E-Commerce Customer Reviews, Common Pitfalls That Can Impact Sales

If you run an e-commerce website, then chances are you’re fully aware of how ratings and reviews can impact sales. I think everyone agrees that enabling customers to review products is a powerful way to leverage user-generated content to improve the overall buying experience for visitors. That said, what constitutes a quality review, what are prospective customers looking for in a review, and how can the various types of reviews impact conversion? Not all reviews are created equal, so if you are thinking about implementing reviews on your website, I've listed four pitfalls below to watch out for. You might be able to plan your implementation with these in mind!

When Are Reviews Necessary?
Before I list the pitfalls, I also wanted to quickly explain when reviews are beneficial to prospective customers and when they aren’t necessary. I don’t really need to read a review for GAP jeans or a Banana Republic belt or a Canon calculator. We all know they are high quality and they are fairly simple items. In my opinion, it comes down to price, safety, and how a product impacts your life. Lesser known brands from smaller companies might require reviews from consumers versus bigger, well known brands. In addition, how the product will impact your life is an important factor for reviews. For example, you would probably want to read reviews for infant car seats, a high end camcorder, or an expensive piece of furniture. Price, safety, and how that product impacts your life will dictate if reviews are necessary. Again, just my opinion.

Without further ado, some pitfalls of e-commerce reviews include:

1. When there are no reviews!
If visitors are expecting to find reviews and they can’t find any for the product they are looking for, then there’s a chance they will lose confidence during the purchase process and move on. That's especially true if you boast about your website reviews! Even the slightest second thought can be a conversion killer. If you are having trouble gaining reviews from customers, then I highly recommend launching a campaign to drive more reviews. Leverage your in-house email list and get people back to your site to review the products they purchased. Heck, give them an incentive…maybe 15-20% off their next purchase in exchange for a review. Having no reviews can impact more than sales for the product at hand, it could be interpreted by visitors that you don’t have enough volume or customers to generate reviews. Again, not a good thing when someone is ready to buy from you…

2. Who is actually writing the review?
Let’s face it, customers aren’t stupid. They want to read reviews from similar people who are in similar situations. For example, anonymous reviews are close to worthless in my opinion. Depending on what I’m buying, I want to hear from someone in a similar situation (who has a name). I don’t need to know them obviously, but I want to know that it’s from a somewhat quality source. For example, whenever I buy a tech book (like a programming book), I want to hear from other developers. I have an entire bookcase full of programming books and not all were written perfectly, to say the least… So, something like, “I’ve been programming for 13 years and this book was outstanding. The chapters started with a solid foundation, then moved to basic coding examples, and then real-world coding projects. The samples always worked (don’t laugh, many programming books come with code examples that don’t work) and the book is a great reference for when I get stuck.” A review like that would get my attention. Last year, I wanted to read reviews when I was looking for a new golf driver. I definitely wanted to hear from golfers in my skill range. Hearing from a scratch golfer wouldn’t be helpful, nor would hearing from a beginner. Solid reviews helped build confidence and got me closer to the sale… Now, I still needed to blast a few golf balls at the range before buying the club! You get my point.

3. Mixed Reviews (Great reviews mixed with poor reviews).
Products that have mixed reviews will tend to give customers less confidence in moving forward with a purchase. It makes sense, right? How can there be 5 fantastic reviews and 5 horrible reviews? That’s a definite red flag for me (and others too). I wouldn’t take a risk on buying something online that half the reviewers thought was a waste of money. Would you? I’m not referring to reviews that rate a product as mediocre. I’m referring to those weird set of reviews where some people loved the item and others hated the item. Seems fishy, doesn’t it? I always move on… It also leads me to think that there’s a fake review or two in the mix… Read on. ;-)

4. Fake Reviews
I think we’ve all come across these, right? (probably written as anonymous)? It’s funny, most people can’t write a positive review if they are forced to. Don’t believe me? Go ahead…try and write a positive review for something that you don’t really like or that’s your own product. I will guarantee you that it sounds obvious. ;-) If I come across a fake review, there had better be a real one for that product…or there’s a good chance I’m moving on. My hope is that you can pick out the fake reviews, and if you can’t, then hopefully there are plenty of other reviews for the item at hand.

So there you have it, four pitfalls when offering customer reviews on your website. I definitely believe reviews are a great feature to add on your e-commerce site, but I think you should implement them with a good understanding of the types of reviews out there and how they can impact conversion, user experience, and return buyers. My hope is that you will keep these pitfalls in mind and try to form strategies to overcome them. For example, launching campaigns to increase reviews, dealing with anonymous reviews, tracking the impact of reviews, etc. When you break it down, reviews can help your customers make informed decisions, and also help you determine the right products to sell on your website. Now if you’ll excuse me, I need to go review the Tonka Truck I just bought my son. ;-)

GG

Google SMS and More Mobile Marketing Ideas

Last week I wrote about short code marketing and using text messaging for mobile marketing campaigns. Last year (around this time), I wrote about Goog 411, Google’s free 411 service that returns results based on its local listings. So today I figured I would combine the two concepts and write about Google SMS, Google’s way of answering your search queries on your mobile device. The short code is 466543, or “Google” on most devices. If you are unfamiliar with short codes, please check out my last post (see link above).

What it is Google SMS and What are the Benefits?
Some of you might be saying, “Why wouldn’t I just browse to Google on my mobile web device and enter my search??” Well, SMS is much faster (at least for now). Texting a quick search query using SMS, with the ability to save that query for future text messages, is a great way to get fast answers to your questions.

What types of searches can you text to Google?
You can see a quick list on the Google SMS site, but here are a few possibilities to get you thinking… How about checking the weather, the score of the Yankees game, defining a word, a stock quote, product prices, directions, flight information, currency conversions, etc. These are just a few of the searches that you can text to Google and I’m confident you are starting to see the value of Google SMS… The problem is that many people don’t even know about it. Don’t believe me? Lean over and ask your coworker now if he or she knows about Google SMS. {Glenn waiting.......OK, you're back} I bet you got a confused reaction from them, right?

To text your search to Google SMS, simple enter the search feature and then what you are searching for, like:

weather pennington, nj
score Yankees
movies 08540
price blackberry curve 8310

Cool, right? And for those of you wondering how much faster it is to text a search versus browsing the mobile web, here’s a quick test on my Blackberry Curve 8310. I’ll look up the price of a Canon Powershot G9:

Browsing the Mobile Web:
Loading browser…
Finding Google….
Waiting for data…
Yawn…
SERP returned…
Checking listings….
Finding solid listing and price for G9
Total Time: 1:25

Using Google SMS:
Texting “price canon powershot g9” to 46653
Price returned via SMS in 8 seconds
Total Time: 16 seconds

Convinced this is a smart way to go? :)

Why this is important to you as a marketer…
Because you don’t have to be Google to achieve the same results for your customers and potential customers. You can do this for your business. Think about it…you can use text messaging to quickly answer questions, no matter what line business you are in. And, the more answers you provide, the more customers and prospective customers you can make happy. The more people you make happy, the more they will talk about your business (can you say WOM)? The more they talk about you, the more business you can acquire. The more business you can gain, the more money you can generate. Do I need to keep going here?

Some SMS marketing examples:
Let’s say you run an accounting firm targeting small businesses and you want utilize SMS marketing. Maybe you can answer basic accounting questions that you know small businesses always have via your short code. i.e. text “FICA” or “1099” to {your short code here}. Help enough small businesses and maybe you build new relationships along with new clients. Do you own a car dealership? Maybe you can answer questions about pricing or features for the latest models. Are you an electronics retailer? Maybe you’ll answer top product questions. i.e. text “SPECS for IPOD Nano” to {enter your short code here}. Again, the possibilities are endless. I explained some other uses for short codes in my last post, but I’m just focusing on the search and answer model here… Do you own a chain of weight loss centers? Provide the number of calories for various products or meals. i.e. text “calories slice of pizza” to {enter your short code here}. You get the idea!

Go ahead, stir up mobile marketing at your company!
I wanted to write this post to keep mobile on your mind after my last post… (Hey “Mobile on My Mind”… sounds like a new Carrie Underwood song…) I truly believe mobile marketing will be huge and it’s basically an untapped channel right now. Heck, there are short codes just waiting to be purchased…and you would be shocked to see how many big brands are not involved yet. It would be the equivalent of Coke not being interested in coke.com 10-15 years ago. BTW, I’ll beat you to the punch…Coke already owns the short code for COKE. They are on top of it! Are you? :)

GG

PS Don’t forget to test out my short code…just text IMD to 23907 to sign up for mobile alerts when I update my blog. You can always opt out, but it’s a cool way to see how this works!

Viral Marketing Campaigns, Important Elements to Consider to Enhance Campaign Effectiveness

Viral Marketing is a hot topic, especially since the web is an incredible catalyst for getting the word out about something. Depending on your business, viral marketing can be a powerful way to drive exposure, traffic, and sales. You can get your brand in front of thousands of people in a relatively short amount of time. By the way, I’m not referring to organic Word of Mouth Marketing (WOM) or Buzz Marketing. If you want to get technical, I’m referring to Amplified WOM, or an online marketing campaign with a goal of taking your message viral, spreading it across the web like wildfire, exposing your brand on a grand level, and hopefully turning it into revenue down the line. Don't worry, I explain a few examples below. You don’t have to be a large company to utilize viral marketing. You just need to be creative and develop ideas that leverage the viral nature of the web to achieve your goals… Let’s take a look at what I believe to be some important elements to consider while developing your viral marketing campaign.

Concept Development, Make Sure It’s Fun, Memorable, and That It Has a Hook
During your brainstorming, if you read a concept and remotely think it won’t be fun, inspiring, or intriguing enough, then throw the idea away. The bar is constantly being raised, so you need to ensure people will want to take part. If it just sounds ok, then it’s probably worse. If you get goosebumps while reading it, then you’re on to something. I use this test often while mapping out creative strategies….if it doesn’t give me chills while reading it, then it’s not good enough, period.

Here’s an interesting example of a viral campaign: Weight Watchers recently hired FaintStarlite, a popular video blogger to help promote their "Stop Dieting, Start Living" campaign. There’s a myspace page for the campaign and FaintStarlite vlogs away… She is asking others to post about their diet experiences, their Weight Watchers journey, and talks about her own experiences. Right now, her WW myspace page has over 6300 friends and 430 comments. Reading through the comments, you can see the campaign seems to be resonating. Women (and some men) are talking about dieting, when they joined Weight Watchers, laughing about the craziest diets they have tried, etc. This is a good example of tailoring the campaign to your target audience. Actually, I'd love to hear from FaintStarlite about how the campaign is going from her perspective.

Another good example was the Hammer and Coop viral campaign by Mini Cooper. I won’t go into all the details, but it has ultra-high production value, it's extremely funny, and I spent 15-20 minutes there before I even realized it! Good concept, excellent creative, and got me talking about the campaign…

A Common Question I Hear:
“How controversial or extreme should we make our viral marketing campaign?” I’m a big fan of humor. It’s a great way to generate a viral effect. Think of the CareerBuilder monkey tv commercials, which spurred the CareerBuilder viral campaign "Monkey Mail". It’s a serious subject (your career), but they really took a light angle by using the monkeys… If you can weave humor into a sound marketing concept for your viral campaign, then you are off to a great start. I’m not saying that controversial campaigns don’t generate buzz…but at what price? And by the way, you can shock people with humor and not leave them writhing in their seats… Another option is taking real world experiences and using them as the basis for your campaign. Let your actual customers talk… Let the true stories of helping customers resonate with your target audience. It’s not funny or shocking, but depending on your customer stories, it could generate a lot of viral activity.

Interactivity, Participation and User Generated Content (UGC)
Don’t create a 30 second spot…please. Sure, you might get some views on YouTube, but I firmly believe you need to have people interact with your campaign (and that’s not sitting and watching a 2 minute video). I think it’s a great idea to have video as part of the campaign, but not part of a one way viewing experience. There are so many ways to have people take part in your campaign, especially with web-based campaigns. For example, let’s say you are a clothing retailer and you’re launching a new line of jeans. As part of your campaign, run a contest letting customers create their own commercial for your jeans and give them some creative assets to start with. Maybe your logo, a few snapshots of models wearing the jeans, some music you have licensed for the campaign, and a few video clips from your stores. As participants create their commercials, have them upload the final video to your site, along with supporting commentary (what inspired their idea, their bios, who helped with the production, what their acceptance speech would be if their commercial won an award, etc.) Then have visitors vote on the winners… The winner gets a $2000 shopping spree on the website. It’s a great way to have people interacting with your brand, product, etc. And since they have created intriguing content for your site that others are voting for, your brand and product are now being viewed by more and more people…and maybe on other sites like YouTube, Google Video, etc. Think interactively….and not old-school television.

Giveaways, Grand Prizes, and Runners Up
If you choose to launch a contest as part of the campaign, then I cannot emphasize my next point enough. The winners should get something really, really cool that obviously fits your target market. So don’t give away a Blackberry to a retired guy living in a 55 and older community down in Florida. I'm not saying he wouldn’t like it, but he would probably enjoy a $500 restaurant gift card from Visa. Hey, I understand this crowd well since I know several snowbirds from New York. ;-) Do you target high tech customers, give away a jacked Macbook. Target moms? Give away a shopping spree at Babies R Us. You get the point. And, if you can give away your own products, even better. Then you’ll just pay the Cost of Goods Sold (COGS) and shipping. For example, if you sell footwear, then giving away 25 pairs of shoes doesn’t cost you the retail price, right? If you’re COGS are 30%, then you are giving away $1500 on $5000 worth of footwear. If you have products that people dig, then this is a great way to go. Keep in mind the viral nature of your campaign, though…will winning a year’s supply of paper clips excite anyone??

Brand Your Campaign and Develop a Dedicated Section of Your Website
Brand your campaign! This has several benefits, including giving people an easy way to communicate the campaign to their friends, helping with natural search, tying easily with your concept and creative, and obviously making it memorable! i.e. My friend Matt tells me about the Actober campaign by Major League Baseball, so I go to Google and enter Actober. If you’ve done your job correctly (and many don’t), your site and others referencing it should come up. If you didn’t give the campaign a name, then what would people search for?? Major League Baseball? On your website, add a directory matching the title of the campaign. i.e. www.yourwebsitename.com/yourcampaignname/

Sidebar, Do not waste those precious links!
I’ve seen campaigns generate thousands of links, which will greatly help a site’s natural search power, but then the companies shut down the campaign section or microsite after the campaign ends. NOOOO!!! “Sir, please step away from your web server…” Leverage that search power by either archiving those pages or using 301 redirects. A good link is a horrible thing to waste. ;-)

Get the Word Out, Advertise Your Viral Marketing Campaign
OK, so you have developed a great campaign, it’s a killer idea, the creative looks incredible, and you are getting goosebumps like I mentioned earlier. Now what?? You need to get the word out via a range of online marketing channels. Use your email list to stir up your base, use social media sites to communicate the campaign, advertise on targeted websites, use paid search to capture targeted visitors, and use PR to send waves across the web. Also, don’t forget to advertise on your own network of websites… I think this is sometimes overlooked. Create advertisements for key traffic areas on your own websites. Hey, there’s no ad spend! Add a footer to any email that goes out (confirmation emails to buyers, your email newsletters, etc.) Have your customer service reps explain the campaign at the end of phone calls. You get the picture. Leverage your own infrastructure to help get the word out.

Have Legal Approve Everything…
You are not a lawyer, so don’t make the mistake of not having your legal team or outside legal counsel approve your campaign. Let me say this again just so I’m clear. DO NOT LAUNCH A CAMPAIGN WITHOUT LEGAL REVIEWING EVERY ASPECT OF THE PROGRAM. I’ve seen campaigns run without a hitch and I’ve also seen campaigns come close to imploding. It’s all about the execution. I’m fanatical about this stage…it’s just in my blood. Listen to your lawyers…legal is a necessary element to your successful marketing campaigns. Make changes based on their feedback and get final approval before moving forward. Believe me, you won’t regret it.

Summary
So there you have it, some important elements to consider while creating your viral marketing campaign. This obviously doesn’t cover everything involved, but I plan on writing more posts related to viral marketing in the future.

Here are a few final words of advice…
* Be sure to view your ideas from the perspective of a would-be participant. It might be a great idea to you and your staff…but might fall flat with the people who will actually be participating.
* Definitely try to inject fun and energy into your campaign.
* Use technology to make it as interactive as possible.
* Use a wide range of online marketing channels to promote your campaign.

Last, my lawyer wanted me to add a line from him:

“This blog post about viral marketing sets forth the entire blog post and understanding of the parties relating to the subject matter hereof and supersedes all prior viral marketing blog posts and understandings, both written and oral, among the parties with respect to viral marketing, amplified word of mouth marketing, generating buzz, webfire, or any other terms related to viral marketing hereof.”

See, I told you to have legal review everything. :-) Sorry, I had to poke fun of legal at least one time in this post...

GG

Related Posts:
The Difference Between Viral Marketing, Word of Mouth Marketing, and Buzz Marketing
7 Drivers of Word of Mouth Marketing (WOM)

Making Sense of Blog Bounce Rate

This is the fourth post in my series on Bounce Rate, which is one of my favorite metrics in web analytics. Many online marketers are concerned with Bounce Rate, which makes a lot of sense since you can learn a lot from this metric… I've recently received many questions about Bounce Rate and how it relates to blog posts, so I thought it would be a good idea to address this topic in a post of my own. Let’s call it “adding context to your blog's bounce rate”.

There are 4 components to this post:
1. Your Blog Philosophy and Goals
2. Your Writing Style and How It Matches the Drivers of Your Readers
3. Related Content
4. Track and Learn

Your Blog Philosophy and Goals:
BEFORE you start to analyze bounce rate for your blog posts, you should think about your overall blog philosophy and determine your goals. For example, is your goal to educate readers and to answer questions, are you trying to generate a large readership, will your blog help you sell products or services, is it a key mechanism for getting people to contact you, are you interested in building high search engine rankings, etc? Clearly understanding your goals will help you bring context to the bounce rate of your blog posts. To give a quick example, if your goal is to provide breaking news to your readers, then bounce rate might not be as important as you think. Why? Well, if someone finds your blog post about the latest widget update and they quickly visit the post, check out the breaking news, and then leave, is that bad? No, but that’s technically a bounce. Or, if they find your blog post and immediately choose to subscribe to your RSS feed, is that good or bad? It all depends on your goal... So, stop reading this post for a few seconds and think about the goal of your blog. Then write it down on a sticky note and place that on your desk somewhere you can easily see it. We’ll be referring back to it shortly.

The Angle of Your Blog Posts and the Key Drivers of Your Readers:
Now, let’s take a look at some different types of content and how they match up with the key drivers of your readers. There are a lot of reasons why people visit blog posts and you should try and understand your readers as much as possible in order to provide the best possible experience for them, which in turn, should lead to supporting the goal of your blog. Again, we need to bring context to your bounce rate situation. Note, there are obviously many types of blog posts, but the ones listed below are based on my experience helping clients and working on my own blogs.

Different Types of Blog Posts and Their Effect on Bounce Rate (based on my experience)

1. Educational Posts (Teaching Your Readers Something of Value)
If you know that your readers want to learn something from you, then you have a great chance to provide additional educational content on your blog that would interest them. The key here is to understand what specific topics your readers are interested in based on your analysis, then write high quality posts that focus on that topic, and then provide links to relevant content on your blog. If you understand what your readers want to learn, then there's a good chance they will consume a lot of content on your blog that relates to that topic. And, they will appreciate it…finding your blog a great source of information about an important topic for them.

Educational Posts = Excellent Chance of Low Bounce Rate

2. Focused Entertainment and Isolated Stories
Some readers simply enjoy finding interesting posts, even if they are very focused and/or isolated. They might love funny blog posts, shocking or disturbing blog posts, unique stories, entertaining posts, misc. facts, weird photos, parodies, etc. If you provide blog posts like this, you might notice higher bounce rates for that specific content. It’s not that readers don’t like you or your posts, it’s just the nature of the content. That said, you still might notice a lot of activity and links (which is a good thing). Think about it, let’s say someone is on digg and clicks through a story to view a video of Bill Maher kicking people out of his audience. You wrote a great post about what happened and how this affects journalists that work in Live TV. You might notice a high bounce rate with this type of post, since the focus might be on finding and watching the video and not on the blog or blog author in question. At this point, look at the sticky note I told you to create a few minutes ago and see how it matches up with the goal of your blog… You might have built 1000 links to your blog from that one post, but no RSS subscriptions. Is that good or bad? Good for organic search, but bad for building readership. Again, it depends on your goal...

Focused Entertainment = Good Chance of High Bounce Rate, but More Eyeballs and Links

3. Product and Service Reviews
Providing reviews based on your expertise is a great way to build a loyal following. The beauty of the web (and blogging and social media), is that you can find reviews from normal, everyday people who will typically give you an honest opinion of a product or service. Readers interested in reviews tend to also follow related content until they have the confidence to make an informed decision. For example, if you review an iPhone and then also review a Blackberry Curve, there’s a great chance readers looking for this type of content will read both posts (as long as you let them know the additional content is there!) More on this later. It makes sense if you think about it. Put yourself in their shoes…you are about to spend a few hundred dollars, you aren’t sure if it’s right for you, and you just found a person like you providing a real-world review without marketing spin. There's a reason that Word of Mouth Marketing (WOM) is as hot as it is now.... Just make sure you find the right blogger…

Product or Service Reviews = Excellent Chance of Low Bounce Rate

4. Blog Posts that Benchmark
We’ve all wanted to find blog posts explaining the best way to do something, right? (whether it's for business or personal use) For example, some visitors may be looking for the best way to launch a new business or the best way to improve their golf game. These readers are looking to find the best methods in the industry (whatever industry you are writing about), they want to know which is the best company or who is the top person, how they do it, and how to reproduce that effort in their own life. For example, someone may find your post about how to best run a fundraiser. This type of reader will be more apt to check out related posts, such as how to best organize your fundraising team, which marketing methods work best, and the top venues in your region to hold the fundraiser kickoff. You get the picture…

Benchmarking = Good Chance of Low Bounce Rate

5. Keep Me Posted
This type of content involves providing quick posts about something you just learned about. For example, when Google Analytics recently announced a series of upgrades, many bloggers who are focused on web analytics wrote quick posts letting their readers know. These posts might show a higher bounce rate than others. Again, it makes a lot of sense… you are quickly letting people know about breaking news so they will probably check out your post quickly and be on their way. You can definitely gain a following by doing this, since you are the source of new information, but you can’t expect these posts to be sticky. That said, these readers might subscribe to your feed, since you keep them posted. :-)

Benchmarking = Good Chance of Higher Bounce Rate, but High RSS Subscriptions

Note, there are obviously additional types of posts and drivers for blog readers, but I’ll keep this post manageable and stop here. Again, these are based on my experience. The main point is to understand the angle of your posts and how these posts match up with what your readers are looking for (what drives them to read blog posts).

The Anti-Bounce
There is a common thread that’s been running throughout this post…related content. For bloggers that are just starting out, unfortunately, you'll need to write faster. ;-) Once you've created great content on your blog, the next step is to analyze your web analytics and then provide killer content that’s relevant to key posts on your blog. The third step is to make sure readers can find your related content! This can be done in several ways:

Ways to Provide Related Content:
1. Inline Links, or links within the blog post content (my favorite)
2. A list of related posts at the end of the blog post in question
3. Tagging your posts
4. Utilizing your sidebar to provide additional links
5. Providing search functionality

Each of these techniques can work, but I’m a bigger fan of inline links, links below your post, and tagging. In my opinion, inline links actually provide better context for the reader, but that’s just my opinion. For example, I’ve also written blog posts about how to lower your bounce rate. This inline link gives my readers some context.

A Quick Note About Tracking Outbound Clicks and Content Navigation
Using your web analytics package, you should definitely track as much as you can to determine behaviors that affect your bounce rate and consumption of blog content. For example, if you track outbound clicks, you can see which external links your readers find most important. This can help you determine which topics are hot and possibly what to focus on in future posts. For example, if you wrote a post about how to better your golf score and you notice a lot of readers clicking on a link to Dave Pelz's Short Game Bible, then maybe your next post should focus on the short game (your golf game within 100 yards). Simple example, but you get the point! BTW, reading Dave's books lowered my golf score by 10 strokes. :)

Web Analytics Note: Google Analytics will soon support tracking of outbound clicks natively. This will make your life a lot easier... rather than manually tagging each outbound link!

Content Navigation is also important to analyze. This is where you can target a blog post in your analytics package and view how visitors got to that specific post and then also view where they go after reading the post. So, you might see 60% of the visitors to a blog post landed on that blog post (the first interaction with your site in a session). Then 80% of those readers went to related posts, 10% bounced, and 10% subscribed to your RSS feed. Viewing content navigation can help you determine how readers behave on your site in relation to the type of blog post you provide.

It’s All About Context
In closing, it’s hard to simply look at Bounce Rate for your blog without understanding the other factors involved. You need context. A high bounce rate a on a blog post might actually make sense, as weird as that sounds. If you start by mapping out a goal for your blog, pay attention to how you write your posts, understand how that matches the drivers of your readers, provide related content easily within your blog posts, and track everything at a granular level, then you can begin to understand blog content and reader behavior. Phew, that’s a mouthful!

Now, in the spirit of this blog post, definitely check out the other posts that are part of my Bounce Rate series! :-)

* Bounce Rate and Exit Rate

* Why is My Homepage Bounce Rate So High?

* 5 More Ways to Lower Your Bounce Rate and Increase Your ROAS

GG

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

It 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

7 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?

Or, 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

Effective Email Marketing with BuyCostumes.com

I 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 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

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

As 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

Pop Star Mika Offers Web Marketing Advice - Diversify Your Online Marketing Channels

For those of you who obsess about what you do for a living (like me) and you are constantly thinking about new ideas related to your business, you’ll definitely understand the angle of this post. You see, I have an uncanny ability to hear music, and on the fly, map that song to something Internet Marketing related. I know, amazing super power, right? :-) It’s hard for me to turn off this super power… Last weekend one of my nieces started playing a song by Mika called Lollipop….hold on, hear me out! So, my uncanny super power kicked in and I couldn’t help but believe that Mika was reaching to out to internet marketers. I have provided the internet marketing translation of a segment of Lollipop below. Click the button to hear a segment of the song and the Glenn Gabe translation will show up.




Diversify Your Online Marketing Channels
I believe it’s easy for a company to fall into the dangerous practice of focusing on a limited number of online marketing channels to support their business. For example, some companies may focus entirely on search (Organic Search and Paid Search revenue). With the dynamic and competitive nature of Paid Search and Google dominated Organic Search, you shouldn’t rely entirely on your search marketing channel to completely support your business. I love search marketing, but what if Google tweaks their algorithm and your rankings drop for a month or two? It could happen. Another example would be relying entirely on your in-house list. Although I believe your in-house email list is one of the strongest assets you can have as a web marketer, you shouldn’t entirely rely on it to support your business. What happens if your current customers start to go elsewhere? What if they simply aren’t buying that month, quarter or year! Again, this happens.

So What Works? How Many Online Marketing Channels are Enough?
The answer to this question completely depends on your specific business, but I can tell you that you should test as many channels as you can to determine their viability. And…test them while your current online marketing channel(s) are humming. You might find that you need to grow your in-house list and that search marketing is the vehicle you will use to accomplish this task. Then you might find that within search marketing, Paid Search yields the most registrants where Organic Search yields the most revenue. Then as you grow you in-house list, you can use email marketing and other communications to build a solid base of revenue per month. You might test Social Media to see how much quality traffic and/or links you can build, which can increase revenue directly (from Social Media traffic) or indirectly (by increasing your link popularity and Organic Search rankings). You might find that banner advertising doesn’t do anything for your business, but that blog advertising does. Then, within blog advertising, you might find that paid bloggers don’t impact revenue, but forming relationships with bloggers in your industry does. You get the gist!

My point is that if you find something that works, but you don’t expand your marketing efforts outside of what works at that point in time, then you are taking a huge long-term risk. Think about it, you probably wouldn’t invest all of your hard earned money in one stock, right? You would probably diversify your investment to lessen your risk. You should follow the same philosophy with online marketing.

A Hypothetical Example
Cookies, Pies and Pastries Inc. (CPPI) launched two years ago and although they have the best homemade pies in the region, their online business has struggled out of the gates. They rely heavily on Organic Search to gain most of their visitors and revenue. Their site has gained a good amount of natural search power since its inception and it ranks for several competitive keywords. They have a small in-house list and most of their customers from search have been one time buyers. They are hitting their revenue goals, but here’s the problem…although Organic Search is a low cost (technically free other than paying for their SEO consultant), search visitors can be extremely transient. Think about it, compare someone who has bought from you in the past versus someone searching for what you provide. There’s a huge difference in the type of visitor, right? Also, your Natural Search rankings might bounce around and you might be on page 1 this week and then on Page 3 the next, only to return to Page 1 a few weeks later. Relying entirely on search traffic isn’t a viable path for CPPI. So, their web marketing consultant recommends that they expand their online marketing efforts to include Paid Search, Word of Mouth Marketing (WOM), and other online marketing campaigns (both on-site and off-site) to increase their in-house list. WOM would leverage their current customers to help get the word out about CPPI’s great homemade pies, Paid Search would be used to increase registrants and revenue, and CPPI will test several online marketing campaigns (both on-site and off-site) to increase the size of their in-house email list. In addition, to keep Organic Search moving in the right direction, their consultant believes they should launch a link-building campaign. One idea is to invest in their blog and use Social Media to gain inbound links. I think you get the idea…

This is just an example, but as you can see, there are several ways to help diversify CPPI’s online marketing channels...and hopefully while they are already hitting their revenue goals. Leveraging one or two channels is downright dangerous and if you are like me, you are a contingency nut. If one channel starts losing its power, you don’t want to be in a dire situation…like trying to do everything I listed above in 2 weeks since revenue dropped off a table! :-)

In closing
So, Mika knows more than you thought about Internet Marketing, huh? I was surprised too. ;-) The next time a teenager turns on a new song, keep your ears open and see if there are any good marketing lessons to learn. You never know, maybe Mika’s tour next year will be in front of corporate executives and not teenagers!

GG

The Top Online Marketing Channels - My Top 6 in June 2007

At least a few times per month I’m asked, “Which internet marketing channels do you believe are the strongest?” It’s almost impossible to answer this question without some context. For example, a company that sells toys is much different than a consulting firm looking for Fortune 500 clients, right? Each business will have its own top online marketing channels, based on their model. That said, below I have provided my top online marketing channels in June 2007. My top 6 are based on data collected from across my clients, as well as for my own business.

In addition, I have provided the personification of each channel, which is basically their famous alter ego. ;-) Please note that since web marketing is extremely dynamic, my top channels may change (even in a few months!)

Without further ado, counting down from 6 to 1:

Coming in at Number 6: Social Media
Who hasn’t heard of Social Media at this point…heck, there’s even an acronym for it in web marketing (SMO) or Social Media Optimization. Social Media is an umbrella term that includes social news, social bookmarking, social networking, media-driven sites like Youtube, etc. Top social media sites include Digg, Stumbleupon, Reddit, Netscape, del.icio.us, MySpace, YouTube, and dozens of other smaller sites. Using Social Media for internet marketing is hit or miss. Yes, these sites can be huge drivers of traffic and links, but some efforts will simply not take off. I think everyone has seen 1 digg for a story quite a few times… That said, I have seen some impressive results recently from a range of social media sites.

Why Collin Ferrell? You never know which Collin Ferrell you are going to get (or show up), right? You might get the Collin Ferrell who has had a few drinks, smoking a cigarette, and throwing the f-word around. Or, you might get the movie premiere Ferrell who comes sober, has some big names in his entourage that night, and lands a $30MM first weekend. Like I said earlier, Social Media is hit or miss.


And at Number 5: Blogging
In late 2005, a VP of Marketing (yes marketing) asked me rather aggressively in a web marketing meeting, “Tell me…how in the world is a blog going to impact my bottom line?” Uh, I’m sure he would like to take back that question now! :-) I don’t need to spend much time explaining the explosive growth of blogs, their impact on readers (consumers), and how RSS, search engines, blog search engines, other blogs, and social media can all play a factor in helping Jane Nobody from down the street gain rock start status as the premiere mommy blogger! If you are in charge of marketing for your business and you aren’t blogging, start now. I’m not kidding, stop reading this post, walk into your IT department, grab a web developer by his collar, and set up your blog now. It’s cost effective, measurable, viral, and can get you closer to your customers than ever before.

Why Clooney? Top bloggers bring people together, they are industry leaders, can play nice with others, and enjoy sharing their knowledge with the community. Clooney has proven to be a big time movie star, but also gives back to the community and works to help others in this country and in other countries. He’s the closest thing Hollywood has to a future President (other than Arnold, of course!)


Number 4 on My List - Paid Search
A tough, gritty, time-consuming, and dynamic online marketing channel, with a hint of fraud in the mix! I’m a stronger advocate of Natural Search (see below), but based on my experience with paid search, it’s hard to overlook its power. The most popular places to run paid search advertising are Google (AdWords) and Yahoo (Yahoo Search Marketing). You can set up your campaigns fast, you have a lot of control over your message and what people are seeing on your site, and you will view results in hours. That said, you can also see your budget zip away in hours! :-) Effective paid search campaigns take time, skill, experience, and a drive to always improve your efforts. You need to be chest deep in your campaigns all of the time to reap rewards from ppc. From keyword research to building ad creative to designing landing pages to optimizing your campaigns, paid search is not for the faint of heart. Regarding fraud, you can read more about click fraud here, but don’t let the article stop you from trying paid search…just keep it in mind.

Why Tony Soprano? He’s tough, gritty, and results are the name of the game. He’ll give you a wad of hundreds for coming through and then smack you across the face the next day. Welcome to the family. :-)


In third place, Word of Mouth Marketing (WOM)
The power of wom is undeniably incredible. It’s pure viral marketing. You know, where John tells Mary, who tells her dentist, who tells her husband, who tells his friends at work, who tell their clients, etc. Before you know it, targeted visitors increase, sales increase, links to the site increase, organic rankings increase, blog posts about your product increase, etc. Sounds dynamic, doesn’t it? That’s why, in my opinion, WOM is one of the most powerful ways to enhance your business long term. So why doesn’t every company focus on Word of Mouth? It’s relatively hard to implement, it’s hard to track, and hard to determine a budget, which makes it hard to communicate to decision makers. That said, companies that understand its power (long term power), will reap great benefits from fostering word of mouth marketing. And by the way, I’m an advocate of both organic wom and amplified wom. I think both have their place in your web marketing arsenal. Check out WOMMA for more information about Word of Mouth.

Why Moore? Moore targets an issue and gets people talking. Then the grapevine effect of WOM takes over and everyone has an opinion…which leads to popular movies and revenue. I remember seeing Roger and Me in 1994 and telling my coworkers and friends about it. Think about Moore’s movies and the topics they cover. Then think about how you heard about them.


In second place, the runner up is: Natural Search
I am a huge advocate of organic search, which are the natural search listings in the search engines (unpaid listings). Rank highly for your competitive keywords and you can drive large amounts of targeted traffic to your website. People trust natural search. It’s unpaid (theoretically anyway), and there are third parties (Google, Yahoo, MSN, etc.) that rank listings based on some criteria of importance (their algorithms). Yes, there’s an entire industry out there (Search Engine Optimization or SEO) that help companies rank highly for terms, but it’s not as easy as applying budget to your organic rankings and having that yield top listings. If you have optimized your site for natural search, then compare revenue from your organic search channel with your other channels. Then, take into account ad spend. Natural Search is ultra-profitable (and can help build your brand, increase targeted traffic, increase revenue, and your bonus). :-)

Why Anderson Cooper? He’s a younger and edgier version of news anchors from the past. He has built enormous credibility (like natural search engine results), but you know there are decision makers above him that help mold the message. You trust him, but not 100%. :-)


And our winner, my top Online Marketing Channel:
The In-House Email List
This is probably the most important marketing asset you can have at your disposal. It’s not trendy, flashy, or sexy, but with it, you have a solid base for any campaign you decide to launch. Used properly, you can count on a certain amount of revenue per month from your in-house list. You also can tap into this list for qualitative data from surveys, focus groups, and other customer feedback mechanisms. In addition, you can segment your list for more power. For example, you might know which customers want to learn more about categories A versus B, they might buy during X months versus Y months, and spend $x per transaction versus $y per transaction. Then you can base your campaigns on this data and you’ll see the true power of your in-house list.

Without a solid in-house email list, you are forced to use other channels to drive campaigns and sales. And, good luck with gaining feedback! “Hello Mr. Transient Paid Search Person, can you tell me what you think of our website?” Come on! For those of you with new businesses or small in-house lists, start to think about ways to increase your list. Launch campaigns to increase your list. Then when you have a solid list, take care of the people on that list. They can make or break your business. Literally.

Why Sampras? Pete Sampras was beyond talented, but he was humble. He dominated the competition, but he rarely made headlines. He won championship after championship, but the reporters ran by him to snap photos of Agassi. Pete was a winning machine, and was completely under-appreciated. But if you needed someone to come through, I wouldn’t want anyone else ready to serve the ball. That’s your in-house email list.

GG