Are you guilty of the Spray Tan Fallacy?

Op-Ed is a column where we share our thoughts and ideas about eCommerce, philosophy, building a sweeter marketplace and other fun stuff.

dorian-yates

Imagine looking at the above picture, and then thinking: “Oh wow, that’s what I want to be! I need to get me a spray tan.”

You wouldn’t think that, because it’s painfully obvious to you that the muscles are what matter, not the spray tan.

In fact, this guy would look better without a spray tan than most of us would with the best spray tan in the world. Because he put in the effort to build the muscles. This is something so obvious to us, that we take it for granted as common knowledge.

We don’t, however, carry this insight easily into our personal and professional lives.

logo-apple-evolution
(The evolution of Apple’s logo over the years.)

Now imagine looking at a beautiful brand, and then thinking, “Oh wow, that’s what I want to be! I need to get me some designers, and a marketing team.”

“I need to get a spray tan.”

Here’s what you’d be doing:
spray-tan-before-and-after

Now, successful businesses use every trick in the book.
They don’t stop at spray tan- they also use oil, lighting, professional photographers, take posing classes.

But underneath all of that, beyond all that, they have great muscles. That’s the foundation on which everything else is built.

Spray Tan: The iPhone is sleek and sexy as hell.
Muscle: It puts the internet in your pocket.

If you want to be like Apple, or whatever brand you admire, focus on your value proposition. Fulfill a need, and fulfill it masterfully. Work towards having the biggest, strongest damn muscles around.

The next time somebody suggests some equivalent of a spray tan, or you think about it yourself, remember: Muscles before spray tan.

This can be especially hard to do because we live in a world that spends a disproportionate amount of time talking about spray tan. We get bombarded with snake oil salesmen everyday, too, telling us that we’ll look or perform a lot better if we just use the right tools for marketing, advertising, the right gimmick..

Ignore them. There’s so many of them simply because it’s easier to spray something on your skin than it is to build muscle, and we’re biased towards “quick-and-easy solutions”.

You already know that spray tan won’t make you a bodybuilder. The challenge is to extend that to your personal work, to your business, to everything. There’s nothing quick-and-easy about building something that matters. Muscles before spray tan.

(Image Credit: Way2Tan, Edge Creative Solutions.)

P.S: I sacrificed some precision in an attempt to improve communicability. In bodybuilding, the highest order bit is having big, striated muscles. Posing well comes second, and spray tans probably come third.

This isn’t the case in every single industry. Coke, for example, makes great sugary drinks, but their highest order bit is their powerful marketing. In some industries, the spray tan can be more important than the muscle. What’s important is that you figure out what the most important thing is- and it isn’t always what’s most talked about.

Getting The Most Out of Your Referral Program

So you’ve got your referral program up and running. Sweet!referral-program-setup
How do you get the most out of it, though?

1. Write great referral emails.
When a customer buys a product from your online store, she receives an email from you (powered by us), with a coupon link for her to share with her friends. You can customize this email however you like.

Keep this email succinct.

After you’ve written it, read it from the perspective of your customer. Better yet, ask a friend (or ten) to read it. Ask them what they found confusing or tedious – they know better, because they don’t know your product as well as you do. (You know your product too well to know what throws people off.)

The clearer the email and the call-to-action (“Share this link now to earn ______!”), the better your conversion rates will be. Here’s how you do it.

2. Structure your rewards well.
Rewards are better than no rewards. But who should you reward more, the customer or the friend she makes the referral to? How much should you reward them, exactly? (Ideally, you’ll want to reward them as much as possible, but you’ve got a business to run, too. Otherwise it’s free goodies for everyone!)

Most specifically, how should you distribute the reward that you’re willing to give?

As it turns out: If your brand is new, you should reward the customer making the referral. If your brand is more established, split the reward between the customer and the friend she refers to you. Here’s why.

3. Make it more visible.
We often overlook this because it seems so obvious, but a customer can’t make a referral if he’s unaware that he has option to do so. Not everybody checks their email. It’s worth reminding your customers (through social media, or on your site itself) that they do have that option, and that it benefits them.

The keyword is “benefit”. Why should he do it? You have to tell him! (Remember, you get to choose how the benefits are structured.) Are you rewarding him directly, or his friends, or both? Make it loud, make it clear. Here’s how.

4. Tweak constantly.
There’s no magic pill, or we’d all be using it already. Every business, market and customer base is different. You can’t know what works best until you evaluate the results that you get.

So don’t be afraid to experiment. Do your customers respond better to cash incentives or to discounts? You can’t know in advance! Try one, then try the other, and check your stats to see if your referrals go up or down. You might even find that your customers respond better to lengthy, heartfelt emails. Who knows? Go find out.

5: Don’t forget your fundamentals.
Referral programs don’t magically create customers out of thin air or summon them from a mystical alternate reality. They simply accelerate the natural, organic process of sharing information (“Wow, this is great, I gotta tell everyone!”) by rewarding people for doing it.

Your customer must still like your product enough to want to refer it to his friends. Few people will refer a lousy product to their friends even if rewarded, because doing so would diminish their “social currency”.

So make sure you’ve got a great product to begin with, and that you focus on making your customer’s retail experience a great one- and then you can reap some truly delectable  returns from your referral program.

Still not seeing results?
Relax! It can take time for your customers to get around to using your program, and it can take even longer for their friends to use their coupons. You may experience a sudden spike in referral sales after a lull period. Tweet or Email us if you have any questions, concerns, anything!

The 6 Habits of Highly Effective E-commerce Site Owners

7 habits of highly effective e-commerce site owners

There are six traits all successful e-commerce site owner have. Over the years, I’ve met many of them at conferences and through friends. After countless conversations, dinners and phone calls, I could see that all of them were very similar in their way of thinking, how they managed their business and their approach to growing their online store.

I’ve identified all the commonalities and I boiled them down into six (not seven!) habits. Let’s start with the first one.

1. They are passionate about the customer experience.

The most successful e-commerce websites deliver the best customer experience and their owners are really passionate about this. Unlike brick-and-mortar business owners, e-commerce store owners cannot directly interact with their customers. They can’t directly guide and assist you along the way as you’re shopping. At least, not physically.

That’s where e-commerce site owners differ from traditional business owners. They have to focus on delivering the best customer service experience possible through their website and other online channels. In other words, the quality and passion has to shine through in every part of the shopping experience. This means having:

  • a beautiful and user-friendly website
  • an easy and secure checkout system
  • a return policy with no hassle
  • useful follow-up emails that people want to read
  • responsive customer service emails and calls
  • and much more…

When you can’t showcase your passion face-to-face, showcase it in every aspect of your online business so your customers do notice. Every successful e-commerce store owner does this and they want to share that passion not only through their online store, but also through their stories that they tell. Which brings me to the next habit.

2. They are storytellers.

People love reading and listening to stories. When you are passionate about your business and delivering the best customer experience, you will naturally share stories about it that people can relate to.

There are many ways e-commerce site owners can share their stories. While they can’t do it directly face-to-face, video is one the best mediums for delivering stories and for people to relate to your brand. Think of ways how can you use videos on your e-commerce website. In a traditional retail store, you have people who can answer all your questions and give you more insight into a particular product. Well, you can deliver almost the same experience by using videos. Here are some ideas:

  • As the founder, share how and why you started your business and how you want to help others
  • Talk about your product, how it will benefit the customer and put this on the product page
  • Have a video version that will address all commonly asked questions (think of it as a “FAQ video”)
  • Product educational videos that teach customers how to get more value out of your products and show them ways to use your product.

As an example, for software it’s very common to have screencasts that show exactly how you can use a particular function of the program. If you’re selling physical goods then that doesn’t work but the same idea still applies. Let’s say you sell blenders. You can produce videos that show customers how to make certain smoothies using your blender. Or, in a funny and extreme case, you can showoff how powerful they are by blending electronics like Blendtec did with its videos on “Will it blend?”.

Not only will videos help your business, it will also build your brand that people can relate to. The most successful e-commerce stores have a brand and people buy from brands they like. How do you get people to like your brand? By you sharing your stories.

It doesn’t have to be just over videos. You can start a blog, write fantastic newsletters, release a book, talk at conferences or even have a podcast. The main purpose of storytelling around your online business is that you want to build an emotional connection with your prospects and customers. That’s how you get people to buy from you without any price barriers and loyal customers that will buy from you many times over.

Look at Zappos. Aside from their great customer service and products, they have built their online business using storytelling. They released a book that shows how the company works. They give free tours around the office. They are transparent in all their communication. They have shared their stories countless times and many people have fallen in love with their brand.

Building a brand takes time and effort. Start today and share your stories. Communicate how you want to help them. Express your values to your prospects and customers. Let them fall in love with your brand and they will buy from you. Again, and again, and again.

3. They are obsessed with metrics.

You might have heard of the old adage “if you cannot measure it, you cannot improve it.” This especially applies to e-commerce stores.

Every effective webmaster knows this. In order to grow your online business, you have to know your metrics. These are key indicators of how healthy your business is and they give you the foundation to grow.

While there are many metrics you can track, here are some you want to be aware of:

  • Cost per acquisition
  • Average daily / monthly sales
  • Average order value
  • Conversation rate
  • Refund rate
  • Shopping cart abandonment rate
  • Average number of visit before purchase
  • Customer lifetime value
  • Repeat purchase rate
  • Revenue per visit

How do you know what success looks like when you don’t know your numbers? If you made $12,943 in revenue this month, is that a success or a failure? What about if your revenue per visit went up $0.01? Is that a success or failure?

When you don’t know your metrics, you simply can’t grow your business in a competent way and enjoy its success.

When you know your numbers, you can also make better decisions. The great thing about online business today is that it’s very easy to gather all the numbers you need before you make a final decision.

A common example is deciding whether you should up-sell customers before or after their purchase. You can guess which approach is better, but you’ll never know for certain if you’re making the right decision.

You’re making a leap of faith that could be costly and you will miss out on potentially doubling or even tripling your profit.

It’s totally unnecessary. It’s better to test this assumption on a small scale and let the numbers drive your decision.

4. They are experimenters.

Every successful e-commerce website owner is always testing different parts of their website to improve conversions and to generate more sales.

Once you get into the habit of testing ideas and assumptions, this will become a lifelong process in your business. There are many things you can test, but here are some suggestions that can affect your bottom line right away:

  • Category and Product page templates – try different templates and see which converts the best.
  • Checkout page template – same idea as mentioned above.
  • Up-selling before or after purchase – could triple your profit if you find out the right sequence and products.
  • Prices of your most popular products – test a wide range of prices to see which brings the most profit.
  • Testimonials – where to put them and which to include.
  • Social sharing buttons – some products benefit from this, others don’t.

There are a lot of experiments you can run with an e-commerce store, but the list above is a good starting point. If you are new to split testing, I suggest you look into tools such as Google Analytics Experiments, Visual Website Optimizer or Optimizely. They are very easy to use and one of the best tools available today.

Get in the habit of experimenting and your bank account will love you for it.

5. They proactively seek feedback from their customers.

The best way to find out what’s successful about your online business and what’s not working is by talking to your customers. Talk to the ones who spent their hard earned money on one of your products. They are the people who will give you the best feedback because they want you to succeed. After all, they trusted you with their money.

Calling them is more effective than sending them an email. It’s more personal and you can build a connection with your customers. Don’t know what to ask them? Simply think of questions of how you can improve your business. But if you need some suggestions, here you go:

  • What is one thing we can do better?
  • Are you happy with your purchase? Is there anything we can do to make you even happier?
  • How did you find out about us?
  • How was your experience shopping on our website? Is there anything that stood out positively or negatively?
  • What made you ultimately decide to buy from us?
  • What is the one thing we should never stop doing?

Get social with your customers. They are the best people to talk to and to spend time with. The more you do it, the more you will improve your online business in the shortest amount of time.

6. They are obsessed about making customer’s lives better.

Your customers are the lifeblood of your business and you want to treat them the best you can. From analyzing many e-commerce websites, I’ve noticed that the top ones are always giving; they add value to peoples’ lives whenever they can and profit from that.

Think win-win. How can you improve your customers’ lives? Think of ways to make them happier. How you can make them a better people?

Here are some actions you can take to inspire your customers and add value to their lives:

  • Write a killer newsletter for free that they will want to read every time.
  • Show them different products and accessories that complement their recent purchase (up-selling) and show them how it improves their lives.
  • Send follow up emails on how they can use your products more effectively and how they can get the most out of it. You get bonus points if you use videos.
  • Give them a call and suggest different products that they might enjoy based on their past purchases (cross-selling).
  • As a sign of appreciation, only give existing customers a discount for a future purchase.

Start adding value to existing customers and I have no doubt that you and your online store will succeed.

Time for Action

There you have it. The seven habits of highly effective e-commerce site owners. Now it’s your turn to incorporate these into your life that will help you grow your online business.

Let us know in the comments below how you are going to do it!

Images credit: JD Hancock, Ansik and Makelessnoise.

Five New Years Resolutions For Your Sales Funnel

The year 2013 has arrived, and although you’ve likely made resolutions for your personal life, now is the time to chart a bold new course for your sales funnel as well. It’s always tempting to leave well enough alone, but the best marketers are never content to just let things be and are constantly striving to hit new benchmarks with their sales. This year, commit to getting your hands dirty with the following five time-tested commitments for your funnel.

1. Truly Talk To Your Customers

This year, don’t be content to to simply count your sales. Instead, commit to getting to know your customer base. You can do this by using surveys and phone interviews to ask probing questions,  and get to the core of what they are really coming to you for.

These insights can be used to echo back shopper concerns, motivations, and desires in your sales copy, which is much better than trying to craft a letter from the powers of your brain alone. Talking to your customers might not seem like ground breaking advice at first, but it goes beyond merely looking at the emails they send – it’s about starting conversations and encouraging a dialogue with them. Don’t ask leading questions like “Do you want lower prices on widgets?” Instead, go for open-ended questions like “Why did you come to this website today?”

For more ideas on how to think about the right questions to ask, and how to learn from the responses you receive, have a look at this great post on how to talk to your customers.

2. Decipher More Data

Going data-less is no way to make a killing in 2013. Anyone can record their data but it takes a seasoned mind to sift through the data and extract meaning and patterns from it that can be converted into actionable improvements. For instance, a beginning marketer would celebrate “more traffic” coming in, but a dedicated professional looks for which particular traffic is converting, and who is leaving without making a purchase.

Actionable data is how you begin to cut all the fat off your sales funnel and turn it into a lean, cost-effective conversion machine. In 2012, you might have thought “I’m spending $25,000/month on advertising, and my retail website is bringing back around $40,000. I’m coming out ahead so I’m doing well!” Don’t stop there this year. Instead, ask how much of that $25,000 is pure waste, and how can you squeeze even more effectiveness and sales out of your investment.

If you really don’t have a clue about analytics and you run an online store, you could do worse than to start by watching this 60 second video on how to track ecommerce with Google Analytics!

3. Build a Stable of Great Products

(source: coolmikeol)

As advertising costs continue to soar, it becomes increasingly difficult to make a profit on your very first sale. This underscores how important it is to sell more things to the same customers over time. This creates a functioning cycle of more profit, which leads to more funds available for advertising, which leads to more profit.

Conversely, if you only have a single $50 product for sale, it might be very hard to continue to profit as you expand your efforts from PPC to inbound marketing and beyond. But by creating a stable of products that build on each other and can be sold to the same customers to increase the profitability of bringing them into the funnel, you can survive the stormy seas of rising ad costs.

4. Refine Your USP

Many businesses are afraid to repel certain parts of the market. They shy away from bold, polarizing messages because they are worried that they might lose potential customers that aren’t necessarily in their exact narrow market space. Paradoxically though, by keeping your unique selling proposition (USP) tame and vague, you are missing out on the opportunity to completely blow away those in your target market and might be missing out on untold numbers of sales that could be made through total ownership of that space.

Find out the biggest benefit that your business is specially designed to serve and focus on reaching that market specifically. For some thought exercises to help you better define your USP, consult this quick guide from author David Airey.

5. Make This The Year Of The Test

Experimenting with what works can be a scary proposition. “What if I break it?” is a common fear, especially when you’re talking about something like your headline, or the sequence of your follow up emails. However this flawed logic is the same that keeps people from asking out the love of their lives, or switching up their work out routine in the gym. If you always do what you’ve always done, you’ll always get what you’ve always got.

A better approach is to make calculated experiments to the aspects of your sales funnel that could produce the biggest gains. Try split testing your offer page across several different variables:

  • Headline
  • Sales copy
  • Navigation design
  • Color scheme
  • Call to action

You can try out services such as Optimizely and Visual Website Optimizer, which are designed to make testing easy and effective for you.

Remember, if your experiments are a success your sales funnel will be better for it. If they are not, you can always revert the website back later. For a complete guide to user testing including speicific ideas and strategies you can begin rolling out today, check out the book Don’t Make Me Think by author Steve Krug.

Always Be Improving

There is a common theme running through these five separate resolutions: always be measuring and improving. Whether you’re taking feedback from your customers, performing behavioral testing on your landing page, or refining your sales letter, your key to success in 2013 (and every year for that matter) should be to stay hungry. Once you decide that your funnel is “good enough” and stop thinking of small ways to improve it, you set a cap on how great your company can be.

Image credit: HiddedevriesMarius BDphifferMilosz1

How To Segment Your Email List & Close More Leads Like A Pro

As a marketer, it is your sworn duty to deliver a solid message-to-market match. That is, the language, timing, and product offer you use to speak to your prospective customers should fit their personalities like a glove. However, if you’re getting a bunch of sign-ups to your e-mail list from the same opt-in form, how can you discern the differences between these subscribers and speak to them as individuals not a nebulous group?

The answer is list segmentation. This strategy involves collecting information from your subscribers either at opt-in or through a survey that tells you more about their individual traits. Ultimately, segmentation enables you to divide your mailing list into smaller sub-groups that all receive different correspondence and offers from your brand, resulting in high conversion rates. Below, we explore important tips on how to get started.

Age Segmentation

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One of the first places most e-mail marketers begin segmentation is with basic age information. Age data guides you in determining what sort of language and cultural references are appropriate to use for your audience. As an example, if your list contains a large population under 25, it might not be impactful to compose them an email using singer David Lee Roth as an example to illustrate a higher-level marketing point.

Some typical age buckets ecommerce marketers use to segment their lists include:

  • Younger than 18: Teens and tweens who might not make purchases themselves but can influence the buying decisions of their elders.
  • 18-24: The college and young adult market. These people are typically focused on educational development, freedom and independence as they head out their own.
  • 25-31: The young professionals market. These people are starting to build their careers, settle down, and are beginning to start families.
  • 32-40: The family years. As babies become children and teenagers, these people tend to focus on financial stability and upward motion in their careers to provide for their families.
  • 40-50: The middle age market. As families mature, teens go off to college and people in this market tend to find more time to focus on themselves and their personal hobbies and interests.
  • 50-65: These are people are settling into their later years and are preparing for retirement from their careers.
  • Older than 65: These people are the retired class. They are focused on enjoying life outside of their careers, travel, and dedication to hobbies.

Career Segmentation

(source: Victor1558)

Career data is the next “must have” email list segmentation point. The profession a person is in reveals a great deal about their thought process, personality type, and values. Entrepreneurs think differently than finance professionals, and you should never be attempting to speak to both in the same way.

This is true for all products and services, but especially when you’re selling anything work or business related. A new retail inventory system, for example, should be sold differently to high-level executives than to store managers. The former will care about ease of implementation and bottom-line impact. The latter will be impressed by the actual experience of using the technology to do their job.

Interest Categories

(source: Lenny Montana)

Consider including a “Primary interests:” field in your opt-in form. This field can either contain a drop-down menu with predefined interest categories that you set, or it can be an open-ended text entry. This information is extremely valuable, as it will shine light on what percentages of your audience care the most about the various aspects of your brand.

To see a real life example of how this works, check out Electrical Engineering Web’s Pulse media kit. Pulse has broken down their subscriber base by interest category and displays those interest as percentages in a bar graph. Clearly, this level of insight helps both Pulse and its advertisers hone in on exactly what products, services, and discussions will be most relevant to its audience.

For retailers, this could be one of the most important ways to segment your list. Offer your customers the opportunity to check off their interests from a list of the product categories you sell (pop music, designer fashion, computers and gadgets, etc). You can then create targeted email correspondence for each subscriber such that those who checked “pop music,” for example, are offered discounts on band merchandise, while those who checked “automotive” are offered similar deals on performance parts.

Psychographic Segmentation

(source: Eddiehosa)

Once you’ve nailed down the information above, you can use the different combinations you encounter to create psychographic profiles, or subscriber personas. As Pragmatic Marketing indicates, personas in marketing refer to “short descriptions or biographies of fictitious, archetypical customers.” Defining these requires creative thinking and discretion from the marketer, but can yield valuable insights into the people living behind the email addresses.

Personas will tell you about buyer motivation, and what’s important to these people beyond the narrow scope of your product or service. You’ll discover if you’re dealing with some of the following customers:

  • Practical career shoppers: These consumers are “facts only” decision makers who concentrate on price and utility for their job.
  • Entrepreneurs and dreamers: These are people who value creativity over statistics. They are concerned with how products will positively impact their lives and help them achieve their goals.
  • Artists and recreational shoppers: These are people who are on your site because your products relate to their hobbies. They are less concerned with price and more with how much joy and adventure the products can add to their lives.
  • Family shoppers: Concerned with the wellbeing and betterment of their family, these shoppers are going to be looking at price and quality of the items in search of great deals that allow them to stay on family budget.

With this understanding, you’ll learn how to speak to each segmentation of your leads in a voice that resonates with them. Rather than sending the same adrenaline-fueled hype pitch to everyone, you’ll develop several niched emails that may vary greatly between each other, and deliver each one exclusively to a particular personality type on your list.

Past Buying History

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(source: AMagill)

In your subscriber database, you need to be keeping a record of which products and services each user has purchased. Of course, it’s good to know which subscribers have purchased your products before because they will be the ones most open to future pitches and supportive products. However, it is equally valuable to study the subscribers who have not bought from you.

In fact, many research organizations have studied the phenomenon of “shopping cart abandonment,” which occurs when shoppers behave as though they are ready to buy, but ultimately do not complete their transaction. Depending on the study you read, these rates can account for between 60 and 90% of shoppers who arrive on your page.

Who are these subscribers and why have they not converted? Which pitches did they receive and how were they spoken to? Are there kinks in your shopping cart system or hidden fees that appear at the last minute? By attempting to diagnose these problems, you’ll find yourself defining a new buyer persona that you failed to discover in the past.  You can then use these insights to create a new list segment specifically aimed at delivering content for this type of subscriber in the future. Some tips on diagnosing and reducing this behavior for retail websites can be found in this CrazyEgg guide.

Behavioral Segmentation

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(source: SamahR)

Most of the segmentation techniques discussed above are fairly simple to manually collect using opt in forms and list surveys. However, for the truly advanced email marketer, list management software such as Infusionsoft can unlock a deeper level of organization known as behavioral segmentation.

Behavioral segmentation means tracking every willful interaction the customer has had with the e-mails you send. In effect, you can create tripwires that tell you who downloaded a free guide, signed up for your online course, or opened every e-mail you’ve ever sent, etc.

Using this information, you can create hyper segmented lists that gauge both the level and area of interest for all subscribers on your list. Some ideas of how retailers can use behavioral segmentation include sending :

People who clicked the email link for a sale on sporting goods: They should receive sporting related emails in the future.

People who have opened your email about a sale on baby supplies: These are new parents who should continue to receive emails on childcare products.

People who signed up for your retail management training course: These are profitable retail professionals dedicated to their careers. They should receive further training tools and knowledge shares in the future.

Depending on how deep you want to go, the email variations and niched markets you can define are practically endless with professional email list management software.

Do You Make These 6 Email Newsletter Mistakes?

Email messages drive 1350% more traffic than social media. A stat like this is any marketers dream, as it demonstrates the sheer power of getting into the inbox.

Emails Drive 1350% More Traffic Than Social Media

Anyone involved in eCommerce should be actively gathering email addresses from current and potential customers. Getting those addresses is one thing. Creating something of value to send to your list is another.

Emails can drive revenue-significant revenue – if you know what you’re doing. The following list of mistakes might be costing you money. Each one keeps your emails from being opened, read, and acted on.

Email Newsletter Mistake #1: Your emails are too long.

Online readers are scanners. When we read a blog post, download an ebook, or open up the inbox, we’re looking for information that directly affects us. Statistically speaking, users will only read about 20% of digital content. This includes your emails!

Cluttered Email

Which one would you rather read?

When online marketers send emails that are too long (or worse, not formatted correctly), readers eyes glaze over. The sheer volume of text in front of them is too much to handle. They delete the email and move on.

Solution: Make sure your text is broken up into easily-digestible paragraphs. Use bullet points, bolded headlines, and big, beautiful images where appropriate.

Email Newsletter Mistake #2: You aren’t using first names.

In his sales magnum opus, How to Win Friends and Influence People Dale Carnegie talks about how we’re wired to hear our first name above anything else. Even in a crowded room, using a person’s first name is the fastest way to get someone’s attention.

Think of a typical person’s email inbox as a crowded room. There is so much noise, most people can’t filter out what’s important and what’s SPAM. This, again, includes your emails.

One of the best ways to rise above the noise is by using someone’s first name. Put it in the first few lines of your email–most any email provider has an option to do this. When someone scans their inbox, they’ll “hear” you using their first name and, most likely, stop to pay attention. That split second is when your subject line will coax them into opening your email, reading the valuable information contained therein.

Solution: Gather first names when your building your email database. Use them whenever, and wherever, possible!

Email Newsletter Mistake #3: You aren’t using pop-ups.

Technically this isn’t directly related to the content in your emails, but using popups has a direct impact on building your email list. The data is in and it shows, quite clearly, that popups work.

Data for Popup Stats

Researcher Dan Zarrella conducted a popup experiment on his own site. Common thinking tells us popups are annoying and should be avoided. Zarrella shows we’ve been following this line of thought to our own detriment.

When popups were introduced on his blog, he saw a 103 percent increase in email subscriptions with just a .7 percent increase in bounce rates. (Email address that he could use to nurture from a sales perspective, thus increasing his profits!) While not every context will be the same, popups are a solution you’d be foolish not to implement.

Popup Example from Woman Within

Popup example from online retailer.

Popup example from online retailer.

Same site, but this greets you after 60 seconds of being on the home page.

The correlation is simple: more email addresses means more traffic to your site or product. More traffic means more sales. More sales means more win!

Solution: Most people don’t seem to mind popups. FInd a reputable popup provider and start collecting more email addresses on your site.

Email Newsletter Mistake #4: You’re sending emails from a generic account.

People like getting emails from other people. Not faceless organizations. Not generic “info@companyname.com”, but real, flesh-and-blood human beings. Turns out this isn’t just a personal preference, it’s statistically verifiable.

When you include the company name in the “From” field, there is a 137 percent increase in open rates. For instance, if your name is Joe and you work at Acme, Co., you’d fill in the “From” field to read “Joe at Acme, Co.” This subtle change makes people twice as likely to open your emails. A no-brainer!

Hi From Kat at Trunk Club

A good example of a “From” field from men’s outfitter, Trunk Club.

In larger organizations, sometimes sending from a “blanket” email address (e.g., “marketing@companyname.com”) is an unavoidable reality. This doesn’t mean you can’t personalize your “From” field. Identify a person who will be the “email face” for your company and put their name in the “From” field. Results will follow.

Solution: For an extra personalized touch, put a picture of the person sending the emails somewhere near the bottom of the message.

Email Newsletter Mistake #5: There is no call-to-action.

If we remember back to the second email mistake, most folks have a crowded inbox. Lots of emails means you have 7-12 seconds to capture people’s attention, engage them with your content, and get them to do something with what they’ve just read.

One of the biggest mistakes I see in sales emails is the lack of a call-to-action. There are either far too many or none at all. In short, you must answer the question, “What do I want people to do with the information I’ve just provided them?” (Hint: the answer can’t be “everything” or “nothing.”)

You want people to take advantage of a deal you’re offering? Great. Give them a link which clearly points them to the place where they can buy. Use words like “click here” or “take action!” You want to make it plain what people are supposed to do. Don’t make them guess.

Here is a good example of where to place a call-to-action. You’ll see the dark red is an attention-grabbing headline, the red is engaging copy, and the green is where you place the call-to-action.

Anatomy of an Effective Email

Anatomy of an effective email.

Here’s an example from Frank & Oak:

Call to action from Frank & Oak

Clear, simple, and no guesswork.

Solution: Make your CTA simple, useful, and easy to follow. Make sure the link takes them to the exact place where they can buy your product or service, or take advantage of your offer.

Email Newsletter Mistake #6: You neglect “WIIFM.”

The most common mistake you must avoid in your emails is neglecting WIIFM, or, “what’s in in for me?” “How am I going to benefit from this personally?” That’s what people want to know when they open your email. Nothing more.

They don’t care about your company’s history, how long you’ve been in business, where you’re located, or how clever you think your copywriting is. They care about getting good deals and discounts. That’s it.

Before you hit the send button on a launch promotion or newsletter, answer these questions:

  1. What’s in this for the reader?
  2. Why would a busy person care to open this email?
  3. Does it benefit them personally?
  4. If so, how?
  5. If not, what do I need to change?

Solution: Make your emails customer-centric and you’ll profit. People don’t care about your organization as much as you think they do. They care about finding great deals.

Conclusion

Do you find yourself making any of these mistakes? If so, which ones? What did we miss? Let us know in the comments–and happy emailing!

Candy Tips – How to Write Great Emails Asking for Referrals!

Merry Christmas in advance! It’s time for another Candy Tip, this time on how to write emails asking for referrals that work. Most marketing and sales folk know that word of mouth is a powerful tool to generate new sales, and that the old adage goes  ”If you don’t ask, you won’t get.” That’s why it makes sense for salepeople to ask for a referral if they have just made a successful sale of say a lawn mower, property or car.

In the new economy of the Internet and eCommerce, online stores can also ask for a referral from a customer immediately after a sale. That’s what ReferralCandy does with an automated email to your customers. Assuming they like your product (and a good product always comes first), they’ll be happy to share it with friends that might want it too. But what to say in the email? Here are some tips and best practices that we’ve found through our interactions with numerous online retailers who are our clients.

Candy Tip #1 – Keep Emails Short and Sweet

So your customer has just bought that hot new item from your shop and is happy and excited by their purchase. She opens an email from you, only to find that it’s a long and winding road without a clear call to action which tells her what you would like her to do. So she quickly closes the email, moves on, and the opportunity is lost.

While there are certain cases where long and complex emails are better (e.g. you are telling a great story and building it up slowly), in general, you want to keep your emails asking for referrals short and sweet. Thank the customer for their purchase, and be clear in your call to action. Of course, you are free to add a bit of spice and colour in your email to suit your brand. Just not too much!

For example, in the sample email below, we’ve kept the email short and made a simple call to action “forward this coupon link” in a prominent colour and position at the bottom of the email.

Keep your emails short and sweet with a clear call to action.

Candy Tip #2 – It’s All About the Customer, so use “You” more than “I”

A simple rule in marketing is to demonstrate value to the customer. In other words, it should be about “You”, not “I”, “Me” or “We”. Demonstrate how your customer can benefit (e.g. get $10 cash!). As a general rule, if your email contains the words “I” or “we” more than the words “you” or “your”, you might want to look closely at rewording it!

Put yourself in the shoes of the customer. If you were reading your email as a customer, would you like what you are reading?

Candy Tip #3 – Have your Email Design Suit your Brand.

If it’s at all possible, you should use emails designs and text that suit your store’s character. What colours, fonts and designs best fit the message and image of your brand?

For ReferralCandy users, you can find out how to customize the design for your email based on our templates at the FAQ page below:

http://help.referralcandy.com/customer/portal/articles/792987-can-the-design-for-referral-emails-be-changed-

Bonus Tip –  Be Specific in what you Ask for

Finally, here’s an advanced tip that requires a bit of creativity and judgement. Referrals are often more effective if you are making a specific ask. For instance, instead of asking

“Do you know anyone who wants these nutrition supplements?”

You can ask,

“Brad, can you think of 3 friends who would want to get ripped with these awesome Bion-X supplements? Forward this coupon to them today!”

We think the second sentence would definitely be more persuasive as it is asking the reader to think of 3 specific friends who want to get a “ripped” physique. So long as the email is well-crafted and creative, it should lead to better conversions.

So that’s it for this week’s Candy Tips. Oh by the way, can you think of two friends who want to get more word of mouth sales online through referrals? Might want to forward  them this article.

5 Ways to Establish Your Own Brand as an E-commerce Retailer

Internet retail continues to up the competition factor among similar brands. Department stores like Belk and Macy’s compete with a range of retailers, from Walmart to Nordstrom to each other. Shoppers visit their local electronics store to browse and then turn to their smartphones to compare prices on sites like Amazon and eBay. An increase in competition is forcing both E-commerce and brick-and-mortar retailers to quickly adapt to the ever-changing landscape — as it changes, they must find a way to differentiate themselves.

As an Internet retailer, one of the best ways to stand out among the competition is to establish your own unique brand. This can be especially tricky if you retail other brands, as most consumers will comparison shop and make a final decision that’s largely based on price. If you’re not competitively priced, then you better have something truly different to offer that keeps them from “bouncing” away to find what they need somewhere else. That difference is defined in your brand. Here are 5 ways to establish your brand as an E-commerce retailer.

Engage.

Engaging your customers is key in a competitive landscape. The easiest way to engage people these days is through social media. We will just go ahead and assume that your brand has a Facebook page (but if you don’t, then stop reading now and go create one!) Over-promotion is one of the biggest mistakes I see among brands on social networks today. Don’t talk about yourself too much. Yes, it’s okay to promote special offers and deals as they occur, but true social engagement is about relationship building.

Talk to your fans and followers. Ask them questions that encourage responses. The more specific you get, the better. According to an article on Mashable.com, questions, famous quotes, photos and tips are all types of posts that tend to get more responses/likes/comments. Here are some other examples of posts may that elicit responses from followers:

“Like / Share this post if…”

“What’s your favorite…?”

“Fill in the blank: _____…”

Try this strategy for a few months and you’ll probably see more customer engagement than you’ve seen previously.

Some brands are finding other creative ways to engage customers outside the social networking space. Threadless has an engaging experience built right into its brand. Everything the site sells is made by ordinary people. Artists submit designs to one of the company’s design challenges. The community then gets to rate and critique the submissions for inclusion in the Threadless store. The more votes a particular design receives, the more likely it is that you’ll see it on Threadless apparel, accessories or home goods for purchase.

Threadless Screenshot

Do Something Different.

TOMS Shoes did something different when they pioneered the “one-to-one” charity concept. This concept is built right into the essence of their brand. For every pair of shoes you purchase on the TOMS Shoes website, the company donates another pair to a child in need. This idea was so unique that many other brands have since decided to jump on board. (In fact, Skechers created a carbon copy of the concept in their BOBS shoe brand!)

Warby Parker embraced the one-to-one concept with eyeglasses. But they didn’t stop there. They went a step further to establish their brand in a unique way by giving consumers a new way to shop for eyewear. Realizing that most people would not feel comfortable buying glasses online, the company developed several different try-on systems that would enable customers to try before buying. The first is a virtual try-on software built into every product page that lets website visitors upload a picture of themselves and see what any pair of glasses will look like on their face. The customer can then choose to do a home try-on: Warby Parker will ship up to 5 pairs of glasses to them at no cost and allow them to try each pair for 5 days. They even include a pre-paid return shipping label so that you can send back the pairs you don’t like and keep the pairs you love. This creates an especially unique and reassuring experience for buyers who may be hesitant to shop for eyewear online.

Have A Unique Voice

Your voice is established largely in your copywriting. Develop a brand “persona” and keep that persona in mind when you communicate with your visitors.

One great place to do that is in your company product descriptions. Once you know your brand persona, write from that persona’s point of view. You can also approach it from an audience mindset. If your target market is mostly women in a certain demographic, write to that target market.

A great example of a company that uses creative copy to establish a unique brand voice and tell a story is The J. Peterman Company. Every one of their product descriptions tells an entertaining story that gives the product a history and unique personality. If you can relate to the story, then you’re more likely to buy the product.

J. Peterman Screenshot

Become an Authority.

Consumers need to be educated. They shop online, not just for competitive prices, but to find information about the goods they are buying. Integrate that information into your customer’s user experience. One of the easiest ways to do this is through a company blog. You can also create buying guides, or — as in the case of the men’s fashion retailer, Mr. Porter — a “stylepedia” of product terms.

Mr. Porter Screenshot

Offer Something Exclusive.

According to an article in The New York Times, many retailers are choosing to carry exclusive lines to stand out. As a brick-and-mortar store, carrying exclusive brands puts you ahead of your competitors, especially for those brands you carry. As an E-commerce retailer, the offer becomes even more exclusive: “not only can you not buy this item in another store; because it is only sold online, you must shop our site to get it.” In addition to offering exclusive brands, you may choose to offer online-only coupons. This works especially well if you have brick-and-mortar locations, because it forces customers to shop your online inventory in order to get the deal.

Some online retailers also use an exclusive members-only shopping model. Sites like Gilt Groupe, Rue La La and Fab.com offer exceptional deals on luxury brands. The catch? You must first be a member to shop. Gilt Groupe even requires that to become a member, you must be invited by someone who is already a member, making the experience even more exclusive.

As we’ve demonstrated, there are several ways to make yourself stand out above the competition as an E-commerce retailer: engage, be different, have a unique voice, be an authority in your niche and offer something exclusive to online customers. The first step in all of this is to figure out who you are. Define your brand, and then decide what makes you different. Once you embrace those differences, come up with innovative ways to engage your customers by creating a truly unique online experience.

The Top 10 Most Popular Online Retailers on Facebook

Have you ever been to a rival online retailer’s website and and wondered how they got so many likes on Facebook? Have you ever wondered which online store owns the most popular Facebook page? Have you ever wondered why your high school crush never liked your Facebook cover photo back?

Well, the geeks here at ReferralCandy actually went to some lengths to find out, and then got me to write about it. First, we collated all the websites on Alexa that were online retailers (we took out those companies that had physical stores, so Victoria’s Secret sadly doesn’t count). Then, we crawled their webpages to find out where their Facebook pages were, and how many likes were on each Facebook page. Finally, we picked out the top 10, and checked out their pages in detail to see how the heck they got a million likes or more (and we did all this while delivering a smoother refer-a-friend web-app for your online store).

It was a lot of work, but it was also a good excuse to procrastinate with some e-window shopping at work. So without further ado, here’s the Top 10 most popular e-retailers on Facebook, as voted in by the mouse-clicking masses.

10. InfiBeam (937k likes)

We kick off the list at number 10 with the popular Indian e-commerce site InfiBeam, which sells everything from computers to flowers. Their Facebook page is full of pithy and earnest sayings, like this one above from Charlie Chaplin. I think it’s sweet, and their customers like it too, apparently.

9. Flipkart.com (1.09m likes)

Flipkart.com founder Binny Bansal tells a great story about how he started the Indian online bookseller from a two-bedroom apartment with his brother in 2007. In a recent interview, he says that every day, one of them would go on a bike to buy books and make their own catalogue. ” We would sit down on the floor and make the packages to give to the courier agencies for shipment.” It’s since come a long way from it’s humble beginnings and now sells music, movies, games, cameras, etc. It’s been likened to India’s Amazon, but with cash-on-delivery and other innovations tailored for the Indian e-commerce market.

Their Facebook page goes by simple themes (this month’s theme is “technology” and last month’s was “rain”). We also really like their use of infographics that their customers can relate to, like this one on the A-Z of Indian cuisine.

8. Newegg.com (1.09m likes)

The guys at newegg.com sell a wide range of electronics, as well as some geeky-techy eenie-meenie stuff, like this TV Universal Remote Control Keychain, in case, you know, you needed to switch channels while on the go. They’ve got a great Facebook page which asks some quirky questions such as “Do you consider your computer a male, female or just an object?”. Well,  more than 1400 people responded to that. Some sample answers. “Don’t know, I respect it’s privacy” or “It’s female. Her name is Cortana.” and so on. Clever and conversational content that resonates with the right audience, that’s why Newegg.com comes in at Number 8 (beating out Flipkart by about 500 votes, this one was closer than close).

7. Fashionandyou.com (1.12m likes)

Fashionandyou.com is a leading Indian fashion site that specializes in 3 day deals for site members on clothing and accessories. While their Facebook page is not exactly groundbreaking stuff (nice pictures of nice ladies in nice clothes), their social refer-a-friend programme and deep discounting has helped to generate over 3.6 million members via social media channels. Hey, referrals rock!

6. Worldsoccershop.com (1.35m likes)

It’s no wonder that the beautiful game is in the top 10 list of most popular online stores on facebook. Started by a failed soccer player from Brixton, England in 2001, Worldsoccershop.com has turned into something of a behemoth in online sales of replica team jerseys, boots and all other kinds of soccer paraphernalia. According to their website, they ordered 200,000 balls for the FIFA 2010 World Cup alone (up from 20 for the 2002 World Cup). That’s a lot of balls, Mr Anderson!

Their Facebook page is pretty straightforward, with droolworthy pics of the latest boots and replica jerseys on sale. But when your clientele is made up of the world’s testosterone laden young men playing the world’s most popular sport, you’re bound to get a few likes!

5. Yepme.com (1.36m likes)

Having started just two short years ago, Yepme is an India based online retailer specializing in private-label mens’ and women’s clothing for the 2nd and 3rd tier cities in India, where designer labels fear to thread. An aggressive social media and viral tv campaign (see the funny youtube clip above) has seen Yepme reach more than 1.3million likes on Facebook. Who’s gonna be watching this up and coming brand closely? Yep me.

4. EastBay (1.46m likes)

Americans are fanatical about sports, and EastBay is one of the leading online retailers of sportswear from football to cheerleading. Like worldsoccershop.com, their Facebook page seems to follow a tried and tested formula by posting snazzy pictures of sportswear and sportsmen (be like Mike, anyone?), and asking their scores of customers to comment on which ones they like best. It’s kinda like sports porn. And 1.4m people are addicted to it.

3. Peixe Urbano (1.59m likes)

Coming in at No. 3 is the only Brazilian online retailer on our list. Peixe Urbano (which means urban fish in Portuguese – yay Google Translate!) was founded in 2009 as a group buying site for local products and services, and is today present in major Brazilian cities as well Argentina, Mexico and Chile. With more than 16 million users and an expanding Latin American market in ecommerce, this is one site to watch.

2. ShoeDazzle (1.99m likes)

And the first runner-up of our inaugural online store facebook popularity contest? It’s none other than ShoeDazzle, a online Ladies’ shoe store with a personal stylist function thrown in based on customer preferences. We like their website for its sleek look set against a minimal white background, and their Facebook page is chock-full of item promotions and fun polls, interspersed with other social media like Twitter and Pinterest.

Infamous shoe fan and wife-of-a-dictator Imelda Marcos once said “I did not have three thousand pairs of shoes, I had one thousand and sixty”. Personally, I believe that you only ever need two pairs of shoes, one for work and one for playing soccer (see item 6 above). Unless you’re a soccer player of course. But hey,  it seems that 2m rabid ShoeDazzle fans on Facebook beg to differ.

1. Amazon.com (12m likes!)

And the one Facebook page to rule them all? You guessed it, it’s none other than Amazon.com, and they tower over the market with a whopping 12m likes. That’s 5m more than Mitt Romney! Amazon’s Facebook page keeps things interesting by asking viewers to comment on their favourite singers, movies, games, gadgets etc. It also touches on key product launches and the human stories behind them – its post on the re-launch of the Furby asked customers to relate the longest time they’ve waited in line for a hot toy (and got 1700 comments). But mostly their Facebook page got a lot of likes by being, well, Amazon.

How to get more likes on your Facebook page

So, after a few days of Facebooking, what have we learnt from the most popular online retailers on Facebook? While it’s clear that how big your Facebook following is necessarily a function of how many customers you have, there’s a lot of things we can learn from the top 10 nevertheless. Here are three tips we picked up from the best in the business.

  • Know who your customers are

The best Facebook pages for B2C businesses understand their target demographic. Newegg.com targeted their geeky clientele by asking them a whimsical question about what gender their computers were. Flipkart.com reached out to their Indian mass market with infographics that they could relate to, such as this one about cricket legend Sachin Tendulkar. The best content speaks to the heart of your loyal Facebook friends, who will spread the word in turn.

  • Let your audience do the talking

Many of the top 10 online retailers on our list use interactive activities to get the audience involved. For instance, ShoeDazzle is a master of this with online polls and contests such as this one on the winning look for the Emmy Awards, with the winning items getting a discount on their store. Getting your Facebook community involved in commenting, voting and posting gives them a sense of ownershop of the Facebook page, as well as your brand.

  • Post. Alot.

Most of the Top 10 on our list post on a daily basis, some multiple times a day. Keeping things fresh with a joke or the latest product update helps keep your Facebook following coming back for more, and adds a sense of vibrance and activity to your page.

Which Top 10 List do you want to see next?

So from India to Brazil to the US, from Football to Furbies, that’s our roundup of the most liked online retailers on Facebook from around the globe, as well as what makes them likeable. We hope this helps you understand better what works on Facebook for your online store.

Got a top 10 list you want to see on the ReferralCandy blog? Let us know below. Till next time.

Alvinl is the marketing guy at www.ReferralCandy.com, the refer-a-friend app that increases your sales through word of mouth. In his spare time he loves geeking out on technology, psychology and economics news.
Image credit: Sean MacEntee

Writing Persuasive Messages: Tips from a Nobel Laureate

It’s not everyday that you get tips on messaging and marketing from a Nobel Laureate. But that is exactly what Nobel Prize Winner in Economics Daniel Kahneman does in his recent bestseller Thinking Fast and Slow. Much of his book centres on the two Systems in our brain – The first system, simply called System 1, intuitively processes information and is quick to make decisions (think driving a car), while the second system, System 2, makes deliberate and considered choices (think taking a math test).

Kahneman tells us that if you have a well thought out message that you want others to believe, it’s not just what the message is that matters, but how you say it. In general, if you engage the intuitive and automatic part of our brain (System 1), the message is more likely to be believed quickly. And the psychology lab experiments bear this out.

We’ve distilled the three best tips that Kahneman dishes out on writing persuasive messages based on the science, and summarized them into a mnemonic. So here it is, The ReferralCandy S.M.L. Rule for Persuasive Messaging.

Tip No 1: Make it Simple

Many students believe that writing in complex language and with bombastic words will lead to better marks from Professors. Kahneman details how Princeton Professor Danny Oppenheimer refutes this myth with his brilliant paper Consequences of Erudite Vernacular Utilized Irrespective of Necessity: Problems with Using Long Words Needlessly.

Oppenheimer gave undergraduates at Stanford sample essays to read. But some of these essays had deliberately been made more complex with longer words. The result? increasing the complexity of a text made the students judge the authors to be less, not more intelligent.

So if you have something important to say during that business presentation or marketing blurb, keep it simple and concise. It’s the smart thing to do.

Tip No. 2: Make It Memorable

Besides keeping it simple, Kahneman recommends that you make your message memorable with rhymes. He cites an experiment where participants read unfamiliar but rhyming sayings such as:

Woes unite foes. 

A fault confessed is half redressed.

Other students read some of the sayings, but with non-rhyming versions:

Woes unite enemies

A fault admitted is half redressed.

You guessed it. Readers judged that the sayings which rhymed were more insightful than those which did not, though they were equally unfamiliar. No wonder Celine Dion songs always rhyme!

Tip No. 3: Make It Legible

Which of these statements is true:

Adolf Hitler was born in 1887.

Adolf Hitler was born in 1892.

If you are anything like most people, you would have chosen the second answer. But the right answer is neither (the evil dictator was born in 1889).  The idea is that the more your message stands out from the background, the more believable it is, other things being equal.

So the next time you’re designing a website or writing advertising copy, use bold fonts, and maximize the contrast between characters and their background to make the message more legible and clear. Kahneman also advises that if you use colour, use bright blue or red as they are more believable than lighter shades of say green, yellow and pale blue.

It’s All About Cognitive Ease

It’s all about what Kahneman calls cognitive ease. The human brain likes to believe what is familiar and easy to process. So the next time you need to get your point across, use our very own S.M.L Rule of Thumb. Keep it Simple, Memorable, and Legible. Hey, that rhymes!

 

Alvinl is the marketing guy at www.ReferralCandy.com, the refer-a-friend app that increases your sales through word of mouth. In his spare time he loves geeking out on technology, psychology and economics news.

Photo Credit: Osborneb