eCommerce Tips - Part 3

1. Make if easy to get to the cart — nothing chaps my ass more than having to hunt and peck to get to the checkout cart.  And once I get into the cart, having more questions to answer and stuff to type in.  Make it easy to check out… keep the steps to a bare minimum.  Again, get em in, get em out.
2. Access to the system — an employee leaves… what if they download your customer list, credit card information, etc.?  Limit access to the system to only key staff.  And when you have the platform built talk to the developers and software company about fail safes on the system.  
3. Audit your eCommerce system — have finance audit your system for accurate reporting and integration with backend financial systems.  
4. Pay hackers to hack.  Sounds crazy, but find a security company who can hack away.  If they can get in, you’ve got a problem.  I’d also keep them on retainer to hack at intervals.  By the way, let your IT Security, Audit and Executive Management know you’re doing this.
5. Have longer term service contracts — don’t get caught without having support from your dev vendor.  Bulk up the hours you need them after the immediate release.  You’ll have issues to take care of so be sure you have those hours built in.  Put less hours on the backend of the contract as you’ll probably be in the small fix mode at that time.
6. Chat - I have mixed feelings on chat.  I love it because you can help direct and answer customer questions.  However, it can be very obtrusive if it pops up while a customer is browsing… you’ve seen it “How Can I Help You” pops up in the corner.  I get the creeps when it happens to me and I’m pretty sure others do as well. Think twice on how you implement the Chat functionality.
7. Mock Disaster Drills — just like having fire drills to prepare for the worst… do the same with your eCommerce system, processes and team.  You can determine the extent to which you want to mock a drill… get creative to stress test your system, backup servers and staff.
8. Lifetime value — ensure you are capturing all the data you’ll need to complete LTV later in the life of the eCommerce platform and business.  You won’t be able to do it when you launch but 18 months later it will be something you’ll want to do.
9. Order verification emails — it’s mandatory!  Tell your customer you’ve received the order, verify the cost, provide an order number AND Cross Sell!  Provide a coupon code, ask for more sales, show companion products they might consider.
10. Coupon codes — people love a deal.  Try different offers… 10% off, $10 off, Free Shipping, Buy 1 get the 2nd 50% off.  Provide the codes in emails, on your web site, 3rd party sites, etc.  However, you must be cognizant that your site doesn’t become the discount bin at the 99 cent store.  Use coupons in a smart way.
11. Hold the dev companies responsible — it sounds obvious, but I know company’s which do the “one and done” IT support model.  My preference, keep them on retainer for 1 year.  With the first 6 months of that having the most hours as you’ll need them to fix the launch issues.
12. Agile vs. Waterfall — Waterfall methodology will not allow you to fix issues along the development cycle.  In the end you’ll spend much more time in dev and when you launch, you’ll get a ton of surprises when stuff doesn’t work together.  Agile, will reduce the surprises at launch and keep dev moving at a solid pace.
13. Hire a full time search professional — I screwed this one up.  I should have had a search person on board full time to focus on the meta data tagging, how the search works on the site and optimizing external search.  Trust me on this… hire one early.
14. Learn to say no — you will have multiple requests for additional items to be added to your project during the dev and planning cycle.  Stay focused, say no, prioritize them later.  Get the initiatives launched successfully, then start on the other request.
15. Auto fill in — the greatest speed enhancer created by developers!  I recommend you turn it on.  Again, get them in and get them out.  The faster they can complete the information the faster to checkout.
16. Team — of everything I’ve posted, this is the MOST CRITICAL piece of the entire development and ongoing management of an eCommerce platform.  Nothing else matters, nothing will get done, it won’t get done correctly, on time, etc. without the best possible team.  I look for passion first.  If someone is passionate they’ll have the internal desire to learn, go further, drive harder and exceed any and all expectations.  Second, trust.  You must trust the team with the ability to make decisions.  Not all of those decisions will be correct… but you must have faith they’ll do what’s right given the information they have.  Third, I look for digital/eCommerce experience.  Someone who has lived through the crap it takes to pull off and manage an eCommerce platform and manage the business.  As for the incredible team I was honored to lead in the latest eCommerce business I was involved in… Colleen, Gina, Donna, Jon and Jim are my heroes.  
17. Mobile — this should already be included in the specs and dev… but ensure it’s working on day one.
18. Keep it clean —I hate sites that you must sift through to figure out what to do.  Keeping your site clean helps the customer find the product easier and get to checkout faster.
19. Worst case scenario plans — be proactive and put together your response action plans in the event your data is stolen, credit card data stolen etc.  A few key points to consider:  How do you inform management, how do you inform customers, what do you say to customers, how do you communicate with the press, hotline phone and email to answer questions, 3rd party monitoring services for free, IT development plan, etc. etc.
20. Celebrate success — you and the team might need to be medicated by the time you get the system up and running.  This is very hard and frustrating work.  The stress is intense.  Stop and celebrate along the way.

These are just a few of the things I’ve learned.  I know I’ve left some out, but I hope part 3 adds some additional tips which you find useful.  Remember parts 1 and 2 were published earlier, so check out my earlier posts.

Best of luck,

Scott

eCommerce Tips -- Part 2

Part 2 of eCommerce tips...  look for Part 3 coming out shortly.

Scott

1. Executive Management — typically you’ll find Executive Management has the misconception that once the site goes live the dollars will start rolling in immediately.  As we know this is absolutely ludicrous — the site needs to mature, have campaign dollars spent on it, let alone ensuring the search engines start indexing the site.  Make sure you are DAMN clear by always saying the site won’t generate a single sale for 6 months.  Start your conversations and end your conversations with this important point continuously.
2. Timelines — first, you won’t hit your original timeline.  Live with it.  And if you do, you’ve probably left something off which is critical.  Second, timelines should be built on quarters not months.. it will give you some leeway and is actually more accurate in the end.
3. Privacy and Security — you must make your site bullet proof… your customers data and personal information is critical.  If you’re not going to take the time and money to make your site safe against malicious or accidental incidents then you shouldn’t get into eCommerce.  Hire an eCommerce security and privacy consultant to put the processes and security protocols in place.  This is the most important development and process area when you develop your eCommerce site.
4. Currency — get a currency converter on the site so your customers can understand the true cost in their preferred currency.  Get the data from a company which updates currency rates during the day.  I like to bill in US dollars and collect the money in US dollars vs. the hassle of taking conversions later.  It doesn’t impact the customer as they pay the same on their credit card.  
5. Embargo countries — remember, the US and EU prohibit companies to do business with certain countries e.g. Iran.  So ensure your system is setup to reject these sales.  I’ve always kept the order data in the eCommerce system so I had a record of the failed transaction.  That data could come in handy one day.
6. Trigger on multiple purchases — got caught on this one once.  Someone pinged the site and made multiple independent purchases, paid for them with the same card and they all went through.  Of course the card was stolen and they got some free content.  Put a limit on multiple orders from the same card, address, etc. which can be done during a certain time period.  It will help eliminate another area of fraud.
7. Cross sell across the entire site.  “People also looked at these products”, “People purchased these products as well”, “Consider these companion products”…. are key on the site.  Merchandise the site aggressively.  Tip… if you’re using one of the big platforms, you’ll probably use an algorithm which will personalize these recommendations.  But it will take time for the algorithm to learn…so hard code some cross sell products on the site until it gets enough data.
8. Search engines — once you’re open for business, Google, Yahoo!, Bing, etc. will start sending down search bots to begin indexing the site.  Note… keep the content up to date, fresh and at the top of the site.  It will make it easier for indexing and will keep the bots happy.  Also, everyone focuses on Google but don’t forget to keep things simple for the other engines as well.
9. Shipping costs — free shipping is all the rage during the holiday buying season.  And certain free shipping promotions can help drive purchases as well.  When you’re building the system check that the rates for each shipper you use are accurate.  
10. Handling costs — wonder why you can “get 2 ShamWows for the price of 1”… just pay shipping and handling?  Because handling is another way to get profit.  Yea, you might need to have someone pack the stuff up and that costs you…but using handling costs for profit enhancement is a good idea.  I’m 50/50 on this practice.  It’s nice to have the extra profit, but I question whether it’s worth the possibility of pissing off a customer.   
11. Shippers — I like to use multiple shippers.  UPS, USPS and FEDX.  If overseas, DHL is a good choice.  As delivery methods, costs, time etc. are different, the variety provides your customers with choices.  But, that choice means your systems and logistics need to be setup to accommodate the different shippers.  Making labels, putting in a tracking number etc. should be integrated into your eCommerce logistics.  Speak to a logistics specialist.  And when looking at 3rd party software, see if this is an Out of the Box feature or if you have to buy additional software.
12. Distribution of product — when you start out your site, it might be easy to just have the mail kid pack up the stuff and send it out.  However, be ready to quickly put more resources into product distribution at any time if/when product sales increase.  By the way, make sure you look professional when you distribute your products.  Don’t throw them in a box without proper protection material (styrofoam peanuts, bubble wrap).  Show you’re environmentally responsible by using recycled eco-friendly materials  And don’t hand write the mailing label… print it out professionally.  Tips… include your latest catalog in the box, a thank you note, a coupon for future purchases, etc.  
13. Right products — its key to get the right ones on the site…that’s easier said then done.  It’s a test and learn process… so switch it around.  
14. Right price points — with anything else, getting the price at a point which maximizes profit while maintaining competitiveness will be key.  Set up a site scrap of competitors sites for pricing.  It can help you keep your prices competitive.
15. Consider credit card limits — if a customer can’t pay for it, they can’t buy it.  Credit card limits vary, but it’s easy to determine that the more expensive the item you’ll probably not have as many buyers.  And business credit cards usually have a limit of $5,000 for travel and expenses… Purchase Order Cards can be higher, but I’ve always relied on the $2,500 top end for business card purchases.  Anything above that on the site, will probably require an employee to get a purchase order.
16. Credit Cards — my view… accept as many types as possible.  MasterCard, Visa, Discover, American Express… if people have them, they use them.  The discount rate is always a big concern as its an expense… some sites don’t accept AMX for the high discount cost they charge.  Yes, it can be 100 basis points or more in cost, but I’ll take a bit less in profit to get a new customer any day.
17. Purchase orders — if you’re focused on businesses you should have the ability to purchase using a PO number.  This is going to require integration with your back end finance systems and isn’t a trivial development task.  
18. Tax consequences — for the love of God, charge tax.  It sounds like a no brainer, but I’ve seen sites which don’t do it.  For most products you must charge tax.  If you don’t charge YOU will pay the tax for your customers.  That usually means you’ll lose 5-8% profit.  Hook up the eCommerce tables to accurate tax tables.
19. Backup servers/systems — it sounds like a no brainer as well.  Keep it in mind when you setup your site on a 3rd party server provider.  Find out how the procedure works, what defines “an outage”, timing until the site comes back up, etc.
20. Get em in, get em out… I’m probably in the minority on this, but I like to get people on the site, have them find stuff quick, pay for it and then decide to leave or hang around after that.   If your on site metric is increasing and sales are decreasing it’s more than likely that your customers can’t find the product. Look to lower your on site time while increasing your sales at the same time.

eCommerce Tips - Part 1

eCommerce Tips… 

1. Check with and get educated on credit card and purchase order processing early in the game.  Depending upon the size of your commerce business, past security issues, technology, etc. will determine how complicated your approval process will be.
2. Get a complete and full list of requirements prior to ever talking to a vendor.  
3. Run pro-forma financials on the eCommemrce business… determine the revenue/cost expectations and where that break even point will be.
4. Have a “mini” commerce system built by the software vendors to really understand how everything works.
5. Go to AND sit down with a current company using the software to actually see how it works… it will help you determine the complexity of the software.
6. Build your product catalog early!  And I’d recommend you put NUMEROUS catalog managers on the task… better yet, farm the work out to a low cost center where you can get a ton of people working on it at a lower cost.  Trust me on this one… it will take a hell of lot longer than you think.
7. Simplicity is always better.  You can add and potentially make the store more complex later, but come out with a simple “buy and sell store.”
8. Go out of the box — everyone says their business is “different.” But I’ve seen that not to be the case.  Remember, the more tweaks you add to the system the more risk you have of a break, higher costs, etc.
9. Don’t overbuy — buy with the opportunity to grow.  You probably don’t need the tricked out CMS, tons of licenses, etc.  Buy small with the opportunity to grow big.
10. And for God’s sake don’t get caught up in the whole “package” sort of deals.  Understand exactly what you need and buy that.
11. Under promise the system functionality and sales - no matter what!
12. It will take 18 months to start to really see sales take off.  This isn’t a “turn on the facet” type of sales.  Many will expect the sales to role in on day 1.  Be sure to communicate and set expectations.
13. Outsource web services — I like Amazon Web Services (AWS)… they’ll keep your servers and the security aligned.
14. Put together the first 2 quarters eCommerce marketing plans… products, pricing, copy, promotions, etc.  Execute them closely, track the results and make changes quickly to improve results.
15. Have a professional writer manage the copy… and get someone experienced in direct response copywriting.  Keep them on a long term contract to ensure the text is consistent across the site.
16. Negotiate the software contract aggressively.  The margins on software are huge, so step up your game.  Get procurement involved to handle the situation.
17. Develop the store outside your IT department.  Nothing against internal IT departments, but they probably don’t have the experience in developing the software and we all know priorities change like the wind.
18. Ensure  IT has full time support resources post initial development to manage the platform.
19. People are the most important part of the eCommerce environment.  You MUST get people who are experienced in eCommerce or .com management.  They need to have program management skills, financial knowledge, IT focus, business management, and marketing skills.  Yes, you’ll pay for the best… but it’s worth it.  You’ll also need lower skilled workers, but ensure they have the experience you require.
20. Resources — someone for search.catalog, management, marketing, IT, dev. security, processes, etc.

Stay tuned for more tips...

Scott

International Advertising Festival Cannes Lions - Entry Tips

As we turn into Winter the CannesLions entries will be due shortly. Here’s a few tips from my judging experience.

1.  Read — yep it sounds simple, but read the entry rules and what is required in the entry form. If you don’t provide the information required, more than likely the judges will immediately discount the application.
2.  Language — when I judged about 50% of the judges spoke fluent English. The rest knew English but at varying levels. So keep the messages, short, simple and easy to understand. No fancy/dancy words.
3.  Culture — given the International makeup of Cannes, don’t do anything to offend another culture. Also, pay particular attention to whether any comedy is culture specific. If so, it might be hard for judges to understand the intent.
4.  Teachers Pet — the number of pounds you application has no relevance as to whether it wins. So don’t throw a ton of crap in your entry. If anything it will make it harder for the judges to sort the real entry from the hype.
5.  Numbers — INCLUDE numbers! Results matter… especially if you can attribute sales to the initiative.
6.  Goal — tell the judges what the goal(s) were with the initiative. Keep it short, don’t put the kitchen sink in on the goals. Don’t use the old SNL Shimmer Skit language “it’s a floor wax and a dessert topping.”
7.  Bullet Points — don’t write a lot of paragraphs…. make it quick to get through the application.
8.  Creative — use color versions not black and white reproductions. Yep, saw a few of these.
9.  Video — make sure you have it in the proper format as asked for in the application.
10.  International Campaigns — if you have a campaign which has run across multiple countries make sure to show it off. And if you’re a global company, dig deep across your regions to find the best and the smartest entries. Frankly, many of the best entries I saw were from Asia.
11.  Backups — send a backup electronic copy of the presentation in the event one gets damaged.
12.  Check Off — I can’t stress it enough. You must have all the information or questions answered. Don’t try and put in fluff material which doesn’t answer the question.

Good luck!

Scott

2016 Marketing Budgets -- a Few Tips

It’s baacckkkk… Marketing Budget Planning

Glistening Christmas lights, the smell of cookies in the oven, carolers singing the traditional holiday songs and the task of getting your marketing budgets done.  A few thoughts on budgeting.

1. Inflation — take it into account on production, agency fees, etc.  I usually figure about a 2% y/o/y increase.  Media inflation can be a wild card, but check with your agency on an estimate. 
2. Zero based budgeting — I like it.  It helps me apply the appropriate amount of marketing funding needed to reach the sales goals of each product.  In addition, it gets those nasty conversations you must have with business groups which won’t receive financial support before you get into the new fiscal year.
3. Cut the fat.  It’s the time to look at results and make the hard cuts.  If something isn’t working get rid of it.  Stop wasting precious financial capital.
4. Staffing — get your plan together early.  Do you need to upgrade talent, cut non-productive employees.  If so, ensure you’ve budgeted appropriately.
5. Run Rates — get those campaigns aligned and your budgets as well.  Nothing is worse than the decision to create a campaign, but not have the money to carry it out.
6. Capital — work with finance to understand your capital requirements.  Does this get charged to your budget?  Or is it paid out of a “pool” of funds at the corporate level?  Retiring capital investments sometimes helps the company’s financials.  Taking on a new capital project not only impacts capital finances but also operating expense.  Not everything can get charged to capital… so ensure you have the operating expense planned for as well.
7. International — work with finance to understand the impact currency rates will have on your budget.  If the US dollar can’t buy as many UK pounds, you’ll need to budget more to have the same media impact, etc.
8. Agency negotiations — if you’ll be negotiating a new contract… take a look at my post on contract negotiation.
9. Tracking — setup very detailed tracking of your dollars.  The amount spent of different  media types, how much goes internationally, how much you spend on campaigns, business units, fees, creative, etc.  It helps in understanding profitability of marketing and will help you plan for 2017 budgets.
10. Special initiatives — they will come out of left field, so build some buffer into the budget and understand where it sits.  Finance loves to pick at the “miscellaneous” budget line.

Good luck in the coming year.

Scott