Posts tagged: Bryan Eisenberg

Your moment of Venn

My friend Chris Eagle sent me this cartoon recently:

University expectation Venn diagram

Clearly, the cartoonist was frustrated with some recent visits to university websites. But it’s not hard to apply his Venn diagram to many of our retail website home pages (and many other pages as well).

If we were to diagram our own sites — breaking out our customers’ expectations and our own objectives — what would be contained in our overlap? How often during the internal battles for homepage real estate are customer expectations considered? And when they are, how quickly are they pushed aside when conflicting internal objectives over limited real estate means something has to give?

Does the merchant who’s in our face get priority over the customer who is not?

Assuming we’ve got a list of customer expectations or objectives, how were they determined? Would the items in our “customers’ expectations” circle be our perceptions of our customers’ expectations or would they be expectations gathered directly from our customers? You might say there’s no distinction between the two, but my experience tells me there is often a significant gap. This is because those of us who work on sites day in and day out are about the worst possible people to understand our customers’ perspectives. We simply know our sites and our business way better than our customers ever will, and our knowledge clouds our ability to see our sites and our businesses in the same way our customers see our sites and our businesses.

Oh, yeah. To add to it all, believe it or not, our customers are not of a single mind and a single purpose. It’s hard enough that we’ve got to deal with competing internal interests; we’ve also got to somehow provide a self-service experience for our customers that magically anticipates and responds to their expectations and objectives.

So, these are a lot of questions. What do we do about it?

  1. Objectively understand customer expectations and objectives, directly from our customers.
    This is, of course, not as simple as it sounds. We’re dealing with the human psyche, which is a complicated thing. It’s important we ask questions very carefully to ensure we are getting accurate results. For example, the Myers-Briggs test is a scientifically proven method for assessing personality. If you’ve ever taken it, you know how thorough and accurate it is. The results you get are very different than you would get if you simply asked someone to describe his or her personality. It’s also important that we collect this data properly, ensuring we get a representative sample of our customer base that is statistically valid enough that we can project our findings on our entire customer population. In other words, simply asking the next 15 customers we come in contact with is not enough. When done correctly, customer surveys can be extremely reliable, accurate, and predictive and can give us an excellent view into our customers wants, needs and expectations. It will come as no surprise that I am a huge (and admittedly, biased) fan of ForeSee Results’ ACSI methodology because it asks a series of well-tested questions that have been scientifically proven to draw precise, reliable and accurate information from respondents.
  2. Educate internal constituencies
    Once we understand our customers’ objectives — from their perspectives — we need to educate our internal partners in an effort to align their strategies with our customers’ needs. Ideally, they’re already aligned, but my experience tells me that daily internal pressures have a way of evolving (or should I say devolving) their individual strategies away from customer needs.
  3. Map out a strategy that responds to key personas and/or purposes
    Delivering on multiple objectives requires a lot of thought and planning. Meeting the needs of so many constituencies, customer and internal, can be tricky. I highly recommend reading Bryan and Jeffrey Eisenberg’s excellent book, Waiting for Your Cat to Bark, for some quality advice.
  4. Personalize and customize
    While online real estate is technically unlimited, trying to simultaneously meet too many competing objectives can lead to a chaotic mess. I won’t call anybody out specifically, but surely you’ve see the type of site I’m referencing. Companies such as Monetate and Certona have site personalization capabilities that can take what we know about the customer, where’s she’s coming from, what search term she might have used and even, in the case of Monetate, what the current and upcoming weather in her location is, to help us make some determinations about the configuration and content of the page she might see.

To be sure, filling the overlap circle of our Venn diagram is not easy. But in a world where low single digit conversion rates are all too common, focusing on discovering and then meeting customer expectations is the quickest way to improving business and gaining market share.

What do you think? What fills your Venn diagrams? How do you understand customer expectations and objectives?

Cartoon: XKCD

Sitting in the “Marketing Hot Seat”

My good buddy Adam Cohen, a Rosetta partner who heads up their Search, Online and Social Media businesses, issued a challenge called “The Marketing Hot

You’re the CMO.  You
have a marketing budget of $1M.  Your company is a consumer product
company, relatively unknown / early stage.  Customers who know the
product like it. CEO wants ROI within 12 months.  What do you do?

I thought this would be a fun exercise to take on, particularly because the scenario placed me in the seat of a manufacturer, publisher or product company. Would my retail oriented perspective provide a different line of thinking than would typically come from a manufacturer, and would that perspective be worthwhile? I’d certainly love to know your thoughts.

My take is actually the first one Adam posted on his blog, A Thousand Cuts. Check things out over there over the next few weeks to see perspectives from the other 12 bloggers.

Here’s my answer to Adam’s challenge:

OK.
Setting aside all the caveats about the fact that I don’t know what the product is, what it costs to make and what our margins are, here’s generically how I would approach the situation:

Strategy

  1. Thoroughly understand the customers who like our product
    The customers who know our product like it. We need to find out why, in their words, and determine what personality traits, hobbies, demographics, etc. in those customers are relevant to their liking our products so that we can speak to others like them.
  2. Get our online destinations right
    With a relatively small marketing budget, we’re going to need to maximize our online strategy. (Actually, we should do that even if have a large marketing budget.) We need to make sure our website and our retailer websites are highly usable and highly effective in merchandising our product and providing the ability for customers to easily spread the word about us.
  3. Drive traffic with whatever budget is left
    Only when we have ensured that we have solid destinations for our traffic will we start to actively search for traffic.


Tactics

  1. Learn as much as we can about the customers who most love the product.
    Why do they like it? What are there personality types; let’s use the Myers-Briggs personality test and really get a  thorough understanding of these folks. How do they describe our product? Let’s pay attention to the words they  use as we’re going to reuse those words in our copy.
  2. Hire ForeSee Results to measure our site’s effectiveness from our customers’ perspectives.
    I realize this may seem self-serving since it’s my company, but I was a client for seven years before joining the  company three months ago, and I’ve see how well it works.  So, I want it in this role. So there! We’ll use  measurements, analysis, Session Replay and usability audits to ensure we’re providing the best experience  we can.
  3. Hire Bryan Eisenberg to develop archetypes and to implement Persuasion Architecture on our site.
    We need to speak to customers in language that resonates, and Bryan understands how to do that. We’ll also use  his language for product descriptions and other content we give to retailers for their sites.
  4. Create a high quality product video.
    We’ll use this video on our own site and we’ll give it to retailers for their sites. We’ll focus on the key aspects  customers love and use copy that includes words that resonate with those customers. We’ll also show real  customer testimonials.
  5. Launch customer reviews and customer forums on our site
    We need to make sure our customers can openly provide their thoughts about our product, even when  they’re negative.
  6. Launch several blogs on our site
    Since we only have one product, we need to provide some fresh and compelling content on our site to give people a reason to come back. The content doesn’t need to be about the product all the time. It can be able anything, as  long as it’s compelling. I’ll focus on general marketing, our CEO can blog about leadership, and we’ll find some  people to blog about topics our customers are interested in. All of this blog content will also be great for SEO.
  7. Launch a marketing campaign to retailers informing them about key customers and teaching them how to sell the product
    Our initial marketing efforts will essentially be internal. Let’s get the sellers pumped up and doing their jobs well  before we send customers their way.
  8. Develop a widget for retailers that gives customers the ability to easily share information about the product
    We need to give our customers ways to share information about our product on their own in a way that is easy and  positive. Let’s create a fun widget that people want to share on Facebook, Twitter, email, etc.
  9. Get our SEO right, buy search terms, send emails, run re-marketing campaigns, etc.
    I don’t want to minimize the value of these techniques, but we really need to make sure our destinations are right  before we add lots of traffic.So there you have it. My main point here is to focus on the customers first, the destination second and the traffic driving last.

What do you think? Does my strategy make sense? How would you have addressed the challenge? Do your manufacturer/publisher/product partners address your needs?

Conversion tip: Don’t block the product with window signs

My friend Bryan Eisenberg is always telling retailers, “You don’t have traffic problems. You have conversion problems.” When 95+% of the people who come to a site don’t purchase, it’s a hard point to deny. Could giving customers quicker and better access to the product be one way to start to solve the conversion problem? My experience says Yes.

A quick story

Imagine walking into a store and smacking into a giant promotional banner that stretches from the ceiling to chest level. Below it and to its right hang a series of smaller promotional banners. A few feet behind the banners, you see a series of doors with signs above them that appear to represent different product categories. You push through the banners and open the door under the “Dresses” sign. There you step into a room where a flashy video projected on a large wall highlights stylish dresses and beautiful models and also runs copy about the same promotion you saw on the banner at the front of the store. The wall to the right features several smaller signs for various promotions. The wall to the left is littered with 20 or 30 doors, each with a sign above it for what appears to be a type of dress.

Nowhere in the room are there any dresses.

You pass through the door labeled “Casual dresses” and finally see actual merchandise.

Does that story seem ludicrous? Then why is that basically the experience on so many retail websites?

In brick and mortar retail, we use promotional signs in our windows to draw people into the store, where we expertly display lots and lots of product to customers the moment they walk in the door. We certainly reinforce our promotional messages with signage throughout the store, but we never block the product with the signs. On our sites, our promotions seem to be more important than our products. What message are we sending to our customers about the value of our products when promotions get more prominence than the merchandise?

When customers arrive at our home page, they’ve already effectively entered the store. So, why are our “window signs” blocking the product?

Apparel and department store sites seem to have almost uniformly adopted the experience described above, but most other retail sites that I’ve seen don’t stray too far from “the window sign” experience. Consumer electronics and computer sites often feature a few specific deals or featured products, but otherwise they generally follow a similar approach. In fact, about half of the Internet Retailer Top 25 sites on my recent viewing didn’t show any products on their home pages, and the remainder only displayed a very few select products.

Are we missing conversion opportunities by taking too many pages to get to the products?

Certain retail categories, like apparel, books, jewelry and flowers/gifts to name a few, seem to have large customer contingencies who are prone to browsing to see what’s new. Physical stores in those categories absolutely cater to the desire of customers to check out the latest stuff, but the web sites seem to assume customers are only interested in promotions. Or are the promotions simply the result of our own self-interest? What percentage of customers click on the promo spots versus hitting the search box or clicking into a department or sub-department? If it’s a fairly small percentage, perhaps a different approach might pay off.

A case study

When we launched the new Borders.com last year, we knew that about half our customers came to the store looking for something new to read without a specific book in mind. As a result, we created the Magic Shelf, a virtual and interactive book shelf that housed up to 120 books in an easily browsed application.
And we placed the Magic Shelf in the most prominent position on our home page — front and center. The decision to offer such valuable real estate to this new feature was hardly unanimous, but those of us who supported it won at least enough support to give it a try.

The result? Not only did customers say they loved it, those who interacted with the Magic Shelf converted at a rate 62% higher than those who didn’t. As we dug deeper, we discovered that the reason they converted more was that they viewed about 41% more products than those who didn’t interact with the Magic Shelf. (If you’re interested in more detail, you can download the case study we did with Allurent, the vendor we used to develop the Magic Shelf).

How might the shopping experience change on an apparel site if there was prominently placed virtual rack of some sort that allowed customers to easily browse, on one page, a wide selection of the latest styles? How about virtual jewelry cases or flower bins?

Ann Taylor trendsetting

The new Ann Taylor site design has made some strong strides towards a nice product browsing experience. While they still seem to feature window signs on the home page, their landing pages provide a very nice browsing experience where customers can easily peruse lots of merchandise. The product images are very clean and easy to see, and the page layout lends itself to the ability to occasionally replace one of the product spots with a visible but unobtrusive promo spot. Bravo to Matthew Seigel and the team at AnnTaylor.com!

I’m not sure it’s necessary to replicate a physical fixture to achieve the benefits of great product browsing. To me, the key is giving customers easy access to our merchandise and letting them very easily view lots of different items. That basic concept is something we discovered long ago in the physical retail world. How did we lose sight of it online?

What do you think? What is the thinking at your company? What sites have you seen that do a good job giving access to the product? Or, are the current methods working for you?


True conversion – the on-base percentage of web analytics?

I just finished re-reading one of my all-time favorite business books, Moneyball by Michael Lewis. While on the surface Moneyball is a baseball book about the General Manager of the Oakland A’s, Billy Beane, I found it to be more about how defying conventional wisdom (a topic I’ll no doubt return to over and over in this space) can be an excellent competitive advantage. In retail, we can be just as prone to conventional wisdom and business as usual as the world of baseball Lewis encountered, and site conversion rate is an excellent example of how we’re already traversing that path in the relatively young world of e-commerce.

In Moneyball, Michael Lewis tells the story of Beane defying the conventional wisdom of longtime baseball scouts and  baseball industry veterans. Rather than trust scouts who would literally  determine a baseball player’s prospects by  how he physically looked, Beane went to the data as a disciple of Bill JamesSabermetrics theories. By following the  James’ approach, Beane was able to put together consistently winning teams while working with one of the lowest payrolls in the Major Leagues.

Lewis describes how James took a new look at traditional baseball statistics and created new statistics that were  actually more causally related to winning games. Imagine that! For example, James found on-base percentage, which  includes walks when calculating how often a player gets on base, to be a much more reliable statistic than batting  average, which ignores walks (even though we’re always taught as Little Leaguers that a walk is as good as a hit). I won’t get into all the details, but suffice to say on-base percentage is more causally related to scoring runs than batting  average, and scoring runs is what wins games.

So why is batting average still so prevalent and what does this have to do with retail?

Basically, an English statistician named Henry Chadwick developed batting average as a statistic in the late 1800s and didn’t include walks because he thought they were caused by the pitcher and therefore the batter didn’t deserve credit for not swinging at bad pitches. Nevermind that teams with batters who got on base scored more runs and won more games. But batting average has been used so long that we just keep on using it, even when it’s been proven to not be very valuable.

OK, baseball boy, what about the retail?

As relatively young as the e-commerce space is, I believe we are already falling prey to  conventional wisdom in some of our metrics and causing ourselves unnecessary churn.  My favorite example is site conversion rate. Conversion is a metric that has been used in physical retail for a very long time, and it makes good sense in stores where the overwhelming purpose is to sell products to customers on their  current visit.

I’ll argue, though, that our sites have always been about more than the buy button, and they are becoming more and more all-purpose every day. They are marketing and merchandising vehicles, brand builders, customer research tools (customers researching products and us researching customers), and sales drivers, both in-store and online. Given the multitude of purposes of our sites, holding high a metric that covers only one purpose not only wrongly values our sites, but it also causes us to churn unnecessarily when implementing features or marketing programs that encourage higher traffic for valuable purposes to our overall businesses that don’t necessarily result in an online purchase on a particular day.

We still need to track the sales generating capabilities of our sites, but we want to find a causal metric that actually focuses on our ability or inability to convert the portion of our sites’ traffic that came to buy. We used our site for many purposes at Borders, so we found that changes in overall site conversion rate didn’t have much to do at all with changes in sales.

If we wanted to focus on a metric that tracked our selling success, we needed to focus on the type of traffic that likely came with an intent to buy (or at least eliminate the type of traffic that came for other reasons), and we knew through our ForeSee Results surveys that our customers who came with an intent to buy on that visit was only a percentage of our total visitors, while the rest came for other reasons like researching products, finding stores, checking store inventory, viewing video content, etc.

So, how could we isolate our sales conversion metrics to only the traffic that came with an intent to buy?
Our web analyst Steve Weinberg came up with something we called “true conversion” that measured adds to cart  divided by product page views multiplied by orders divided by checkout process starts. This true conversion metric was far more correlative to orders than anything else, so it was the place to initially focus as we tried to determine if we could turn the correlation into causation. We still needed to do more work matching the survey data to path analysis to further refine our metrics, but it was a heckuva lot better than overall site conversion, which was basically worthless to us.

Every site is different, so I don’t know that all sites could take the exact same formula described above and make it work. It will take some work from your web analyst to dig into the data to determine customer intent and the pages that drive your customers ability to consummate that intent. For more ideas, I highly recommend taking a look at Bryan Eisenberg‘s excellent recent topic called How to Optimize Your Conversion Rates where he explores some of these topics in more detail.

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Whether or not you buy into everything written in Moneyball or all of Billy Beane’s methods, I believe the main lesson to be culled from the book is that it’s critically important that we constantly re-evaluate our thinking (particularly when conventional wisdom in assumed to be true) in order to get at deeper truths and clearer paths to success.

How is overall site conversion rate working for you? Do you have any better metrics? Where have you run into trouble with conventional wisdom?


Retail: Shaken Not Stirred by Kevin Ertell


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