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Maybe Showrooming Isn’t as Scary as You Think

February 28th, 2013 ::

By Karen Axelton

During this past holiday shopping season, media reports were full of stories about how brick-and-mortar shoppers were “showrooming”—viewing products in-store, then checking their mobile phones to find lower prices at other retailers or online. The trend struck fear into the hearts of retailers, but those fears may be unfounded, according to a new report from the Pew Internet & American Life Project.

Consumers are using mobile phones while shopping like never before—that much is true.  The report, In-Store Mobile Commerce During the 2012 Holiday Season, found that nearly six in 10 cell owners used their phone inside a physical store for assistance or guidance in making a purchasing decision during the 2012 holiday season. But they’re not just comparing prices. Here’s what they’re doing:

  • 46 percent of cell owners used their phone while inside a store to call a friend or family member for advice about a purchase they were considering. Women and young adults (age 18 to 29) are more likely to do this.
  • 28 percent of cell owners used their phone while inside a store to look up product reviews to help them decide whether to buy a product it or not. Young adults (18 to 29), smartphone owners, and those with at least some college experience are more likely than average to use their phones to search for product reviews in-store.
  • 27 percent of cell owners used their phone while inside a store to look up the price of a product and see if they could get a better price either online or at another retail store. Young adults, smartphone owners and those with some college experience were most likely to do price comparisons.

Altogether, more than half (58 percent) of cell owners used their phone for at least one of these purposes. As you might expect, young adults and smartphone owners led the way, with 78 percent of those aged 18-29 and 72 percent of smartphone owners using their phones for at least one of these purposes in the 2012 holiday season.

But here’s the good news: Even among those who look up prices in-store, a majority end up either buying the item in the store or not buying it at all. Some 46 percent of “mobile price matchers” report they ultimately bought the product in that store. That’s an 11-point increase from the 35 percent who said this in last year’s study. Just 12 percent ended up buying the product online, compared to 19 percent who did so in last year’s survey. So while consumers are becoming more sophisticated in using their cell phones to become savvier shoppers, what they learn from doing so is persuading more of them to make purchases in-store.

Image by Flickr user Rebecca L. Daily (Creative Commons)

Marketers Are From Mars, Consumers Are From Venus

February 21st, 2013 ::

By Maria Valdez Haubrich

Social media is growing by leaps and bounds, but email is still the best way to reach out to the most customers and gain their loyalty, reports a new study by ExactTarget. Called Marketers from Mars, the study found significant gaps between how marketers think customers want to be marketed to, and how customers actually want to interact with brands.

The clear winner? Email, which was named as the most valuable marketing tool for building loyalty by both customers and marketers. Ninety-three percent of consumers subscribe to at least one brand’s email, while about half (49 percent) have made a purchase as a direct result of email messages.  One-third of consumers want marketers to invest more in email marketing.

However, while marketers were highly focused on mobile marketing, customers aren’t quite there yet. About one-fourth of marketers thought mobile apps were an effective marketing tool, but just 7 percent of consumers thought so. Instead, consumers were more likely to want brands to invest more in marketing on their traditional websites.

Consumers were more likely than marketers to want to interact with brands on Facebook. More than half (58 percent) of consumers have “Liked” a brand on Facebook, up 20 percent from the prior survey in 2010. About one-third of consumers with a smartphone and one-fourth of consumers who do not own a smartphone say they prefer to interact with brands on Facebook, making it the second most common place consumers go to connect with businesses online.

While just 21 percent of consumers have made a purchase as a direct result of a Facebook message, 22 percent of consumers say they want marketers to invest in creating a better Facebook experience. This suggests that there is great potential for Facebook to grow as a sales and marketing channel.

While marketers are highly engaged with Twitter, consumers are far less so. Some 61 percent of marketers follow at least once brand on Twitter, but only 12 percent of consumers do. That was an increase of just 7 percent from the prior survey in 2010.

What’s the takeaway? If you’re involved in small business marketing, you’re on the cutting edge of new trends and technologies—so don’t make the mistake of assuming your habits mirror those of the average consumer. Always do your research to understand exactly what your target customers are doing and how they want you to market to them—it may not be how you’d like to be marketed to yourself.

You can download the complimentary research from Exact Target or view an infographic of the survey.

Image by Flickr user (Creative Commons)

Social Shopping Isn’t Taking Off Just Yet

February 19th, 2013 ::

By Karen Axelton

While the idea of shopping directly through social media (such as making a purchase from within Facebook) is frequently touted as the next big development in retail, it’s still got a long way to go, a new study from PwC reports.

Last year just 12 percent of shoppers globally made a purchase directly via social media. And even social media’s much-touted ability to drive sales is not so strong as you might expect: Just 18 percent of shoppers who are active social media users were driven to make a purchase as a direct result of social media, PwC found.

However, that doesn’t mean that there isn’t strong potential for social media to drive purchases going forward. The study found that consumers are rapidly growing more willing to interact with businesses on social media. Fifty-nine percent say they follow brands on social media, compared to 49 percent last year, and 27 percent report having discovered new brands via social media, up from 17 percent last year.

PwC’s report divides shoppers into three categories and assesses each group’s likelihood of becoming social shoppers. Here’s what they found:

  1. Brand lovers: Accounting for 38 percent of consumers, Brand Lovers follow brands on social media and are also voracious multichannel shoppers. More than half (53 percent) actually go into a physical store at least once a week and 45 percent buy something online at least once a week. PwC says this group has the most potential to become social shoppers.
  2. Deal hunters: Accounting for about half of consumers, this group is savings-motivated and social media will drive them to click through and purchase if the offer is good enough.
  3. Social addicts: This small group is most active interacting with brands on social media, which they use to share shopping experiences, find information and reviews, ask their friends for recommendations and directly give feedback to companies. “These very active online users tend to have huge social media networks and wield an outsized influence,” the report concludes.

Conclusion? While social shopping isn’t yet a major force, it’s likely to become one—so keep working your social media tools.

Image by Flickr user birgerking (Creative Commons)

Web.com Small Business Toolkit: Haiku Deck (Presentation App)

February 15th, 2013 ::

Haiku Deck

Haiku Deck is a free presentation app for iPad, designed to simplify creating exciting and beautiful presentations. The founders of Haiku Deck wanted an easier way to tell a story, pitch an idea, share some news, give an update, show your stuff, enliven a meeting, inspire a group and more. Once you download the app, the process is as simple as entering some text, choosing an image and selecting a layout to present it in. Repeat until your presentation is done. To share your story, go to the main menu, click on “share” and you can share your presentation via email, Facebook or Twitter.

 

7 Reasons Customers Buy (or Don’t Buy) From Your Business Website

February 14th, 2013 ::

By Maria Valdez Haubrich

eConsultancy recently highlighted the top 7 reasons people buy from online ecommerce sites instead of brick-and-mortar stores. Based on research from MIT, Facebook, Google and Target, the key drivers of online shopping are:

  1. Value – 75 percent say online prices are more competitive. Can a small business always offer the lowest price? Clearly not, so how can you compete? eConsultancy says despite the emphasis on low price, 81 percent of those surveyed report they have paid more to get better service. If you can’t beat big-box retailers’ online prices, make sure you provide something else that’s special to make up for it.
  2. Open – 63 percent prefer being able to shop at any time of day or night. Be sure your site is up and running as smoothly in the middle of the night as it is during the day, and that you can handle increased traffic at any time. Also be sure that your customer service options—such as live chat or the ability to call and talk to a customer service rep—are 24/7.
  3. Delivery – 59 percent are persuaded by free delivery. That doesn’t mean you have to offer free shipping on everything, of course. You can keep it affordable for your business (while still meaningful to consumers) by setting limits such as “free shipping on all orders over $50.”
  4. Speed – 55 percent like being able to get products the next day. Again, that might be tough to offer, but in a separate eConsultancy survey about holiday 2012 shopping habits, 26 percent of consumers said they had paid extra for next-day delivery.
  5. Ease – 48 percent say online shopping is just easier. Make sure it’s easy by having a website that’s simple to navigate, allows for ease of sorting and searching, provides all the information a customer might want about products (including reviews from other customers) and has a wide range of product shots and even videos.
  6. Range – 46 percent like being able to see what’s in stock and available at a glance. Make sure your site is well stocked and your inventory management/fulfillment system is top notch. Also enable customers to sort for specifics such as size and color quickly.
  7. Choice – 40 percent cite the ability to buy new or otherwise unavailable merchandise. This is where small online retailers can really shine. Design your site, write your copy and develop your marketing materials so they emphasize the unique, custom or hard-to-find aspects of what you sell. Make it clear this isn’t your average big-box retail site—this is something special.

Keep these 7 key factors in mind, and you’ll do better at converting visitors to your site into buyers—and return customers.

Image by Flickr user ganesha.isis (Creative Commons)

Women Business Owners Lose Out in Race for Government Contracts

February 13th, 2013 ::

By Rieva Lesonsky

In spite of years of governmental efforts to help women-owned small businesses obtain government contracts, new data from Bloomberg show that in 2012, the percentage of U.S. government contracts awarded to women-owned small businesses actually dropped for the second year in a row.

While awards of contracts to men-owned firms have declined as well, the awards to women decreased at a faster rate. The percentage of contracts awarded to women-owned small businesses decreased 5.5 percent to $16.4 billion in the fiscal year ending September 30, 2012. Meanwhile, the percentage of contracts awarded to men-owned small businesses declined by 4.1 percent, dropping to $80.9 billion.

Women-owned businesses have long faced challenges in obtaining government contracts. During the Clinton administration, in 1994, the federal government set a goal that at least 5 percent of the total value of eligible contracts must be awarded to women-owned businesses; however, that target has never been met. Last year, Bloomberg says, women-owned small businesses accounted for about 3.2 percent of government contracts overall.

The irony is that just two years ago, the U.S. government launched a new effort to expand women’s access to government contracts. In February 2011, the Small Business Administration published its final rule regarding the Women-Owned Small Business (WOSB) Federal Contract program. This program authorizes federal contracting officers to set aside certain federal contracts for eligible women-owned small businesses (WOSBs) or economically disadvantaged women-owned small businesses (EDWOSBs).

What can you do if you’re a woman small business owner interested in landing federal government contracts? First, don’t give up hope. Here are some places to start learning about government contracting opportunities and making your firm more attractive to contracting officers:

  • You can self-certify as a WOSB or EDWOSB, or use a third-party certifier to help you through the process (since it can get pretty complex). Visit the SBA’s website to learn more about the WOSB and EDWOSB certification programs.
  • American Express and the nonprofit organization Women Impacting Public Policy have launched a program called “Give Me Five,” which offers education and resources to help more women business owners access federal contracting opportunities.
  • The U.S. General Services Administration (GSA) has programs and training to help small businesses, including women-owned businesses, successfully land government contracts. Learn more at the GSA website.

Image by Flickr user cometstar (Creative Commons)

 

 

Are You Ready for Holiday Retail 2013?

February 12th, 2013 ::

By Karen Axelton

It may be hard to believe, but with the 2012 holiday shopping season just behind us, smart retailers are already prepping for the 2013 holiday retail rush. Shop.org and BIGInsights recently conducted a survey of retailers in which they asked them what they plan to do differently this coming holiday season. Here are the most common responses:

  • Better inventory management. Retailers plan to do better in terms of planning their inventory, managing it and being better-stocked with the most popular products on hand.
  • Improved online infrastructure. Online shopping was huge for holiday 2012, and that trend will only continue in 2013. No wonder that retailers are focusing on improved server capabilities, faster-loading pages and an overall better online experience for users. Shop.org notes that testing your site on multiple platforms and mobile devices is an important part of having a strong online infrastructure.
  • Better marketing. Areas where retailers plan to spend in 2013 include keyword purchasing, email marketing, organic and paid search marketing efforts. Better strategic planning–of marketing channels, marketing messages and marketing spending–was a key theme among respondents seeking to avoid last-minute scrambling and changes.
  • Cross-channel shopping and improved customer experience. Customers increasingly view shopping as a holistic experience where they move seamlessly from online engagement with your brand to buying online or in-store. Smart retailers are working to improve that experience at all touchpoints, and are harnessing data and analytics to understand how shoppers buy and interact with their companies both online and off. A full one-fourth of companies in the survey were planning a website redesign this year.
  • Mobile commerce. Retailers are still feeling their way in the world of m-commerce, but companies are investing in areas including responsive Web design, optimizing their sites for tablet use and enabling mobile checkout. Shop.org cites another survey which found that 43 percent of retailers named tablets and mobile as among their top three initiatives for this year.
  • Better customer service/fulfillment. More than 3 in 5 retailers say they will be investing in a wider range of shipping options for the coming year. Among the alternatives companies are considering: ship-to-store for in-store pickup, same-day delivery and free returns. Companies also say they want to provide better last-minute shopping options, better guarantees of Christmas delivery, and faster delivery in general.

Image by Flickr user Mike Kline (Creative Commons)

Web.com Small Business Toolkit: Highrise (Customer Relationship Manager)

February 8th, 2013 ::

Highrise

Keeping your customers’ relevant information updated and handy shouldn’t be a cumbersome endeavor. In fact, many CRM solutions exist to make this task a no-brainer. Highrise is one such solution. You can save and organize notes and email conversations for up to 30,000 customers and contacts. The program also allows you to keep track of proposals and deals, share customer status with your sales team, and schedule texts and emails to remind sales members to follow up. There are different price plans for different-sized teams, starting at $24 per month for up to six users.

 

B2B Marketing Budgets Are on the Rise in 2013—Is Yours?

February 6th, 2013 ::

By Rieva Lesonsky

If your small business markets products or services to other businesses, you may want to consider boosting your marketing budget for 2013 if you haven’t already. A new survey from BtoB Online found that nearly half of B2B companies are increasing their marketing spending for this year.

BtoB’s 2013 Outlook: Marketing Priorities and Plans report polled over 300 B2B marketers and found:

What are marketers spending?

Some 48.7 percent of marketers say they will increase their budgets this year, up from 40.1 percent last year. About 41 percent will keep their budgets the same, down from 48.4 percent last year. Meanwhile, 9.5 percent will cut their budgets, down from 10.8 percent in 2012.

Where are they spending it?

Some 67.2 percent of marketers say they will increase their spending on digital marketing this year. Of those, 70.1 percent will spend more on website development, 61.9 percent on email marketing, 56 percent on social media, 55.8 percent on online video and 52.5 percent on search.

In addition, 72.2 percent of B2B marketers say content marketing is part of their marketing plan. The most popular platforms for content marketing are websites (93 percent), social media (65.4 percent), print (47.5 percent) and mobile (20.9 percent).

What do marketers hope to achieve?

B2B marketers report their number-one marketing goal this year is demand generation/customer acquisition, cited by 69.3 percent. The second most important goal, increasing brand awareness, was way behind, cited by 17.6 percent. In third place: customer retention, cited by 13.1 percent.

Who’s going mobile?

More B2B marketers are integrating mobile marketing, but there’s still a way to go. Some 32.7 percent of respondents say they currently use mobile in their marketing strategy, while 35.5 percent say they plan to spend more on mobile marketing this year.

What are they automating?

Better aligning marketing and sales is a key goal for B2B marketers this year. Some 52.3 percent say they will spend money on sales enablement platforms, while 50.8 percent plan to invest in marketing automation systems.

What old-fashioned marketing method still matters?

It’s not all digital and mobile. For many B2B companies, events are still crucial to their marketing strategy. In fact, some 41.5 percent of survey respondents say they will increase their event budgets for 2013.

Editor’s Note: Network Solutions offers an easy way to build a website for mobile devices in mere minutes: goMobi™, powered by dotMobi.

Image by Flickr user Andy Roberts Images (Creative Commons)

Web.com Small Business Toolkit: Arqball Spin (360-Degree Photography)

February 4th, 2013 ::

Arqball Spin

To improve your click-through rates, you need to improve the look and intrigue level of your website. Stunning, eye-pleasing photography is a must, and if the consumer wants to see products from all angles you can either take many shots or show the object in 360-degree photography. Arqball Spin is a 360-degree photography solution that works right from your phone or tablet. You place your object on a spinning table and then use the free Arqball Spin app to capture, edit and share an interactive 360-degree image. Bonus: 360-degree photos reduce returns by helping customers see the product from all angles before making a purchase.