an apparent answer to my dilemma...Purchase online and they will have it ready at a store of my choosing in less than 1 hour. Perfect! Or was it? Read on.

Great Functionality, Poor Execution:
As I was placing my order in light speed (smoke was actually coming up from the speed at which I was typing), I noticed two very important pieces of information on the cart screen. ITEMS IN STOCK AT PRINCETON LOCATION. Excellent. This is too good to be true, I've placed my order in just a few minutes, it will be ready for pickup in less than 1 hour and I've saved myself approximately 45 minutes, which now can be spent cranking away on my deadline! The order goes through and I receive a few confirmation emails...so far, so good. Then another email comes through...this one is not so good. One of your items is not available at our Princeton location. What?? You just showed me an "ITEM IN STOCK" message in my cart. Surely Best Buy's systems are good enough to check the inventory at the location in question, right? Obviously not. So, now I had a decision to make...do I go to the store, pick up my item that's in stock, then browse the store for the other item and then have to pay for that separately? Doesn't that take up more time than just running out in the first place?? Again, I'm working on a serious deadline. Oh yeah, do I take the chance of placing another order on the website for pickup, only to see it's not in stock?? ...after the site tells me it's in stock? I'm not so confident anymore. Would you be?

Web Marketing Meet E-Commerce Functionality:
To make a long story short, I ended up taking the risk and ordering another item on the website. I waited for the email notification to come through telling me it was not in stock, but it was! Excellent. I flew out the door and picked up my items at the In Store Pickup Desk, which by the way, made up for some of the frustration I experienced earlier. It took 5 minutes to get my items and walk out the door. But here is my issue...I love the functionality on the e-commerce site, if it worked well. The ability for someone to purchase and then pick up in less than an hour is wonderful. That said, it has to work flawlessly (or close to flawlessly). Don't show me an in stock message when it's not in stock. I'd rather see a message that says "We need to check the inventory at the Princeton location" so my expectations are properly set. Web Marketing at Best Buy did a great job concept-wise, but someone didn't ask the next question, "can our systems tell in real time what's in stock at our locations?" Uh, that's pretty darn important, don't you think?

My final comments:
I love that Best Buy gives you the ability to order online and then pick up at a store location quickly, but they need to polish off the process. Personally, I always had a positive feeling towards Best Buy, then it was knocked down a little during this process, only to come back a little due to the positive experience with in store pickup. With a little more work and systems integration, the purchase online, in store pickup process can help gain customers, keep their current customers happy, and get them closer to truly meeting their customers' expectations.

*On a somewhat separate note, I had the wireless and firewire cards installed and working faster than figuring out my next steps during the ordering process! I hope my next experience with Best Buy is a little smoother.

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