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Should Ecommerce Retailers Open Brick-and-Mortar Stores?

January 7th, 2013 ::

By Rieva Lesonsky

It used to be that if you had a brick-and-mortar retail store, you eventually added ecommerce capabilities. But now that so many retail businesses are starting out as online-only, a new trend is taking place. The New York Times recently reported that a growing number of online-only retailers are opening brick-and-mortar stores to capture more business and enhance their brands. Should you consider this move?

Obviously, this approach isn’t right for every company. Here are some questions to ask if you’re considering whether a brick-and-mortar store is right for you:

  • Is your product tactile or unique? Clothing and apparel stores are naturals for this type of brand extension, as shoppers want to touch, feel and try on the merchandise.
  • Can you find a small space? Most ecommerce sites that open brick-and-mortar stores aren’t going big, but are considering the retail space as a brand extension or showroom. Others are creating pop-up stores that open temporarily for special occasions such as the holiday shopping season.
  • Can you make it special? A real-world store needs to offer an “experience” to resonate with shoppers, so think about what you can offer in your physical store that you can’t do online.
  • Do you have an avid customer base? If most of your shoppers come from one part of the country, such as New York City, it might make sense to open a shop there.
  • Are my sales strong enough to support a retail store? A track record of online sales success will give you an edge in getting a lease and financing for opening a store.

While most of the companies mentioned in the Times article are big chains with deep pockets (such as Gap’s Piperlime division and eBay), there are others that started with entrepreneurial roots, such as eyeglasses retailer Warby Parker and apparel company Bonobos. The Times notes that companies that starting out as an online-only retailer gives you a different perspective on brick-and-mortar sales. For instance, at the Bonobos stores, customers make appointments to come in so the shop can operate with very limited staff. Stores operate as “showrooms” with clothes in all styles, but limited sizes and colors. Customers try items on for size, then clerks order the product online for them and have it delivered the next day.

Increasingly, consumers are expecting online and offline retail to blend together in a seamless experience, and that’s what this new breed of brick-and-mortar stores is doing.

Image by Flickr user jheffreyswidTM Design (Creative Commons)

 

 

 

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Posted in Business Development, Customer Service, Marketing, Sales Process, sales process, Small Business, small business | No Comments »

Web.com Small Business Toolkit: ShipStation (Web-Based Shipping)

January 4th, 2013 ::

ShipStation

What was your success rate on shipping during the holidays? Did you get your customers what they ordered in time? If you had any issues, you might want to check out leading Web-based shipping provider ShipStation, which services over 2,400 online retail stores and has had success with such online retailers as eBay, Amazon, Sears, Shopify and more. But don’t think you have to be huge to use ShipStation. They have multiple price levels depending on how many packages you ship per month. If you send out fewer than 500 items per month, it costs only $25 for ShipStation to handle your items sent by USPS, UPS or FedEx.

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How to Spot Trends in Your Business and Turn Them Into Profits

January 4th, 2013 ::

By Rieva Lesonsky

The New Year is here–the time of year when “best of” and “hot trend” lists proliferate. As you look back over all those lists of what was hot in 2012, take a moment to think about what was hot in your own business last year—and what it might mean for next year.

Here are four key questions to ask yourself:

  1. What did your customers buy more of and less of in 2012? Use your sales records and other data to see what products and services were hot sellers last year and which ones were less so. See what trends you can spot. Are customers buying more do-it-yourself items, or are they upscaling to costlier ones? Try to project into the future and how these changes might affect your business going forward.
  2. Who were your best customers in 2012? Was that a change from prior years? Maybe most of your customers used to be college students and now your customer base is skewing younger. Or your customers used to be midsized businesses and now you’ve got a few Fortune 500 clients. What do these trends mean for the future? How can you better serve the new market? What new products, services or sales channels would appeal to them?
  3. How were most of your sales made in 2012? If you typically sell most of your products in-store, did that hold true in 2012 or did you find more customers buying online? Did wholesale accounts grow while retail sales declined? Did customers who previously bought your service on a month-to-month basis sign up for annual subscriptions? Again, consider what this trend might mean in the coming year. How can you sell more through the sales channels that are growing? Should you pull back on the less profitable channels or eliminate them altogether?
  4. Who were your best salespeople in 2012? What did they do that your other salespeople didn’t? Assess your star performers’ actions and habits, and develop best practices you can use to train the rest of your sales team. Consider whether sales quotas need to be reset or whether some poor performers need to be let go (there are plenty of hungry salespeople out there right now). Finally, reassess how you distribute client and customer lists. Can you set your top salespeople loose on the prospects, sales channels and products you’ve identified as growth areas?

Image by Flickr user Images_of_Money (Creative Commons)

 

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Posted in Business Development, Customer Service, Marketing, Sales Process, Sales Teams, Small Business, small business | 2 Comments »

How Can You Motivate Last-Minute Holiday Shoppers to Buy?

December 12th, 2012 ::

By Rieva Lesonsky

The holiday retail season is heading into the home stretch, but there are still plenty of Americans who haven’t checked off every item on their gift lists yet. How can you attract them and what motivates them to buy? The PeriscopeIQ Second Annual Holiday Shopping Survey has some useful insights about what works and what doesn’t.

QR Codes: So far, QR codes on ads, point-of-sale
items and price tags haven’t lived up to their potential, reports the PeriscopeIQ study, because nearly
three-fifths (59 percent) of shoppers don’t know what the codes are or what they
do. Fewer than one in five (18 percent) have ever used a QR code in
a retail environment, even though 60 percent own smartphones with built-in
scanners or apps. “We believe QR codes will continue to evolve but the
actual 2D code will be transformed by a newer, more efficient technology in
the near future,” said Mohamed Latib, COO of
PeriscopeIQ.

Working Shoppers:
 Up to 40 percent of survey respondents admit to shopping online at work during the
holidays and year-round, and more than a quarter of
those polled shop more than 15 minutes daily on the job.

Gassing Up: Some 40 percent say their willingness to drive long distances for a bargain will be impacted by gas prices. And for shoppers in areas affected by Hurricane Sandy, gas availability itself may still be an issue. Consumers’ awareness of gas prices is good news for ecommerce sites that let them shop from home.

Free Shipping:
 If you do have an ecommerce site, know that 95 percent of respondents say free shipping is a major factor in whether they buy from a particular site or not.

Smartphones Mean Smarter Shoppers:
 Over two-fifths (41 percent) of customers say they are pre-shopping online before going into stores, up from 27 percent last year. A smaller number (33 percent) check prices at other stores or at websites while in-store, and about 36 percent take pictures of items with their phones in-store, whether to get feedback from friends or family, or to do comparison shopping.

Waiting on Mobile Wallets: While mobile wallet options such as Google Wallet or Passbook have captured headlines, these technologies are still in limited use. Fewer than 5 percent of respondents say they use mobile wallet technologies.

Black, White and Read All Over:
 When looking for product information, sales and other information about shopping, almost
three-fifths (58 percent) of consumers say they still rely primarily on print magazines and newspapers.
In comparison, only 24 percent said they look at online reviews of products for information before shopping.

“With more than half of our respondents equipped with smartphones, the
multi-channel world is a boon to holiday shoppers,” said Dr. Pawan Singh, CEO and Chief Scientist at PeriscopeIQ. “But it can also be an
advantage to retailers who address physical, mobile and online customer
experiences with equal diligence.”

Image by Flickr user RetailByRyan95 (Creative Commons)

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How Is Your Small Business Celebrating This Year?

November 29th, 2012 ::

By Karen Axelton

Does your small business have plans to celebrate the holidays? As the economy shows signs of improvement, the recently released 2012 American Express OPEN Small Business Holiday Monitor finds small business owners are feeling more festive than they did in 2011. Here’s how other entrepreneurs will be celebrating this year.

More entrepreneurs are giving their employees bonuses (35 percent, compared to 29 percent in 2011). Of those, 25 percent report plans to give out larger bonuses this year than they did last year, with the average bonus being 9 percent. Employers say the number-one reason for giving out bonuses is to acknowledge good work.

Employers will also be celebrating in style, with 40 percent of small business owners reporting that they plan to host a holiday party (up from 35 percent last year). Entrepreneurs say they will spend an average of $959 on their celebration, down a little from $1,029 last year.

But employees aren’t the only ones who will be benefiting from small business owners’ generosity this year. Over half of small business owners (57 percent) say they plan to give a contribution to charity this holiday season. About one-third will give money, one-quarter will make an in-kind donation, and about one-quarter will donate their time.

Giving thank-you gifts is also an important part of the holidays. More than half (51 percent) of small business owners plan to give gifts to clients and customers this year, up from 43 percent last year. On average, entrepreneurs say they plan to spend $958, a steady increase from $827 last year and $740 in 2010.

Maybe one reason for the festive plans is that a good number small businesses overall are feeling fairly optimistic, despite the tentative economy. Some 36 percent of small business owners overall, and 41 percent of small retailers, report that they expect “strong” holiday sales this season, while 19 percent of small business owners and 13 percent of small retailers expect their sales to hold steady compared to last year.

How will you celebrate the holidays with your clients, customers and employees this year?

Image by Flickr user caitlinator (Creative Commons)

 

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Posted in Customer Service, Small Business, small business, Workforce | No Comments »

Web.com Small Business Toolkit: FiveStars (Loyalty Program)

November 1st, 2012 ::

FiveStars

It is six to seven times more costly to acquire a new customer than it is to retain an existing one, according to consulting firm Bain & Company. That’s why it’s so important to reward your current customers for their business–and why loyalty programs are so popular. But while small business owners love loyalty programs, they don’t always love managing them. FiveStars has introduced a customizable loyalty program that’s integrated with point-of-sale systems. It enables small business owners to reward customers based on actual spending, and it offers automated social media components that help merchants create buzz around their businesses.

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Posted in Customer Service, Marketing, Small Business, small business | 2 Comments »

Your BtoB Customers Are Going Mobile—Don’t Get Left Behind

October 29th, 2012 ::

By Rieva Lesonsky

If you’re like me, you’ve been reading a lot lately about how consumers are increasingly using mobile devices like smartphones and tablets to shop, buy and do just about everything else. But while most attention to the mobility trend focuses on consumers, business-to-business companies aren’t left out in the cold. In fact, if your company sells business-to-business, a new study by CDW pinpoints just how important it is for you to “go mobile.”

The Mobility Edge:  CDW’s 2012 Small Business Mobility Report polled business owners and found a growing number are using mobile devices to handle everyday business tasks—and this trend is only picking up speed. Here’s a closer look at what CDW found and how it might affect your BtoB sales.

First, computers are becoming obsolete in some industries. By “computers,” of course, I mean desktops and laptops. About 36 percent of IT managers in the survey said some of their companies’ employees have completely replaced desktops or laptops with a tablet or smartphone. An additional 20 percent predict this will happen at their companies within the next two years. Construction and foodservice were the two industries in which this was most likely to happen.

Speaking of industries, the survey found that construction, foodservice, manufacturing, professional services and retail were the five industries in which the innovative use of mobile devices had the most potential to transform business. Here’s how these industries are using mobile:

  1. Retail: 67 percent were using mobile to enable consumers to buy products; 50 percent used it to help consumers access information about products. There’s room for opportunity, with just 16 percent having a mobile app.
  2. Professional services: The top uses for mobile devices and apps were enabling communication with customers, accessing information about the company, allowing customers to execute a service. There’s room for growth: Just 29 percent used mobile apps to automate processes.
  3. Construction: These companies primarily use mobile to help consumers access information about their companies, and to improve communication between the main office and employees in the field. Room for growth: About one-fourth used mobile to help customers execute a service that used to be more complex.
  4. Foodservice: Half of these companies reported some employees had already replaced computers with mobile devices, and an additional one-fourth expected this to happen in the next two years. Room for growth: With this the single industry most rapidly adopting mobile, there are still many ways mobile can improve the customer experience.
  5. Manufacturing: These companies primarily use mobile to improve communication with customers and among employees. Mobile enables them to be more responsive, providing quotes quickly and collaborating with team members.

What does this data mean to you? First, if your customers are in these five industries, you, too, need to be adopting mobile so you don’t get left behind or viewed as a “dinosaur” who doesn’t understand the way they work. Make sure your website is mobile-friendly and that you communicate with these customers in the way they want to be reached. Second, think about ways you could provide mobile products or services (such as apps) to serve their mobility needs. Finally, consider how they might use mobile in their businesses going forward, and what new opportunities that could open up for you to better serve them.

A particular growth area is tablets. With smartphones almost saturating the marketplace already (81 percent of respondents say they use them daily for work), tablets have the most room for growth. Just 25 percent currently use tablets on a daily basis, but tablet use is projected to grow by 117 percent in two years.

Image by Flickr user Aatomotion (Creative Commons)

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How to Capture Holiday Sales by Offering Layaway

October 10th, 2012 ::

By Rieva Lesonsky

Remember layaway programs? If you’re a Baby Boomer like me, you probably remember your parents paying for purchases like the family’s winter coats, a new dining room set or other major purchase “on layaway.” Here’s how it works: The customer essentially puts a product “on hold” with a retailer, then pays a certain amount per month until the entire cost is covered, at which point he or she picks up the item.

With the wide advent of credit cards, layaway pretty much died out since it was no longer necessary. But ever since the Great Recession, layaway programs have been having a resurgence–which makes sense, since they first sprang up in the Great Depression, as this JWT Anxiety Index on the topic explains.

According to JWT, Sears and Kmart first started the layaway ball rolling back in holiday 2009, and retailers like Best Buy and Toys R Us have since joined the game. What’s more, layaway isn’t just for brick and mortar retailers—ecommerce companies are getting into the game, too.

How can your retail or ecommerce business benefit from layaway? Using layaway can help you make sales you might not otherwise make, eliminate credit card fees since customers aren’t using the cards to buy, and increase customer loyalty and spending. All pluses, right?

It’s not too late to get your layaway program going for the holidays. Here’s what you’ll need to do.

  1. Create a policy. You need to create a layaway contract that spells out terms and conditions, including what happens to the product if the customer doesn’t pay, when payments are due, and any fees involved.  Visit the Bureau of Consumer Protection website for guidelines on what type of information should be included in your layaway policy.
  2. Keep costs low. Stores typically charge a fee for layaway, but more and more major retailers are waiving their fees. If you don’t want to eliminate the fee altogether, consider refunding it when the purchase is completed. That way, you know you’ve made the big sale and can afford to lose smaller fee.
  3. Implement online tools. Forget about tracking customers’ layaway purchases by hand—now there’s software to help streamline the system. eLayaway and LayawayPro are two layaway management programs to consider; both can help you track layaway customers, manage payments and more, and work for ecommerce, too.

One more thing to do? Don’t wait—holiday shopping season is almost here!

Image by Flickr user julesxt (Creative Commons)

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Posted in Business Development, Customer Service, Marketing, Sales Process, sales process, Small Business, small business | 2 Comments »

How You Can Get a Jump on 2012 Holiday Sales

September 24th, 2012 ::

By Rieva Lesonsky

Good news on the retail front as we head into the 2012 holiday shopping season: Seventy-five percent of retailers in a Hay Group survey expect their sales to increase compared to 2011. The survey focused on large retailers, but their optimism is a good sign for small business owners, too. Now, how can you grab your share of those extra sales?

If you need to hire, do it now. More than a third of the survey respondents plan to hire more seasonal workers than last year. In addition, 43 percent say they plan to add more permanent workers and fewer seasonal ones. That means the competition could get stiff, so start your staff search early.

Test early promotions. Although the majority of big retailers (58 percent) won’t start holiday promotions till November, a sizeable contingent (42 percent) say they will start in October. By doing so, they’ll see which products sell well so they can reorder, and avoid getting stuck with excess inventory when it’s too late in the game to get rid of it.

Get your ecommerce engines ready. Last year’s holiday season had 10 days that each saw online sales of more than $1 billion. This year’s ecommerce outlook is even rosier, so make sure your website is in great working order, your fulfillment is smooth and all online systems are go.

Don’t discount so much. Just 18 percent of brick-and-mortar retailers in the survey say they feel pressure to match the prices at online-only retailers. That’s a significant drop from last year. Overall, 50 percent of respondents (both online and offline) say they will offer fewer discounts than they did in 2011. Consumers are still cost-conscious, but with big retailers dialing down the discounts, your small business will have more breathing room.

Make a mobile move. Big retailers are still pretty cautious about mobile shopping. While they are planning to spend three times as much on mobile initiatives as they did last year, many of them had concerns about lack of mobile knowledge, unclear business objectives for mobile, and insufficient staff or budgets. At the very least, your business should make sure your website is optimized for mobile use and that your retail location is listed on local search directories so customers can find you when they’re searching on mobile phones.

Image by Flickr user myeralan (Creative Commons)

 

 

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Posted in Customer Service, Marketing, sales process, Search Marketing, Small Business, small business, Social Media, social media, Technology, Web Design | No Comments »

How to Deal With a Negative Review on Yelp!

September 19th, 2012 ::

By Rieva Lesonsky

If your small business is a restaurant, retailer, salon or bar—the type of business that relies on local customers and word-of-mouth—you’ve probably had some experience with review and ratings site Yelp!. How much weight do Yelp! reviews carry with consumers? A study by University of California, Berkeley, economists, reported on Mashable.com, found that an improvement of just half a star in a restaurant’s Yelp! ratings can increase business by nearly 20 percent during peak dining hours.

If you haven’t already listed your business on Yelp!, I hope this inspires you to do so. But is fear of negative reviews holding you back? After all, if half a star of improvement can boost business 20 percent, half a star of declining ratings could cut into your business, couldn’t it?

Negative reviews are a reality, on Yelp! or any other ratings and review site. It’s how you deal with them that matters. Here are some tips to help you get a grip—and keep your customers coming back.

First, remain calm. It’s human nature to get defensive when reading a bad review—especially if you feel it’s undeserved or if the reviewer seems to be a little unhinged. However, bashing the reviewer won’t get you anywhere—and in fact, will probably backfire by making you look bad to the other customers and prospective customers reading the exchange.

Talk to your employees about the review to see if you can figure out what happened and if the customer has cause for complaint. You can respond to reviews publicly or privately. Start by posting a brief, public response thanking the person for his or her comments (so other users can see you aren’t ignoring the review). Then respond to the reviewer privately to offer solutions or get more information about the situation.

Often, customers who are upset simply want to be heard and acknowledged, and in most cases, starting a personal dialogue with the person will be enough to defuse the issue. If you find you’re in an escalating situation with an irrational customer who keeps posting about your business, however, the best strategy is to disengage and trust that other readers will draw their own conclusions about the legitimacy of the complaints. You don’t want to get dragged into an online screaming match.

Consider negative Yelp! reviews as a learning opportunity to discover problems with your business and find solutions. No business can please everyone, so if you’ve done all you can to address an issue, it’s time to back off.

Image by Flickr user William Brawley (Creative Commons)

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Posted in Branding, Customer Service, Marketing, sales process, Search Marketing, Small Business, small business, Social Media, Uncategorized | 3 Comments »

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