Boost your ecommerce success with dynamic pricing

The goal of every single ecommerce retailer is to find a solid way that leads them to improve their business. Personalized and segmented emails, delivering a great user experience and customer support, publishing good performing ads… The list goes on. All of these efforts have a great impact on the success of an online business. But in this article, we would like to tap into a mysterious area – having an effective pricing strategy through dynamic pricing to boost ecommerce success.

While dynamic pricing is not a completely new approach, ecommerce retailers have been using it more of late. Most of them were randomly optimizing their prices and changing them manually based on internal decisions. However, because of the increase in online price competition, and thanks to greater market intelligence and sophisticated dynamic pricing software, ecommerce retailers have realized the importance and the impact of dynamic pricing on their businesses.

What is dynamic pricing?

In basic terms, dynamic pricing is a pricing approach that enables you to set flexible prices by taking into account your costs, desired profit margins, the demand of the market and your competitors’ prices. In other words, you’ll be able to set the optimal price at the right time in response to real-time demand and competition status, while taking into account your business goals.

Why is dynamic pricing important?

The most apparent case is retail giant Amazon, who changes and updates its prices every 10 minutes and increased its revenues by 27.2%. Another big player, Walmart, adopted dynamic pricing and changed its prices 50,000 times a month. Using this pricing model, its sales jumped by 30% in 2013.

Dynamic pricing also lets retailers have additional and valuable insights on industry trends. Ecommerce retailers can apply different price limits and analyze price elasticities before deciding the optimal product price. A great way of testing and optimizing your prices is through paid ads. For example, Google Shopping provides instant data on how online shoppers are responding to your new price. You can analyze conversion rates, impressions, CTRs and margins after changing prices. By making continuous tests, you can find the optimal price.

The benefits of using a dynamic pricing strategy are abundant: improved margins and revenues; better conversion; control on the market; personalized prices based on season, demand and demographic; and presence in price comparison engines. As such, your prices always stay competitive and optimized in the ecommerce market.

Dynamic pricing use-case scenarios

If you are managing an ecommerce store, you should seriously consider adopting a dynamic pricing model with the right technology, since it has a significant impact on business success.

Here are some proven dynamic pricing use-cases that you can face in your industry:

  • Demand-based pricing

If the general or seasonal demand for your product is at low level, then you have to eliminate the excess stock in order to get rid of the extra costs. The most common practice is to drop prices as low as possible to increase sales.

On the other hand, if demand is high in the market (it can be a seasonal effect or instant hypes), it would be great to increase your prices for the purpose of boosting profits.

So in a nutshell, demand-based pricing lets you benefit from demand fluctuations in the market like increasing prices when demand is high or when your competitors’ products are out of stock.

Identifying your competitors’ out-of-stock products – through a competitor price monitoring tool, Amazon Bestseller, or tracking Google Trends – would give you great insight in understanding market demand and the most popular products over a certain time period.

Moreover, ecommerce retailers can apply a dynamic pricing strategy for some seasonal opportunities that occur during the holidays or shopping frenzies.

  • Time-based pricing

Time-based pricing is a dynamic pricing approach which enables ecommerce retailers to optimize their prices based on certain times of a day, month, year or the lifespan of a product in the market.

Different to demand-based pricing, as time is the core element rather than instant hypes in demand, the time-based pricing model is more predictable.

Let’s go through some real examples. The most popular industry using the time-based pricing approach is airline ticket providers. You should definitely notice that airline ticket prices are much higher in holiday seasons when compared with a regular season in the year.

Time-based pricing also works well if a product is outdated. Electronics brands use this strategy to increase the demand for an old version of a product. Whenever Apple releases a new version of a product, the price of an old version is marked down for the purpose of attracting more customers.

Through time-based pricing, you’ll always be aware of market trends as well as what your rivals are offering. With that intelligence you can always know where and when to decrease or increase your prices.

  • Competitive pricing

There are hundreds of competitors in the market and they adjust their prices continuously. That’s why you should also monitor them and take actions based on the pricing competition in the market.

If you deny your competitors then you won’t know if you’re priced too high or too low among them. That lack of information causes you to detach from the market.

In that scenario, you’ll face low conversion rates or slim margins which harm your sales and business growth. This is because your competitors are acting competitively and are more aware of market trends.

Do you know why?

The statistics show that majority of online shoppers compare prices before finalizing their purchase by visiting at least 3 online stores. Moreover, most of them name price as the very first criteria for their purchasing decision.

In a nutshell, because of price competition in the ecommerce space, online pricing becomes one of the key elements that influences the purchasing decision. So, retailers should be very attentive with their management and optimization.

Think about a scenario in which one of your competitors applies discounts and undercuts your pricing. With dynamic pricing, you can automatically react to its discounting strategy and regain your competitive status again.

Your prices may be too competitive when compared to your closest rival. So, even an increase of 10% or 20% won’t harm your competitiveness in the market. To grab at this opportunity, you need fresh competitor intelligence and dynamic pricing. By investing in both, you will be able to retain your competitiveness and increase your profit margin.

How to ‘really’ apply dynamic pricing to your strategy?

As mentioned above, Amazon is a huge fan of repricing!

Now let’s see how to apply this smart strategy!

Having tons of data is great. But, the crucial thing is to convert data into actionable insights. Fortunately, there are dynamic pricing and repricing software in the market that help you to generate recommendations from the data that you’ve collected from competitors. Then, the technology lets you calculate optimal prices through repricing rules that you’ve set based on your competitors’ prices, market demand and costs.

Once the optimal price rules are set, then you can enjoy the rest! The repricing engine works all day and your prices will be changed according to the fluctuations in the market and, of course, based on the rules that you’ve set. With the mix of competitive intelligence and repricing ability, your business can gain a seamless competitive advantage in the market. As you’re able to react to every single move in the market, your prices will always stay competitive or optimized.

Let’s give an actual example:

There are two different retailers competing in the same category:

  • The first retailer named ‘Great E-Commerce Retailer’ is selling all types of products from almost every category (electronics, home & kitchen appliances, fashion products, sports products,… the list goes on…)
  • The second retailer named ‘Super Sport Retailer’ specializes in the sports category.

Then, imagine that these retailers are competing harshly over price in the ‘football shoes vertical’. To take advantage of repricing technology and find the most optimal price, the below rule for Super Sport Retailer can be set;

My prices for every product under ‘football shoes category’ should be 10% lower

+

than ‘Great E-Commerce Retailer’

+

but they should be at least 15% higher than my costs

After setting this rule and assigning it in the repricing engine, ‘Super Sport Retailer’ will always have competitive prices in the football shoe category that won’t veer lower than its costs.

Repricing in ecommerce is key to remain competitive and grow your business online.

So, what are your thoughts on dynamic pricing and repricing? Have you ever tried it on your ecommerce store? If yes, what are your experiences? Please don’t hesitate to share all of them with us at Prisync.

The post Boost your ecommerce success with dynamic pricing appeared first on The Marketing Automation Blog.

Reblogged 6 days ago from blog.dotmailer.com

Meet Dan Morris, Executive Vice President, North America

  1. Why did you decide to come to dotmailer?

The top three reasons were People, Product and Opportunity. I met the people who make up our business and heard their stories from the past 18 years, learned about the platform and market leading status they had built in the UK, and saw that I could add value with my U.S. high growth business experience. I’ve been working with marketers, entrepreneurs and business owners for years across a series of different roles, and saw that I could apply what I’d learned from that and the start-up space to dotmailer’s U.S. operation. dotmailer has had clients in the U.S. for 12 years and we’re positioned to grow the user base of our powerful and easy-to-use platform significantly. I knew I could make a difference here, and what closed the deal for me was the people.  Every single person I’ve met is deeply committed to the business, to the success of our customers and to making our solution simple and efficient.  We’re a great group of passionate people and I’m proud to have joined the dotfamily.

Dan Morris, dotmailer’s EVP for North America in the new NYC office

      1. Tell us a bit about your new role

dotmailer has been in business and in this space for more than 18 years. We were a web agency, then a Systems Integrator, and we got into the email business that way, ultimately building the dotmailer platform thousands of people use daily. This means we know this space better than anyone and we have the perfect solutions to align closely with our customers and the solutions flexible enough to grow with them.  My role is to take all that experience and the platform and grow our U.S. presence. My early focus has been on identifying the right team to execute our growth plans. We want to be the market leader in the U.S. in the next three years – just like we’ve done in the UK –  so getting the right people in the right spots was critical.  We quickly assessed the skills of the U.S. team and made changes that were necessary in order to provide the right focus on customer success. Next, we set out to completely rebuild dotmailer’s commercial approach in the U.S.  We simplified our offers to three bundles, so that pricing and what’s included in those bundles is transparent to our customers.  We’ve heard great things about this already from clients and partners. We’re also increasing our resources on customer success and support.  We’re intensely focused on ease of on-boarding, ease of use and speed of use.  We consistently hear how easy and smooth a process it is to use dotmailer’s tools.  That’s key for us – when you buy a dotmailer solution, we want to onboard you quickly and make sure you have all of your questions answered right away so that you can move right into using it.  Customers are raving about this, so we know it’s working well.

  1. What early accomplishments are you most proud of from your dotmailer time so far?

I’ve been at dotmailer for eight months now and I’m really proud of all we’ve accomplished together.  We spent a lot of time assessing where we needed to restructure and where we needed to invest.  We made the changes we needed, invested in our partner program, localized tech support, customer on-boarding and added customer success team members.  We have the right people in the right roles and it’s making a difference.  We have a commercial approach that is clear with the complete transparency that we wanted to provide our customers.  We’ve got a more customer-focused approach and we’re on-boarding customers quickly so they’re up and running faster.  We have happier customers than ever before and that’s the key to everything we do.

  1. You’ve moved the U.S. team to a new office. Can you tell us why and a bit about the new space?

I thought it was very important to create a NY office space that was tied to branding and other offices around the world, and also had its own NY energy and culture for our team here – to foster collaboration and to have some fun.  It was also important for us that we had a flexible space where we could welcome customers, partners and resellers, and also hold classes and dotUniversity training sessions. I’m really grateful to the team who worked on the space because it really reflects our team and what we care about.   At any given time, you’ll see a training session happening, the team collaborating, a customer dropping in to ask a few questions or a partner dropping in to work from here.  We love our new, NYC space.

We had a spectacular reception this week to celebrate the opening of this office with customers, partners and the dotmailer leadership team in attendance. Please take a look at the photos from our event on Facebook.

Guests and the team at dotmailer's new NYC office warming party

Guests and the team at dotmailer’s new NYC office warming party

  1. What did you learn from your days in the start-up space that you’re applying at dotmailer?

The start-up space is a great place to learn. You have to know where every dollar is going and coming from, so every choice you make needs to be backed up with a business case for that investment.  You try lots of different things to see if they’ll work and you’re ready to turn those tactics up or down quickly based on an assessment of the results. You also learn things don’t have to stay the way they are, and can change if you make them change. You always listen and learn – to customers, partners, industry veterans, advisors, etc. to better understand what’s working and not working.  dotmailer has been in business for 18 years now, and so there are so many great contributors across the business who know how things have worked and yet are always keen to keep improving.  I am constantly in listening and learning mode so that I can understand all of the unique perspectives our team brings and what we need to act on.

  1. What are your plans for the U.S. and the sales function there?

On our path to being the market leader in the U.S., I’m focused on three things going forward: 1 – I want our customers to be truly happy.  It’s already a big focus in the dotmailer organization – and we’re working hard to understand their challenges and goals so we can take product and service to the next level. 2 – Creating an even more robust program around partners, resellers and further building out our channel partners to continuously improve sales and customer service programs. We recently launched a certification program to ensure partners have all the training and resources they need to support our mutual customers.  3 – We have an aggressive growth plan for the U.S. and I’m very focused on making sure our team is well trained, and that we remain thoughtful and measured as we take the steps to grow.  We want to always keep an eye on what we’re known for – tools that are powerful and simple to use – and make sure everything else we offer remains accessible and valuable as we execute our growth plans.

  1. What are the most common questions that you get when speaking to a prospective customer?

The questions we usually get are around price, service level and flexibility.  How much does dotmailer cost?  How well are you going to look after my business?  How will you integrate into my existing stack and then my plans for future growth? We now have three transparent bundle options with specifics around what’s included published right on our website.  We have introduced a customer success team that’s focused only on taking great care of our customers and we’re hearing stories every day that tells me this is working.  And we have all of the tools to support our customers as they grow and to also integrate into their existing stacks – often integrating so well that you can use dotmailer from within Magento, Salesforce or Dynamics, for example.

  1. Can you tell us about the dotmailer differentiators you highlight when speaking to prospective customers that seem to really resonate?

In addition to the ones above – ease of use, speed of use and the ability to scale with you. With dotmailer’s tiered program, you can start with a lighter level of functionality and grow into more advanced functionality as you need it. The platform itself is so easy to use that most marketers are able to build campaigns in minutes that would have taken hours on other platforms. Our customer success team is also with you all the way if ever you want or need help.  We’ve built a very powerful platform and we have a fantastic team to help you with personalized service as an extended part of your team and we’re ready to grow with you.

  1. How much time is your team on the road vs. in the office? Any road warrior tips to share?

I’ve spent a lot of time on the road, one year I attended 22 tradeshows! Top tip when flying is to be willing to give up your seat for families or groups once you’re at the airport gate, as you’ll often be rewarded with a better seat for helping the airline make the family or group happy. Win win! Since joining dotmailer, I’m focused on being in office and present for the team and customers as much as possible. I can usually be found in our new, NYC office where I spend a lot of time with our team, in customer meetings, in trainings and other hosted events, sales conversations or marketing meetings. I’m here to help the team, clients and partners to succeed, and will always do my best to say yes! Once our prospective customers see how quickly and efficiently they can execute tasks with dotmailer solutions vs. their existing solutions, it’s a no-brainer for them.  I love seeing and hearing their reactions.

  1. Tell us a bit about yourself – favorite sports team, favorite food, guilty pleasure, favorite band, favorite vacation spot?

I’m originally from Yorkshire in England, and grew up just outside York. I moved to the U.S. about seven years ago to join a very fast growing startup, we took it from 5 to well over 300 people which was a fantastic experience. I moved to NYC almost two years ago, and I love exploring this great city.  There’s so much to see and do.  Outside of dotmailer, my passion is cars, and I also enjoy skeet shooting, almost all types of music, and I love to travel – my goal is to get to India, Thailand, Australia and Japan in the near future.

Want to find out more about the dotfamily? Check out our recent post about Darren Hockley, Global Head of Support.

Reblogged 1 year ago from blog.dotmailer.com

Using Term Frequency Analysis to Measure Your Content Quality

Posted by EricEnge

It’s time to look at your content differently—time to start understanding just how good it really is. I am not simply talking about titles, keyword usage, and meta descriptions. I am talking about the entire page experience. In today’s post, I am going to introduce the general concept of content quality analysis, why it should matter to you, and how to use term frequency (TF) analysis to gather ideas on how to improve your content.

TF analysis is usually combined with inverse document frequency analysis (collectively TF-IDF analysis). TF-IDF analysis has been a staple concept for information retrieval science for a long time. You can read more about TF-IDF and other search science concepts in Cyrus Shepard’s
excellent article here.

For purposes of today’s post, I am going to show you how you can use TF analysis to get clues as to what Google is valuing in the content of sites that currently outrank you. But first, let’s get oriented.

Conceptualizing page quality

Start by asking yourself if your page provides a quality experience to people who visit it. For example, if a search engine sends 100 people to your page, how many of them will be happy? Seventy percent? Thirty percent? Less? What if your competitor’s page gets a higher percentage of happy users than yours does? Does that feel like an “uh-oh”?

Let’s think about this with a specific example in mind. What if you ran a golf club site, and 100 people come to your page after searching on a phrase like “golf clubs.” What are the kinds of things they may be looking for?

Here are some things they might want:

  1. A way to buy golf clubs on your site (you would need to see a shopping cart of some sort).
  2. The ability to select specific brands, perhaps by links to other pages about those brands of golf clubs.
  3. Information on how to pick the club that is best for them.
  4. The ability to select specific types of clubs (drivers, putters, irons, etc.). Again, this may be via links to other pages.
  5. A site search box.
  6. Pricing info.
  7. Info on shipping costs.
  8. Expert analysis comparing different golf club brands.
  9. End user reviews of your company so they can determine if they want to do business with you.
  10. How your return policy works.
  11. How they can file a complaint.
  12. Information about your company. Perhaps an “about us” page.
  13. A link to a privacy policy page.
  14. Whether or not you have been “in the news” recently.
  15. Trust symbols that show that you are a reputable organization.
  16. A way to access pages to buy different products, such as golf balls or tees.
  17. Information about specific golf courses.
  18. Tips on how to improve their golf game.

This is really only a partial list, and the specifics of your site can certainly vary for any number of reasons from what I laid out above. So how do you figure out what it is that people really want? You could pull in data from a number of sources. For example, using data from your site search box can be invaluable. You can do user testing on your site. You can conduct surveys. These are all good sources of data.

You can also look at your analytics data to see what pages get visited the most. Just be careful how you use that data. For example, if most of your traffic is from search, this data will be biased by incoming search traffic, and hence what Google chooses to rank. In addition, you may only have a small percentage of the visitors to your site going to your privacy policy, but chances are good that there are significantly more users than that who notice whether or not you have a privacy policy. Many of these will be satisfied just to see that you have one and won’t actually go check it out.

Whatever you do, it’s worth using many of these methods to determine what users want from the pages of your site and then using the resulting information to improve your overall site experience.

Is Google using this type of info as a ranking factor?

At some level, they clearly are. Clearly Google and Bing have evolved far beyond the initial TF-IDF concepts, but we can still use them to better understand our own content.

The first major indication we had that Google was performing content quality analysis was with the release of the
Panda algorithm in February of 2011. More recently, we know that on April 21 Google will release an algorithm that makes the mobile friendliness of a web site a ranking factor. Pure and simple, this algo is about the user experience with a page.

Exactly how Google is performing these measurements is not known, but
what we do know is their intent. They want to make their search engine look good, largely because it helps them make more money. Sending users to pages that make them happy will do that. Google has every incentive to improve the quality of their search results in as many ways as they can.

Ultimately, we don’t actually know what Google is measuring and using. It may be that the only SEO impact of providing pages that satisfy a very high percentage of users is an indirect one. I.e., so many people like your site that it gets written about more, linked to more, has tons of social shares, gets great engagement, that Google sees other signals that it uses as ranking factors, and this is why your rankings improve.

But, do I care if the impact is a direct one or an indirect one? Well, NO.

Using TF analysis to evaluate your page

TF-IDF analysis is more about relevance than content quality, but we can still use various precepts from it to help us understand our own content quality. One way to do this is to compare the results of a TF analysis of all the keywords on your page with those pages that currently outrank you in the search results. In this section, I am going to outline the basic concepts for how you can do this. In the next section I will show you a process that you can use with publicly available tools and a spreadsheet.

The simplest form of TF analysis is to count the number of uses of each keyword on a page. However, the problem with that is that a page using a keyword 10 times will be seen as 10 times more valuable than a page that uses a keyword only once. For that reason, we dampen the calculations. I have seen two methods for doing this, as follows:

term frequency calculation

The first method relies on dividing the number of repetitions of a keyword by the count for the most popular word on the entire page. Basically, what this does is eliminate the inherent advantage that longer documents might otherwise have over shorter ones. The second method dampens the total impact in a different way, by taking the log base 10 for the actual keyword count. Both of these achieve the effect of still valuing incremental uses of a keyword, but dampening it substantially. I prefer to use method 1, but you can use either method for our purposes here.

Once you have the TF calculated for every different keyword found on your page, you can then start to do the same analysis for pages that outrank you for a given search term. If you were to do this for five competing pages, the result might look something like this:

term frequency spreadsheet

I will show you how to set up the spreadsheet later, but for now, let’s do the fun part, which is to figure out how to analyze the results. Here are some of the things to look for:

  1. Are there any highly related words that all or most of your competitors are using that you don’t use at all?
  2. Are there any such words that you use significantly less, on average, than your competitors?
  3. Also look for words that you use significantly more than competitors.

You can then tag these words for further analysis. Once you are done, your spreadsheet may now look like this:

second stage term frequency analysis spreadsheet

In order to make this fit into this screen shot above and keep it legibly, I eliminated some columns you saw in my first spreadsheet. However, I did a sample analysis for the movie “Woman in Gold”. You can see the
full spreadsheet of calculations here. Note that we used an automated approach to marking some items at “Low Ratio,” “High Ratio,” or “All Competitors Have, Client Does Not.”

None of these flags by themselves have meaning, so you now need to put all of this into context. In our example, the following words probably have no significance at all: “get”, “you”, “top”, “see”, “we”, “all”, “but”, and other words of this type. These are just very basic English language words.

But, we can see other things of note relating to the target page (a.k.a. the client page):

  1. It’s missing any mention of actor ryan reynolds
  2. It’s missing any mention of actor helen mirren
  3. The page has no reviews
  4. Words like “family” and “story” are not mentioned
  5. “Austrian” and “maria altmann” are not used at all
  6. The phrase “woman in gold” and words “billing” and “info” are used proportionally more than they are with the other pages

Note that the last item is only visible if you open
the spreadsheet. The issues above could well be significant, as the lead actors, reviews, and other indications that the page has in-depth content. We see that competing pages that rank have details of the story, so that’s an indication that this is what Google (and users) are looking for. The fact that the main key phrase, and the word “billing”, are used to a proportionally high degree also makes it seem a bit spammy.

In fact, if you look at the information closely, you can see that the target page is quite thin in overall content. So much so, that it almost looks like a doorway page. In fact, it looks like it was put together by the movie studio itself, just not very well, as it presents little in the way of a home page experience that would cause it to rank for the name of the movie!

In the many different times I have done an analysis using these methods, I’ve been able to make many different types of observations about pages. A few of the more interesting ones include:

  1. A page that had no privacy policy, yet was taking personally identifiable info from users.
  2. A major lack of important synonyms that would indicate a real depth of available content.
  3. Comparatively low Domain Authority competitors ranking with in-depth content.

These types of observations are interesting and valuable, but it’s important to stress that you shouldn’t be overly mechanical about this. The value in this type of analysis is that it gives you a technical way to compare the content on your page with that of your competitors. This type of analysis should be used in combination with other methods that you use for evaluating that same page. I’ll address this some more in the summary section of this below.

How do you execute this for yourself?

The
full spreadsheet contains all the formulas so all you need to do is link in the keyword count data. I have tried this with two different keyword density tools, the one from Searchmetrics, and this one from motoricerca.info.

I am not endorsing these tools, and I have no financial interest in either one—they just seemed to work fairly well for the process I outlined above. To provide the data in the right format, please do the following:

  1. Run all the URLs you are testing through the keyword density tool.
  2. Copy and paste all the one word, two word, and three word results into a tab on the spreadsheet.
  3. Sort them all so you get total word counts aligned by position as I have shown in the linked spreadsheet.
  4. Set up the formulas as I did in the demo spreadsheet (you can just use the demo spreadsheet).
  5. Then do your analysis!

This may sound a bit tedious (and it is), but it has worked very well for us at STC.

Summary

You can also use usability groups and a number of other methods to figure out what users are really looking for on your site. However, what this does is give us a look at what Google has chosen to rank the highest in its search results. Don’t treat this as some sort of magic formula where you mechanically tweak the content to get better metrics in this analysis.

Instead, use this as a method for slicing into your content to better see it the way a machine might see it. It can yield some surprising (and wonderful) insights!

Sign up for The Moz Top 10, a semimonthly mailer updating you on the top ten hottest pieces of SEO news, tips, and rad links uncovered by the Moz team. Think of it as your exclusive digest of stuff you don’t have time to hunt down but want to read!

Reblogged 3 years ago from tracking.feedpress.it

​Inbound Lead Generation: eCommerce Marketing’s Missing Link

Posted by Everett

If eCommerce businesses hope to remain competitive with Amazon, eBay, big box brands, and other online retail juggernauts, they’ll need to learn how to conduct content marketing, lead generation, and contact nurturing as part of a comprehensive inbound marketing strategy.

First, I will discuss some of the ways most online retailers are approaching email from the bottom of the funnel upward, and why this needs to be turned around. Then we can explore how to go about doing this within the framework of “Inbound Marketing” for eCommerce businesses. Lastly, popular marketing automation and email marketing solutions are discussed in the context of inbound marketing for eCommerce.

Key differences between eCommerce and lead generation approaches to email

Different list growth strategies

Email acquisition sources differ greatly between lead gen. sites and online stores. The biggest driver of email acquisition for most eCommerce businesses are their shoppers, especially when the business doesn’t collect an email address for their contact database until the shopper provides it during the check-out process—possibly, not until the very end.

With most B2B/B2C lead gen. websites, the entire purpose of every landing page is to get visitors to submit a contact form or pick up the phone. Often, the price tag for their products or services is much higher than those of an eCommerce site or involves recurring payments. In other words, what they’re selling is more difficult to sell. People take longer to make those purchasing decisions. For this reason, leads—in the form of contact names and email addresses—are typically acquired and nurtured without having first become a customer.

Contacts vs. leads

Whether it is a B2B or B2C website, lead gen. contacts (called leads) are thought of as potential customers (clients, subscribers, patients) who need to be nurtured to the point of becoming “sales qualified,” meaning they’ll eventually get a sales call or email that attempts to convert them into a customer.

On the other hand, eCommerce contacts are often thought of primarily as existing customers to whom the marketing team can blast coupons and other offers by email.

Retail sites typically don’t capture leads at the top or middle of the funnel. Only once a shopper has checked out do they get added to the list. Historically, the buying cycle has been short enough that eCommerce sites could move many first-time visitors directly to customers in a single visit.
But this has changed.

Unless your brand is very strong—possibly a luxury brand or one with an offline retail presence—it is probably getting more difficult (i.e. expensive) to acquire new customers. At the same time, attrition rates are rising. Conversion optimization helps by converting more bottom of the funnel visitors. SEO helps drive more traffic into the site, but mostly for middle-of-funnel (category page) and bottom-of-funnel (product page) visitors who may not also be price/feature comparison shopping, or are unable to convert right away because of device or time limitations.

Even savvy retailers publishing content for shoppers higher up in the funnel, such as buyer guides and reviews, aren’t getting an email address and are missing a lot of opportunities because of it.

attract-convert-grow-funnel-inflow-2.jpg

Here’s a thought. If your eCommerce site has a 10 percent conversion rate, you’re doing pretty good by most standards. But what happened to the other 90 percent of those visitors? Will you have the opportunity to connect with them again? Even if you bump that up a few percentage points with retargeting, a lot of potential revenue has seeped out of your funnel without a trace.

I don’t mean to bash the eCommerce marketing community with generalizations. Most lead gen. sites aren’t doing anything spectacular either, and a lot of opportunity is missed all around.

There are many eCommerce brands doing great things marketing-wise. I’m a big fan of
Crutchfield for their educational resources targeting early-funnel traffic, and Neman Tools, Saddleback Leather and Feltraiger for the stories they tell. Amazon is hard to beat when it comes to scalability, product suggestions and user-generated reviews.

Sadly, most eCommerce sites (including many of the major household brands) still approach marketing in this way…

The ol’ bait n’ switch: promising value and delivering spam

Established eCommerce brands have gigantic mailing lists (compared with lead gen. counterparts), to whom they typically send out at least one email each week with “offers” like free shipping, $ off, buy-one-get-one, or % off their next purchase. The lists are minimally segmented, if at all. For example, there might be lists for repeat customers, best customers, unresponsive contacts, recent purchasers, shoppers with abandoned carts, purchases by category, etc.

The missing points of segmentation include which campaign resulted in the initial contact (sometimes referred to as a cohort) and—most importantly—the persona and buying cycle stage that best applies to each contact.

Online retailers often send frequent “blasts” to their entire list or to a few of the large segments mentioned above. Lack of segmentation means contacts aren’t receiving emails based on their interests, problems, or buying cycle stage, but instead, are receiving what they perceive as “generic” emails.

The result of these missing segments and the lack of overarching strategy looks something like this:

My, What a Big LIST You Have!

iStock_000017047747Medium.jpg

TIME reported in 2012 on stats from Responsys that the average online retailer sent out between five and six emails the week after Thanksgiving. Around the same time, the Wall Street Journal reported that the top 100 online retailers sent an average of 177 emails apiece to each of their contacts in 2011. Averaged out, that’s somewhere between three and four emails each week that the contact is receiving from these retailers.

The better to SPAM you with!

iStock_000016088853Medium.jpg

A 2014 whitepaper from SimpleRelevance titled
Email Fail: An In-Depth Evaluation of Top 20 Internet Retailer’s Email Personalization Capabilities (
PDF) found that, while 70 percent of marketing executives believed personalization was of “utmost importance” to their business…

“Only 17 percent of marketing leaders are going beyond basic transactional data to deliver personalized messages to consumers.”

Speaking of email overload, the same report found that some major online retailers sent ten or more emails per week!

simplerelevance-email-report-frequency.png

The result?

All too often, the eCommerce business will carry around big, dead lists of contacts who don’t even bother reading their emails anymore. They end up scrambling toward other channels to “drive more demand,” but because the real problems were never addressed, this ends up increasing new customer acquisition costs.

The cycle looks something like this:

  1. Spend a fortune driving in unqualified traffic from top-of-the-funnel channels
  2. Ignore the majority of those visitors who aren’t ready to purchase
  3. Capture email addresses only for the few visitors who made a purchase
  4. Spam the hell out of those people until they unsubscribe
  5. Spend a bunch more money trying to fill the top of the funnel with even more traffic

It’s like trying to fill your funnel with a bucket full of holes, some of them patched with band-aids.

The real problems

  1. Lack of a cohesive strategy across marketing channels
  2. Lack of a cohesive content strategy throughout all stages of the buying cycle
  3. Lack of persona, buying cycle stage, and cohort-based list segmentation to nurture contacts
  4. Lack of tracking across customer touchpoints and devices
  5. Lack of gated content that provides enough value to early-funnel visitors to get them to provide their email address

So, what’s the answer?

Inbound marketing allows online retailers to stop competing with Amazon and other “price focused” competitors with leaky funnels, and to instead focus on:

  1. Persona-based content marketing campaigns designed to acquire email addresses from high-quality leads (potential customers) by offering them the right content for each stage in their buyer’s journey
  2. A robust marketing automation system that makes true personalization scalable
  3. Automated contact nurturing emails triggered by certain events, such as viewing specific content, abandoning their shopping cart, adding items to their wish list or performing micro-conversions like downloading a look book
  4. Intelligent SMM campaigns that match visitors and customers with social accounts by email addresses, interests and demographics—as well as social monitoring
  5. Hyper-segmented email contact lists to support the marketing automation described above, as well as to provide highly-customized email and shopping experiences
  6. Cross-channel, closed loop reporting to provide a complete “omnichannel” view of online marketing efforts and how they assist offline conversions, if applicable

Each of these areas will be covered in more detail below. First, let’s take a quick step back and define what it is we’re talking about here.

Inbound marketing: a primer

A lot of people think “inbound marketing” is just a way some SEO agencies are re-cloaking themselves to avoid negative associations with search engine optimization. Others think it’s synonymous with “internet marketing.” I think it goes more like this:

Inbound marketing is to Internet marketing as SEO is to inbound marketing: One piece of a larger whole.

There are many ways to define inbound marketing. A cursory review of definitions from several trusted sources reveals some fundamental similarities :

Rand Fishkin

randfishkin.jpeg

“Inbound Marketing is the practice of earning traffic and attention for your business on the web rather than buying it or interrupting people to get it. Inbound channels include organic search, social media, community-building content, opt-in email, word of mouth, and many others. Inbound marketing is particularly powerful because it appeals to what people are looking for and what they want, rather than trying to get between them and what they’re trying to do with advertising. Inbound’s also powerful due to the flywheel-effect it creates. The more you invest in Inbound and the more success you have, the less effort required to earn additional benefit.”


Mike King

mikeking.jpeg

“Inbound Marketing is a collection of marketing activities that leverage remarkable content to penetrate earned media channels such as Organic Search, Social Media, Email, News and the Blogosphere with the goal of engaging prospects when they are specifically interested in what the brand has to offer.”

This quote is from 2012, and is still just as accurate today. It’s from an
Inbound.org comment thread where you can also see many other takes on it from the likes of Ian Lurie, Jonathon Colman, and Larry Kim.


Inflow

inflow-logo.jpeg

“Inbound Marketing is a multi-channel, buyer-centric approach to online marketing that involves attracting, engaging, nurturing and converting potential customers from wherever they are in the buying cycle.”

From Inflow’s
Inbound Services page.


Wikipedia

wikipedia.jpeg

“Inbound marketing refers to marketing activities that bring visitors in, rather than marketers having to go out to get prospects’ attention. Inbound marketing earns the attention of customers, makes the company easy to be found, and draws customers to the website by producing interesting content.”

From
Inbound Marketing – Wikipedia.


Larry-Kim.jpeg

Larry Kim

“Inbound marketing” refers to marketing activities that bring leads and customers in when they’re ready, rather than you having to go out and wave your arms to try to get people’s attention.”

Via
Marketing Land in 2013. You can also read more of Larry Kim’s interpretation, along with many others, on Inbound.org.


Hubspot

“Instead of the old outbound marketing methods of buying ads, buying email lists, and praying for leads, inbound marketing focuses on creating quality content that pulls people toward your company and product, where they naturally want to be.”

Via
Hubspot, a marketing automation platform for inbound marketing.

When everyone has their own definition of something, it helps to think about what they have in common, as opposed to how they differ. In the case of inbound, this includes concepts such as:

  • Pull (inbound) vs. push (interruption) marketing
  • “Earning” media coverage, search engine rankings, visitors and customers with outstanding content
  • Marketing across channels
  • Meeting potential customers where they are in their buyer’s journey

Running your first eCommerce inbound marketing campaign

Audience personas—priority no. 1

The magic happens when retailers begin to hyper-segment their list based on buyer personas and other relevant information (i.e. what they’ve downloaded, what they’ve purchased, if they abandoned their cart…). This all starts with audience research to develop personas. If you need more information on persona development, try these resources:

Once personas are developed, retailers should choose one on which to focus. A complete campaign strategy should be developed around this persona, with the aim of providing the “right value” to them at the “right time” in their buyer’s journey.

Ready to get started?

We’ve developed a quick-start guide in the form of a checklist for eCommerce marketers who want to get started with inbound marketing, which you can access below.

inbound ecommerce checklist

Hands-on experience running one campaign will teach you more about inbound marketing than a dozen articles. My advice: Just do one. You will make mistakes. Learn from them and get better each time.

Example inbound marketing campaign

Below is an example of how a hypothetical inbound marketing campaign might play out, assuming you have completed all of the steps in the checklist above. Imagine you handle marketing for an online retailer of high-end sporting goods.

AT Hiker Tommy campaign: From awareness to purchase

When segmenting visitors and customers for a “high-end sporting goods / camping retailer” based on the East Coast, you identified a segment of “Trail Hikers.” These are people with disposable income who care about high-quality gear, and will pay top dollar if they know it is tested and reliable. The top trail on their list of destinations is the
Appalachian Trail (AT).

Top of the Funnel: SEO & Strategic Content Marketing

at-tommy.jpg

Tommy’s first action is to do “top of the funnel” research from search engines (one reason why SEO is still so important to a complete inbound marketing strategy).

A search for “Hiking the Appalachian Trail” turns up your article titled “What NOT to Pack When Hiking the Appalachian Trail,” which lists common items that are bulky/heavy, and highlights slimmer, lighter alternatives from your online catalog.

It also highlights the difference between cheap gear and the kind that won’t let you down on your 2,181 mile journey through the wilderness of Appalachia, something you learned was important to Tommy when developing his persona. This allows you to get the company’s value proposition of “tested, high-end, quality gear only” in front of readers very early in their buyer’s journey—important if you want to differentiate your site from all of the retailers racing Amazon to the bottom of their profit margins.

So far you have yet to make “contact” with AT Hiker Tommy. The key to “acquiring” a contact before the potential customer is ready to make a purchase is to provide something of value to that specific type of person (i.e. their persona) at that specific point in time (i.e. their buying cycle stage).

In this case, we need to provide value to AT Hiker Tommy while he is getting started on his research about hiking the Appalachian Trail. He has an idea of what gear not to bring, as well as some lighter, higher-end options sold on your site. At this point, however, he is not ready to buy anything without researching the trail more. This is where retailers lose most of their potential customers. But not you. Not this time…

Middle of the funnel: Content offers, personalization, social & email nurturing

at-hiker-ebook.png

On the “What NOT to Pack When Hiking the Appalachian Trail” article (and probably several others), you have placed a call-to-action (CTA) in the form of a button that offers something like:

Download our Free 122-page Guide to Hiking the Appalachian Trail

This takes Tommy to a landing page showcasing some of the quotes from the book, and highlighting things like:

“We interviewed over 50 ‘thru-hikers’ who completed the AT and have curated and organized the best first-hand tips, along with our own significant research to develop a free eBook that should answer most of your questions about the trail.”

By entering their email address potential customers agree to allow you to send them the free PDF downloadable guide to hiking the AT, and other relevant information about hiking.

An automated email is sent with a link to the downloadable PDF guide, and several other useful content links, such as “The AT Hiker’s Guide to Gear for the Appalachian Trail”—content designed to move Tommy further toward the purchase of hiking gear.

If Tommy still has not made a purchase within the next two weeks, another automated email is sent asking for feedback about the PDF guide (providing the link again), and to again provide the link to the “AT Hiker’s Guide to Gear…” along with a compelling offer just for him, perhaps “Get 20% off your first hiking gear purchase, and a free wall map of the AT!”

Having Tommy’s email address also allows you to hyper-target him on social channels, while also leveraging his initial visit to initiate retargeting efforts.

Bottom of the funnel: Email nurturing & strategic, segmented offers

Eventually Tommy makes a purchase, and he may or may not receive further emails related to this campaign, such as post-purchase emails for reviews, up-sells and cross-sells.

Upon checkout, Tommy checked the box to opt-in to weekly promotional emails. He is now on multiple lists. Your marketing automation system will automatically update Tommy’s status from “Contact” or lead, to “Customer” and potentially remove or deactivate him from the marketing automation system database. This is accomplished either by default integration features, or with the help of integration tools like
Zapier and IFTTT.

You have now nurtured Tommy from his initial research on Google all the way to his first purchase without ever having sent a spammy newsletter email full of irrelevant coupons and other offers. However, now that he is a loyal customer, Tommy finds value in these bottom-of-funnel email offers.

And this is just the start

Every inbound marketing campaign will have its own mix of appropriate channels. This post has focused mostly on email because acquiring the initial permission to contact the person is what fuels most of the other features offered by marketing automation systems, including:

  • Personalization of offers and other content on the site.
  • Knowing exactly which visitors are interacting on social media
  • Knowing where visitors and social followers are in the buying cycle and which persona best represents them, among other things.
  • Smart forms that don’t require visitors to put in the same information twice and allow you to build out more detailed profiles of them over time.
  • Blogging platforms that tie into email and marketing automation systems
  • Analytics data that isn’t blocked by Google and is tied directly to real people.
  • Closed-loop reporting that integrates with call-tracking and Google’s Data Import tool
  • Up-sell, cross-sell, and abandoned cart reclamation features
Three more things…
  1. If you can figure out a way to get Tommy to “log in” when he comes to your site, the personalization possibilities are nearly limitless.
  2. The persona above is based on a real customer segment. I named it after my friend Tommy Bailey, who actually did write the eBook
    Guide to Hiking the Appalachian Trail, featured in the image above.
  3. This Moz post is part of an inbound marketing campaign targeting eCommerce marketers, a segment Inflow identified while building out our own personas. Our hope, and the whole point of inbound marketing, is that it provides value to you.

Current state of the inbound marketing industry

Inbound has, for the the most part, been applied to businesses in which the website objective is to generate leads for a sales team to follow-up with and close the deal. An examination of various marketing automation platforms—a key component of scalable inbound marketing programs—highlights this issue.

Popular marketing automation systems

Most of the major marketing automation systems can be be used very effectively as the backbone of an inbound marketing program for eCommerce businesses. However, only one of them (Silverpop) has made significant efforts to court the eCommerce market with content and out-of-box features. The next closest thing is Hubspot, so let’s start with those two:

Silverpop – an IBMⓇ Company

silver-pop.jpeg

Unlike the other platforms below, right out of the box Silverpop allows marketers to tap into very specific behaviors, including the items purchased or left in the cart.

You can easily segment based on metrics like the Recency, Frequency and Monetary Value (RFM) of purchases:

silverpop triggered campaigns

You can automate personalized shopping cart abandonment recovery emails:

silverpop cart abandonment recovery

You can integrate with many leading brands offering complementary services, including: couponing, CRM, analytics, email deliverability enhancement, social and most major eCommerce platforms.

What you can’t do with Silverpop is blog, find pricing info on their website, get a free trial on their website or have a modern-looking user experience. Sounds like an IBMⓇ company, doesn’t it?

HubSpot

Out of all the marketing automation platforms on this list, HubSpot is the most capable of handling “inbound marketing” campaigns from start to finish. This should come as no surprise, given the phrase is credited to
Brian Halligan, HubSpot’s co-founder and CEO.

While they don’t specifically cater to eCommerce marketing needs with the same gusto they give to lead gen. marketing, HubSpot does have
an eCommerce landing page and a demo landing page for eCommerce leads, which suggests that their own personas include eCommerce marketers. Additionally, there is some good content on their blog written specifically for eCommerce.

HubSpot has allowed some key partners to develop plug-ins that integrate with leading eCommerce platforms. This approach works well with curation, and is not dissimilar to how Google handles Android or Apple handles their approved apps.

magento and hubspot

The
Magento Connector for HubSpot, which costs $80 per month, was developed by EYEMAGiNE, a creative design firm for eCommerce websites. A similar HubSpot-approved third-party integration is on the way for Bigcommerce.

Another eCommerce integration for Hubspot is a Shopify plug-in called
HubShoply, which was developed by Groove Commerce and costs $100 per month.

You can also use HubSpot’s native integration capabilities with
Zapier to sync data between HubSpot and most major eCommerce SaaS vendors, including the ones above, as well as WooCommerce, Shopify, PayPal, Infusionsoft and more. However, the same could be said of some of the other marketing automation platforms, and using these third-party solutions can sometimes feel like fitting a square peg into a round hole.

HubSpot can and does handle inbound marketing for eCommerce websites. All of the features are there, or easy enough to integrate. But let’s put some pressure on them to up their eCommerce game even more. The least they can do is put an eCommerce link in the footer:

hubspot menus

Despite the lack of clear navigation to their eCommerce content, HubSpot seems to be paying more attention to the needs of eCommerce businesses than the rest of the platforms below.

Marketo

Nothing about Marketo’s in-house marketing strategy suggests “Ecommerce Director Bob” might be one of their personas. The description for each of
their marketing automation packages (from Spark to Enterprise) mentions that it is “for B2B” websites.

marketo screenshot

Driving Sales could apply to a retail business so I clicked on the link. Nope. Clearly, this is for lead generation.

marketo marketing automation

Passing “purchase-ready leads” over to your “sales reps” is a good example of the type of language used throughout the site.

Make no mistake, Marketo is a top-notch marketing automation platform. Powerful and clean, it’s a shame they don’t launch a full-scale eCommerce version of their core product. In the meantime, there’s the
Magento Integration for Marketo Plug-in developed by an agency out of Australia called Hoosh Marketing.

magento marketo integration

I’ve never used this integration, but it’s part of Marketo’s
LaunchPoint directory, which I imagine is vetted, and Hoosh seems like a reputable agency.

Their
pricing page is blurred and gated, which is annoying, but perhaps they’ll come on here and tell everyone how much they charge.

marketo pricing page

As with all others except Silverpop, the Marketo navigation provides no easy paths to landing pages that would appeal to “Ecommerce Director Bob.”

Pardot

This option is a
SalesForce product, so—though I’ve never had the opportunity to use it—I can imagine Pardot is heavy on B2B/Sales and very light on B2C marketing for retail sites.

The hero image on their homepage says as much.

pardot tagline

pardot marketing automationAgain, no mention of eCommerce or retail, but clear navigation to lead gen and sales.

Eloqua / OMC

eloqua-logo.jpeg

Eloqua, now part of the Oracle Marketing Cloud (OMC), has a landing page
for the retail industry, on which they proclaim:

“Retail marketers know that the path to lifelong loyalty and increased revenue goes through building and growing deep client relationships.”

Since when did retail marketers start calling customers clients?

eloqua integration

The Integration tab on OMC’s “…Retail.html” page helpfully informs eCommerce marketers that their sales teams can continue using CRM systems like SalesForce and Microsoft Dynamics but doesn’t mention anything about eCommerce platforms and other SaaS solutions for eCommerce businesses.

Others

There are many other players in this arena. Though I haven’t used them yet, three I would love to try out are
SharpSpring, Hatchbuck and Act-On. But none of them appear to be any better suited to handle the concerns of eCommerce websites.

Where there’s a gap, there’s opportunity

The purpose of the section above wasn’t to highlight deficiencies in the tools themselves, but to illustrate a gap in who they are being marketed to and developed for.

So far, most of your eCommerce competitors probably aren’t using tools like these because they are not marketed to by the platforms, and don’t know how to apply the technology to online retail in a way that would justify the expense.

The thing is, a tool is just a tool

The
key concepts behind inbound marketing apply just as much to online retail as they do to lead generation.

In order to “do inbound marketing,” a marketing automation system isn’t even strictly necessary (in theory). They just help make the activities scalable for most businesses.

They also bring a lot of different marketing activities under one roof, which saves time and allows data to be moved and utilized between channels and systems. For example, what a customer is doing on social could influence the emails they receive, or content they see on your site. Here are some potential uses for most of the platforms above:

Automated marketing uses

  • Personalized abandoned cart emails
  • Post-purchase nurturing/reorder marketing
  • Welcome campaigns for the newsletter (other free offer) signups
  • Winback campaigns
  • Lead-nurturing email campaigns for cohorts and persona-based segments

Content marketing uses

  • Optimized, strategic blogging platforms, and frameworks
  • Landing pages for pre-transactional/educational offers or contests
  • Social media reporting, monitoring, and publishing
  • Personalization of content and user experience

Reporting uses

  • Revenue reporting (by segment or marketing action)
  • Attribution reporting (by campaign or content)

Assuming you don’t have the budget for a marketing automation system, but already have a good email marketing platform, you can still get started with inbound marketing. Eventually, however, you may want to graduate to a dedicated marketing automation solution to reap the full benefits.

Email marketing platforms

Most of the marketing automation systems claim to replace your email marketing platform, while many email marketing platforms claim to be marketing automation systems. Neither statement is completely accurate.

Marketing automation systems, especially those created specifically for the type of “inbound” campaigns described above, provide a powerful suite of tools all in one place. On the other hand, dedicated email platforms tend to offer “email marketing” features that are better, and more robust, than those offered by marketing automation systems. Some of them are also considerably cheaper—such as
MailChimp—but those are often light on even the email-specific features for eCommerce.

A different type of campaign

Email “blasts” in the form of B.O.G.O., $10 off or free shipping offers can still be very successful in generating incremental revenue boosts — especially for existing customers and seasonal campaigns.

The conversion rate on a 20% off coupon sent to existing customers, for instance, would likely pulverize the conversion rate of an email going out to middle-of-funnel contacts with a link to content (at least with how CR is currently being calculated by email platforms).

Inbound marketing campaigns can also offer quick wins, but they tend to focus mostly on non-customers after the first segmentation campaign (a campaign for the purpose of segmenting your list, such as an incentivised survey). This means lower initial conversion rates, but long-term success with the growth of new customers.

Here’s a good bet if works with your budget: Rely on a marketing automation system for inbound marketing to drive new customer acquisition from initial visit to first purchase, while using a good email marketing platform to run your “promotional email” campaigns to existing customers.

If you have to choose one or the other, I’d go with a robust marketing automation system.

Some of the most popular email platforms used by eCommerce businesses, with a focus on how they handle various Inbound Marketing activities, include:

Bronto

bronto.jpeg

This platform builds in features like abandoned cart recovery, advanced email list segmentation and automated email workflows that nurture contacts over time.

They also offer a host of eCommerce-related
features that you just don’t get with marketing automation systems like Hubspot and Marketo. This includes easy integration with a variety of eCommerce platforms like ATG, Demandware, Magento, Miva Merchant, Mozu and MarketLive, not to mention apps for coupons, product recommendations, social shopping and more. Integration with enterprise eCommerce platforms is one reason why Bronto is seen over and over again when browsing the Internet Retailer Top 500 reports.

On the other hand, Bronto—like the rest of these email platforms—doesn’t have many of the features that assist with content marketing outside of emails. As an “inbound” marketing automation system, it is incomplete because it focuses almost solely on one channel: email.

Vertical Response

verticalresponse.jpeg

Another juggernaut in eCommerce email marketing platforms, Vertical Response, has even fewer inbound-related features than Bronto, though it is a good email platform with a free version that includes up to 1,000 contacts and 4,000 emails per month (i.e. 4 emails to a full list of 1,000).

Oracle Marketing Cloud (OMC)

Responsys (the email platform), like Eloqua (the marketing automation system) was gobbled up by Oracle and is now part of their “Marketing Cloud.”

It has been my experience that when a big technology firm like IBM or Oracle buys a great product, it isn’t “great” for the users. Time will tell.

Listrak

listrak.jpeg

Out of the established email platforms for eCommerce, Listrak may do the best job at positioning themselves as a full inbound marketing platform.

Listrak’s value proposition is that they’re an “Omnichannel” solution. Everything is all in one “Single, Integrated Digital Marketing Platform for Retailers.” The homepage image promises solutions for Email, Mobile, Social, Web and In-Store channels.

I haven’t had the opportunity to work with Listrak yet, but would love to hear feedback in the comments on whether they could handle the kind of persona-based content marketing and automated email nurturing campaigns described in the example campaign above.

Key takeaways

Congratulations for making this far! Here are a few things I hope you’ll take away from this post:

  • There is a lot of opportunity right now for eCommerce sites to take advantage of marketing automation systems and robust email marketing platforms as the infrastructure to run comprehensive inbound marketing campaigns.
  • There is a lot of opportunity right now for marketing automation systems to develop content and build in eCommerce-specific features to lure eCommerce marketers.
  • Inbound marketing isn’t email marketing, although email is an important piece to inbound because it allows you to begin forming lasting relationships with potential customers much earlier in the buying cycle.
  • To see the full benefits of inbound marketing, you should focus on getting the right content to the right person at the right time in their shopping journey. This necessarily involves several different channels, including search, social and email. One of the many benefits of marketing automation systems is their ability to track your efforts here across marketing channels, devices and touch-points.

Tools, resources, and further reading

There is a lot of great content on the topic of Inbound marketing, some of which has greatly informed my own understanding and approach. Here are a few resources you may find useful as well.

Sign up for The Moz Top 10, a semimonthly mailer updating you on the top ten hottest pieces of SEO news, tips, and rad links uncovered by the Moz team. Think of it as your exclusive digest of stuff you don’t have time to hunt down but want to read!

Reblogged 3 years ago from tracking.feedpress.it

How To Select The Perfect Clients

Posted by Bill.Sebald

I truly believe in the power of partnerships. There have been some incredible partnerships that changed the fabric of our culture. Larry Page and Sergey Brin. William Procter and James Gamble. The Olson Twins.

Good partnerships provide support, motivation, and complementary skills, often allowing you to overcome hurdles faster and create some truly marvelous things. In consulting or any agency work, the concept of “partnership” should be the backbone of your relationship. Like a puzzle piece, sometimes the fit is initially difficult to find – if available at all. The truth is, you’re only secure if your clients are walking in the same direction as the flow of your service. If they’re walking against the current, you have what I believe to be the most detrimental predicament a service provider can have –
a rift. That’s a truly offensive four-letter word.

What kind of rift are we talking about? Let’s do a little calculating.

First think about what you or your agency is really good at. Think about the components you have the most success with; this may actually be different than where you’re most experienced. Think about what you should be selling versus not (even if those items are currently on your menu – let’s be candid here, a lot of us casually promote services we
believe we should be selling even though it’s not a fully baked product or core competency). Think about the amount of time you really spent challenging a given service to make sure it’s truly impactful to a client versus your own bottom line.

Next, think about your past client debacles (if you haven’t stopped to perform a postmortem, you should). Chances are these led to events that cost you a lot of time, pain, and possibly money. They are the memories that make you shudder. Those are the days that made you dust off your resume and think about a career change.  

Finally, how many of these past clients should have never been signed in the first place? How many simply weren’t a fit from the start? How many simply never had a shot at being successful with you – and vice-versa? This computation really needs serious consideration. Have you wasted everyone’s time?

There can be a costly fallout. I’ve seen talented team members quit over clients that simply could not be managed. I’ve seen my colleagues go so far as to cry or start seeking therapy (in part) because of overwhelming clients who were not getting what they expected and a parent company who wasn’t providing any relief. Sometimes these clients were bound to an annual contract which only made them more desperate and angry. Rifts like this can kill your business.

This should never happen.

Client/agency relationships are marriages, but marriages start with dating

I really like this 2011 post from A List Apart called
Marry Your Clients. A few years old, but nothing has changed. However, my post is going to talk about the courting part before the honeymoon.

My post also assumes you make more money on longer consulting relationships. If you’ve somehow built your model through routinely hunting new business with the expectation you’re going to get fired, then that’s a different story. For most of us however, on-boarding a client is a lot of work, both in terms of hours (which is money) and brainpower. If you “hit it off” with your client, you begin to know their business more intimately, as well as their goals and KPIs. The strategies get easier to build; they also tend to be more successful as you become aware of what their tastes and limitations are. You find you have things in common (perhaps you both enjoy long walks to the bank). You often become true partners with your clients, who in turn promote your ideas to their bosses. These are your most profitable engagements, as well as your most rewarding. They tend to last years, sometimes following your point-of-contact to their next jobs as well.

But you don’t get this way simply because both parties signed a legally-bounding document.

The truth is not all parties can work together. A lot of client/agency relationships end in divorce. Like in romance, sometimes you just aren’t compatible.

A different kind of online dating

After my first marriage went kaput, I’ll admit I went to Match.com. For those who never tried online dating, it’s really an exercise in personal marketing. You upload your most attractive pictures. You sell yourself above everyone else. You send communications back and forth to the interested parties where you work to craft the “perfect” response; as well as ask qualifying questions. I found it works pretty well – the online process saved me from potentially bad dates. Don’t get me wrong, I still have some awkward online dating stories…

Photo from Chuck Woolery’s
Twitter profile

With consulting, if we’re supposed to ultimately marry our clients, we should obviously be allowed to see if there’s a love connection. We should all be our own Chuck Woolery. I tend to think this stage is crucial, but often rushed by agencies or managed by a department outside of your own.

Some agencies seem to have a “no dating” policy. For some, it’s not uncommon to come in to work and have an email from a higher-up with the subject, “congratulations – you’re now married to a new client!” Whether it’s a client development department, or an add-on from an existing client, your marketing department is suddenly forced into an arranged marriage where you can only hope to live up to their expectations.

This is a recipe for disaster. I don’t like to run a business on luck and risk, so clearly this makes no sense to me.

But I’ve been there. I once worked for an agency that handed me a signed contract for a major underwear brand – but I didn’t even know we were even speaking to them. Before I had a chance to get the details, the VP of digital marketing called me. I did my best to understand what they were promised in terms of SEO goals without admitting I really had no clue about their business. The promises were unrealistic, but being somewhat timid and naïve back in the day, I went with it. Truth is, their expectations did not fit into our model, philosophies, or workflow. Ultimately I failed to deliver to their expectations. The contract ended early and I vowed to never let that happen again. Not just for the stress and anxiety it brought upon my team and me, but for the blatant neglect to the client as well.

With this being something I never forgot, I would occasionally bring this story up with others I met at networking events or conventions. I quickly learned this is far from an isolated incident occurring only to me. This is how some agencies build their business development departments.

Once again, this should never happen.

How to qualify a client

Let’s assume by now I have successfully inspired a few things:

  1. A client/agency relationship should truly be a partnership akin to a good marriage.
  2. A client should never be thrown into a model that doesn’t make sense for their business (i.e., your style of SEO services), and process should be in place for putting all the parties in the same room before a deal is signed.

    Now we’re up to number 3:

  3. Not all relationships work, so all parties should try to truly connect before there is a proposal. Don’t rush the signature!

Here are some of the things we do at Greenlane to really qualify a client. Before I continue, though, I’m proud to brag a little. With these practices in place, our close rate – that is, the companies we really want to work with – is 90% in our favor. Our retainment is also very high. Once we started being prudent with our intake, we’ve only lost a few companies due to funding issues or a change in their business model – not out of performance. I should also add that these tips work with all sizes of clients. While some of our 20+ clients are smaller businesses, we also have household brands and public companies, all of which could attest to going through this process with us.

It’s all in the details

Your website is your Match.com profile. Your website is your personality. If you’re vague or promotional or full of hype, only to get someone on the phone to which your “car salesman” gear kicks in, I don’t think you’re using the website to the best of its ability. People want to use the website to learn more about you before the reach out.

Our “about us” page is our third most visited page next to the homepage and pricing (outside of the blog). You can see an example from a 
Hotjar heatmap:

The truth is, I’m always tweaking (and A/B testing) our message on the about us page. This page is currently part of a funnel that we careful put together. The “about us” page is a quick but powerful overview putting our team front and center and highlighting our experience (including some past clients).

I believe the website’s more than a brochure. It’s a communication device. Don’t hide or muddle who you are. When I get a prospect email through our form, I always lead them to our “Are We The Right Fit” page. That’s right – I actually ask them to consider choosing wisely. Now at first glance, this might go against a conversion funnel that heats up the prospect and only encourages momentum, but this page has really been a strong asset. It’s crafted to transparently present our differentiators, values, and even our pricing. It’s also crafted to discourage those who aren’t a good fit. You can find this page
here. Even our URL provides the “Are We The Right Fit” question.

We want prospects to make a good decision. We care so much about companies doing great that we’d rather you find someone else if our model isn’t perfect. Sure, sometimes after pointing someone to that link, they never return. That’s OK. Just like a dating profile, this page is designed to target a certain kind of interest. Time is a commodity in agency life – no sense in wasting it on a conversation that isn’t qualified. When we do catch a prospect after reviewing the page and hear, “we went with another firm who better suits our needs,” it actually doesn’t feel like a loss at all.

Everyone who comes back goes into our pipeline. At this stage they all get followed up on with a phone call. If they aren’t a good fit from the get go we actually try to introduce them to other SEO companies or consultants who would be a better fit for them. But 9 times out of 10, it’s an amazing conversation.

Never drop the transparency

There are a few things I try to tell all the prospects I ultimately speak with. One, I openly admit I’m not a salesman. I couldn’t sell ice water to people in hell. But I’m good at being really candid about our strengths and experiences.

Now this one tends to surprise some, especially in the larger agency setting. We admit that we are really choosy about the clients we take on. For our model, we need clients who are flexible, fast moving, interested in brand building, and interested in long-term relationships. We want clients who think in terms of strategy and will let us work with their existing marketing team and vendors. We audit them for their understanding of SEO services and tell them how we’re either alike or different.

I don’t think a prospect call goes by without me saying, “while you’re checking us out to see if we’re a good fit, we’re doing the same for you.” Then, if the call goes great, I let them know we’d like a follow up call to continue (a second date if you will). This follow up call has been where the real decision gets made.

Ask the right questions

I’ve vetted the opportunity, now my partner – who naturally has a different way of approaching opportunities and relationships – asks a different set of questions. This adds a whole different dimension and works to catch the questions I may not have asked. We’ve had companies ready to sign on the first call, to which I’ve had to divert any signatures until the next conversation. This too may seem counter-intuitive to traditional business development, but we find it extremely valuable. It’s true that we could have more clients in our current book of business, but I can proudly state that every current client is exactly who we want to be with; this is very much because of everything you’ve read so far.

On each call we have a list of qualifying questions that we ask. Most are “must answer” questions, while others can roll into a needs analysis questionnaire that we give to each signed client. The purpose of the needs analysis is to get more granular into business items (such as seasonal trends, industry intelligence, etc.) for the intention of developing strategies. With so much to ask, it’s important to be respectful of the prospects’ time. At this point they’ve usually already indicated they’ve read our website, can afford our prices, and feel like we’re a good fit.

Many times prospects start with their introduction and answer some of our questions. While they speak, I intently listen and take many notes.

These are 13 questions from my list that I always make sure get answered on a call, with some rationale:

Questions for the prospect:

1. Can you describe your business model and products/services?

  1. What do you sell?
  2. B2B or B2C
  3. Retail or lead generation?

Rationale
: sometimes when reviewing the website it’s not immediately clear what kind of business they’re in. Perhaps the site just does a bad job, or sometimes their real money making services are deeper in the site and easily missed by a fast scan. One of our clients works with the government and seems to have an obvious model, but the real profit is from a by-product, something we would have never picked up on during our initial review of the website. It’s important to find out exactly what the company does. Is it interesting? Can you stay engaged? Is it a sound model that you believe in? Is it a space you have experience in?

2. What has been your experience with [YOUR SERVICE] in the past?

Rationale: Many times, especially if your model is different, a prospect may have a preconceived notion of what you actually do. Let’s take SEO as an example – there are several different styles of SEO services. If they had a link building company in the past, and you’re a more holistic SEO consulting practice, their point of reference may only be with what they’ve experienced. They may even have a bad taste in their mouth from a previous engagement, which gives you a chance to air it out and see how you compare. This is also a chance to know if you’re potentially playing with a penalized site.

3. What are your [PPC/SEO/etc.] goals?

Rationale: Do they have realistic goals, or lofty, impossible goals? Be candid – tell them if you don’t think you can reach the goals on the budget they have, or if you think they should choose other goals. Don’t align yourself with goals you can’t hit. This is where many conversations could end.

4. What’s your mission or positioning statement?

Rationale: If you’re going to do more than just pump up their rankings, you probably want to know the full story. This should provide a glimpse into other marketing the prospect is executing.

5. How do you stand out?

Rationale: Sometimes this is answered with the question above. If not, really dig up the differentiators. Those are typically the key items to build campaigns on.  Whether they are trying to create a new market segment or have a redundant offering, this can help you set timeline and success expectations.

6. Are you comfortable with an agency that may challenge your plans and ideas?

Rationale: This is one of my favorite questions. There are many who hire an agency and expect “yes-men.” Personally I believe an agency or consultant should be partners; that is, not afraid to fight for what they know is right for the benefit of the client. You shouldn’t be afraid of injury:

 

7. Who are your competitors?

Rationale: Not only do you want this for competitive benchmarking, but this can often help you understand more about the prospect. Not to mention, how big a hill you might have to climb to start competing on head terms.

8. What is your business reach? (local, national, international)?

Rationale: An international client is going to need more work than a domestic client. A local client is going to need an expertise in local search. Knowing the scope of the company can help you align your skills with their targets.

9. What CMS are you on?

Rationale:
 This is a big one. It tells you how much flexibility you will have. WordPress?  Great – you’ll probably have a lot of access to files and templates.  A proprietary CMS or enterprise solution?  Uh-oh.  That probably means tickets and project queues. Are you OK with that?

10. What does your internal team look like?

Rationale:
Another important question. Who will you be working with?  What skill sets?  Will you be able to sit at the table with other vendors too?  If you’re being hired to fill in the gaps, make sure you have the skills to do so. I ask about copywriters, developers, designers, and link builders at a minimum.

11. What do you use for analytics?

Rationale:
A tool like Wappalyzer can probably tell you, but sometimes bigger companies have their own custom analytics through their host. Sometimes it’s bigger than Google Analytics, like Omniture. Will you be allowed to have direct access to it?  You’d be surprised how often we hear no.

12. How big is your site?  Do you have other properties?

Rationale:
It’s surprising how often a prospect forgets to mention those 30+ subdomains and microsites. If the prospect envisions it as part of the deal, you should at least be aware of how far the core website extends.

13. What is your budget, preferred start time, and end date?

Rationale:
The biggest question of all. Do they even meet your fee requirements? Are you staffed and ready to take on the work? Sure, talking money can be tough, but if you post your rates firm, the prospect is generally more open to talk budget. They don’t feel like a negotiation is going to happen.

Conclusion

While these are the core questions we use, I’m sure the list will eventually grow. I don’t think you should copy our list, or the order.  You should ultimately create your own. Every agency or consultant has different requirements, and interviewing your prospect is as important as allowing them to interview you. But remember, you don’t have to have all the business.  Just the right kind of business.  You will grow organically from your positive experiences.  We all hear about “those other agencies” and how they consistently fail to meet client expectations. Next to “do great work,” this is one powerful way to keep off that list.  

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