Sitewire

Freaky, Fast and Fun Facts
- Scott Kaufmann

E-mail, Amazon and a mouth-watering, tear-jerking prediction

It must be that time of year again. The spring and summer air is inviting, plants are in full bloom, suicide rates are up and marketing studies are coming out of the woodwork (hopefully no correlation between the last two). A few such studies caught my attention, so I thought I'd share a few of the more interesting points.

Recently, after attending a very large marketing conference in San Francisco, I was reminded that while e-mail isn't quite the buzzword that it once was during the "Internet boom" heyday in 1999 and 2000, it has certainly become something of a foundation of global life. According to a recent study by American Online Surveys, users rely on e-mail as much as they do the phone for daily communication and will frequently spend about 1 hour per day using email. It was also noted that 77% of the survey participants had more than one e-mail account. In addition, 1 in 4 surveyed said that they couldn't go more than 2 or 3 days without checking their email, as if a dependency had developed. Further, 61% of e-mail users employed outside the home checked their personal e-mail at work. Depending on what your idea of work is, the number could be even higher, noting that 23% check their email in bed, 12% in class, 8% in a business meeting, 6% at the beach or pool, 4% while driving and 4% check their email while in the bathroom. Can I draw any conclusion from all of this? Of course. Clearly, e-mail users are not embarrassed to be naked, wet or in front of their computer in somewhat compromising positions.

But e-mail isn't the only thing that has gripped our daily lives. Another interesting study published this month on InternetRetailer.com noted that the growth of e-commerce has been incredible. The Internet's leader in sales is Amazon.com, with annual sales of $6.9 billion in 2004, up 31% from 2003. The other top 10 e-commerce companies all had annual sales of over $1 billion. Overall, it is estimated that total Internet retail sales totaled $87.5 billion in 2004, up 25 percent from $70 billion in 2003. It is fascinating to see the types of businesses that are enjoying tremendous increases in sales with associated cost savings of online commerce. In the six years that Sitewire has been in existence, the Internet has gone from a fledgling player in the commerce arena, to a major player - incredible. While there is still a long way to go, and plenty of companies still contact us about getting into the e-commerce space, just as many contact us with comprehensive e-commerce systems, asking what they can do to increase conversion. Although we like to think we're just getting started, there are not many other industries in which a 6-year-old company has witnessed and participated in the rise of such a multi-cultural, world changing phenomena. Thank you all for joining us on this adventure!

Now, wiping the sweat away, I quickly and painfully drag out my soapbox. Clients, friends and family frequently ask me what is going to be the "next big thing" with the Internet. Generally, I get out my crystal ball and make outlandish predictions about thought-processing pivot displays that will utilize eye movement and thought translation to surf the Internet with "no hands," all the while adjusting the display of your 3-dimensional monitor to stabilize images and tune the display to your body position. Yes, we're definitely going there. Well, maybe we're going there....ok, probably not anytime soon. But there is one thing that I do see coming, and I'm pretty confident you'll see it sooner than later. Remember this buzz term - "On Demand." Eventually you may even see the demise of Blockbuster and NetFlix if they are not able to adapt and embrace On Demand. With fiber optics installations quietly taking place in more and more neighborhoods, we know the changes are coming. On Demand, which is already available in small, beginner stages in some markets is much like a TiVo full of everything that is or has been on TV. No longer will you have to drive down to Blockbuster, wait for the movie time on Pay-per-view or wait for a DVD from NetFlix. You will simply use your remote control to select and watch any movies, TV shows, newscasts, sporting events - and watch them in real time. Instant streaming of this content via the Internet and optical cables is certain to further integrate the Internet and other media forms. Just remember, you heard it here first. But don't sell your Blockbuster stock just yet, as the most interesting part of this conversion process will be seeing how a multi-billion dollar corporation such as Blockbuster will adapt their process to stay alive.

So there you have it. Tasty indeed. But one question still remains unanswered, do those Chickens really have large talons?

Peace in fleece. See you next time...

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Integrating Traditional Advertising with Online Marketing Initiatives
- Leslie Jackson

In previous articles, it has been mentioned that traditional advertising is not obsolete; it continues to be a very important part of your overall marketing mix. However, the integration of your online marketing initiatives will assist in increasing the overall success of your marketing plan.

Traditional media outlets include Print, TV, Radio and Direct Mail. Depending on your industry, you may utilize one or more of these mediums to reach your target consumer - what should you do to integrate your online marketing?

Always include the URL (Web address) or your Web site in your marketing communications. In today's marketplace, every business should have a Web site. Including the URL to your Web site is just as important as the phone number. By providing end users with an opportunity to visit your presence online, you may find a new segment of customers - those who don't want to call. But by also including the phone number, you don't alienate those who are not so Web knowledgeable.

What does this do? Allowing people a means to learn more about the business is the first step in developing a relationship with this potential customer. Sending them to your Web site provides them with a means to explore your products and services, provide you with more information and might even lead to a purchase faster than when providing only a phone number.

Create a Promotional Web page (or landing page)

If your traditional advertising efforts are promoting a special offer, discount or event, create a special Web page (or landing page) for the target customer to visit for more information or to receive the offer. This landing page can come in the shape of an online form, a clickable PDF that takes you to more information or another site to purchase tickets, it can be optimized for search engines, link directly to your Web site and would contain specific information to the special event, sale etc. This Web page should have a strong call to action to persuade the customer to fill out a form, purchase online, and download information - whatever it is you want them to do.

Landing pages are a means of gaining additional exposure as potential customers who may not have been exposed to your product through traditional means may come across this landing page via a search engine. It will also aid in gaining potential customer information so that you can target this group for future marketing purposes either via e-mail or direct mail. Landing pages also assist in organic search engine optimization efforts by increasing link popularity to your Web site.

Use your Web site as a Marketing Tool

Web sites these days are not just for information dissemination. When utilized effectively, they can be one of your strongest marketing components.

First, don't get too fancy. Yes, your Web site should be visually appealing, but the more fancy stuff you have (flash, music etc.) the more difficult and annoying of an experience for your Web audience and the less likely that a Web audience viewer will convert into a customer or return to your Web site.

Second, the Web site should be designed with the end user in mind - easy for them to navigate, find what they are looking for and get to a point where they successfully complete their mission (and your mission). Always opt for a user interface consultation to ensure your Web site is leading a potential customer to a conversion (or purchase).

Third, effectively optimize your Web site through organic search engine optimization to attract the target consumer to your Web site. When it comes to search engine optimization, CONTENT IS KING: each page should include extensive keyword rich HTML copy along with optimized meta information, which defines what the Web site is about in source code. To expand on your content, you should include press releases, FAQ's, Web Logs and other information that will increase your Web site's relevancy to the search engines.

Finally, provide the user with clear calls to action that lead them to the ultimate purchase or action. If you want them to fill out a form, put that form on every page. If you want them to book a tee time, put a "book your tee time" button on each page and so on.

The more you aim to integrate your traditional marketing efforts with that of online marketing, the greater the likelihood that you will be to obtain customer information which can be used at a later time for more marketing efforts. We do know that the cost associated to attracting a new customer is greater than that of marketing to an existing one. Therefore, the more your focus on gaining customer information from your marketing efforts, the greater your existing customer base, and the less you have to spend bringing in new customers.

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Closing the Deal: Converting Prospective Customers to Action
- Katie McNally

It seems like an inherent piece of the customer generation process, but surprisingly enough, Web site conversion analysis is often overlooked. At times, we get so excited about the product or service offering we are marketing that we forget to take one step back, put ourselves in the customer's shoes and assess how easy it is for them to find what they are looking for. One way to think about it is in terms of dollars. You can either increase your marketing budget by 25 % thus sending more targeted users to your site, or at no added cost you can improve the conversion rate of your Web site by 25 % and increase overall transactions by 25%. While 25% may seem like an aggressive goal, it is amazing how a few streamlined changes to a Web site can increase Web actions. Streamlining your Web site's conversion rate is also a one-time investment of time and effort that will continue to pay off on an ongoing basis. In the case of increasing your marketing budget in order to deliver more customers, you will have to continue to spend a higher amount to continue converting the higher volume of customers.

So how do you go about increasing the conversion rate of your Web site?

Pick one main call to action per page and make it easy to find above the fold. Above the fold means that something is located on a top portion of a Web page viewable before any scrolling down is necessary. The average time spent on a Web page before a prospective customer abandons a site is astonishingly short. Make the action you want your prospective customers to take almost obnoxiously easy to find without any necessary scrolling.

Identify one main sales path through your site. If you don't know what it is, then your prospective customers will certainly not be able to find it. In an effort to provide all of the necessary information and resources, it is easy to forget that there should be a main path throughout the site that you intend for your prospective customers to take. Think of it like leaving bread crumbs on each page of the site reminding prospective customers of where they should go next. This ultimately culminates in your desired Web action being taken or Hansel and Gretel making it back home. While it is unrealistic to think that there will only be one service or product offering on your site not accompanied by email clubs, requests for more information or alternate products/services, just keep in mind that the number one action you want prospective customers to take on your Web site should be clearly defined and easy to follow.

Ask an independent/unrelated party to navigate through your site. We sometimes become too involved in the development of our own Web site that we are no longer able to see it clearly through virgin eyes. This is when you need to call upon your spouse, neighbor, brother's girlfriend, or whoever to take a look at the site. Don't give them too much information. Simply ask them to take a look and report back to you to main purpose of the site. This is the first test. You pass if they are at least able to identify what action you want them to take. The second and considerably more difficult test is to ask them how easy it was to get to that action. They will more often than not be able to point something out to you that you had either never noticed before or trained yourself to work around. You certainly don't need to redo your entire Web site based on one random observer's opinion, but take it for what it is and allow yourself to be critiqued.

Put together a focus group to check out your Web site. This is a larger scale version of asking a random independent observer. In this case you will need to offer and provide focus group attendees some sort of incentive to get together as a group, take a look at the site and give you feedback.

After taking all of the actions noted above, it is always a good idea to ask the experts. Experts get their name because they have done it time and time before and they know the pitfalls. The effectiveness of a "User Interface Assessment" on a Web site can not be stressed enough. Someone who is trained with the knowledge of human engineering factors and applying them to Web site usage can assess a Web site from a very scientific perspective, thus taking your Web site conversion rate from good to great.

One last thing to keep in mind is that there is always room for improvement. While this may sound like something your parents would have told you in the 5th grade, it also directly relates to Web site conversions. If you are completely satisfied with the rate at which your Web site converts, then you may not see the point in opening up a new can of worms. The problem with this mindset is that nine times out of ten there is at least one thing on a site that can be changed to facilitate a higher rate of conversion. And why wouldn't you want a higher volume of Web site conversions on an ongoing basis?

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Customer Retention Marketing
- Jay Feitlinger

Better plan on leaving your current cell phone provider if you want to upgrade your phone!!!

Perhaps it has already happened to you or may happen in the future. You damaged your wireless phone or had the desire to upgrade your phone, but after going to your current wireless phone provider they required you to pay full price for a new phone unless you are a "new customer!" If you sign a new contract, you are given a large rebate or even a free wireless phone. If you are a current customer you have the privilege of paying full price. Can someone please explain that methodology to me? With this type of customer retention strategy is the wireless provider just pushing current customers to seek services elsewhere when their contract ends? I know it did for me and the rest of my family!

Customer retention is a marketing discipline committed to earning the first-time or occasional buyer's long term loyalty. It is founded on the belief that the initial purchase is not the conclusion of the marketing cycle, but rather a signal from the buyer to the seller that an ongoing relationship between the two parties is POSSIBLE.

The justification for customer retention marketing comes from the knowledge that it is five to ten times less costly to retain a customer than acquire a new one. In fact, a 2% increase in retention rates is the equivalent of a 10% reduction in operating costs while a 5% improvement can lead to profit increases of up to 85%. Establishing and building a strong base of loyal online customers requires a systematic, company-wide commitment. It cannot be achieved through add-ons or ad hoc campaigns.

Once you get the customer the first time, you need to ensure your online marketing plan includes customer retention strategies that will ensure your customers come back for more. Sitewire can assist you by developing an online retention strategy through database marketing. Send Elif,our marketing manager, an email today if you have any questions or need assistance.

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Shasta dives in to enhance pool customers' Web experience
- Elif Affan

Here is your everyday Web surfing experience: you visit a company's Web site only to find it completely confusing; you get lost within it, abandon the site, and move onto a competing company's site. You repeat this site-hopping process until you find a site that you can navigate, and that addresses what you are looking for. Don't you wish you could have found what you needed on the site you started on?

Web site usability (or lack thereof) is a big problem for many - if not most - sites on the Internet since poor usability ultimately leads the prospect to a competing Web site. In previous issues of this newsletter, you have learned how user interface plays a huge factor in converting visitors into customers. According to a 2004 Nielsen/NetRatings study, most Web sites only convert 5% of their visitors into customers, but sites that have excellent usability can convert up to 40% - an exceptional return on investment!

Since most companies are not focusing their Web-based marketing energies on improving customer conversion, this leaves a giant opportunity for gaining an edge over the competition. Smart companies are doing just that. Announced this month, Shasta Industries, Arizona's number one pool builder, is embarking on a complete overhaul of their online presence. The first priority before anything new is designed or built is taking into account the end-user experience. Sitewire was selected by Shasta to support its Web-based marketing efforts. "For us, creating an interactive environment that is easy for users to find what they are looking for is the top priority. We know it is imperative to improving our online conversions," said John Neely, Marketing Manager, Creative Development for Shasta Industries.

Sitewire will be providing Shasta with user interface blueprints and consulting for four of the Company's Web sites. These blueprints will be used during the creative design phase for each of the sites, which are set to launch in early fourth quarter of this year. In addition, Sitewire is compiling a comprehensive benchmark assessment which analyzes Shasta's competitive online environment and makes actionable recommendations on the best online attraction methods to bring more targeted prospects to its Web sites.

Sitewire is excited to be working with Shasta's team on the planning and enhancement of the new Web sites. Both are confident that the new customer attraction and conversion methods will exceed the goals of providing a better user experience while increasing the quality of customer leads for the pool builder.

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