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Penny Haywood CalderPHPR is a UK-based results-driven on and offline PR agency. Our wealth of B2B and ecommerce experience is behind the results we get for businesses like yours. Our MD, Penny Haywood Calder (pictured), launched the world's first online bank in the mid 1980s. We've been online ever since, bringing you a wealth of on and offline know-how. We regularly land our clients on page one of the natural search results on Google. Yet we remain a boutique agency: small, experienced and cost-effective, with no junior staff to fob you off with. Just top professionals personally driving your business forward.

Thursday, 30 July 2009

Is your online sales process losing customers?

I am indebted to Simon Allen at shopfitter.com, the pay-as-you-go e-commerce solution, for sending me a link to this article. It details a case study where the requirement to register resulted in an $300 million loss in online sales revenues.

http://www.uie.com:80/articles/three_hund_million_button/

I don't know about you, but I recognised myself in Jared M Spool's description of online behaviour when website users are confronted by a simple login/registration form involving just a email address and password, with login/register options and a forgotten password link.

We see this all the time, so we assume it's a well proven formula that will work if we copy it.

Yet how often do we arrive at a similar form and wonder whether we have registered or not with the site? It's fine if we use the site a lot, but a real pain if we don't. I buy from very few sites frequently enough to remember all the login details as I vary passwords from time to time and different sites have slightly different requirements. It seems I'm not the only one.

Just like the users they researched in the article, I put in an email address and stab way at a variety of the usual passwords. And if I've changed my email address, was it before or after I registered? No wonder they found some people had registered several times. Others (to the tune of some $300 million) gave up and either found another seller that was easier to buy from, or did without.

Most users resented the registration process. First-time buyers weren't sure whether they would be repeat customers so they had no interest in relationship building. They viewed the process as yet another spam generator. Most repeat customers couldn't remember whether they were new or not.

Yet how many marketing people bang on about collecting email addresses to create a permission-based list that will be your future gold dust? Yes, the ability to send well-timed and well-spaced offers and interesting information to customers will surely generate repeat sales. But it is counter-productive if the timing of the contact information collection gets in the way of the first sale. I suspect you need to analyse user-experience to determine the best point in your repeat sales cycle and make the process as easy as possible - every keystroke counts online.

Simon was making the point that this doesn't happen with web shops on the shopfitter.com platform, and it's a good point.

I remember being commissioned to write a series of case studies (one of our specialities) for an online payment provider that didn't require the payee to register. The first interviewee reported a 24% increase in revenues on the day they switched to this payment services provider. When I asked the others, none had noticed, but when they looked into it, all saw 20+% increases in sales as a result of a massive drop in failed carts (purchases abandoned during the sales process).

The next time I'm specifying or re-vamping a web site, I know I'll be looking at removing barriers to sales, not creating them. The memory of the $300 million invisible sales hurdle will live on in my memory.

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Monday, 30 March 2009

Budgeting for PR

Have you ever wondered how you get from the small business to the large business marketing effect? If you have the vision to accelerate out of the end of this recession, understanding the synergy between sales, marketing and PR and budgeting for them, will enable you to do just that: accelerate your business.

We work with businesses of all sizes and over the last 22 years. I've noticed the main difference between the smaller and the larger business is that many small to medium businesses don't think they have a marketing budget. And they rarely admit to having a sales or PR budget.

In reality, most small businesses have made a substantial investment of time and money.
If you add up all the money and the time you spent in the last 12 months on any of these, you have the makings of your budget:
  • the website,
  • taking a 'special deal' in a directory or an advertising feature,
  • your membership subs & meeting fees plus time for attending networking events,
  • the online directory listings and forums, plus social networking sites,
  • writing sales proposals
  • PowerPoint presentations
  • responding to sales enquiries
  • encouraging referrals from customers or complementary businesses
  • signage for a building or vehicle
  • maybe some Pay Per Click experiments?
  • or a promo item?
  • marketing materials - folders, leaflets, brochures?
  • a mailing list?
  • email flyers?
  • a newsletter?
  • a blog?
  • photos, videos or podcasts?
  • local sponsorship in kind?
  • stalls at trade fairs
  • other sales, marketing, PR promotional activity

Chances are you have already made a fair investment of time and money in some aspect of the golden promotional trio: sales, marketing and PR. But you may be struggling to know what's effective? The standard advice is to monitor what works, then do more of it! And of course there's a lot of truth in the saying: "you can't manage what you haven't measured". But it's easier said than done.

If you ask customers at the point of sale how they heard of you, most people will stop after one answer: probably the most recent thing that brought them to you. Now that is an important clue, but would they have bought if you hadn't come recommended (word of mouth, or in the media, or online)? Would they have bought if your website was out-of date or the branding wasn't attractive and the brand values consistent?

In most cases the 'buy' decision is a complex balance between:

  • Your profile and reputation (PR), plus
  • A clear understanding and attraction to what you are selling (marketing and branding) plus
  • A good sales process to ensure lots of referrals and to clinch the deal efficiently.

Plenty of people will offer clever tools to monitor what works for you, but you'll only really find out by talking to customers and getting their feedback on all aspects of your sales, marketing and PR.

Plus you'll pick up invaluable feedback and ideas for developing your products and services in response to demand and for new markets.

More about the golden synergy between on and offline PR, marketing & sales next time.

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