Tag Archives: Business and Economy

August 25, 2016 · 9:45 am

Shopping Until You’re Dropping

Today’s screed is mostly about shopping (or selling, I suppose). I read some results from a research report and I think you’ll probably share my thinking about what the data shows: more of what we already know.

In a recent study UPS and ComScore released a U.S. study revealing changes in consumer shopping preferences and buying behavior. A total of 5,000 U.S. consumers were surveyed. The results indicate consumers plan to research and purchase more frequently using their mobile devices, they are influenced by social media, and free shipping continues to drive purchasing decisions.

No real shockers, but as with any study there are some nuances to the findings that are instructive. Nearly everyone (93%) shops at small retailers and 40% of them wanted to support the small business community by doing so. 49% couldn’t find what they needed from traditional stores so they turn to more niche retail outlets. Better prices (57%) and selection (49%) are the top reasons for purchasing online after researching an item in-store, which to me smells like an opportunity for bricks and mortar. After all, while there’s no doubt online sellers don’t have the same cost structure as offline, they have other challenges that can level the playing field.

One thing is returns. When a purchase is made online from a retailer that has an online and physical store, 39% of consumers who make returns prefer to ship the product back while 61% prefer to return the item to the store. When making an in-store return, 70% purchase an additional item compared to only 42% who make a new purchase while processing an online return. I suspect that this “ease of returns” is a selling point for pure physical retailers. According to the report, only 62% of consumers are satisfied with the online returns process: 67% review a retailer’s return policy before making a purchase, 66% want free return shipping, 58% want a hassle-free “no questions asked” return policy, and 47% want an easy-to-print return label.

The study provides insight to help retailers increase sales. 48% of online shoppers said they ship items to the store, with 45% of those saying they made additional purchases when picking up their orders. Free shipping remains the most important option during checkout according to 77% of online shoppers. More than half (60%) have added items to their cart to qualify for free shipping.

Most of the above seems fairly intuitive, but it never hurts to have our own intuition supported by facts, does it?

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August 22, 2016 · 1:07 pm

Believe It Or Not

We’re busy prepping Rancho Deluxe for sale and so we’re in need of some outside services to perform tasks such as washing the roof (damn lichen). In our digital age, I’m doing what any person would do: checking the web for reviews as well as for potential service people. The problem is not finding information. The issue is knowing which information to trust. I suspect this is an issue for you and for your business as well.

There are review sites such as Yelp and Angie’s List. Yelp, in particular, has a reputation, justified or not, of having issues. Fake reviews are allegedly rampant and the company has been accused of elevating negative reviews to higher positions in the results if the company doesn’t pay to advertise on Yelp. As an aside, a court found that even if they were doing that, it wouldn’t be illegal, but it sure makes one question the validity of what you learn. Angie’s List has had similar problems, saying that they’re consumer driven when 70% of their revenue comes from advertising. That makes them less than disinterested information brokers in my book.

Do people really use reviews? A new study by Trustpilot suggests that 88 percent of consumers say that reviews help when deciding what to buy and where to buy it. The study also found, however, that only 18 percent say they think online reviews are actually valid, so do consumers believe them or not? As a business owner, can you believe what you’re reading or not before you think about taking action?

I don’t think there is a simple answer. Most fake reviews are fairly easy to identify. You look at how many other reviews have been written by the author, you check if there are multiple reviews with similar verbiage, etc. I’m a fan of Amazon’s identifier of reviewers who actually purchased the product via Amazon, and some sites let you see if the person has actually checked in. That’s more of a clue for negative reviews in my book. Yelp and other sites are probably more of a help as a consumer than they are as places to conduct business based on some of the alleged shady business practices. Check multiple sites and social media, gather a lot of information and form an opinion based on the preponderance of the evidence (can you tell I hang out with lawyers?).

Actually, that last sentence is probably good advice for anything we do in business, wouldn’t you say?

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August 19, 2016 · 9:52 am

Teaching The Master

It’s Foodie Friday! I was reading one of the many food blogs I follow when I came across a post from a baker who had updated his book on breadmaking. It was a very successful book and had won numerous awards but it was now 15 years old and the publisher had asked for an update. That isn’t particularly interesting since cookbooks are updated all the time – The Joy Of Cooking has been updated 6 times in the 75+ years since its publication. What is of interest to me – and which provides an interesting business point – is the mindset of the author.

There are two quotes in his post which resonated and which I think are instructive to us all:

  • Working on it (the anniversary edition) gave me a chance to examine all that has transpired during the interval, and to see where we might freshen things up to keep pace with all the developments.

  • Even after six thousand years of bread baking, we are still learning new ways to make it even better.

In other words, here is someone who is always learning and taking the opportunity to use what he’s learned to foster positive change in his endeavors. All of us should be reading, listening, and learning every day. No matter if we use RSS to digest dozens of sources of professional and industry information or if we just wander the halls speaking to people, one of the most fundamental things we need to do it to keep learning. In this case, we have someone who literally wrote the book on breadmaking and is considered a master. The only way to retain that sort of elevated status in any field is to keep learning.

The legal profession requires hours of Continuing Legal Education for members of the bar to stay admitted. Teachers are expected to keep earning degree credits and to publish once they get into academia’s highest realms. It needn’t be that formal. All that’s required is a willingness to learn, an open mind, and a fundamental curiosity about the world in which we live, both professionally and as humans. You with me?

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