Ecommerce Consulting.com | Experts in Online Retail

Time to Drop the “E” in E-commerce? A Practical (and possibly selfish) Perspective

At a conference I attended a long time ago (probably at least a decade ago) I remember an industry analyst (don't remember who) saying something along the lines of "we'll know that e-commerce has arrived when we no longer have to put the "e" in front of it."

Well, maybe we've arrived. Over the last month there have been some declarations and murmurings that it's time to drop the "e". Forrester's Brian Walker suggested it at the Internet Retailer Conference, and a few blogs have since echoed the same.

E-commerce is undeniably a part of everyday consumer life. Much as we predicted years ago, consumers have woven the web into a shopping process that now spans channels, devices and touch points. The internet influences nearly half of all retail sales. Regardless of where the transaction occurs, the web is a vital part of the discovery, research, consideration and decision process. That's of course the argument for dropping the "e". Customers don't think of e-commerce sites as a "channel" anymore than they think of their phones or retails stores that way. So why should we?

The answer to that question (and ultimately the answer to whether or not it is indeed time to go "e"-less) lies within the perspectives and practices of the retailers and the companies that support them.

For enterprise/advanced online retailers and suppliers, dropping the "e" not only makes sense, it symbolically removes obstacles and enables bigger thinking. An enterprise level platform provider today may provide e-commerce infrastructure, but must also provide mobile, multi-channel and social commerce services in order to meet the needs of its retail customers. The entire retail commerce ecosystem is involved. Advanced retailers planning the present and future needs of their business must look at online selling in relation to all other touch points and channels. For these companies the "e" can represent a restrictive silo, limiting strategic progress.

But, what about those retailers and service partners that are successful, but not yet quite so advanced? Here's my take.

Over the last 15 years, e-commerce has become a specialized discipline, or rather, a set of specialized disciplines. While customers, thankfully, shop our websites like it was second nature, it takes channel knowledgeable people on the back side to do it well.

Think about the disciplines necessary to do e-commerce well: e-commerce merchandising, e-commerce interaction and visual design, site analytics and optimization, online marketing. If someone is a great search engine marketer, do we say they are a great marketer? Sure, we could, but calling them a great search engine marketer helps us to define their specialty.

For many companies who are either in the early stages of online selling or who to whom digital DNA is not a given, the "e" is necessary, as it provides a foundational symbol for a specialized core competency.

Just in the last month of my work I have encountered the following situations that illustrate this point:

• A mature multi-channel retailer with heavy catalog DNA and without seasoned online leadership finds that they need to build e-commerce expertise in order to fully realize the online and multi-channel potential.
• A regional brick and mortar retailer taking their business online for the first time must create new positions and processes to accommodate e-commerce
• A brand manufacturer in the midst of an extensive re-design of the e-commerce site, previously 100% outsourced, is now taking steps to own and manage their online presence internally

These guys shouldn't drop the "e". In fact, I could argue that they need to get some "e" in a big way. In a few years, as their "e" competencies mature and develop, they will likely see the benefits to dropping the "e", at least in some aspects of their business and infrastructure. But for now, the "e" serves a valuable purpose. It delineates commitment to learning and growing the channel.

Are you ready to go "e" free? Take an honest assessment of where you are in your online competency:

• Do you have knowledgeable online specialists who are experts in their disciplines?
• Is the online channel at the table for all company strategic discussions and is it a part of all/most major company initiatives?
• Are the other channels at the table for strategic discussions about the online channel? Is there a cross/multi-channel component to all /most web initiatives?
• Do your operations and IT teams support and build solutions that encompass multiple channels and touch points as a matter of course?
• Is being digitally savvy a characteristic of most employees in your company, regardless of what department they work in?

If you've answered "yes" to all or most of these questions, you've already dropped the "e", at least figuratively.

If you answered "no", the e-commerce team is likely the digital center of gravity in your organization, or it might be just getting up and running. You probably need that "e", at least for a while.

So, is it time to drop the "e"? Maybe yes. Strategically. Where it makes sense. 

For some, holding on for a while is a smart move. 

Then there's the selfish side of me. As someone who uses ecommerceconsulting.com as her blog, I'm a bit attached to the "e", at least for the time being.

 

 

Attention E-commerce Marketers: Your Brand is Showing (everywhere)

With more than 14 years worth of spending a lot of time on e-commerce sites under my belt, online store surprises can be hard to come by.  Rare as it is, I love it when I see something so well done that I smile at the screen, remember the moment and want to tell people about it.

The delicate balance between appropriately conveying the emotive aspect of the brand and efficiently driving transactions is one that e-commerce teams have struggled with since the early days of the channel. (see my previous poston this topic) With robust features and functionality now commonplace in most online stores and best practices in transactional ease will known, online brand differentiation in e-commerce is as challenging as ever.

But sometimes, the essence and personality of your brand can come through in the most unexpected of places on your site.  When that happens, it's not only a pleasant surprise for your customer; you leave an indelible, emotional mark on their site experience.  Just what a brand is supposed to do.   It's not just about the imagery on your home page, the tone and language of your product descriptions or the helpful tone of your service information.  Yes, you need all of that.  But how about some of the hidden or forgotten corners of your site? It's really these places where you can take an otherwise ho-hum (or even frustrating) experience and turn it into a positive emotional connection.   A few of my recent favorites are below.

On the new Columbia Sportswear e-commerce site (launched in the Fall of '09), the company's beloved spokeswoman, Ma Boyle is with you all the way.  Even when you get a 404 error (I love this).

 

When I bought holiday cards from JibJab (everyone's favorite site for elfing yourself into all kinds of humorous situations), I got this thank-you screen after signing up.  I now not only know the people behind the company, but I feel like I have a cheering section behind me, celebrating my new membership and sharing an inside joke.

 

We all love Woot! not just for the screaming deal of the day, but sometimes just as much for the irreverent humor that goes into the site's content.  Woot! leaves no page unturned (or shall I say un-clicked?)... Take a look at the customer service FAQ page.  This page is either dry as dirt or excruciatingly courteous on most e-commerce sites.  Woot! actually makes theirs fun to read and uses the page to hammer home their personality, which is good considering the brutally bare bones service policies.

And then there's Moosejaw, long a leader in cutting edge, youth oriented marketing.  Note the clever language enticing me to create an account -everyone will like me more!  Now there's a reason!

The moral of the story: leave no page un-clicked. Some of those necessary, straightforward pages outside of the ever precious purchase path can be hidden gems of opportunity where your brand personality can shine through.

10 Reasons Why Some Manufacturers Still Ponder Selling Online

Earlier this month, I read a blog post from E-consultancy titled "Why Not Selling Online Can Damage Your Brand".   The piece covers many of the key reasons why e-commerce has become a must have for brands, and why not selling online can be more than a missed opportunity; it can actually damage the brand. 

As a long time veteran and advocate of e-commerce, I agree with all of the points in the article.  Yet, having worked with some notable manufacturer brands who have yet to take the plunge into online selling, I can offer that for many of these companies, the decision to sell online is not the "no brainer" that it might appear.

Manufacturers who sell online don't just need to become web merchants, they need to become retailers, and that presents some interesting and often sticky strategic issues.

1. Lack of in-house retail or e-commerce talent.  This means that manufacturers may not know what questions to ask or understand the complexity of what they are getting into.  It also means that there may not be a logical choice for a leader of the strategy, planning and execution of an e-commerce initiative.
2. Concern about disruption to retail relationships.  This typically tops the list of issues, as manufacturers attempt to walk the delicate line between building their brand through direct to consumer sales and cannibalizing their retail partners.  Every manufacturer selling online has faced it, and there are many flavors of potential answers to striking the balance.
3. Product offering and pricing decisions can be mired with complexity.  Manufacturers' product lines many not be "retail ready", meaning they have been assorted for the retail buyer, not the consumer.  Thus, there are key decisions to be made around the online offer. The whole assortment? An edited version? Exclusive products? Clearance items? New test products?   And then there's pricing.  There's a need to offer the consumer a competitive value,  yet the need to be sensitive to retail partner margins and not undercut.
4. Product information and assets are not e-commerce ready. Manufacturers have a unique opportunity to showcase their products online, and consumers will likely have an expectation that the best and most extensive product information will come from the manufacturer's website.  Yet, many manufacturers find that their product images and copy are geared towards product spec manuals for retail buyers vs. online shoppers.  Re-purposing and enhancing product assets for the web can be a significant undertaking.
5. Fulfillment is not set up for single piece consumer orders.  Separate processes and systems may need to be set up to effectively manage consumer shipments and returns. Ditto for new packaging. Outsourcing many need to be investigated and considered.  Similarly, managing inventory for e-commerce can be complex if the manufacturer's systems are not set up to buy and reserve inventory for the online store, or allow for easy access to overstocks.
6. Customer service takes on a whole new role.  As with fulfillment, discreet processes, systems and people will be needed for e-commerce. Whether or not to turn service over to an outsource partner can be a critical strategic decision.  Build the team and infrastructure and reap the benefits of direct communication with your customers? Or hire experts with the people and systems in place to get you up and running quickly?
7. Marketing activities have been focused on B2B relationships and broad consumer branding.  Digital direct response marketing may not be part of the company's DNA, so understanding search marketing, email, affiliate relationships, retail promotions, social media and the whole balance between traffic and conversion becomes a new skill set need.
8. E-commerce ecosystem components need attention.  While the search for an e-commerce platform will likely be part of the manufacturer's path to online selling, equally important is the suite of supporting systems (many of them possibly in "legacy" condition) that will need upgrading or readying for integration. Order management, CRM, warehouse systems, the list goes on.
9. Resources, Resources, Resources (People, Money, Time).  All of the above is a lot of work, and everyone has day jobs.  Not to mention, this sounds like it could be a significant investment.  Maybe we're just too slammed to deal with this now?
10. Lack of a deliberate process to work through #s 1-9.   It's easy to get confused and overwhelmed by the decisions and intimidated by the potential costs, especially when you're busy running your core business.   A host of manufacturers have made the transition to direct online selling successfully and profitably.  If you have not yet taken the plunge, it's probably high time that you start the investigation process to wrestle these issues to the ground.  None of them are insurmountable, but they do require some disciplined thought and decision making.  Get some help from a knowledgeable, experienced expert to help you identify the issues and opportunties, and engage in a process to work through the answers.  Your brand deserves it, and your prospective consumer customers are asking for it.

If We're so Smart About Multi-Channel Retail, Why Are Some Store Locators so Dumb?

Getting multi-channel retailing done well is not easy.  Good news for shoppers and retailers, a lot of companies are getting very good at it.   Buy online, pick up at the store.  Buy online, return to the store.  Order from the web kiosk in the store.  Check store inventory online.   Read web customer reviews in the store on your mobile phone.   There's no limit to the way customers use channels and devices to save time and get the information they need, and they are hopping across channels and devices like never before.  A couple of quick stats, in case you need convincing:

• 69% of shoppers research products online before going to a store (Source: Business Week survey 2008)
• With the economic downturn, 53% of shoppers say they use the internet more frequently to research products and prices (Source: NCR survey of U.S. consumers)

There's one multi-channel essential that's not that hard to execute, but can easily be ignored by e-commerce teams: the store locator.  Done well, a store locator can be a great resource to help a shopper  before she heads out to buy...it  might even get her excited about the shopping trip.

Here's a quick glance at the store locators of a few well known multi-channel brands, showing the best, and unfortunately the boring worst of what store locators can be.  

REI: They've been a leader in multi-channel execution since the early days of e-commerce, and their approach comes through loud and clear with their online store locator.  Shown below, I can get all kinds of information about upcoming events, the product categories carried in the store,  and I can even set an appointment to get personalized shopping help.  Love the GPS coordinates in addition to the directions, too.  

  

Nike:  While Nike's e-commerce site is frequently cited at the top of critics' lists as the pinnacle of balancing brand, engagement and utility, their store locator appears to be a long forgotten element.  After a forced zip code entry, you get in return little more than a weak Yellow Pages listing.  With an e-commerce site that's so vibrant and exciting, this makes me want to skip the store.  Surely that's not the intent.

 

Apple: It's a bit of an effort to find the store locator on Apple's site (deep in the footer), but as you might expect, the info and experience deliver above and beyond once you get there.   At the Apple locator, I can register for classes, schedule an appointment with a Genius, reserve a new item before it arrives in the store, even watch videos of past store events. I can sign up for email from my store to keep updated on upcoming events too.

 

Best Buy: This retailer has set many examples of the importance of involving store team members in just about everything.  The Best Buy store locator shows promise but could be so much more.  I love the personal note from the store manager and the ask for customer feedback, but the events area is blank (of course it should be coded so that the events header does not appear if there's nothing there) and I don't get the sense that there's much going on here.

 

Whole Foods:  Ok, so this site does not qualify as an e-commerce site, but it's a great example of what a store locator can be when you let the employees take ownership.  Note the store calendar, ability to download a PDF of the store's specials, get an RSS feed of events,  and the Twitter feed of the store manager's Tweets!

 

Let's face it.  I've lived in Seattle for 25 years and I already know where all of the stores near me are located.   But there's something cool going on in just about all of these stores every week that I usually don't know about. 

If you're not convinced that making your store locator worth visiting is worth the time, here are a few more stats you might want to consider:

46% of shoppers say that they want to receive product information, coupons, promotions and store sales information online. (Source: NCR survey of U.S. consumers)

26% of shoppers say the weak economy is causing them to make more frequent shopping trips to take advantage of sales and promotions (Source: NCR survey of U.S. consumers)

Keeping up with Your Customers: 5 Fundamentals for Tackling the Multi-Channel Monster

This morning, two very good articles about multi-channel retailing popped up from Twitterers that I follow.  With way too much to read already, I hesitated to click but I am glad that I did.  This is a topic I have long been passionate about; and with the changing dynamics of customer behavior in a recession and mobile moving like a high speed train, more and more retailers are becoming equally passionate about aligning channels and devices to capture demand.  First, a bit about the two articles and then my take.

Both articles are well worth reading.

The first, in How to Fit Into Your Customers' Multi-Channel Lives, Peter Merholz of HBR does a great job of setting the historical stage for multi-channel services.  Long before e-commerce or the Internet, Kodak helped customers and built loyal relationships by breaking up the process of taking pictures an developing film, letting each step be managed by the people and places best suited to the task.  Apple followed suit with the iPod decades later by separating the music purchase and management from listening.  Good multi-channel food for thought for any  retailer or service provider.

The second, a new blog post at X-Channel Retail provides a good overview of recent multi-channel studies from Aberdeen and Retail Systems Research.  You'll find plenty of stats indicating that multi-channel initiatives are alive and well in most top-tier retail organizations, with improved visibility to inventory across channels and coordinated marketing efforts high on the priority list.

It's hard to argue that investing and executing well on a multi-channel strategy is a smart thing to do.  But achieving the elusive "seamless experience" is easier said than done.  With mobile adoption on a fast and furious pace, the need for retailers to orchestrate the research, shopping and buying experience not only across channels but devices (and devices within channels) means that execution will be more complex than ever.  While many retailers are doing it well, many are simply not prepared for the cultural, technical or organizational challenges that come with tackling the multi-channel monster.  Having spent a good portion of my career and consulting life in the multi-channel world, here are my top 5 fundamentals for taming the beast:

1.  Focus on the unique strengths and uses of each channel and device.  Multi-channel is about more than having the website available in your store or on a mobile phone.  It's about each channel bringing unique value to the customers' shopping and buying experience along the way. Think about the Sears curbside pickup program; customers receive a text message when their online purchase is ready for pickup at the store curb.  The cell phone didn't process the transaction, but made it a more convenient experience.

2. The decision to integrate across channels and devices must be deliberate.  Most retailers today are multi-channel in at least some sense.  Most have some level of channel synergy, but often that synergy has happened organically or accidentally.  Despite the clear customer demand for multi-channel convenience, many retailers organize and incent team members to behave like silo channel operators.  According to the Shop.org 2008 SORO Report, 85% of multi-channel retailers say that their website's highest priority is to drive online sales and profit.  If that's the case, multi-channel initiatives are unlikely to be at the top of the priority list, with online conversion drivers taking precedent.  If the decision is to integrate (and it should be), giving it the appropriate priority and resources will leapfrog internal silos and organizational boundaries.

3.  The technology essentials must be defined and planned.  Those in the know on multi-channel will tell you that transparency to inventory and pricing across channels, centralization of customer data and flexible access to product content are key. None of these are small things, so a clear road map will need to be created based on priorities and anticipated ROI.

4.  Multi-channel integration requires clear ownership and teamwork.  An executive mandate to integrate is critical, but so is "on the ground"  leadership.  Often, multi-channel initiatives lack a clear owner or a dedicated cross-functional team to focus on execution.  According to the SORO study, only 37% of companies surveyed reported having a cross-functional team to design and roll out cross-channel features.  Consistent accountability for multi-channel programs vs. treating them as "side projects" outside of normal business will go a long way.  You'll need a great knowledge source from each channel, someone from customer care, someone from IT and likely others, depending on the initiative.

5.  Objectives and incentives must be aligned around customer scenario success.  Teams tasked with multi-channel issues need to map the "end to end" customer experience, carefully planning how each channel or device will help the customer achieve their goals.  If performance metrics are focused on customer success, the right decisions will follow.  Chances are someone on your e-commerce team is skilled in scenario design: tap into them for multi-channel experience design.

Finally, pace yourself and don't expect overnight success.  Most multi-channel initiatives by their nature are hard to do well.  Be sure roll outs are carefully planned and tested before wide release, and have mechanisms in place to gather customer and employee feedback early.  You're going to have a long relationship with the multi-channel monster.

E-commerce History as Teacher: The Brands Have Changed, but the Lesson Lives On

I don't have a hoarding problem.  But when it comes to e-commerce, I admit I am a pack rat.  When I read a report or an article about selling online that hits the mark I tend to save it and refer to it multiple times over multiple years.  Yes, this industry moves fast and changes frequently, so sometimes dumpster diving through old files is good for little more than amusement (about a month ago I found a box full of mouse pads that e-commerce companies used to send me as "gifts" when I ordered online in the mid 90's....almost all of the companies have since flamed out).  But many times, I come across something that I'm really glad I kept. 

Earlier this week, I re-surfaced a Forrester report from (get this) 2000. I saved it because I was working at Eddie Bauer at the time and was unbelievably proud of this statement from the report:

"Style-obsessed retailers like Williams-Sonoma and Banana Republic will continue to jump into online sales with sites that deliver flash over substance, exciting and then disappointing potential customers.  Unable to resist force-fitting their offline branding campaigns into their Web boutiques, they will fall further and further behind retailers like Eddie Bauer that understand that the core of online branding is serving user needs"

Ok, so that was a long time ago.  Williams-Sonoma, Banana Republic and Eddie Bauerall now have great e-commere websites that are a true pleasure to shop and reflect and enhance their brands.  But it wasn't always that way.  And for a good many brands today, it's still not that way.  Top tier retailers and manufacturers frequently struggle with how to make the best of the e-commerce channel and strike the delicate balance between immersing visitors in the richness of the brand while still creating a focused shopping experience that results in a transaction.

Recently, I did an in-depth shopping audit across e-commerce sites at 15 brands (all recognizable names).   It became clear early in the audit that this issue of balance between brand building and a useful commerce experience is alive and kicking, a good 9 years after the Forrester article first hit my desk.  Only the names have changed.   Here's a quick summary of some of the most common mis-steps:

1. Long, slow, heavy flash intros (yes, they are still out there!) 

2. Links to my account, service , search and other critical functions are hidden in favor of gorgeous photography

3. Navigational categories that reflects the retailer's nomenclature instead of the customer's language (i.e. The Market Street Collection)

4. Search functionality that brings up null results for common terms like "suede shoes" or "hiking boots" (search was broken on just about all sites I visited!)

5. The ability to sort the category thumbnail page alphabetically by product name (who cares?) instead of basics like color, size, price. 

6. Avoidance of customer reviews and ratings due to fear of a negative review (see my previous post on this one!)

7. Customer service, return policies and shipping information buried deep on a "FAQ" page instead of surfaced at critical decision points in the shopping process.  Most service pages did not list call center hours or set expectation about when email inquiries would be answered.

8. Points of real value, like free shipping offers not surfaced until late in the shopping process instead of on a home or category page.

9. Product pages that "show" but don't "tell":  great photos but little or no copy that answers real consumer questions or highlights benefits.

 10.   Overuse of icons and symbols for technical features that are hard to decipher and de-code.

So, how does this happen? Obviously any one of the above situations does not reflect well on any brand.  Yet they occurred frequently across numerous e-commerce sites for top brands during my shops.  I think it happens for a number of reasons:

• Executives and employees at many companies rarely look past the home page of their e-commerce sites.  Approvals and creative reviews are limited to visual appeal and adherence to a style guide vs. the delivery of critical shopping functionality. 

• Agencies hired to lead or assist with site design are hired for their experience with the brand's other media or for their ability to grasp the brand's visual essence vs. their expertise in e-commerce interaction design.

• Brand managers and creative directors shy away from advocating helpful customer tools like reviews and sort/filter tools for fear of becoming to "sales" vs. "experience" focused.

• Brand terminology (The Market Street Collection, etc.) works for store signage and print media (and even in e-commerce promotional space), but fails as navigational
  nomenclature, something rarely thought about during product development.

• Many companies under-invest in copy writing and content development specifically focused on web user goals.

I think Forrester said it best back in 2000, but I'll say it again. Enhancing your brand's image online means paying attention to more than the visual integrity.  The nature of the e-commerce channel requires that we pay equal (at least) attention to the customer actions the site must deliver. Otherwise, the brand experience is eroded.

While many e-commerce sites have clearly figured this out and found the delicate balance between form and function, it's clear from my recent experience that as an industry, we're still seeking guidance and answers in this critical area.   Good thing I'm a pack rat. But I don't have a hoarding problem! (Anyone want to buy a sock puppet mouse pad?)

 

From B2C to B2B and Back: 5 Tips B2B Sites Can Take From E-commerce

Back in January, Brian Walker posted a short piece on some of they key cultural differences between B2B and B2C organizations, and how those cultural differences drive differing approaches to web site requirements and technologies.

Over the last year, I have seen an increase in the number of B2B clients seeking help with their web strategy, and I've had the opportunity to work with quite a few of them.  While initially it might seem odd that a retail/e-commerce consultant can offer insights on how to make a B2B website work, I have found that there are many strategic concepts rooted in retail and e-commerce that can catapult B2B websites from the bland brochure-wear of the '90's into vibrant and effective marketing and selling tools.

First, it's important to acknowledge that B2B is a different animal.  Sure, it's selling stuff to customers just like e-commerce, but the customers and the way they buy are dramatically different.   The critical differences that need to be considered are:

• The selling cycle is usually longer:  Depending on the product, it may take weeks, months or longer from the initial research to the purchase.
• The decision process may cross from online to offline numerous times: from initial web search to phone conversation to more web research to a sales call, etc. The information gathering and decision making takes many twists and turns and touches.
• There may be many people involved:  And, those people may float in and out of the decision process over time, gathering different pieces of information along the way.
• Products and services (and their prices) are more likely to be negotiated and tailored to the client: this means that zeroing in on specifically what products and services to cover on the website may be a very complex undertaking.

These differences cause many B2B clients to ask "is my website even worth the investment?" I think the answer is absolutely yes.  If you need convincing, download the Enquiro B2B Survey that was done in 2007 (it's free).  Ok, it's a couple of years old, but I suspect that the findings have become even more pronounced.   The entire study is worth reading, but most notably, across the entire B2B purchase cycle, from awareness through purchase, company websites and search engines are the most used resource by B2B buyers.   That means if you're a B2B company and your website is bad (and, I must say, many of them are), you're likely missing significant opportunity.

So, here are my top 5 e-commerce concepts that translate well in making great B2B websites:

• What's on the menu?  E-commerce sites are typically very good at telling you what they sell.  There's a defined product assortment, usually categorized.  Not so with many B2B sites.  In fact, many B2B companies don't think about their business in clean categories the way retailers do.  Spend some time on this ; how do you expect customer to understand what you offer? What do they call it? If a lot of your phone calls start with "Do you do____?" , start there, and develop a framework for your products.
• Show it off and make it move: Ask any top tier e-commerce leader and they'll tell you that video and interactivity, done well, can pump up the sales volume.  Yet, most B2B sites are a sea of stasis.  A nice video about your operation or a demo of how your product works can make it real and bring credibility to your company. Ditto for professional images and larger & multiple views (if applicable).  
• The power of proof: Customer reviews have become one of the key decision tools for customers on e-commerce sites.  While there may not be a direct translation to your B2B site, especially if products are built to order or highly customized, testimonials can be a great substitute. Well placed testimonials from high profile clients can help the customer turn the corner and pick up the phone.  Client lists and case studies are also great proof points.  If you're worried about your competitors seeing who you do business with, get over it. They probably already know, and they're already calling them.  Holding back info that your customer needs because you're afraid of a competitor is not likely to help your business. He who is transparent (within reason) and can prove (not just talk about) greatness will likely win.
• Clear and ever-present call to action: On e-commerce sites this is the "add to cart" or "buy now", of course.  Not so clear for B2B, particularly if the transaction takes place offline.  So think about it. What do you want visitors to do? Most likely, you want them to call you or email you, or request a quote on a job.  Sounds obvious, but I am amazed at how many B2B sites have the contact information buried in the "contact us" section vs. making it readily available on every page.  Your customer can have that "moment of truth" on any page.  Have the number there when they're ready to pick up the phone.
• Tracking the transaction path: That phone number we just talked about that you're going to put on every page? Make it a track-able phone number so that you can measure how well your website is achieving it's goal of driving people to contact you.  Bonus points if you add call recording as well, so that you can go back, listen to calls and coach your sales people on how to handle these important inbound leads.  Be sure salespeople know that the phone number is on every page and that sending those calls to voice-mail is not an option.  Tie phone activity to your web analytics to see the full picture of visit through "conversion", even if you define conversion differently.

 The good news here is that in many industries, the B2B bar for websites is set very low. A few simple, and likely not too expensive changes can have you towering over your competitors and helping your customers get the information they need.  And don't forget to track the results. Then, you won't have to trust me when I tell you that the investment is worth it. You'll know.

Why CRM Matters More Than Ever in Tough Economic Times

Everywhere I go, someone is trying to save me money.  The grocery store.  The department store. Restaurants. And of course e-commerce sites.  It's everywhere: coupons, signs screaming "sale", huge percentages off.  It's like every retailer in the world is dolling out virtual dollar bills.

No question, we're in a nasty economic situation and no question, it's taking more incentive than ever to get the register to ring.  As a retailer and as someone who has spent the better part of her life trying to crack the code on getting customers to buy, it pains me to no end to see these genuinely well-intentioned efforts by retailers executed in a way that is costly and ineffective in achieving the desired result.  Here's my latest example:

There's a spa/salon not far from my house.  It's fantastic and I've been going there for years.  Actually, as I've aged, I find that I go there more frequently as there's a lot more work that needs to be done.  Brows, nails, toes, hair, the occasional facial when the wrinkles get too hard to hide.  You get the point.

I am a regular, to say the least.  Every 3-4 weeks for haircuts and brow waxing.  Typically every 4-6 weeks for pedicures and periodically, a manicure for an important meeting or occasion (too much typing to get them on a more regular basis).  While the economy is tough, and I, like everyone else have found things to trim back on, my hair and nails will not stop growing.  So it's doubtful that my spending habits at this salon will change much in the months or years ahead.

This salon has my appointment and purchase history for the last however many years.  A lot of years.  They can probably predict when I need an appointment better than I can.  The technicians all know me by name and are always pleasant to deal with. We have a nice relationship.

So, here's the kicker.  I have right now, sitting in front of me on my desk, the following:

• A letter from my hairdresser offering me $10 off my next haircut
• A gift card from a nail technician offering me $15 off my next service combo of $65 or more
• 5 (count them) $5 off coupons good on my next service or retail purchase now thru April.

So, what's going to happen?  I'll use all of them.  But, as you've probably figured out, I would have made appointments and paid for services whether or not I had this pile of discounts.  I have no doubt that business for this salon is probably not what it was a year ago (hardly anyone's is, after all).  But, they are now making their business worse by spraying discounts far and wide, giving many of them to customers like me, who show no slowdown in their purchase activity.  They'll be making less money on me without the benefit of any extra business.

I know, implementing and executing well on CRM is not an easy task, but if this one anecdotal example is any indication, the payoff would certainly be there.  What if the salon only mailed coupons to those customers that they hadn't seen in 6 months? Or those customers whose spend over a certain period of time had slowed by a certain amount?  The really painful thing here is that they HAVE the data.  I know.  Every time I call for an appointment, the service rep diligently types the info into a computer and verifies my contact and credit card information that they have on file.

Managing customers is about more than having a nice relationship, it's about having a smart and profitable relationship.  In these times, can we afford any less?

E-commerce Freshman: Is Your Shopping Cart Before the Horse?

If  launching a new e-commerce site is on your list of New Year's resolutions for '09, here's what you should NOT do first: start hunting for a shopping cart solution.

While most of my clients are established online retailers, recently I have received a number of calls and emails from e-commerce first timers.  The recession has prompted some pure brick and mortar retailers to seek growth in the online world. Or, sole proprietors are starting e-commerce businesses with hopes of  pursuing a dream and ditching the need for a day job.

Inevitably, the conversation starts with the client inquiring about what e-commerce platform or shopping cart software they should use. There are so many out there, it's confusing, etc. 

Well, it IS confusing.  But one of the reasons it's confusing is that you may be putting the shopping cart before the horse. 

If you are looking at e-commerce solutions before planning the kind of business you are going to run and how you are going to run it, odds are that a) your quest for the right software solution will be frustrating and painful and b) you'll probably pick the wrong one.

Here are ten signs that you've put the shopping cart before the horse.  If any or many of these describe you, don't even think about the shopping cart yet.

1.  You haven't decided what you'll be selling in your online store.   The products, how many of them you'll carry, how frequently they'll change, how complex they are to sell, all of that stuff really matters.

2.  If you have decided what to sell,  you haven't looked at how competitors are doing it , or

3.  You aren't absolutely sure as to why someone would buy from you vs. a competitor. Let's face it.  Just about everything is being sold online already.  Chances are a more established player is already a jump or two ahead of you.  What will make your e-commerce site a more attractive option to customers?

4.  Speaking of customers, you don't have a clear picture of your target customer or a  plan and budget for attracting the right visitors to your site.  Don't think that the search engines will just find you.  It takes money and work to get qualified traffic to a website.

5.  You're not sure how you'll get the photos and product descriptions for the products you'll be selling, or who will be doing the ongoing merchandising and updates.  Doing this part well can mean the difference between a professional site and one that looks and reads like an afterthought.  If you're planning on carrying a wide assortment of products, don't underestimate the workload here or the tools you'll need to handle it efficiently.

6.  You don't know how you'll handle customer service inquiries, who will take the calls and answer emails or how you'll keep track of them.  Many early stage e-commerce efforts overlook the need for human contact with web orders.  It happens, so figure out how you will make it easy for customers to contact you and what you will need in terms of resources and infrastructure to deal with it.

7.  You're up in the air about whether you're going to fulfill orders yourself or outsource the function.  If this is you, you may want to skip ahead to point #10 below and let that start your decision making process.  Think about the volume you'll be doing and what you need to be able to manage, process, and fulfill orders, both at the start and as your business grows.

8.  You haven't thought through your polices and cost structure regarding shipping and returns.  This is a highly competitive and rapidly evolving area of e-commerce.  Flat rate shipping, expedited options, pre-paid returns, shipping promotions, the list of options and logistical issues is significant.

9.  You don't know who will be designing or developing your website, and/or you're not certain about all of the content and features your site will need.  While you're at it, think about how frequently you plan to make cosmetic and technical changes to your site and how those will get done.

10.  Saving the most important for last: You don't have a plan for how much business you will do, thus you don't know how much you can afford to spend on your e-commerce site.   The key here is to start with a plan.  Even if the plan is wrong, you'll be better off than if you had no plan at all.  Start with the fundamental metrics: How much traffic will come to your site?  How many of those visitors will place an order? How much money will those visitors spend and how many units will they buy?  This should be the basis for answering many of the questions above (like whether or not it will be feasible to handle fulfillment yourself, or what kind of budget you need to attract the right number of visitors to your site).

You'll probably find that working through these issues will cause your thinking to change regarding what you need in an e-commerce solution and who you need to help you along the way.  Chances are, you'll need more than just a shopping cart behind the horse.

The High Definition Value Proposition: Courting Online Customers for the Long Haul

When I was in college, most of the women I knew had a "list".  Some of the guys I hung out with had one too.  The "list" was the inventory of qualities that the person they'd eventually marry would have.  Ok, I confess, I had a "list".  Mine was ambitious and multi-dimensional.  The guy would have to be almost freakishly smart, and equally funny. He'd have integrity. He'd love to read as much as I did, and probably some of the same books.  He'd like cats and red wine.  (The list goes on, but I think you get the point.)  The key here is that even though there were plenty of potential mates who were nice or funny or smart, all of us with a "list" were looking for someone who could play on more than one dimension, someone who was uniquely "all of the above".

So, what does this have to do with e-commerce?  Well, actually quite a bit.  I'm a big believer in the power of a strong value proposition, and value propositions at their best are multi-dimensional.

Your customers need more than one reason to buy.  Ideally, those reasons to buy will appeal to them on a number of levels, both rational and emotional.   In our current economic climate, it's easy to get caught up in the one hit wonders of free shipping and 25% off.  While valuable, those things alone won't set you apart or help you build a loyal, lasting relationship with your customers.   To do that, you need a value proposition that is high definition, that's "all of the above".

So, is your e-commerce value proposition high definition? The new year is a good time to "take inventory" and see how you stack up on all of the necessary dimensions.   Ask yourself the following:

What are the emotional benefits of buying from your company?  In other words, when a customer buys online from you, how do they feel? If they tell someone at a cocktail party that they bought online from you, what does that say about them?  Think of it this way: if I buy a Volvo, I might feel safe or feel confident that I'm keeping my family secure.  If I tell someone I own a Volvo, it might say that I'm safety conscious or willing to spend extra money on quality.  Does your site experience or the product you sell deliver emotional benefits? Or do you fall into the emotional void?

What functional benefits do you provide?  For most e-commerce sites, functional benefits are things like 24X7 access, a robust on-site search feature or a large number of skus for sale.  The fact that the Volvo has a bunch of airbags and a frame that holds up in a crash means that it has solid functional benefits (note how those functional benefits fuel the emotional benefits described above). Amazon's one click checkout, Borders magic shelf and Etsy's shop by color match tool are examples of  unique functional benefits.

What are experiential benefits your customers enjoy?  In other words, when someone buys from you online, what do they experience? It might be a friendly customer service rep, a fast and courteous email response or a surprise gift of free samples when the package arrives.  To stick with the Volvo analogy, it might be the mechanic at the Volvo dealer that's honest and doesn't speak in automotive jargon. It could be a surprise thank you note from the salesman that sold you the car, or someone serving you a hot beverage while you shop the showroom. Beyond the pure transaction, what's the experience that surrounds it like?

Does your e-commerce business offer relationship benefits that foster longevity? These are the benefits that grow over time, that deepen loyalty.  Yes, it does include things like traditional loyalty/points programs, but many truly unique relationship benefits are deeper and more personal.  As I do more business with you, do you know me better and help me more effectively?  In the offline world, think about the salesperson at Nordstrom who calls you when she gets something new that she knows you'll love, or the car dealership that gives you a free loaner car for life when you buy your second car from them.  In the online world, it might mean personalized recommendations, or participation in an online community of people who share your passion. It might mean the opportunity to attend special events or help design the new product line.

The goal of course is to offer a truly robust and unique value proposition that is emotional, functional, experiential and fosters a relationship....all of the above.   If all of the parts aren't there, it's easy to see how a lopsided value proposition falls apart.  For example:

•  The airlines offer a relationship benefit in the form of frequent flier miles.  But, the experiential aspect of traveling on their flights is miserable and getting more so all of the time.  So, all of those "relationship" benefits don't really foster relationship at all.

• You might love your hairdresser's personality and the "experiential"  hip decor in her salon, but if her core functional benefit (the quality of her haircut) doesn't stack up, you'll probably move on. 

• A technology company that offers a product that functions well will only get so far unless they bring some emotive or experiential elements into the mix.  We like the iPhone for its functions, but what makes us love it is the fact that shopping for it in the Apple store and using it is an engaging, fun experience. 

So, how do you determine if you have a balanced, multi-faceted value proposition? Start by taking an inventory of all of the things you offer in each of the categories. Circle the ones that are unique to you or that you do better than your competitors.  You'll probably see that in at least one or two categories, you have an opportunity to do better.  That means when you look at the list of initiatives you need to prioritize for '09, things that enhance those weak categories should be towards the top of the list.

Just like the good looking date who can't hold a conversation or the wealthy date who has no personality, customers are unlikely to stick with a retailer whose value proposition is lopsided.

And, in case you're curious, I did find a guy that met the "all of the above" criteria on my "list".  Granted, it was a full thirteen years after college, but worth the wait.