Tom Lindmeier’s Blog @ MarketPlanB

I missed the Google Optimizer webinar: What should I test? but found it on YouTube today. I strongly recommend this to MarketPlanB clients and contacts. It’s an hour long, so you’ll need to do this with lunch in your office or sometime soon before spring fever distracts and you forget. The recording quality could have been better, but it’s perfectly suitable. You can also watch the WebEx version.

If you missed the first introductory webinar. I have also included it here.

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The multi-site business model is based on marketing to tight vertical segments. They typically include the product category name in the domain and then take advantage of critical mass to build dozens and sometimes hundreds of niche sites. This concept is apparently alive and well and is still quite promising for entrepreneurs who are seeking opportunity.
Internet Retailer recently reported that CSN stores grew by 85% in 2007.

With more than 200 niche web sites selling home furnishings ranging from wall art and woks to waterbeds, CSN Stores Inc. grew sales by 85% last year to $202 million, up from $109 million in 2006, the retailer says.

CSN Stores, No. 107 in the Internet Retailer Top 500 Guide, is continuing to explore new merchandise categories for presenting on individual web sites, says Eric Klose, vice president of marketing. “We continue to identify categories we feel are underserved on the Internet,” he says.

This also demonstrates that the number one SEO tactic continues to be the descriptive domain.

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With recent news of French president Zarkozy pecking away at his Blackberry during a visit with the pope, I can’t resist the urge to rant on the subject of social behavior and technology.

Back a number of years ago (OK more than a few). I recall an annoying problem with people answering the phone while I’m in their office or even at their homes while we’re engaging social discourse, It always bothered me so I made to never do the same. Whomever was calling could wait until I picked up the message.

Then cell phones came along and exacerbated the problem. Now it could happen anywhere at anytime. As we all know, this resulted in a social backlash and created in an awareness of social etiquette. Now you can even be ticketed for driving while talking the cell.

Then text messaging came along and created a whole new set of problems. It seems that some people thought that non-verbal interruption in person-to-person settings was OK. there is a perception that if you turn your back or place the device under the table while pecking away with your digits no one will mind…

Now cells are wired to the web and you can surf, email, instant message and twitter away. So we now have another new set of problems and new learning on social interaction is in order. Digital prowess does not impress. The Blackberry does not contain the codes for an emergency nuclear missile response. It can wait; believe me, almost nobody that important.

I love being wired and would not have it any other way. But there is a good deal of social behavior that needs to be refined as technology changes.

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Ecommerce marketers typically take a closer look at the promotion strategies of competitors during the 4th quarter holiday season because aggressive competitors may steal a substantial portion of business with the right offers. This is also true during economic downturns as marketers struggle to achieve revenue targets and are willing to give up margin to maintain market share and move inventory. Some will strive to take advantage of the downturn with the purpose of dealing fatal blows to weaker competitors.

The cruel reality for retailers is that unless you own a vertical market, you’ll need to get very aggressive and give up margin because that is exactly what the competition will do. Don’t delay because the competition is most likely eating your lunch right now. Or you can hunker down, lay off employees, cut expenses and hope things will turn around soon.

If you’re thinking about rolling out the free shipping offer again you may want to re-evaluate. It is typically the most expensive offer with the toughest ROI of your available options. Now is the time time to get creative by offering a diversity of awe-inspiring promotions and increasing your ad spend. You need to be different enough to separate your business from the competition and the standard free shipping offer may not do the job right now.

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ExpoTV is a site that aggregates user-generated product review videos. Its’ a great concept that moves beyond the traditional text-based product reviews. Judging by by the funding they have recently received, investors believe it is very promising.
I recently encountered ExpoTV videos posted on YouTube that caused me to pause and sniff. Although these are genuine user-generated reviews, my impression is that they are somewhat disingenuous. So I investigated further and found ExpoTV has chosen to directly pay for reviews. Users can earn cash for every review that is accepted. ExpoTV states that “Our consumer reporters work from home and earn up to $10.00 for each approved review they submit. That’s enough to cover their time and effort but not enough to give you anything other than the straight scoop. The real deal. Your consumer guide.” This seems like a reasonable assertion but it’s my impression that users are putting up reviews to earn money. Though this is a very modest amount, I believe that it still amounts to a bribe and affects the nature of the reviews.
The presenters appear to be stay-at-home moms and good number of others from the now swelling ranks of the unemployed. Some presentations are “so bad that they’re good”; like the review for Kingsford Charcoal. But most are very milquetoast and uninspired with generous user ratings. Users know that they need to pass a screening process and it appears to affect the nature of the reviews. Take a look for yourself and let me know if it raises your BS meter.
The biggest hurdle for any business in the product reviews arena is to create a critical mass of content in order to establish credibility. This is many times accomplished through incentives such as contests and give-aways and seems to be accepted. But I question the strategy of directly paying for reviews. Time and time again the public has rejected content that does not serve them. This may be the undoing of ExpoTV.

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Because of the proliferation of video sharing on the web, you may have considered or deployed video for branding and public relations on your online retail site. Most of the discussion relating to eCommerce up to this point has been pointed towards viral marketing campaigns. But the real payback may come from product demonstrations that are added to your rich media mix. Companies such as Ice.com have reported conversion increases of 40% for products with video presentations.

Up to this point, the large scale users of product demonstration videos are those who have re-purposed existing video such as HSN, and ShopNBC or deep pocket retailers such as Circuit City and Home Depot. ROI concerns on the high cost of video production have also limited usage to retailers who market products with high price points. But this has now changed as many retailers with in-house studios have figured out how to efficiently produce videos at a low cost. Vendors who specialize on website video production such as NextWebStudios are everywhere, offer very competitive pricing and services such as green screen imaging that allow spokespeople to walk directly over your web page.

Online retailers have been using product videos for years and I have seen my share of lousy productions and boring presentations that leave me anything but awe-struck. The risk is that inadequate production values can harm your business by leaving a poor impression. In my previous life as a creative director, I gained plenty of experience in the production of fashion location photography and will share some tips on moving forward.

1. The secret to producing effective videos is very detailed and comprehensive pre-production planning and assembly line efficiency that allows you to shoot the maximum number of videos per day. Your fixed costs per day for studio time, photographers, stylists, models and assistants can be substantial so you need a well-oiled process that runs at maximum efficiency.
2. Your choice of a spokesperson will make or break your videos. You or one of your staffers may be just the right person to make the presentation. But the use of well-chosen professional models and actors is the single best investment you can make to guarantee success.
3. Take the time to write a script and consider rehearsals before bringing in the production staff.
4. Choose a studio environment over outdoor location if at all possible. Controlled lighting and better staging to allow you to shoot 3 to 4 times more sessions per day.
5. Screen size and resolution issues limit the amount of detail you can show. Use alternate still images with zoom rather than video to show minute details.
6. Don’t be shy about re-shooting videos that don’t meet your standards. Chances are that some will bomb. Plan for this when creating a budget.

I referenced the following resources for this article.
New York Times
Internet Retailer

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This article is dedicated to all the entrepreneurs who direct the day-to-day projects required to build developing e-commerce businesses.

I know you may have a task list that goes from here to eternity and nowhere near the amount of resources available to realize your vision. But those who prioritize with strategic vision have a much better chance succeed. If your tactics are not guided by strategic vision you will fail. That’s why we need to go back to kindergarten every day and ask these very basic questions.

• Is your web presence truly different and inspired? Get different and stop following the herd. The trouble with consultants and “experts” in web design is that they can often guide everyone in the same direction. E-Commerce is still a relatively new channel that hasn’t fully matured and most sites lack an inspired branding component. Gain inspiration from mature channels such as print and television and adapt them to your site. Branding opportunities that offer true differentiation are still readily available in the web world.
• Is your site sticky enough to keep ‘em coming back? Your customer acquisition efforts are a waste of resources if you can’t convert with efficiency. Go back to to square one and get it right if acquisition marketing does not convert.
• If you are converting prospects, now may be the time to bring in the expert vendors to ramp-up. You’ll get traction sooner and you can bring it in-house later to gain efficiency.
• Don’t defer to the geeks. Just because they are tuned into technology and can make you feel inadequate is no reason to let them steal the show. They can push you towards tactics that direct you away from your strategic vision.

Here’s an important qualifier. The geeks are your best strategic partner if you ride them like a bucking bronco. Harnessing the power of geekdom can provide the ultimate insights in the development of your strategic vision.

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The question of how often to mail the email list has been a hotly debated topic in every eCommerce business I have been associated with. Conventional wisdom is that you should deliver as often as you can. I tend to agree. My experience has been that the ceiling is more frequent than you can imagine. I have mailed up to three times a week. That’s 156 times a year.

But how you determine that maximum frequency rate? Here are the considerations I have frequently debated.

1. Opt-out Rates– If the opt-outs exceed opt-ins, you are obviously in trouble (duh). But you can’t necessarily link opt-outs to frequency. You’ll need to conduct a population test to determine where the trouble lies. Segment your mailings to 2 or 3 frequency rates and test. It takes time for fatigue to set in, you may need up to six months to test.
2. Response Degradation– You will most certainly reduce your response rates as you increase the frequency. However, in most cases, frequency will override response unless your degradation is precipitous. If you have enough history you can compare like offers by season. But again, you may need a population test.
3. Value Proposition– I have saved this for last because we tend not give it enough weight. We know that providing lightweight content and repeating the same offer will not be successful regardless of frequency. But as you increase frequency, the value proposition becomes more difficult to achieve if you haven’t increased your resource allocation. It seems that everyone is in the business of providing advice and information today and that only magnifies the challenge. Value comes from expert campaign planning, talented content developers and great execution. I have found that a prolific diversity of offers is the secret to campaign planning in the retail space. I will follow up with an article on campaign planning in the near future.

I will leave you with a tip for those of you who concerned that frequency is degrading your response. Right above the opt-out link in your emails, provide an option to decrease the frequency of mailings by 50%. You will decrease opt-outs by up to 30%.

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Askimet Spam does a reasonable job with 95 to 98% of spammers effectively blocked. But I am finding that as time goes by, I spend more time moderating comments from spammers who have penetrated Askimet.
I discovered that if I enter my blog name into Google and repeat the search with omitted results, many of the same spammers who get through Askimet are on the last pages of the Google search result. Most of these are forums where I find an ability to edit and remove my URL.

Does this work? Or is it a waste of time? I would take pleasure in striking back.

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