Thursday, May 31, 2007
Wednesday, May 30, 2007
It's official, eBay pays $75 million for StumbleUpon - Download Squad
It's official, eBay pays $75 million for StumbleUpon - Download Squad
One of my favorite web services, StumbleUpon (basically like social Googling) gets scooped up. I just hope eBay doesn't screw with it - as in hope this doesn't happen "if they just start injecting eBay auctions willy nilly into stumble results, they'll pretty much break the community they bought as members begin to evacuate the spam-laden sinking ship".
Fox unit confirms Photobucket, Flektor buys | Tech news blog - CNET News.com
Fox unit confirms Photobucket, Flektor buys | Tech news blog - CNET News.com: "It's official: MySpace.com parent company Fox Interactive Media has formally announced its agreements to acquire image-sharing site Photobucket and slide show mashup creator Flektor. Financial terms of the purchases were not disclosed by Fox Interactive Media, which is a division of media giant News Corp."
Gift Cards Big for Grads - eMarketer
Gift Cards Big for Grads - eMarketer: "Gift Cards Big for Grads
MAY 30, 2007
Gift cards and cash will be the most popular graduation gifts this year, according to the '2007 Graduation Consumer Intentions and Actions Survey' conducted May 2-9, 2007, for the National Retail Federation (NRF) by BIGResearch. The survey also found that Americans will spend a projected $4.5 billion on graduation gifts in 2007.
A third of Americans will buy at least one graduation gift this year.
The average consumer buying graduation gifts will be buying for two graduates, and will spend an average of about $50 on each present.
Parents and grandparents will spend the most on graduation gifts this year, with the average American over 45 spending more than $110 on gifts.
Tracy Mullin of the NRF said, 'Retailers can expect to see a nice bump in sales later this summer as students redeem gift cards and make big purchases with graduation money.'"
Quote
"You're not going to see value unless you create value." -- Lee Odden, TopRank Online Marketing.
Just Like Minority Report - how cool
via Online Media Daily
Remember "Minority Report"? If you're in the ad business, you do. The Tom Cruise blockbuster had ad execs everywhere cooing over hand gesture technology and deliciously targeted, personalized advertising. It turns out that Bill Gates and Microsoft remember the flick, too. Today, the technology giant is taking the cover off an expensive tabletop technology that relies on touch and hand gestures just like in the 2002 film.
It's called Surface Computing, and Gates thinks it just might be the biggest breakthrough in computing technology since the mouse. Let's for a second recall a supposed game-changer of Microsoft's past: the highly touted Windows Media Center, which was so expensive only multi-millionaires could afford it. This will cost between $5K and $10K, depending on the size screen and capacity.
But it's cool. The technology turns tabletops into canvases where users can browse music libraries by dragging fingers across a horizontal display. They can also scan devices and compare them to similar offerings from other makers. Similarly, if you plunk a digital camera on the screen, you can upload photos. The screen, operated by cameras, can register up to 52 touches at a time, ideal for business meetings.
Wireless technology can also scan objects in a room and pull up information from the Web. The product is still several years away from being completed. - Read the whole story...
UPDATE: See this post of video from TED
Tuesday, May 29, 2007
Women are not just looking, they’re buying online, survey shows
In another indication that consumers are increasingly comfortable shopping on the Internet, 96% of women who shop online say they have made at least one purchase online in the past year. 57% of respondents said they both research and buy online, while 31% said they browse online but purchase in stores.
The telephone survey of 427 adult women was conducted in February by Consumer Reports National Research Center for ShopSmart, a new consumer-oriented shopping magazine from the publishers of Consumer Reports.
Here are other findings from the survey:
• Women spend an average of 1.2 hours per week shopping online, and 52% of their non-grocery shopping time is spent online.
• 18% say they do most of their online shopping at work, while 54% say they mostly shop online between 5 p.m. and midnight.
• 32% reported negative experiences. Of those, 20% said they did not receive the item they ordered and 13% said the merchandise was different from what was described.
• The most spent on one item averaged $397, with 15% saying they had spent $1,000 or more on a single purchase.
• 17% of respondents said they would never buy food online, 14% said clothing, 8% shoes and 7% jewelry.
Ice your Competition with a Cool Return Policy
By Michelle Megna
May 16, 2007
Though online sales continue to grow, there's still room for improvement, specifically in five areas, including site merchandising and return policies. Those e-tailers who address these issues can maintain an edge over the increasingly crowded field of competition, according to a report issued yesterday by Forrester Research, Inc.'s e-commerce analyst Sucharita Mulpuru.
Friday, May 25, 2007
Security Concerns Hinder Online Buying
MAY 23, 2007
Some just don't mix credit cards and the Internet.
Eight in 10 consumers who had a preference said they would spend more online if they had a safe and convenient alternative to credit cards, according to Javelin Strategy and Research's "2007 Annual Javelin Consumer Payment Poll," commissioned by PaymentOne.
Respondents said they would spend $100-$1,000 more annually with alternative payment options.
That "who had a preference" part was important, because many shoppers already buy with their payment method of choice, be it credit, debit, PayPal or something similar. The Javelin study shined a light on those who did not feel these existing options were safe.
Security and credit alternatives were the main factors that would get consumers to make more purchases.
Two-thirds of respondents limited their online shopping, fearing abuse or theft of their privacy and financial information.
Among those who did not buy online, the top concern was the possibility of information being intercepted during a transaction or accessed by unauthorized parties. Lack of a credit or debit card was also a problem for 22% of non-buyers.
Although retailers have done a good job in addressing online shopper concerns about security and shipping, a third of Internet users were still not online buyers as of 2006.
Credit card fraud and identity theft were the main reasons cited by respondents to "The Multi-Channel Shopping Transformation Study" conducted in April 2006 by the e-tailing group in partnership with J.C. Williams Group and StartSampling.
Most consumers who shop online eventually take the leap to become online buyers. According to eMarketer estimates, 85% of online shoppers will also be online buyers this year.
The question is how to convert those who still have concerns about online shopping in the first place.
eMarketer Senior Analyst Jeffrey Grau says, "Many of the concerns consumers have about online buying are based on irrational fears. Nevertheless, these fears must be addressed. Having a simple return or order cancellation policy, displaying customer product recommendations and reviews, and having an easy-to-use site all help build consumer trust."
Get the latest perspective on online shopping. Read the eMarketer US Retail E-Commerce: Entering the Multi-Channel Era report.
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One Third of Internet Users Swayed by Social Content
One in three internet users say that their purchase decisions are swayed by sites with social content, according to a January 2007 survey conducted by JupiterResearch for iProspect. The survey, which was commissioned to explore how consumers use social networking sites, defined a social networking site as one that allows users to post their own content, including sites with user-generated product reviews, such as Amazon.com.
The most popular social networking sites are frequented by 25% of internet users at least once a month, iProspect reports, and visitors arrive at the sites primarily through direct navigation and bookmarking. The study also shows that while less than 10% of the internet population visits niche social networks, they are a highly targeted and effective way of reaching very specific consumer groups.
Other findings:
* 72% of YouTube visitors primarily seek entertainment, while 49% of FaceBook users and 35% of MySpace users primarily seek networking opportunities.
* 56% of TripAdvisor visitors, 39% of Yahoo! Answers visitors, 39% of Craigslist visitors, and 32% of iVillage visitors actively research products or services.
* One out of three internet users turns to sites with user-generated content to help make a purchase decision.
* The majority of visitors to social networking sites (90%) don't post comments on the sites they visit.
Search engine launched to help mothers-to-be
By Giselle Abramovich
May 25th, 2007
Kevin Burke, a marketing professional launched www.lightiris.com, a Web site designed specifically to enable expectant and new moms to get information and questions answered on motherhood.
New motherhood means new challenges, uncertainty and many decisions that could often be overwhelming for new mothers. The site is meant to address the challenges of new motherhood.
“Our approach has three prime elements all constructed around generating word of mouth on the topic of motherhood and the Light Iris brand,” Mr. Burke said. “[We will] start a blog one month prior discussing motherhood from a “new” perspective.
“[We will also] send a surprise and delight Mother’s Day gift to influential moms and moms who helped shape the brand,” Mr. Burke said. “They received a card, iris flower bulb and a sneak peek at the new Web site prior to launch. [Lastly we will] engage mom bloggers and introduce the Light Iris brand.”
Mr. Burke founded Lucid Marketing, a marketing and media services company specializing in connecting moms with such brands as Disney, eHarmony, AOL and Quicken, created Light Iris as the place to get fast, accurate, relevant answers in record time.
“Of more than 32 million Internet-savvy moms with kids under age 18, 87 percent use search engines to save time and find answers to their daily challenges,” Mr. Burke said. “Unfortunately, 56 percent say Internet search engines don’t produce the relevant choices they are looking for. And moms don’t have a lot of time to spend trying to sift through all the results.”
Due to this, Mr. Burke felt it was his job to help mothers-to-be.
“As a person who founded a marketing to moms agency, Lucid Marketing
(www.lucidmarketing.com ), I’ve had the opportunity to see the world through the eyes of many women,” Mr. Burke said. “One of the conclusions that I came to was that there are a lack of tools for expectant and new moms.
“There are plenty of articles, advice and wealth of information from a wide variety of sources for moms, but even as good as Google is, sometimes they often can be difficult to find,” he said. “As we continue to grow and build, we will release new tools that new moms will find helpful.”
The site’s phased launch begins with one of its most useful features: a Google-powered search engine tailored to new mom content.
Early visitors to Light Iris get an opportunity to participate in the Celebration of Today’s Moms Sweepstakes, which is awarding more than $3,000 in gift cards from Crate & Barrel, Pottery Barn, AnnTaylor, Gap, SpaFinder and Apple.
Mr. Burke worked with 400 U.S. mothers to shape the site’s mission, style and content. He even took his drive to understand the female point of view to the extreme by wearing a pregnancy suit at home and at the office for the entire month leading up to Mother’s Day. He shares the story at blog.lightiris.com.
Facebook in MySpace's Face
SAN FRANCISCO, May 24 — With an ambitious strategy for expansion, Facebook is getting in MySpace’s face.
Facebook, the Internet’s second-largest social network, was originally popular on college campuses, but over the last year it has opened its dorm-room doors to all, and its membership rolls have exploded at triple-digit growth rates.
Now Facebook, based in Palo Alto, Calif., is inviting thousands of technology companies and programmers to contribute features to its service. They can even make money from the site’s users by doing so, and, at least for now, Facebook will not take a cut.
Some of the new features, demonstrated by software developers at a Facebook event here on Thursday, will allow members to recommend and listen to music, insert Amazon book reviews onto their pages, play games and join charity drives, all without leaving the site.
The result is expected to be a proliferation of new tools and activities for Facebook’s 24 million active users, who have largely been limited to making online connections, sharing photos and planning events.
The move could foster some of the chaotic creativity that is more closely associated with MySpace, its larger competitor. It could also open the door to hazards like spam, and make Facebook’s identity less clear.
But Facebook is thinking big. In the parlance of its 23-year-old chief executive, Mark Zuckerberg, the company is positioning itself as a “social operating system” for the Internet. It wants to sit at the center of its users’ online lives in the same way that Windows dominates their experience on a PC — while improving its own prospects for a lucrative acquisition or an eventual public offering.
“This may be the most important development since the company got started,” said Peter Thiel, a venture capitalist who was an early investor in Facebook and one of its three board members. “But the company is taking a massive gamble. There are lots of things that can go wrong with this.”
Facebook, which is largely supported by advertising, has gained significant momentum over the last year. Since the site opened up to nonstudents eight months ago, its membership has doubled to 24 million, according to the research firm ComScore. Users now spend an average of 14 minutes on the site every time they visit, up from eight minutes last September, according to Hitwise, a traffic measuring service.
MySpace remains nearly three times the size of Facebook, with 67 million active members — up from 48 million a year ago — who spend an average of 30 minutes on the site each time they visit. It has recently focused on entering new markets like Japan and China.
The two social networks have carved out contrasting, though shifting, reputations. MySpace, owned by the News Corporation, has fostered an anarchic aura with few restrictions on creativity, while allowing users to integrate tools from other companies into their pages, like slide show displays. Recently, however, the company has blocked the efforts of several companies to advertise to MySpace users or otherwise make money through those tools.
Facebook, on the other hand, has kept its members in something of a creative straitjacket. Users could not customize their pages or add tools created by other companies.
Those restrictions helped preserve Facebook’s clean, uniform appearance and reinforced its emphasis on offering practical ways to communicate online with friends.
It has also made Facebook appealing to some groups beyond its student base. For example, Facebook is in vogue in Silicon Valley tech circles. David Belden, a 32-year-old technology worker from San Francisco, says he checks Facebook several times a day but hardly touches his MySpace account. “MySpace is so messy and there’s so much spam. It’s not worth it,” he said.
Facebook wants to keep those faithful while turbocharging its growth by harnessing some of the magic of MySpace’s openness. It is also going one step further by allowing companies that contribute features to make money on Facebook through their own advertising or commissions on sales.
“You can build a real advertising business on Facebook,” Mr. Zuckerberg said on Thursday during his speech to more than 700 developers and journalists. “If you don’t want to run ads, you can sell something. We encourage you to do both.”
eMarketer.com - Reviews Boost E-Commerce Conversions
"Reviews Boost E-Commerce Conversions"
MAY 25, 2007
Online reviews written by fellow shoppers help convert consumers who research shopping decisions online, according to a January 2007 study by MarketingSherpa and Prospectiv.
Nearly six in 10 respondents 'strongly' or 'somewhat' preferred sites with peer-written product reviews, while only 14% did not trust such reviews.
Results were the same regardless of whether shoppers made their actual purchases online or off.
The study also listed case studies of firms whose conversion rates improved after adding customer reviews.
In one example, top-rated products converted at a 49% higher rate after PETCO added customer reviews to its site. Shoppers who navigated through the ratings section spent 63% more than shoppers using other navigation.
The average order size of PETCO shoppers who read reviews and shopped using review ratings links was 40% higher than that of the firm's typical shopper."
Thursday, May 24, 2007
PPC Fraud: Every Click Counts...Or Does It?
"Paid Internet advertising has soared in recent years, and it appears there's no end in sight for this trend. According to research by J.P. Morgan, spending on all forms of online advertising will reach $19.2 billion in 2007, with pay-per-click (PPC) advertising at Google, Yahoo and the other major search engines accounting for half, or $9.6 billion. eMarketer Inc. projects that the PPC industry in the U.S alone will grow to $29 billion by 2010. And, while PPC is growing as a business, studies show that PPC fraud is also on the rise, and that the issue is emerging as a primary concern for e-tailers."
..........
Click Fraud Red Flags
So, what's an e-tailer to do? Watch for the following warning signs:
Returns Info
Almost 40% of Internet shoppers are not satisfied with the process for returning items they purchased online, according to a new survey. Their biggest areas of dissatisfaction: Paying shipping costs for returns and standing in line at a post office.
.......
PriceRunner also delved into the frequency of returns and found while 51.1% indicated they had never returned an item purchased online, 16.7% said they had returned an item once, 15.3% twice, 5.5% three times, 3.5% four times, and 7.9% five or more times. However, the length of time a shopper has been shopping online affected frequency of return: The longer someone has shopped online, the less likely that person is to return an order, says the survey, conducted the week of January 15, 2007.
Returns stats
Here are some key metrics to support the return optimization business case:
• 85% of customers say they will stop buying from a retailer if the returns process is a hassle (Harris Interactive)
• 95% of customers say that they will likely shop with a catalog or internet retailer again if the returns process is convenient (Harris Interactive)
• 40% of shoppers don’t buy online due to returns difficulty (Jupiter Research)
• Customers who have their complaint resolved quickly have a re-purchase intention rate of 82% (McKinsey)
Wednesday, May 23, 2007
Women Shoppers
ShopSmart: Women spend 1.2 hours per week shopping online
How much time do you spend shopping online? The team at the Consumer Reports National Research Center conducted a survey for ShopSmart magazine, and came up with some interesting results. Among the data they uncovered:- Most online shoppers (57%) do both their product research and shopping online.
- Women spend an average of 1.2 hours per week shopping online.
- Nearly one in five (18%) working women admit that they do most of their online shopping during work hours.
- Despite the amount of time women are spending online, one-third (32%) of women who have shopped online in the past year said they had a negative experience.
- On average the most ever spent for an item online was $397 and 15% have spent $1,000 or more.
Returns Wisdom
Many Happy Returns?
Rules for Happy Shoppers
- Returns are an inconvenience for the customer NOT for the merchant.
- The return process should be easy for the customer.
- Customers can make returns if they are not satisfied.
- The customer should not be punished for making a return.
- If you own a business, returns are a fact of life!
e-tailing stats from top 100 merchants
4Q 06 Mystery Shopping Summary
Conducted by the e-tailing group, inc.
| Feature or Functionality | e-tailing 100 4Q '06 % Penetration |
| Seasonal Marketing | |
| Seasonal Area | 83% |
| Holiday Shipping Deadline | 81% |
| Promotional Strategies | |
| Sales & Specials | 89% |
| Limited hour specials (lunch time, 4 hour) | 25% |
| Internet Only Sales/Specials | 28% (74 sites) |
| Online Outlet/Clearance Area | 73% |
| Rebates | 32% |
| Couponing | 20% |
| Onsite Coupons | 55% (20 sites) |
| In store Coupons | 67% (15 sites) |
| Gift with Purchase | 37% |
| Other (Buy one get one free, $/% off next Purchase) | 29% |
| Free Shipping | |
| Offer Free Shipping on all Products | 2% |
| Offer Conditional Free Shipping on all Products | 35% (98 sites) |
| Offer Conditional Free Shipping on Certain Products | 31% 98 sites) |
| Conditional Free shipping to a store | 13% (70 sites) |
| Customer Service Information | |
| 800 #/Toll Free Customer Service | 100% |
| List Customer Service Hours | 75% |
| Guarantee | 62% |
| FAQ's | 74% |
| Contact Information | 97% |
| 1st Time User Tips | 22% |
| Membership | |
| Requires Membership | 31% |
| One Click Setting | 42% |
| Inventory/ Backorders | |
| Real-time Inventory | 83% |
| On Product Page | 83% (83 sites) |
| In Shopping Cart | 75% (83 sites) |
| Online Shipping Status | 97% |
| Items Never Shipped (B/O, O/S) | 1% |
| Shopping Cart | |
| Perpetual shopping cart | 55% |
| Deferred Payment Plans | 35% |
| Google Checkout | 7% |
| Incentivized to use Checkout | 100% |
| After product Added to cart: | |
| Stay on Product Page | 28% |
| Taken To cart | 72% |
| Picture of Product in Shopping Cart | 74% |
| Recommended products in the shopping cart | 72% |
| Interim Page with Recommendations | 26% |
| Alternative products | 25% (76 sites) |
| Shopping Cart Up-sells | 46% (76 sites) |
| Shopping Cart Cross-sells | 75% (76 sites) |
| # Products Recommended | 3.29 (48 sites) |
| # Products Recommended Varies | 37% (76 sites) |
| Relevancy of Products (1-5 5=best) | 3.74 (76 sites) |
| Recommendations switch out when new item added to cart | 66% (76 sites) |
| The Order Process | |
| Average Number of Clicks to Checkout | 5.23 |
| Shipping | |
| Multi-National Site Entry | 21% |
| Ability to Shop in another Language | 24% |
| International Shipping (Beyond Japan & Canada) | 29% |
| Average Shipping Charge | $6.31 (52 sites) |
| Average # Business days to Receive Item | 4.6 (99 sites) |
| Order Confirmation | |
| Immediate Order Confirmation # in Shopping Cart | 100% (98 sites) |
| Shopping Cart Confirmation Merchandising | 40% (98 sites) |
| Post Order E-mail Confirmation | 96% (99 sites) |
| Text | 48% (95 sites) |
| HTML | 52% (95 sites) |
| Confirmation # included in E-mail | 100% (95 sites) |
| Order Confirmation Customer Service | 85% (95 sites) |
| Order Confirmation Merchandising | 44% (95 sites) |
| Order Confirmation Up-sells | 64% (42 sites) |
| Order Confirmation Cross-sells | 43% (42 sites) |
| E-mail Shipping Confirmation | 88% (98 sites) |
| Shipping Confirmation Merchandising | 35% (86 sites) |
| Text | 57% (86 sites) |
| HTML | 43% (86 sites) |
| Post order tools | |
| Link to product page from post order e-mails | 13% (94 sites) |
| E-mail Communication | |
| Is e-mail personalized in salutation? | 76% (97 sites) |
| # of hours between auto e-mail response or personalized response (minutes) | 23.79 (97 sites) |
| Answer e-mail Question Correctly | 74% (97 sites) |
| Auto Response | 19% (97 sites) |
| Personalized Response | 81% (97 sites) |
| Call Center Contact | |
| Quality/ length of Initial Phone Message (1-5 5= best) | 4.0 (97 sites) |
| Hold Time After Initial Menu to Reach Appropriate Agent | Out of 97 sites |
| None | 35% |
| Under 1 Minute | 47% |
| 1 Minute-2 Minutes | 8% |
| 2.01 Minutes- 5 Minutes | 6% |
| Over 7 minutes | 4% |
| Music/ Promotional Deals Mentioned During Hold Time | 60% (57 sites) |
| Length of Call in Minutes | 3.56 minutes (95 sites) |
| Overall Customer Experience (1-5 5= best) | 3.5 (95 sites) |
| CSR Stated Name | 88% (95 sites) |
| CSR Attitude (1-3 3=friendly) | 2.5 (95 sites) |
| CSR Efficiency (1-3 3=very efficient) | 2.4 (95 sites) |
| Ask/ Call by Name | 12% (95 sites) |
| CSR Promoted Specials | 3% (95 sites) |
| CSR Product Knowledge (1-3 3= Knowledgeable) | 2.3 (95 sites) |
| Live Help | |
| Live Help Available | 29% |
| Live Help in Working Order | 97% (29 sites) |
| Average Time to Chat | 7.29 min (24 sites) |
| Click 2 call | 3% (29 sites) |
| Average Time to Chat | 8.14 Minutes (28 sites) |
| Did they Answer the Question? | 75% (28 sites) |
| Quality of Service Received (1-5 5= best) | 3.89 (28 sites) |
| Return Process | |
| Return Authorization Required | 14% |
| Online Return Forms | 17% |
| Prepaid Return Labels Provided | 22% |
| Smart Label | 5% |
