Monthly Archives: September 2012

Should You Abandon Your Website?

I came across an interesting article on Marketing Profs the other day.  Called “Four Reasons to Jettison the Traditional Website and Go Social it advocates a point of view that I’ve discussed with clients and would like to throw out to you today.  The author puts it out there like this:

Everywhere around me now, I see companies dispensing with the traditional website in favor of integrating the most popular social networks right into the website and communicating with customers in real-time via tweets and Facebook posts. Big players like Skittles and Coca-Cola have completely bought into social, as have savvy small mom-and-pop shops.

He then goes on to explain why brands might not need websites any more, including reasons such as “it’s fresh, it’s affordable,” and others.  I disagree with his point of view.  First, brands need a home base.  As you might have noticed, the social world isn’t exactly a unified place.  Sure, Facebook is the main place consumers go, but they don’t really go there to interact with brands (and as we discussed a while back, brands haven’t figured out how not to behave like brands).  How many companies took a step back in their social effort when Timeline was deployed?  That’s an example of why you need to control the platform as well as the content.

The author also does a disservice to his readers with this statement: “Compared with the cost of building a website from scratch, plus maintaining it, establishing a business presence on a social network is ultra affordable.”   This perpetrates a mindset too many clients have about social – it’s cheap and easy.  Neither could be further from the truth.  Sure, anyone has access to Facebook for free, but many of the support tools needed aren’t free and you still need humans to support the effort.

The gist of his argument is that big brands are very focused on social and they don’t do anything without testing and retesting to make sure it works so you should do it too.  Putting aside the “follow them off the roof” mentality, I agree that everyone needs to be including social elements in their marketing although I don’t think we can simply say get on Facebook and Twitter and be done.  A well-designed and supported website can accomplish a lot more for your brand than can a social front door.

I won’t be advising my clients to shut off or redirect their web efforts any time soon.  What about you?  What do you think?

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Love The One You’re With

One of the trends I hear discussed all the time is that of chasing the next shiny object.  As it turns out, that’s not something that occurs solely in the tech space.  A recent study from Adobe – The Adobe Digital Index – shows that online retailers are ignoring the 80/20 rule by ignoring current customers in favor of attracting new ones.  Maybe today’s screed should have been titled “You Always Hurt The One You Love.”  Their summary:

Online retailers spend nearly 80% of their digital marketing budgets acquiring shoppers (new visitors), but does this focus make sense? To find out, Adobe Digital Index analyzed 33 billion visits to 180 online retail website in Europe and the United States from April 2011 to June 2012. Our data indicates retailers should shift spend to returning and repeat purchasers, two existing customer segments that drive a disproportionately high share of revenue, exhibit higher conversion rates, and really step up in the Christmas holiday season and tough economic times. Migrating just 1% of shoppers to returning purchasers could generate as much as $39 million in additional revenue per retailer.

In other words, we’re spending way too much time and money chasing new customers while we ignore a lucrative user base that’s just waiting to be asked to the dance.  40% of revenue for online retailers comes from returning or repeat purchasers, who represent only 8% of all visitors, according to the study.  In other words, you have to attract five to seven shoppers to equal the revenue of one repeat purchaser.

Having run an online retail business I can tell you that the vast majority of our thinking was about attracting and converting new customers.  It wasn’t as if customer service was an afterthought and we did allocate a good deal of our marketing to up-selling our existing customer base.  However, this study opened my eyes to the fact that we probably could have done more with those who’ve already demonstrated a desire for our products and I’ll keep that in mind as I work with clients going forward.  How about you?

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Filed under Helpful Hints, Reality checks

Shana Tova!

A shofar made from a ram's horn is traditional...

A shofar made from a ram’s horn is traditionally blown in observance of Rosh Hashanah, the beginning of the Jewish civic year. (Photo credit: Wikipedia)

Happy New Year!  I know I don’t often repeat content but as I was thinking about what to write as Jews around the world celebrate Rosh Hashanah, I went back and checked out another post I wrote on the topic.  It seems to cover it pretty well, so I’m posting it again (in case it seems at all familiar as you read!).

Last night marked the start of the Jewish New Year.  I didn’t go down to Times Square to see if they were dropping a giant knish at the stroke of sundown – probably not.  L’Shana Tova – a happy and healthy New Year to all of you.

One of the things Jews do over the next 10 days (or at least are supposed to do) is to reflect on the year gone by and think about where it took you on life’s journey.  It’s not really as much about looking back in my mind as it is about looking forward.  Oh sure, one is supposed to think about where one strayed from life’s path in terms of dealing with other humans and human codes of conduct.  We get a day of fasting next week to get that sorted out.  But it’s also a time to think about a fresh start.  Which, of course, promoted a business thought.

When do businesses stop and enter a period of reflection?  It’s obvious when they’re changing – witness Facebook last week – but I, for one, certainly wonder sometimes if those changes happen due to the momentum of previous (maybe not so good) decisions or if they’re the result of a pause, some reflection, and a willful thought by the entire organization as to the direction.  Often, I fear, it’s the former.

Jews are to use the next ten days for reflection and repentance.  I like to think of them as ten days of self-improvement.  I’d also suggest that it would do many businesses a lot of good to build the same sort of period into their corporate calendars.  Some do – they call it the budget process – but I think that’s too selective in terms of participants and goals to do much good.  Some smart CEO needs to declare it New Year’s Day for the company once a year and get everyone to do the same sort of professional reflection that many of us do on the personal side.  Identify your sins (figuratively speaking) and atone.  Faulty customer service, weak brand identity, bad employee relations, products that aren’t optimal, fostering an atmosphere of fear – these are all good places to start.

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