If We Didn’t Have Internet Inhibitions – What Would Happen?

Check out the sampling of news headlines below about the risks associated with e-commerce and online activities, just from this week!

U.S. domain deregulation could fragment World Wide Web into ‘Splinternet’

http://www.washingtontimes.com/news/2014/may/4/us-domain-deregulation-could-result-in-tangled-web/

Facebook, Google users threatened by new security flaw
http://www.foxnews.com/tech/2014/05/05/facebook-google-users-threatened-by-new-security-flaw/

Online buyer, beware: Dangerous fake goods thrive on Web
http://www.usatoday.com/story/tech/2014/04/30/counterfeit-sites-dark-web-series/6374451/

Data breach alert: Small retailers are especially vulnerable
http://www.foxnews.com/tech/2014/05/02/data-breach-alert-small-retailers-are-especially-vulnerable/

Now, there is certainly some good news about being online – but you know what happens to good news – it does not travel far! We have seen tremendous growth in online business and e-commerce over the last few years, despite of all of the associated bad news we are inundated with practically every day. Although, such bad news has certainly had some impact on online activities, as there has been a leveling off of selected types of online business – such as in the banking industry, as illustrated in the chart below.
What would happen if our concerns regarding security and privacy did not inhibit our completely embracing online technology and business? Well, my guess is that we could not keep up with the demand – for more digital devices, more web hosting, more staff dedicated to online support, and so on. Additionally, traditional retailers would not have as much time to adapt to the transition of business – that’s already moving faster than most can handle.

OK – I’ll stop short of saying that a little trouble with e-security and privacy is a good thing. Nevertheless, we are certainly learning a lot (what not to do), and hopefully laying a strong foundation for the additional growth that is coming – about as quick as we can handle – and no faster!

Showrooming and Webrooming – Hurting or Helping Retail?

(AdExchanger, 2012)

First, a couple definitions.

Showrooming: Looking at a product in a retail store, and then shopping for and buying the product online.

Webrooming: Researching products/retailers online, and then going to the retail store to make a purchase. 

During the last few years, retailers have worried about showrooming, as more and more shoppers utilize their mobile devices to perhaps find better deals elsewhere, including Internet retailer sites. However, many are now questioning the assumed negative impact of such consumer behavior. When shoppers use their mobile devices in a brick-and-mortar store, are they really taking their business somewhere else, or could such devices actually be helping the traditional retailer – especially if retailers facilitate, instead of discourage the digital shopping companion?

A recent study indicated that mobile devices had an influence on 19% of in-store business/sales last year – which translates to a retail value of about $593 billion. When transactions on all digital devices are considered (PCs), the value increases to more than $1 trillion. Further, based on the current rapid growth rates, it is predicted that the influence of digital devices on business will reach $1.5 trillion by the end of this year – or about 50% of in-store sales (Deloitte Development LLC, 2014).

While some consumers certainly participate in showrooming, there is evidence that just as many consumers, if not more, are doing what is now called webrooming. It appears that a growing number of consumers are finding their product and retailer research information online, and then heading to the off-line store to make their purchase (Gustafson, 2014). A recent study also showed that the sales conversion rates go up when shoppers utilize digital devices (mobile or otherwise) before or during their shopping activity. In fact, according to the study, the normal rate of conversions for in-store sales when no digital devices are used is about 60%. However, when digital devices were utilized prior to or during shopping, the conversion rate jumps to as much as 78%. When digital devices are used both before and during the in-store shopping process, the conversion increases to an impressive 84% (Deloitte Development LLC, 2014).  

The point is that brick-and-mortar retailers should not worry about, or discourage the use of mobile devices in their stores, as many shoppers are simply using the devices to gather more information, see what others are saying about a product, and so on. Instead, retailers should embrace the growing mobile digital reality, and work to integrate their in-store and online marketing activities. Providing free Wi-Fi within the store to allow shoppers to easily browse online would be a great start. Additionally, why not add some in-store signs suggesting that shoppers go online to find additional information about a product, or read product reviews. Enhanced digital access to aid in the shopping process is what an increasing number of consumers are looking for – so, why not give it to them? Such activities can build customer loyalty, and provide a competitive advantage over the retailers that still have sad signs up that prohibit shoppers from using smart phones in the store? It only makes good business sense to be on the digital offensive side – and not to keep trying to play digital defense!

References

AdExchanger. (2012, May 4). Showrooming. Retrieved from AdExchanger: http://www.adexchanger.com/comic-strip/adexchanger-showrooming/

Deloitte Development LLC. (2014, April 28). Deloitte study: digital influences more than $1 trillion in retail store sales. Retrieved from Deloitte: http://www.deloitte.com/view/
en_US/us/press/Press-Releases/e051ee4e0e395410VgnVCM1000003256f70aRCRD.htm

Gustafson, K. (2014, April 28). The $1.5 trillion opportunity retailers overlook. Retrieved from CNBC: http://www.cnbc.com/id/101611505

Business Boosting Basics for Social Media

A recent study by LinkedIn indicated that 81% of businesses in North America utilize social media to help drive business (Weiss, 2014). Certainly social media is now an important marketing strategy for many businesses. Social media can indeed be an effective marketing tactic, or a waste of time. Below are a few basic tips to increase the effectiveness of social media as a marketing tool.

1.  Identify your target audience.  Prior to spending time developing communications to send via any social media channel, think about who your existing and potential customers are. To the extent that you understand this customer segment, you will better know which social media networks they utilize and the most attractive way to communicate in order to generate the desired response.

2.  Utilize an assortment of networks.  The time required to select the one perfect social media network to reach the most customers/potential customers may not be practical. Instead, start with one and keep expanding and experimenting to determine which provide the best reach and results. Facebook is the most talked about social media network, but it may not be the most utilized by your target audience. Additional considerations should include Twitter, Instagram, LinkedIn, YouTube, Pinterest, Google+, and a growing number of others.

3.  Assign a dedicated manager. Coordinating the online outreach for a business via the various social media outlets can be a big job, so if possible, a business should appoint a dedicated manager/staff person whose job it is to develop, distribute, follow-up, keep track of the results and refine activities as needed. If this is not possible, as is likely with a small business or organization, check out one of the new social media manager programs that can make managing communications with the various sites much easier. Sites such as HootSuite and Ping.fm provide the ability to manage multiple social media sites from one account. Some simpler programs/applications are even free.

4.  Utilize pictures. Social media networks like Pinterest and Instagram have grown dramatically recently, indicating the popularity of visual content. Regardless of the social network, pictures (and videos) are a great way to grab people’s attention and dramatically improve reach and response. 

5.  Engage followers. Social media should not be just a one-way communication where a business is just pushing product and marketing messages. If possible, engage followers in a two-way conversation. In other words, ask questions, seek input and ideas, and treat followers like friends on a social media network.

6.  Consistent commitment. Once an organization’s social media sites are going, a strategy to communicate on a frequent and consistent basis is critical. Depending on the business, frequent probably means as much as several times each day, to several times each week.

7.  Measure everything. The owner of a successful small business once told me that “you can’t expect what you’re not willing to inspect,” meaning, if you do not monitor results you cannot expect results to improve. Most of the social media networks allow for some degree of results monitoring, so take advantage of such information and keep tweaking e-marketing communications based on results.

Utilizing social media as part of an organization’s comprehensive marketing strategy is no longer just an option; it really should be a requirement. However, if the process is treated like a task that simple must to done without attention to audience, effective network selection, dedicated and consistent application, engaging and strong visual content, and results measurement – the whole activity may indeed be a waste of time. But, with attention to some of basic principles outline above, social media can be a very effective marketing tactic (Hansen, 2014).

References

Hansen, P. (2014, April 22). Ways to Use Social Media to Boost Your Small Business. Retrieved from Social Media Today: http://socialmediatoday.com/paisleyhansen/2366846/7-ways-use-social-media-boost-your-small-business?utm_source=hootsuite&utm_medium=
twitter&utm_campaign=hootsuite_tweets

Weiss, G. (2014, February 13). This Is How Small Businesses Are Using Social Media. Retrieved from Entrepreneur: http://www.entrepreneur.com/article/231515

E-Marketing for a Cause

While savvy business marketers are increasing their proficiency in utilizing online channels to reach consumers with product/service promotion, adding social causes to the messaging has worked especially well via social media. Some of the more recent business success stories include the very creative use of cause marketing to help sell products. Non-profit organizations are also tapping into the power of social marketing to further their cause.

One business example includes the unique (although subsequently copied) way that Toms Shoes markets its products, with compelling messages such as – “With every purchase Toms will give a pair of shoes to a child in need – one for one.” After consumers purchase Toms products, they receive emotion-based invitations to interact with the company’s social cause group, like “Join us – supporters of the One for One movement are uploading their stories and pictures right now at Toms.com/wall.” The company’s Facebook page boasts 2,201,995 likes, with 11,121 currently talking about the site (https://www.facebook.com/toms ). In addition to featuring the latest products, the Facebook page is now promoting the company’s upcoming “Leave your footprint – one day without shoes – April 29, 2014.”  Launching from the company’s website, visitors can also link to related Instagram and Pinterest accounts, and the site actively invites visitors to sign up for their email updates (www.Toms.com ). With website statements like, “The way you shop could help send a child to school – browse our exclusive assortment of goods that do good,” Toms is building its business via the online marketing of compelling social causes.

   

Perhaps even more suitable for social media marketing, online initiatives by non-profit organizations have also effectively stepped up their game to expand reach and interaction with supporters. Online word-of-mouth sharing works extremely well for causes. One example is a religious cause, with their online campaign that is being highlighted this week, leading up to Easter. The Church of Jesus Christ of Latter-day Saints introduced last week an initiative to share the story of Easter, asking supporters to share their YouTube video via Facebook, Twitter and other social media networks. In addition, on Easter Sunday, the organization has purchased the masthead space on YouTube’s homepage. According to a recent article, the organization expects to reach more than 100 million people via YouTube on Easter Sunday with its video entitled Because of Him (Morgenegg, 2014). The results thus far for the organization’s YouTube video posted seven days ago, not including Easter Sunday promotion activities, already includes 304,333 views (http://www.youtube.com/watch?v=pSCcVEhXgoY ). The organization’s Facebook page with 991,285 likes, has 87,461 individuals currently interacting with the site and 12,155 shares today (https://www.facebook.com/LDS ). Further, the organization sent 54 tweets via Twitter this week and has built a following of 115,000 (https://twitter.com/LDSchurch ).

We often think of e-marketing, or even marketing in general, as being associated with promoting products and services. However, with increased frequency, business’ sales are being enhanced by ties to social causes, and organization’s social causes are being promoted via online word-of-mouth networks. Regardless of what the message is, individuals communicating online are responsive to invitations to help spread the news about compelling stories that can help others. Certainly, a nice commentary on what energizes humanity to take action – even in today’s over commercialized and seemingly self-centered world.      

References

Morgenegg, R. (2014, April 10). Church News. Retrieved from The Church of Jesus Christ of Latter-day Saints: https://www.lds.org/church/news/church-to-launch-because-of-him-easter-initiative?lang=eng

Toms Shoes. (n.d.). Toms - One for One. Retrieved from Toms Shoes: http://www.toms.com/

The New Media-Old Media Generation Gap

With so much emphasis on digital marketing in recent years, it seems that many marketers are forgetting that there are still effective traditional marketing channels, and perhaps even more importantly, traditional marketing processes that still work.  The healthiest marketing approach is to take a holistic view, considering whatever combination of traditional and e-marketing tactics that provide the best results for a particular situation. In other words, we should not limit our marketing strategy to only e-marketing, or only traditional marketing, as an integrated marketing approach will likely produce better overall results.

Perhaps part of the reason why today’s marketers often ignore traditional marketing activities is generational. Young marketers often get the assignments within a firm to focus on the new/digital/social media activities – after all, they know how to do this stuff better than the older guys. Some of this is fine, as there are certainly positive results available in the ever-changing online digital world. However, if the digital focus is exclusive, many businesses will not realize their full potential. Further, if young marketers are not exposed to the tried and true marketing principles, they may excel as technology experts, but miss the opportunity to effectively connect with and engage their targeted audiences.  

One symptom of a marketing strategy focused exclusively on e-marketing, being driven without the benefit of strong marketing principles, is the large volume of marketing messages we all now receive from various digital channels that have absolutely nothing to do with our areas of interest as a consumer. It often appears that there is singular focus on executing digital technology and pushing out communications instead of meeting the needs of the potential customer. Without a strong understanding of the traditional marketing strategies that were required for effective use of the old school media, including basics like effective audience segmentation, buying cycles, messaging and offer – many may be reached – but few will buy.

Print, direct mail, broadcast and trade/event shows are all still viable marketing options and should be considered as part of a integrated marketing strategy – only now with the enhancements of including information that drives targeted consumers to the firm’s digital resources, perhaps with URLs and QR codes, for example. On the other hand, we older marketers cannot fail to adapt and adopt new digital media as an important part of our marketing toolbox. There is no need to limit ourselves, regardless of our generation. With a holistic marketing perspective, we can see and take advantage of the best of the old and new!

Does Facebook Still Work for Business E-Marketing?

For the last three or four years I have utilized Facebook several times each week to promote various community and business activities. With several thousand followers for our community Facebook page, we usually do well in terms of responses, as long as I post weeknights between 7:00 and 10:30 P.M., and include some type of graphic or photo (pictures of kids do the best). However, it seems that during the last year or so that views and responses have been more difficult to come by. I wondered if it was because most Facebook users have a growing number of friends that they are following, so it is easier to miss my posts – or if something else had changed. A growing number of followers have even told me that they have tried unsuccessfully to find my posts on their news feed. Upon further research/reading, it appears that a big part of the decline is due to changes at Facebook.

As many Facebook users have noticed, Facebook frequently changes its interface/format, under the guise of usability enhancements – usually generating complaints from faithful users forced to learn the how to navigate the new format. However, in addition, Facebook has also apparently been changing their algorithms for how posts are distributed. Originally, posts would arrive in the news feed for each Facebook page follower, and then Facebook changed the algorithm to select distribution based on user interests and so on. The percentage of distribution for organic posts is reportedly now down to only about three percent of fans in some cases (Rosenblatt, 2014). The key word in the last sentence is “organic.” It seems the motivation behind Facebook’s changes, like any other business, is to increase profits. Therefore, no longer do organic posts, meaning free posts, make it to all fans. Instead, if a marketer now wants to reach all Facebook followers, money must be paid to Facebook.

Paid posts on Facebook do work. In an effort to increase the results of several recent posts, I have recently succumbed to the new Facebook business model and purchased additional “reach.” Additionally, I have even purchased an ad to promote my page to increase the number of “likes.” It is interesting to watch the process as the reach/responses go up, as my contributed dollars go up. Of course, it is up to me to determine how much to spend for the resulting responses – and decide if the increased costs are worth it – just like any other marketing activity.

Facebook still works for business e-marketing and communications. However, the new costs associated with communicating on the social media network certainly place Facebook in a new (or traditional) category of marketing, where budgets need to be planned and results measured, and compared to other marketing activities in order to select the best return on investment. Facebook is no longer just a social media site, it is also a business focused on profits. Understanding the transition is important for e-marketers, especially for those currently dependent on the network. The changing demographics of Facebook users also need to be watched (younger users leaving, etc.). Additional options must be considered as the costs for communicating via Facebook continue to rise and results continue to decline.    

Reference

Rosenblatt, A. (2014, April 1). Social Advocacy & Politics: Breaking Up with Facebook Is Hard to Do... Or Is It? Retrieved from Social Media Today: http://socialmediatoday.com/social_advocacy_politics/breaking-facebook-hard?utm_source=hootsuite&utm_medium=twitter&utm_campaign=hootsuite_tweets

E-Trust Hurdle

Since December, the fallout from Target’s massive electronic security breach has continued to grow. Last week’s news about Trustmark, Target’s hired security vendor, is that the firm is being named in a lawsuit that claims it failed to detect the security breach. As a result of such continuing negative news e-commerce, an increasing number of consumers are concerned about privacy relative to the collection of customer information by retailers, as they worry that the data may not be properly safeguarded and fall into the wrong hands, resulting in identity theft. While recent events, such as the hacked credit card information from Targets and other retailers, have increased concerns at the store level, worries about the safety of shopping online are even more pronounced.

Consumers have varying levels of understanding regarding what personal information is collected when using electronic retail channels, as with the use of cookies. For most retailers, the objective of utilizing cookies is to collect customer information that can be enhance their customer relationship management (CRM) environment – enabling the retailer to actually provide better customer service. However, hackers can also utilize cookies to find private information about consumers, including highly sensitive financial and account login information that can lead to data theft – resulting in damages to personal finances and credit.

Without security standards at the retail level and supportive privacy laws, consumers are indeed more dependent of the varying levels of retail security and therefore vulnerable, relative to online transactions. Currently, the United States appears to be lagging behind some other countries, in terms of consumer privacy and protection laws. However, due to the costly PR nightmares associated with recent retail identity theft, there now appears to be new interest in formalizing in-store and online security, as well as the political will to increase standards in the U.S.

In order for CRM programs and online retail channels to continue successfully, retailers must be able to assure their customers that the information collected about them will be securely guarded and not provided to others with lower security standards. Otherwise, the lack of trust relative to electronic exchanges will continue to be a hurdle that limits consumer confidence and growth.