Archive for ‘e-commerce’

16 August 2011

A healthy market opportunity

I was interviewed recently on the latest developments in digital pharma marketing. Here’s an excerpt of the story from the HotHouse blog:

The rise of digital in all its forms – Internet, mobile, social media, online video – has fuelled the shift from selling and marketing products to selling and marketing services, as consumers have replaced manufacturers at the centre of the marketing universe.

Everything from product development to promotion to post-purchase evaluation is today built around understanding and meeting customer needs.”

This is abundantly apparent in an area like healthcare. From a product-focused sector based solely on convincing doctors to prescribe medications based on scientific evidence (and a few educational dinners), drugmakers are building portfolios of services aimed at patients and doctors around their brands, helping healthcare professionals tackle issues like patient compliance and health education as direct promotion takes a back seat.

Big numbers

I discussed the implications of these trends with healthcare digital strategist (and HotHouse content producer) Ray Welling in this month’sHotHouse podcast. And while the growth of online generally as a medium and a marketing tool has been impressive, the numbers for healthcare are truly staggering.

Read the full story

28 July 2011

Target those who need you most

From my NETT blog:

Our politicians have shown they could learn a thing or two from small business when it comes to marketing their wares.

You can be the best at something, but if people don’t know about it, that fact won’t get you anywhere.

The federal election brought home for me the importance of positioning and promotion when you’re marketing your business. The shambolic campaign and aftermath showed that you can be running the only western economy to emerge unscathed from the global financial crisis, which should be enough to get you elected a saint, but if you can’t sell your accomplishments – and you let your competitors dictate the agenda – you will be severely spanked.

Policy waffling, backstabbing and leaks didn’t help, but history tells us that Australians give a neophyte government a second chance, even if it’s made mistakes. For the government to have so many runs on the board, the election should have been a walkover. To my mind, Labor’s biggest problems were a lack of firm positioning and an inability to sell itself to its customer base – uh, I mean the electorate.

These principles also apply to running a small business. It’s not enough to be the best-in-class for service, delivery, reliability, range or innovation; if your customers and potential customers don’t know it, you won’t survive.

The first step in this process is positioning. You need to work out what you’re best at; what your salient attribute or point of difference is, and why it’s meaningful to your customers. It’s only worth focusing on a defining attribute if:

  • It’s important and valued by your target market;
  • It’s distinctive and can’t be easily copied;
  • It’s superior – you do a better job of it than your competition;
  • It’s communicable – you can make it obvious to consumers.

That last point leads into the importance of promotion.

You need to be able to use both modern and traditional communication tools to let your customer base know exactly what your points of difference are, and this starts with making it easy for your customers to find you on the internet.

Read the full article.

14 January 2011

The more things change…

From my NETT blog:

When the iPad was released last year, there was a cacophony of ooohs and aaahs as geeks, early adopters and visionaries welcomed Apple’s shiny new thing. But if you listened carefully, you could also hear sighs and mumbles. That was from the people who were saying under their breath, “Oh s@!?# – another new technology to try and master – I give up!”

As a small business operator, it can be frustrating to try and stay on top of all of the technologies that may or may not be relevant to your business. It’s easy to question the justification for learning new things that may turn out to be a flash in the pan. Why get immersed in Facebook when it might turn out to be the next MySpace? So tablets are buzzing at the moment – didn’t the Palm Pilot have its day in the sun, to end up on a shelf gathering dust next to my Ipaq Pocket PC? Has Twitter peaked? Should I hitch my star to Foursquare, or Facebook Places – or neither? And I just signed up for a long contract with my iPhone 4 – don’t tell me that Android is the next big thing!

No one has a crystal ball that can tell you which technologies and platforms are going to be winners, or how things will evolve in the future.

Classic examples I use with my marketing students include the VHS vs. Beta wars of the 1980s, or the Blu-Ray vs. HD-DVD stoush this past decade. Many people – and retailers – who invested in Betamax players and tapes or HD-DVD collections were left with expensive but useless equipment when they lost the marketing battle with their technologically inferior rivals.

It’s an understandable human reaction to say “Enough!” and refuse to adopt a technology until they work out the bugs, or until the winning format becomes clear. When I was a kid, my older brother installed a state-of-the-art 8-track player in his first car. When that technology collapsed soon after, he was so annoyed that he refused to buy a cassette player in case that technology became superceded, too. It did eventually get replaced by CDs, but in the meantime he spent more than 10 years in the music wilderness.

Read the rest of the article

- Ray Welling

18 August 2010

Online technology and the 8th P of marketing

(Excerpted from this month’s column in Nett magazine)

We all know that online technology has irrevocably changed the way we do business. It’s high time that it changed marketing theory, too.

If you’ve read up on marketing theory, you’ve no doubt heard of the four Ps: product, price, place, and promotion. They form the elements you need to consider when planning your marketing strategy, and were recently joined by three more Ps: people, process and physical evidence.

I’d argue that because of technology changes of the past 40 years, particularly the rise of online, an eighth P needs to be added: partnership.

The technology-fuelled exponential increase in information sharing has fundamentally changed the relationship between businesses and their customers. Ever since the Industrial Revolution, businesses have been firmly at the centre of the universe, with information from the business (advertising, product information, product development, etc.) travelling in one direction to customers, with little or no information travelling back.

But the net changed all that. Businesses are no longer at the centre of the universe; the customer is now firmly at the centre, with the power to choose from a huge number of businesses and information sources. This has been described as a Copernican shift, because in business terms it’s as radical as the shift in thinking from believing the Earth was at the centre of the universe to the realisation that it was just another planet revolving around a huge and powerful sun.

There has also been a shift from one-way communication flow (business to customer) to two-way flow. Customers can and do tell you what they think of you, your products and your customer service.
As a businessperson, the simplest way to understand this new situation is that it’s not about you, it’s about them. The master-servant style of relationship doesn’t work any more.

Read the rest of the column here: http://nett.com.au/blogs/online-tech-and-the-8th-p-of-marketing/152.html

Ray Welling

1 July 2010

We now resume regular programming

Yikes – a digital content consultancy that doesn’t update its blog. 

I’ll avoid all the obvious analogies such as the plumber who doesn’t have time to do the plumbing at his own house, and instead just point to some of the things that have kept me away from the blog:

Also the hundreds of assignments, group projects, essays and exams marked for my uni classes this semester. Onward and upward to more frequent  blog posts!

Cheers, Ray Welling

11 March 2010

Now appearing in NETT magazine

I was asked to put together a workshop article on how to promote your business online using video for NETT magzine, a technology magazine for Australian small and medium businesses. The article has been published in this month’s issue (see a PDF version here).

Here are a couple of excerpts from the article:

“Online video is no longer a nice-to-have addition to your marketing mix: it’s becoming an essential tool for small businesses trying to stand out in a crowded market. Yet, often the biggest challenge for SMEs interested in creating online video is taking that first step. Your dream may be to create something that goes viral, but where do you start? How do you make it interesting enough to get people to watch – and then spread the message? The good news is, creating online video is getting cheaper and easier to do.

“….The biggest challenge for businesses, especially SMEs, is taking the first step. Video can confound people who are only familiar with traditional marketing. Developing an interesting concept is the next challenge. Viewers have been conditioned by years of television watching to expect video to be entertaining as well as informational, so that talking head presentation from your MD is an online video no-no.

“….Each video and each campaign is different, so work out ways you candetermine the success of your video in meeting your goals.How can you tell whether increased sales are due to your video? You do things like link from the video to a particular landing page on your site instead of the home page. Measure hits to this page and add a call-to-action…. As you produce more videos, you can see what type of content gives you the most business impact.”

21 October 2009

Content trumps transactions

Hitwise has released a report based on UK web traffic showing that content-driven websites receive 73% more traffic than transaction-based ones.

Hitwise data over a three-year period shows that entertainment and social networking sites have significantly increased their share of visitors, while shopping, classifieds and travel sites have lost market share.

Overall, transactional websites accounted for 5% more visits than content sites in July 2006, but since then content has grown steadily to now account for 73% more visits than transactional sites.

Content_vs_transactional_websites_chart

Hitwise’s Robin Goad writes: “This data chimes nicely with the findings of the latest Ofcom Communications Market Report. It concluded that the communications market has not been particularly harmed by the recession, and that ‘the internet and TV is regarded as a higher priority than almost anything except food.’ Hitwise would agree with this analysis but, although people are using the Internet more than ever, the way they use it and the sites they visit is constantly changing. In particular, the above charts show that just because people are using the web more, that doesn’t necessarily mean that they are spending more money online.”

27 February 2009

What your customers want from the web

Reprinted from the Zazoo blog:

Looking back at past writings, I came across this one I originally wrote more than 10 years ago. Surprisingly, it still has currency today. Pleasantly surprised because many of the insights (such as the emphasis on interaction and community) have stood the test of time; not so pleasantly surprised because of some of the things that still haven’t changed, such as the continued use of the term “user” to describe web consumers – can’t we come up with something that has more humanity? So here it is:

The World Wide Web takes channel surfing to heights only imagined by the most hardened remote control jockey. If your site is boring, of no use, or takes more than a moment to download, people will click away from your page faster than Homer Simpson can scarf down a doughnut. But if you can deliver what your customers want and expect from your Web site, you’ll have a very useful tool for your marketing armoury.

Working out what consumers expect on a Web site is still more of an art than a science. As Fox Television and QVC home shopping executive Barry Diller says, “There are no mavens to be found and no research worth its salt. There are no guideposts, no divining rods to tell you what to do. It’s only with patience that you can develop a fluency in a new medium.”

The online environment is young enough that it’s still being used as an extension of old media. It’s like the early days of television, when it was just radio with pictures. Television producers simply stuck a camera in front of the newsreader, radio serial performers or an orchestra (In fact, the Microsoft Network’s first foray into online news in Australia was exactly that – downloaded video of news editor Jason Romney reading out news headlines on a Web page).

It was only when people like the legendary newsman Edward R. Murrow started taking the camera out of the studio and into the street that television evolved into a medium distinct from radio. Or to use a non-media analogy, the Internet is still a horseless carriage and not yet an automobile.

Interactive new media are largely viewed as incremental improvements to traditional media, when in fact they represent entirely new ways of looking at the world. They are capable of doing things that have never been done before. The online world is still looking for its Edward R. Murrows.

The successful pioneers will be the ones who listen carefully to their users and give them useful interactions that they can’t get in any other medium. (I use the word “user” reservedly, as an inadequate term waiting for the right term to evolve.

They’re not readers, or listeners, or viewers – they’re all those things. So for now the word user is a term favoured by the IT industry until we come up with something better.)

So how do you work it out? Here’s the current thinking on what consumers want and don’t want from a Web site, based on what’s working on the Web and what’s not. Some of it is simple logic, while with others you need to turn your head slightly and look at the world from another angle.

They expect a personalised experience. The ability to serve up customised information has been a big selling point of the Web, and people have been listening. It’s now expected that a Web site will be littered with opportunities to shape their experience, by selecting types of information to be served up, whether to have sound on or off, etc.

Personalisation can include building an analytic ability into a site, such as the database capability of commerce sites such as Amazon, which serves up lists of other books in genres in which you’ve performed searches. The greatest Web sites provide on-on-one specific, valuable information to one person.

They expect it to be interactive. If you don’t give visitors the opportunity to contribute to a discussion, play a game or at least send you an email, you might as well have just printed a brochure.

They expect to connect with others. Bulletin boards, discussion groups, chat rooms, mailing lists – there are plenty of ways to include features which enable people to share ideas with other people through your site.

They expect a response – now. A Web site is a prime opportunity for service-oriented companies to offer full-spectrum customer service. However, you need to ensure that your response, even if it’s an automatic email acknowledging their request, is rapid.

They expect it to be easy to find what they want. People are looking to the Web for information that is sorted and organised in a useful way, though not necessarily a conventional way.

They expect depth of information (but not breadth). It’s much more useful to offer comprehensive information on a limited range of topics on your Web site than a little general information on a wide variety of subjects. Since a Web site has no limit to the pages it can carry, it offers an opportunity for hyper-focus not available to other media. The Web is a place where people can find information they can’t find anywhere else.

They expect to use the Internet for research. The 1997 Price Waterhouse Consumer Technology survey found that Web users spent 43% of their time accessing the Internet for research. They expect compelling content – laced with entertainment. Consumers are drawn to the Web by content – content that is presented in a way that makes it easy to find, use and understand.

It is becoming clear that content without usefulness, fun and interactivity is not going to keep people coming back for more. The information must be dynamic and instantaneous.

Compelling and engaging content will always be more powerful than showing off technology. If you can combine enough technology to enhance the experience of studying your content, you’ll hold a user’s attention long enough to get your message across.

They expect security and privacy. Users need to be told – and shown – that the reports about lack of credit card security, online stalkers and spammers littering the Internet are just that – reports. They expect to be able to buy things, safely and easily.

Despite the general public’s fear on security issues, current and potential Internet users agree that there are a lot of items and services they would be prepared to buy online, once their concerns about security are addressed.

They expect to be given a reason to return. Most Internet users only visit five sites with regularity -the rest are visited only infrequently or as a one-time link from another site. If your site is not going to be on your customers’ top five list, then you’ll need to employ devices such as email newsletters to keep your site top of mind and remind them why it’s worth coming back to your site.

They expect value for the time and money they have invested. True to its anarchic origins, in the present online culture, there’s very little on the Internet that people feel is worth paying for. They’re already paying for online access, time spent visiting your site is an opportunity cost, and so much information is freely available. Therefore, think very carefully before trying to charge users for information.

Having said that, consumers today are well versed in the concept of give and take – you give me something of value and I’ll provide you with something in return. The keys to long-term customer satisfaction are to provide each individual with truly useful information, presented in an appropriate context.

Information that enables an individual to gain greater enjoyment or productivity from their home- or work-life will be valued, and you can command a price for it. The critical difference between useful and useless information is that you have made an effort to understand the needs and interests of your customers.

They don’t want to be treated like idiots. Most Internet users can tell the difference between objective, non-commercial information and “sponsored” information. Don’t insult them by dressing up corporate data as objective fact. Admit your bias up front and focus on giving them something useful. They’ll remember you fondly for that.

They don’t want to wait. This is the strongest reason for not loading your pages up with big graphics and animations. Make sure your design is economical and keep in mind that many users will not be using the fastest computers and modems.

If you focus on giving your customers what they expect and want from a Web site, you’ll be on the way to viewing the Web as an automobile instead of a horseless carriage.

6 January 2009

We are all publishers

From the Zazoo blog:

In the digital age, if you’re a marketer you’re also a publisher. Rebecca Lieb has written a great piece in ClickZ which was republished the other day, and is well worth a read.

She argues that “Marketers have been creating content in all sorts of media in all kinds of channels since the beginning. But now that virtually every brand, manufacturer, service, and product you can think of is online (and likely runs its own Web site), content has blown wide open. Almost anyone involved in any type of online business can no longer hope to survive without a solid content strategy.”

In the 21st century equivalent of custom publishing, big brands such as Budweiser in the US even have their own online TV channel. Lieb writes: “Think of it as the online equivalent of a Disney or Warner Bros. theme park. You know the rides and merchandise are selling you something, but few people care about the church-and-state divide on branded territory.

“….Strong, well thought-out and executed content strategies create rewards for marketers. They go viral. They attract community. They can blow out SEO (search engine optimisation) to epic proportions. Rather than a company’s Web page showing up in organic results, content can generate page after page of relevant results.”

She concludes: “As an editor/marketer hybrid, I may have some bias here, but I’d be hard-pressed to think of a marketing problem that couldn’t be tackled head-on with a solid content strategy.”

Couldn’t agree more.

2 December 2008

Mixing up ROI for better results

From the Zazoo blog:

One of my passions has been to ’prove’ the effectiveness of digital media by understanding the ways businesses can measure the impact of their online presence and relate it to the rest of their business (see here, here and here for examples of my academic efforts and blog posts in this area). Lots of pundits have been saying that business needs to move away from trying to relate web activity to traditional performance measures such as return on investment (ROI) and instead look at measures associated with customer engagement.

Well, Kyle Flaherty wrote a post for ZDNet (and re-posted on Social Media Today) last week which I think nails it. He argues against using ROI to measure digital activities such as social media and talks about a new measure called Impact of Relationships (IOR). He writes: “ROI was created by someone who wanted to defend their activities in the scope of the bottom line of their company; they found direct linkage between what they were doing and revenue being brought in and if that number was larger than their salary plus additional costs they were in for a bonus (or at least steady employment). Determining your social media ROI is a means to an end. It allows us to prove a programs worth to our business, which enables you to continue your work with the community, which coincidentally lets you dismantle the importance of ROI internally and start to focus on IOR…Impact of Relationships.

“IOR allows me to detail how a relationship develops with our company, whether they are a customer or not, and how that relationship has impacted the totality of our business. Using many of the same techniques above I also measure the amount of interaction we have with our community. Not to measure against revenue, but to determine what product feature requests this person suggested that made our product better, how many comments they leave on our blog, the number of times they reference us on their Twitter feed and more. We’ve been able to formulate IOR for members of our community, many of them non-customers, based on what they have given back to our company.

“Are each of these elements a pure statistical entity or a dollar value? No. But it is a great additional barometer we have to show the gains made through our social media activities. This IOR data becomes just as valuable to the senior staff of your company, but only because they have already seen some level of ROI data. It is only when we prove the ROI that we can reach towards IOR.”

I’ll be interested to see how this concept works out in practice and how it is monetized.

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