February 2010 – Channel Crossing: Online

Abandonment Marketing: Maximize Onsite Revenue

Website abandonment is a recurrent thorn in the sides of all e-commerce teams. Optimizing conversion is rarely a simple quick fix, and often turns into a seemingly infinite journey with no end in sight.

The industry abandonment rate normally hovers around 65 percent. But in the weeks leading up to Black Friday and Cyber Monday, shopping cart abandonment rates swung wildly as customers postponed purchases in anticipation of deep discounts. What happened over the Christmas period gives a rare insight into the changes in customer behavior that directly affect conversion rate. This holds important lessons for e-commerce teams trying to optimize their conversion rates: It’s hard–in part because you don’t control all the moving parts.

Conversion–A Closer Look
Conversion is a measure of the effectiveness in getting website visitors to do what you want them to do on your site. It doesn’t have to be transactional, but in this case, we’re focusing on gaining revenue through an e-commerce shopping cart. Measurement of this type of conversion usually translates into dollars.

In the early days of the web, we focused first on page views. Then conversion become a core method of measuring site success, as the dotcom bubble burst and eyeballs became secondary to revenue.

Approaches to optimizing conversion are varied, but mainly focused on reducing the complexity of the conversion process itself (for example, with fewer steps), adapting the process (so that, for example, shipping rates are shown early on) or making it more intuitive.

When thinking about your process, you also need to consider the emotional state of your visitors as they progress through your conversion funnel. Buying from a particular website for the first time carries with it an inherent risk. Your visitors will feel insecure during the checkout process, with this heightening at the point of payment. It is therefore important that you view your entire checkout process from the point of view of a risk-adverse customer.

A recent PayPal/ComScore survey reported that 21 percent of customers buying online had abandoned one or more checkout processes due to security concerns. So check your process end-to-end for testimonials, security seals and customer reviews, and have very clear warranties and return policies.

But We’ve Done That and Our Abandonment Rate is Still High
The harsh reality is that process optimization can take you only so far. Conversion is complex and, unfortunately, e-commerce teams do not control all of the moving parts which affect conversion. Brand reputation, reviews and social commentaries, competitors’ promotions, promotional activity, price-comparison websites and affiliates all have a direct impact on conversion.

The impact of customers anticipating Black Friday promotions is just one such example. Before November 23, the average industry abandonment rate on Sundays peaked at 83 percent. But once the promotions had been rolled out, the rate dropped dramatically to “only” 64 percent, a massive swing in such a short period of time. This was not within the control of an e-commerce exec, but rather reflected a mass change in customer behavior. The lesson learned is simple: conversion optimization will only take you so far, and customers will still abandon your site in numbers much higher than you’d like.

It’s also useful to segment your abandoners into the five main groups:

• Window shoppers–those unlikely to buy;
• The undecided–they may buy from you, but the items abandoned in the shopping cart are acting as a shopping list while they decide;
• Deal seekers–they will only buy with a deep discount;
• Research online and buy in-store–customers likely to buy from you via a different channel (e.g., in store or by phone); and
• Brand-loyal customers–likely to buy from you, but the timing is not quite right.

Because of all these different types of customers who abandon, it’s important to consider not only how to optimize your onsite conversion process, but also your re-engagement process once they have abandoned your site.

Re-Marketing Completes the Process
Re-marketing is used today by only a small minority of sites, but the results speak for themselves: conversion rates of website abandoners of up to 50 percent are both compelling and offer very high ROI. This applies across all of the different types of abandoners: For example, re-marketing, done well, will nurture your brand-loyal customers and encourage them to make a purchase from you, feeling in the process that you care and want to deliver exemplary customer service, thereby reinforcing your brand values and making a purchase from a competitor less likely. Likewise, the undecided and deal seekers are also very effective re-marketing targets, provided they are shown appropriate content.

Follow-up re-marketing often gets forgotten, in part because e-mail marketing may be the responsibility of a different marketing group. If you are responsible for your website only, then have a chat with your colleagues in e-mail to figure out a joint approach to the problem.

A recent survey of U.S. e-retailers by E-tailing Group, found that 76 percent of e-tailers ranked “targeted e-mail” as the top initiative to improve website conversion. Following up on an abandoned session is also the fastest-growing technique to increase website conversion across the industry.

It’s easy to see why. If you have an industry average 63-percent checkout abandonment rate and 1,000 visitors enter your process each day, then while you convert 370 visitors to customers, 630 abandon your site without purchasing. Using abandonment re-marketing, you can reasonably expect to get back up to 50 percent of these visitors, making a dramatic impact to both your conversion rate and your bottom line.

Charles Nicholls is founder and chief strategy officer at SeeWhy, an Andover-Mass.-based agency specializing in the optimization of website conversion by leveraging real-time analytics. He can be reached at charles.nicholls@seewhy.com.

February 2010 – Channel Crossing: Mobile

Per Inquiry Goes Mobile

Many advertisers have come to recognize that per inquiry television advertising is a great strategy for generating leads or calls on a cost-controlled basis. This form of guaranteed advertising has been around for more than 25 years, and it has matured into a “must have” for many DRTV advertisers.

It follows that mobile should be a great way to generate qualified responses, with 275 million subscribers (and growing)! More and more DRTV advertisers say they’re considering dipping their toes in the mobile per inquiry waters. But are they ready?

The attraction to mobile PI is obvious:

• Low cost of entry – a banner ad or text message and landing page can get it started;
• Multiple ways to capture responses;
• Ability to geo-target consumers;
• Flexibility for controlling response volume; and
• Cost-controlled results – pay only for qualified responses.

SO WHAT’S NOT TO LOVE?
Think back to the early days of the Internet, when exaggerated promises were made regarding the ability of sites and networks to generate qualified responses (actually, this still occurs today). Many responses were not qualified, and there were costs attached to finding that out.

Mobile PI advertising is viable and clients are reaping attractive ROI from the responses being generated. Many, however, agree that finding the right approach for generating consistent, qualified lead flow can be challenging.

A client is ready if they are prepared to:

Test and re-test – Each test will help to refine the best approach for generating qualified responses. This will often differ among mobile partners, since their methods for engaging consumers differ (downloaded apps, display ads, audio placements and more).

Monitor results constantly - Mobile vendors are pretty nimble when it comes to making changes in order to get a campaign on the right track. Optimize based on results and be prepared to implement more stringent qualifiers to enhance lead quality.

Change the way the lead is captured – Having consumers call a toll-free number may be the best way to generate qualified leads on TV, but that’s not necessarily true with mobile. The simplicity of mobile’s “click to call” makes it almost too easy for consumers to connect by phone, only to discover they hadn’t intended to make the call at all.

Set realistic expectations – Mobile is a new medium for both advertisers and consumers. Consumers are experimenting with it. While response levels don’t yet rival those from the Internet, the quality of the mobile responses is proving to be much higher.

Partner with an experienced mobile team – Avoid trial and error by working with a team that has vetted many of the mobile partners by running numerous campaigns with them. Over the past year, a solid number of mobile vendors have embraced the PI concept and proven that per inquiry campaigns can–and do–work!

Sally Dickson is president of MMSI in Warwick, R.I. She can be reached at (401) 737-7730.

February 2010 – Column: Rick Petry

Make Social Networking Work for You

Last July, comedian Dave Chappelle showed up unexpectedly in Portland, Ore., telling a local retailer he planned on giving a free, impromptu stand-up concert in the city’s Pioneer Courthouse Square at midnight. Starting at 5 p.m., through Twitter, then Facebook and texting, news spread. By the witching hour, 4,000 fans had turned out.

The following month, Best Buy mistakenly listed a Samsung 52-inch flat screen television set valued at $1,700 on its website for $9.99. News swept wildfire-like via the same social networking mechanisms, as thousands ordered as many as 10 sets only to find out that an obvious pricing mistake would not be honored save for five lucky souls.

These stories contain valuable lessons. In both cases, the lure of something clearly ephemeral became irresistible and caused a groundswell of organic promotion. No wonder. People have always loved to share information–especially when it’s fresh or exclusive–and spreading that news in the digital age is as easy as two thumbs up. The notion of scarcity has always fueled direct marketing. Now, marketers can create an army of word-of-mouth grassroots promoters to help them succeed.

Consumers are smart. They’re going to do their homework. While the idea of a limited-time opportunity sounds smart, its overuse and abuse in infomercials–where the promise of exclusivity is evergreen–has created cynicism and indifference among the public. One of the major advantages of home shopping is that its rolling offers are promoted in real time, creating a genuine sense of urgency that, when combined with a network’s reputation, can produce a formidable one-two punch. Similarly, news of special deals spread via the virtual backyard fence that are indeed limited, have the benefit of drafting off the goodwill of the communicator. They create a sense of now that is compelling.

For the cynical who think this is just about selling blenders and jewelry, rest assured it is not. After the devastating earthquake in Haiti, news spread that by simply texting 90999 via cell phone, an individual could make a $10 donation to the American Red Cross to help with the relief effort. In a matter of days, $11 million had been raised through this tactic. As the world observed during the uprising that followed the recent elections in Iran, these social networking tools operate without boundaries. It’s why marketers better deliver on their promises–because just as these tools can be used for one’s benefit, they can also destroy a brand’s reputation.

So what’s a marketer to do? First, pay vigilant attention to what’s being said on these channels. Discourse on the Internet is as vast and ever-changing as an ocean current. It can’t be merely spot-checked. Second, you need to use these new tools to communicate timely, newsworthy information that will motivate consumers. In a recession where everyone is looking for a deal, the opportunities presented by social networking are unlimited. It’s a chance to take what some may have viewed as mere monkey business and turn it into sound business–the sound of a cash register ringing.

Rick Petry is a freelance writer who specializes in direct marketing and is a past chairman of ERA. He can be reached at (503) 740-9065 or online at rickpetry.com or http://twitter. com/thepetrydish.

February 2010 – Feature: Your Online Ad Network Cheat Sheet

A User-Friendly Guide for Understanding–and Fully Optimizing–Online Display Ad Networks

By Mark Simon

Need to get up to speed on the plethora of online display ad networks out there? You’re not alone. The world of online display advertising–and the networks that the ads run through–is changing so quickly that it’s hard to keep track. That’s why I’ve created this “cheat sheet,” which describes how ad networks help you target customers in different ways, the various pricing models they work through and a few things to watch out for.

TARGETING
To find your best customers, meet them where they are and deliver an appropriate message to them. Different kinds of ad networks help you achieve this goal in different ways:

Vertical Networks - Fashionistas read fashion magazines and sports fans read sports publications. People consume content that relates to their interests. That’s why, in many cases, all you need to do to find the right audience is to find the content consumed by your core audience.

Enter vertical ad networks, which run advertising on sites catering to specific verticals–such as the Travel Ad Network and the fashion-focused Glam Media. An April 2009 comScore study found that vertical networks have phenomenal reach across the Internet and offer extremely high engagement levels. Of course, this shouldn’t come as a surprise: Vertical networks focus on running ads on sites geared around the things that their visitors are passionate about.

Contextual Networks - If you want to target customers reading a publication outside of your vertical, you’ll need to expand your reach.

Contextual ad networks analyze the content on partner site pages and match ads to this content. Typically, the content matching is keyword-based, which means that advertisers select keyword lists they’d like their ads to run against (similar to choosing keywords for SEM). When the network sees a page with a selected keyword, the ad runs. Not surprisingly, some of the largest contextual networks–like Google AdSense and the Yahoo Publisher Network–have ties to search engines.

Contextual networks offer a wonderful way to get your ad in front of an audience that’s already engaged with content relating to the things that you sell, and on some of the best-trafficked sites on the web. One thing to watch out for, however, is “dumb” networks that parse words without understanding their meaning. This can result in embarrassing situations for your brand–from an irrelevant ad to bona fide idiocy (like the contextual system that ran an ad for rabbit stew recipes against a heartwarming story about a young girl’s search for a home for baby rabbits).

Some networks and third-party providers have begun to engineer semantic solutions, which not only scan the words on the page, but better understand the meaning on the page as well.

Behavioral Networks – Contextual advertising helps advertisers find targeted consumers in non-targeted publications. But it doesn’t let advertisers find targeted consumers on non-targeted sections of those publications.

Enter behavioral networks. Rather than tying ads to the content on a publisher’s pages, behavioral networks are able to identify who the user is, what kinds of prior activities he or she has engaged in on the web and what kinds of ads might be relevant to this person–regardless of the website on which the ad appears. For example, let’s say that a user reads six hockey-oriented pages or has indicated through other online activities a passionate interest in the sport. This user will be exposed to ads for hockey-oriented products and services, even when he or she is reading web pages with content related to business-, travel- or automotive-focused topics. Any additional demographic data the network has–such as information provided from an e-mail signup–can be used to add further detail to the picture.

Often, networks will target users by labeling them based on “buckets” comprised of a combination of demographics and site-viewing activity. For example, the 40-year-old mother who frequents cooking sites may be categorized as a “soccer mom,” the web user who reads auto pages may be categorized as an “auto enthusiast,” etc. Some of these networks observe users’ web habits in very fine detail. Yahoo’s Smart Ads system, for example, matches users’ search records with their activity across the vast array of Yahoo content sites, creating a very rich user profile.

Behavioral targeting does raise privacy concerns–an inevitable by-product of creating a system that’s designed to monitor web users’ activity. To mitigate privacy issues, be sure that the network you’re working with properly anonymizes user data, and allows users to easily opt out of targeting.

PRICING MODELS
Ad networks utilize various pricing models, with associated benefits and drawbacks. Following is a rundown of the major pricing models:

CPM – CPM stands for “cost per 1,000 impressions” (”M” being the Roman symbol for 1,000). CPM is shorthand for a flat-fee pricing model based on the number of times your ad runs. On a poorly trafficked site, the CPM may be only a few pennies per ad; on a very highly trafficked page–like the Yahoo homepage–CPM rates rival prices for prime-time TV.

CPM is a term that originated in print media, but highly granular web metrics makes things more complicated online. Historically, CPMs have been set based on the number of a site’s pageviews–the more times a page is looked at, the more the network can charge (all things being equal). But there’s a new movement–driven by advertisers–to shift pricing based on pageviews to pricing based on unique visitors (new visitors who arrive at a site). To me, this pressure from advertisers is legitimate, because if you want to maximize the number of people who see your ad, then you’ll want to pay differently for a visitor who’s never been to the place where your ad lives than you would for someone who’s already been to that site multiple times.

Pay Per Click/Pay Per Performance - While traditional brand advertisers might be satisfied running ads that people simply look at, many Internet advertisers are looking to drive some kind of further engagement with their businesses. For this reason, some networks offer cost-per-click pricing, a pricing system familiar to those engaged in search advertising. In this model, advertisers only pay when a user clicks on the ad. Some networks go a step further–offering pay per action advertising: The advertiser sets a desired action on the destination website, and pays only when the user takes that desired action via the ad.

Exchanges - This allows advertisers to buy ad inventory via auction, in a manner that’s very similar to the search advertising model. The two best-known exchanges are Google’s DoubleClick Exchange and Yahoo’s Right Media.

Ad exchanges were initially created as ways to sell remnant ad space that publishers couldn’t sell otherwise. By putting this ad content up for auction, publishers and networks were able to connect with the advertisers for whom that space would be valuable (and maybe even create competition to drive up the price on those ads). Recently, the Right Media platform was re-branded as a “premium” network–meaning that it’s now a destination for buying prime ad inventory.

BUYER BEWARE
I’ll close with a bit of warning:

Most of the reputable ad networks have earned their reputability. This being said, there are two cautionary issues to think about when you’re considering entering into a relationship with a network: the ability of the network to accurately provide what it’s promised and the willingness of the network to give you control over your data.

Accuracy - When I refer to “accuracy,” I mean that you need to be sure that you’re getting what you’ve actually paid for. Sometimes, ad networks can inflate their numbers, or claim that they’re offering far more precise targeting than they really are, or otherwise charge you as if they’re delivering more than they actually are. For example, while a given ad network might be able to run highly targeted ad inventory, the space where this advertising actually appears may be a spot on the page that’s so low that it will rarely be seen. Obviously, you shouldn’t pay premium rates for such ads.

Unfortunately, some of these errors are the result of simple dishonesty. Often–and more benignly–they’re the unfortunate by-product of a poorly managed network. Either way, you’ll want to stay vigilant to be sure that you’re getting your money’s worth. Before you get involved with an ad network, make sure you’ve done your homework on which networks are reliable and which aren’t as good to deal with.

Data Ownership - Ask yourself this question: If you left your ad network today, how easy would it be to take your data–your traffic statistics, your ad pricing and the places your advertising runs–to a different network? For that matter, how easy would it be for you to use the data developed in one network to duplicate your campaigns in a different one? Some ad networks work hard to make it difficult for you to transfer your data over to a competing network–making it a challenge for you to repeat success, or to start anew if the relationship with that ad network doesn’t work out. So when you enter into a relationship with an ad network, be careful as to who really owns the data you might someday want to export–find out if the owner of the data is you, or the network you’re advertising on.

Mark Simon is vice president, industry relations at Didit, a firm specializing in search marketing and targeted display ads. He can be reached at mark.simon@didit.com.

February 2010 – Cover Story: Have You Called Jenny Craig Lately?

The Weight Management Service Company Earns Electronic

Retailer’s Direct to Consumer Marketer of the Year Honors.

By Vitisia Paynich

Not since her role as the quintessential “girl next door” on the hit ’70s TV sitcom “One Day at a Time” has actress Valerie Bertinelli attracted so much media attention. Thanks to the Jenny Craig weight-loss program, the actress dropped 40 pounds and unveiled her bikini-fit body in a national commercial. The spot triggered a public relations windfall leading to talk show appearances, magazine covers and book deals for Bertinelli–and major brand exposure for Jenny Craig.

However, PR and general advertising are simply not enough for this iconic brand. To maintain its competitive edge in the $40 billion weight-loss market, Jenny Craig, which is owned by Nestle, embraces a multichannel strategy that encompasses DRTV, print and online, as well as social media.

The weight management service company combines its arsenal of top-celebrity spokespeople with infomercials, blogs and direct mail to engage clients in their preferred medium and promote shared dialogue. What’s more, the company features webisodes on its site highlighting both celebrity and client success stories.

This outside-the-box thinking has garnered Jenny Craig Electronic Retailer’s 2009 Direct to Consumer Marketer of the Year Award.

Electronic Retailer spoke one-on- one with Steve Bellach, senior director of North America marketing, to discuss the marketing strategies that have helped make Jenny Craig a leading weight-loss brand, along with future plans for expanding its global operations.

Electronic Retailer: What do you believe has made Jenny Craig such a strong competitor in the weight-loss category for three decades?

Steve Bellach: It really starts with the brand, the program and the fact that it’s a clinically proven weight management solution. It’s important that we have a science-based, personalized approach to weight management. And what really differentiates us from others are our one-on-one consultations.

The Jenny Craig website features a host of e-tools, links to celebrity blogs, as well as access to a library of webisodes.

ER: Jenny Craig embraces a multichannel marketing strategy that comprises traditional and new media. Why was it important for the company to concentrate on multiple channels as opposed to just one–such as television?

Bellach: As you know, the media environment has become so fragmented and consumers seek information through many media channels. We want to be in front of them in all those channels. At the end of the day, if the consumer decides they are ready to make a lifestyle change–and whether they’re watching TV, reading a magazine, on Facebook or whatever it might be–we want to make sure we’re in front of them talking about how effective our program is.

ER: How do you make certain that your branding remains consistent across all marketing channels?

Bellach: One strategy we use and have used over the years is our celebrity tactic. The celebrity helps put a face on the brand across channels. So, for example, if you see Valerie Bertinelli–or one of our current celebrities such as Sara Rue or Jason Alexander–on TV, on the website or in print, that brings some consistency to the brand. We are very strict in terms of our brand standards and how our brand is presented. A lot of my background is in classical brand marketing, so I like to make sure that every touchpoint a consumer uses to interact with us gives them a similar brand experience and communication.

ER: Which celebrity campaigns have been the most successful for the company?

Bellach: We’ve used a number of celebrities over the years. They’ve all been very successful in losing weight in their own way. With Valerie, we’re now in our third year with her and she’s really been very powerful for us. Queen Latifah was effective. We’re now just launching Sara Rue. Nicole Sullivan has been on the program for several months and she’s been very effective in generating publicity for us. One of the powers of working with a celebrity is the publicity topspin. So in addition to TV, print and online, we can generate magazine covers and significant television talk show appearances.

We think what makes our celebrity program most effective is we’re the only company out there that launches them before they’ve lost the weight. Think about any other competitor who uses even regular clients. They only show them after they’ve lost the weight. We stick our necks out there and say, “Hey, Sara’s joined Jenny Craig and she wants to lose 30 pounds.” And, she hasn’t lost the weight yet, but we’re so confident in the efficacy of the program that we then show their journey almost in real time–on TV, on the website both through written and video blogs, on Facebook. We give clients and consumers as many ways to connect with our celebrities as possible.

ER: You mentioned that actor Jason Alexander recently partnered with Jenny Craig. In recent years, you’ve mainly featured female celebs. Is this a way of focusing more on the male demographic?

Bellach: Yes, we just announced him in January and we’re very excited. Naturally, we hope it will reach a new demographic. It’s important to note, however, that we have used male [spokespeople] in the past, about 10 years ago. But you’re right, recent celebrities have been women. Right now, roughly about 10 percent of our client base are men and obviously, the obesity epidemic has affected everybody. We feel our program and the flexibility of it works for everybody–whether you’re older, younger, male or female. We just launched a microsite called Jenny Craig Type 2. The program is very effective for people with Type 2 diabetes. Again, it’s not necessarily a new program for communicating to men, but it’s more like saying, “Hey, Jenny Craig works for you, too.” We’re using Jason in the ad and Valerie will be featured, as well.

ER: When did Jenny Craig begin marketing through DRTV?

Bellach: Actually for many years, we have been in spot DR. It’s probably within the past five years or so that we have been national–primarily cable. And we feel that the comprehensive, hybrid approach gives us a nice balance between the efficiency of DR and the brand building with some of the other channels out there.

ER: Can you tell us about some of the company’s other marketing efforts?

Bellach: Well of course, TV advertising is critical. We also do a lot of print and a lot of magazine advertising. We make a significant investment in public relations. I’ve never been with an organization that gets the People magazine covers and talk show appearances. We also do a lot of direct marketing through direct mail with post cards, e-mail marketing, and also in the social media arena. In the past two years, we’ve ">been active on Facebook and Twitter.

ER: It’s clear that the web is also a big part of your overall marketing. What online tools and features do you utilize to assist existing clients as well as engage new ones?

Bellach: We offer a suite of free e-tools. You don’t even need to be a client, just a registered user. You have access to recipes and health help tools. Also on our website, there’s a menu planner to make it more efficient for existing clients. They don’t need to come into the center to go through all the details of planning their weekly menu; they can get a lot of the work done ahead of time.

In terms of reaching new clients, in the past year or so, we’ve launched a strategy against microsites. So, we have, for example, a microsite called JennyCraigAtHome.com. And on January 4, 2010, we launched three new microsites: JennyCraigForMen.com, JennyCraigType2.com and JennyCraigSilver.com. It’s really in the spirit of trying to reach new segments. We have some banner advertising out there as well against these microsites. There’s much richer content that would be relevant to these segments.

ER: When did you first venture into webisodes and how do your campaigns complement your DRTV efforts?

Bellach: Webisodes have been part of our mix for a little over a year. In late 2008, we launched our first webisodes. Consumers generally don’t know a lot about our program. And once they understand it and how comprehensive it is, they’re more compelled to join. It’s really hard to communicate a lot about the program in a 30-second ad. The webisodes have provided a great complement to our DRTV efforts to give a lot more information about the food, which is more about portion control and about the body or activity component, which is really not about joining a gym. It’s about getting off the couch and walking. There’s also the mind component. What are the motivators and how do we really help you with the lifestyle change that you’re looking for?

We’ve been working with Waldorf Crawford and they’ve been a great partner for shooting the infomercials, which kind of dovetailed into the production and creative development of the webisodes.

ER: You spoke earlier about Facebook and Twitter. How does social media play a role in your marketing and branding?

Bellach: With celebrities, we’re communicating a journey. It’s almost a reality show of their weight-loss progress. It’s for people who want to come to our website and read the written blogs or view the video blogs, which are monthly. Or maybe they want to go to Facebook and see how Sara’s doing at a certain stage of her weight-loss progress. So, it’s just another avenue to reach consumers and update them on the celebrity progress. It’s also about non-celebrity clients’ progress. If you went to the Jenny Craig fan page, for example, on Facebook there’s a lot of dialogue. One of the things we know is that if people have a support system and try to lose weight with somebody or at least know other people trying to lose weight, they’ll be more successful. And, it’s just really gratifying to read strings of comments and see how people are cheering each other on and providing support.

ER: Is the company currently doing mobile marketing?

Bellach: We’re evaluating that. Again, given that we’re so direct response-oriented, if we can find a way for it to generate efficient phone calls and efficient sales, we will pursue it. We just want to make sure that before we make a significant investment we really understand how it is going to work for our business.

ER: What does the future hold for Jenny Craig and the brand?

Bellach: We’re part of the Nestle organization, which is the largest food company in the world. They’re shifting their focus to be much more focused on health and wellness. Thus, there are significant resources around program innovation, around investment in the business, and we are looking at some global expansion opportunities. So, we really fit in the sweet spot of that.

January 2010 – Channel Crossing: Affiliate Marketing

Designing a Successful Affiliate Marketing Program

Forrester Research recently forecast U.S. affiliate marketing spending will reach $4 billion in 2014. Is your company taking advantage of this opportunity?

Although many direct response marketers, including Fortune 500 companies, have embraced online affiliate marketing, there are still some DR marketers hesitant to step outside their areas of expertise.

SIMPLE TIPS
Do not let fear of the unknown hold you back; following a few basic rules of traditional marketing can significantly minimize risk and enhance ROI.

Choose your partners wisely. There are branding implications to consider when working with an online agency or affiliate network. Potential partners should be put through the same rigorous interview process used to hire new employees.

• What level of experience and breadth of services do potential partners have?
• Does the agency share the marketer’s values?
• What type of vetting process is used for affiliates in the network?
• Do they provide ongoing campaign monitoring and brand protection services?
• Do they have an independent best practices or compliance departments?
• Do they stay up to date with industry standards and regulatory issues?
• Can the company provide references?

Select online advertising channels based on your target market. Hiring partners with expertise in market segmentation is essential. Reaching female baby boomers requires a different online advertising mix than reaching male Gen-Xers. Equally important is avoiding channels that could negatively impact the brand.

There are a variety of affiliate marketing channels that might work for DR marketers, including loyalty, social media, virtual currency, e-mail, search and display. The key is to test and find the most effective mix to meet lead generation or ROI goals.

Make sure you know where and how your ad campaigns are running. The word “transparency” is used a lot these days, but with various meanings. True transparency answers the questions “who, what, when, where and how.” If an affiliate network or agency will not disclose specifics about the distribution of a campaign, the marketer is at risk of receiving fraudulent leads or damaging its brand. The source of many problems can often be a single affiliate who merely jumps from network to network after being identified. Without true transparency, DR marketers forfeit visibility and lose control.

Not all leads are of equal value. Lead value may vary by channel, so why pay the same amount for lower quality leads? Working with a transparent network allows a marketer to see which channels are most valuable and set payments accordingly. It is often useful to work with a partner who has experience managing multiple networks. They can help analyze media buying options and make pricing recommendations to simplify the process.

Affiliate marketing is being used by many DR marketers to reach potential customers online. With initial due diligence, affiliate marketing can be a highly profitable component of your advertising mix.

Janice Roetenberg is director of corporate marketing for Adperio, a leading performance-based online marketing and advertising agency. She can be reached at jroetenberg@adperio.com.

January 2010 – Column: Your Association, Your Bottom Line

Issues Arise as Guides Take Effect

It’s been just over one month since the FTC’s revised Guides Concerning Endorsements and Testimonials in Advertising have taken effect. In order to ease the transition to the new standards, ERA recently hosted two Spotlight Sessions on the revised Guides, assembling panels comprised of FTC representatives, leading legal experts and marketers to address the real-world issues that have emerged.

Both sessions made it abundantly clear that there’s a lack of clarity for many marketers regarding the Guides, causing an immediate and significant impact on the businesses of many ERA member companies and others in direct-to-consumer commerce.

To help settle the confusion and provide actionable advice for ERA Members implementing the changes set forth in the revised Guides, here are a few of the key takeaways:

Network clearance issues are already arising. Shows are already being blocked for failing to satisfy the Guides. According to Product Partners, LLC’s Jonathan Gelfand, the problems lie not with the Guides themselves, but with networks’ misinterpretation or excessively conservative reading of the Guides. Gelfand called for further clarification from the FTC to provide additional guidance to the stations and networks. I urge you to bring these issues to ERA’s attention as they occur; we will compile these accounts and present them to the FTC to urge the Commission to provide clarification regarding the exact language of the Guides that is proving to be problematic in execution.

Regarding social media marketing, have a plan. Social media marketing will only grow and increase in effectiveness as more marketers harness the power of their consumer base, influential bloggers and others to spread their message. But as the FTC’s assistant director Rich Cleland stresses, you must have a reasonable social media policy and monitoring program in place. The FTC acknowledges that complete control over your social media agents is impossible; you simply need to have policies in place and take reasonable steps to monitor your agents and enforce the policies.

With celebrity endorsers, know when to disclose. In the context of an ad, it’s assumed that celebrity endorsers are being compensated, so no disclosure is required. Outside of this context, however, disclosure of the connection between the celebrity and the marketer is likely to be required should a discussion turn to the celebrity’s use of your product.

The FTC has clear priorities in social media. High on the FTC’s enforcement list? Fake blogs or “flogs,” phony product review sites and “astroturfing”—enlisting agents or company employees to post positive reviews about your products or negative ones regarding your competitors’ without disclosing their connection to your company. Inadvertent mistakes where a social media agent has “gone off the reservation” in speaking about your product without your knowledge and despite your social media policy? Not a priority.

Clarification is on the way. Look for the FTC to publish FAQs regarding the revised Guides soon. In addition, ERA, as your association of record, will continue to provide guidance to our members. Specifically, I urge you to attend The Great Ideas Summit (held Feb. 1-3 at the Hilton New Orleans Riverside) where keynote speakers (including David Vladeck, director of the FTC’s Bureau of Consumer Protection) and educational sessions will address the topic in detail. For more information, please visit www.eragreatideas.org.

I look forward to your thoughts and concerns on this issue. Please contact me at any time at jcoons@retailing.org. I look forward to seeing you in New Orleans!

January 2010 – Feature: The Big Deal

Brad Wilson, Founder and Editor-in-Chief of BradsDeals.com, Shines a Light on Superaffiliates and the Growth Opportunities that Await Retailers and Marketers.

By Vitisia Paynich

In 2001, Brad Wilson was just your typical undergrad college student trying to make it through when he decided to launch an online business called BradsDeals.com. Little did he know at the time that his venture would not only make him a major player in the affiliate marketing space, but also transform him into a sought-after online shopping expert. In fact, Wilson has appeared on such programs as the “Today Show,” “Oprah & Friends,” MSNBC” and “CNN Money,” as well as in publications like The Wall Street Journal and USA Today.

It’s no wonder that ERA asked the founder and editor-in-chief of BradsDeals.com to speak at the Affiliate Marketing: From the Front Lines session on February 2 at The Great Ideas Summit in New Orleans. Electronic Retailer sat down with Wilson to learn more about how BradsDeals.com has garnered superaffiliate status and why affiliate marketing is a low-risk investment.

Electronic Retailer: How did you enter into this business?

Brad Wilson: I started as a poor college student and I was able to find great deals on all the stuff I needed for school. I started BradsDeals for fun to help show my friends and fellow students how to get the same deals. It’s been about seven years since I launched the company.

ER: How did you evolve into a superaffiliate?

Wilson: I think it was just by keeping that same approach of doing a lot of work and research as if I was doing it for my friends and families still. And eventually, being able to spread the word to a lot more people. That focus on our audience and what they need in a very long-term way is what has helped us get to the point that we are at right now. And I think that’s paid off in a sense that we’ve developed a very loyal following.

ER: Were you surprised by how your company has progressed, or did you know from the get-go that this was something that was going to really take off?

Wilson: Absolutely not. I was very fortunate in the sense that I was in school so I didn’t really need to make the business work for a long time; I had a lot of runway. I could just do it for fun and I didn’t need to use it to support myself [financially]. So, if I had to make it work out of the gate, it wouldn’t have worked. And, I think I’m pretty lucky in that sense.

The team at BradsDeals.com hand picks the products that they deem to be the best deals for consumers.

ER: To get a better understanding of just how much revenue a site like yours can generate for a marketer, could you please provide some revenue statistics?

Wilson: Every product on BradsDeals is sorted by popularity based on what our audience’s reactions have been to it in recent history. And things that are up pretty high have a good potential of driving a fair amount of sales to retailers. With the right deal, we can generate $50,000 to $100,000 in gross sales pretty easily.

ER: What do you generally look for in a marketer?

Wilson: It’s funny because I still get a ton of e-mails from people who are inquiring about what kind of data feed we’re using when it’s very obvious that everything we’re doing is hand-picked. It says: posted by Brad at x time of day. Those people don’t scratch the surface enough to realize that before they contact me. We need people who understand what we do and understand our business. The best relationships we have are with people who can really facilitate that. An example would be a store that we can go to and say, “Here are five products that we really like and that our audience would like at a better price. You’re selling them for $100, why don’t we set up a page on your site where they can sell for $79.99? Or, why don’t you give us a coupon code for $25 off these five products for the next 48 hours?” Now a) there has to be an interest level; b) logistically, they would have to be able to do it; c) they have to trust us and like our audience; and d) they have to think we’re adding value to the process. Those are the kind of relationships that we’re looking for.

ER: What type of compensation arrangements do superaffiliates tend to command?

Wilson: It has a lot to do with what kind of value the affiliate is bringing to the table. It’s really on a case-by-case basis from a retailer’s standpoint. If you’re doing something with a really high-value add and you’re reaching an audience that the retailer couldn’t reach themselves, then I think you usually can come to good terms with the retailer. It has to do with the margins. There are plenty of times where we’ll forego a higher compensation to get a better deal for our readers.

On the flip side, a retailer might not feel like they’re receiving quite the same value from big affiliates. And, if they feel that way, then they’re not going to compensate them the same. For example, maybe a retailer doesn’t think that they’re really getting exposed to any new customers by those people; maybe the retailer thinks that they’re just churning the same customer base that they always have and are offering cash back. You’re not really adding value to a retailer or helping highlight the positive attributes of a retailer simply by giving someone cash back on purchases at that store. So, there are all kinds of different scenarios where a retailer might or might not see value.

ER: So, there is flexibility in offering different types of compensation packages, depending on the size of the retailer?

Wilson: Yes, that’s exactly right. [In December], we did 12 days of holiday giveaways. And each day, a different retailer offered a pretty substantial giveaway. Dell, for example, gave away four notebooks in one day, which cost them somewhere between $1,200 and $2,000. So, if that hadn’t been a part of our conversations with Dell, maybe we could have gotten better compensation from Dell. But we ">preferred to take this time of year to give back to our readers and do something interesting and fun, and I think Dell understood that pretty well, too.

ER: What makes some marketers more successful than others? Is it the product? The offer? Or, is it about supplying the affiliate with killer and fresh creative?

Wilson: It depends on what the affiliate specializes in. In our case, it’s about the product and how compelling the offer is to consumers. The rest of the information, content, images and data are all something that we pull together personally and not in an automated kind of way or with anything that’s provided by the retailer.

ER: Could you offer some tips for selecting a network?

Wilson: Selecting a network has a lot to do with your particular needs and budget. If I were a small, startup retailer with a different marketing budget, my choice would be a lot different than if I were Target. And my choices if I were Target might be different than if I were Pottery Barn–just because there are different brand issues and concerns with the two of them. I think it runs the gamut a little bit.

ER: What tips could you offer for working with a superaffiliate and managing that relationship?

Wilson: The biggest thing for managing a relationship with an affiliate is to understand their specific needs–to go that extra mile. We’ve seen that pay off year after year with some of relationships with people who really try to understand what we’re doing. And it makes all the difference in the world, because they can really get in there, facilitate and work with us, be creative and come up with good ideas.

ER: How can you make sure to avoid conflict between the marketer and affiliate with regard to pay-per-click? In other words, how could you avoid both bidding on branded terms and essentially competing against another?

Wilson: It comes down to the marketer or the retailer clearly establishing a set of policies and making sure everyone follows them. If they do that, chances are they’re going to have very few problems. And, any affiliate that is worth having a relationship with isn’t going to cause problems if there’s a clearly established policy.

As far as bidding on branded terms, it depends on the needs of the retailer. For example, maybe the retailer has a very generic name and while bidding on that name discovers there are nine competitors. In that case, the retailer is probably best served by letting their affiliates bid as well to flood the page a little bit so that they get as much coverage as possible, especially because the retailer can only show up once on their own. So, it just depends on what the retailer wants and ultimately, it’s up to the retailer to communicate and enforce their policy.

ER: What are the overall benefits of engaging in an affiliate marketing program?

Wilson: The economics of this business are really positive for retailers. What’s clear about the affiliate relationship is that you don’t have anything to lose. You can create something that works for you, works for the affiliate, and it doesn’t cost you anything. So you get exactly what you want in return.

In our case, it’s really a triangle of mutual benefits where we create a very compelling consumer offer, the retailer gets sales and traffic and then there’s something for us as well. Let’s say a retailer has a 20-percent gross margin. Then they can come up with a 10-percent-off coupon or 10-percent-off discount on a product and then pay the affiliate 5 percent. In that case, the retailer knows in advance that if any transaction happens with their affiliates, they’re going to net 5 percent. You can’t get that kind of precision or guarantee with any other kind of marketing or advertising. I think that oftentimes retailers who aren’t too involved in this to be hesitant, but I think that quick economic analysis is simple enough to make them realize that it is a very safe scenario for them.

And during these past 18 months, we’ve seen a lot of retailers actually shifting their energy, team and budgets more towards the affiliate space for that same reason. Assuming they know what they’re doing, the return that they’re going to see will be a positive one and it’s just very low risk, which is interesting because there are not too many things on the Internet that are low risk.

January 2010: Cover Story: Monster Ideas

E-Commerce Guru and Serial Entrepreneur Jeff Taylor on Cultivating and Driving Ideas Forward in the Social Media Age

By Tom Dellner

Jeff Taylor’s perspective on entrepreneurship, e-commerce and social media is as unique as it is hard-earned. He was one of the earliest–and most successful–e-commerce pioneers, founding Monster.com in 1993 and selling it in 1995 for $900,000. He has led companies that employ many thousands and others with a total workforce of a dozen. He not only launches companies, he has forged trails into the business wilderness–Monster.com was the first online jobs site, Eons.com is a one-of-a-kind social network for Baby Boomers and Tributes.com is a trailblazing online obituary and memorial site.

But don’t pigeonhole Taylor as all business. He has a multitude of interests, with music ranking near the top. In fact, the not-quite-50-year-old is an in-demand DJ in New England (playing techno or house music) and has a weekly radio show on Sirius called Jeffr Tale.

Electronic Retailer sat down with Taylor for a free-flowing, stream-of-consciousness conversation regarding the hallmarks of successful entrepreneurship, e-commerce and the futility of resisting social media.

Electronic Retailer: You often speak to groups regarding entrepreneurship. How would you define “entrepreneur”? Is entrepreneurship a learned skill, or is it something more innate?

Jeff Taylor: My definition of an entrepreneur is when everyone around you thinks you’re crazy and yet you’re still convinced you have a good idea–and you act on it. I am definitely an entrepreneur, by this or any other definition.

I’m often asked whether this “trait” is learned or developed. For me, I suppose it was a little of both. I was shy in high school, not in the “in” crowd. I did, however, have a bit of an innovative upbringing with parents who were very liberal and very open with me, which I believe gave me some good clues about being a self starter, but this didn’t blossom for me until later in life (parenthetically, I believe this can be an advantage; it can be very difficult for the high school quarterback or head cheerleader to duplicate those big highs as they enter adulthood).

But I sincerely believe that the skill of driving an idea forward can be developed as a practice in your life. It’s something we all need to master. It can be something as small as deciding to have lamb for dinner instead of chicken again. But you then have to follow through on it. These small victories can build up over time and give you the vision, courage and will to develop and drive forward bigger and bigger ideas.

And having an idea that’s worth its weight is a lonely experience. You’ve thought of something that no one else has, or maybe you’re just the one who wants it the most. As a result, almost everyone else will say it won’t work. And I firmly believe that those closest to you are going to be the ones that are the hardest on you. If you measure yourself by this local feedback, then you’ll just stop working on ideas.

Eons.com has broken new ground, turning Baby Boomers into active social media participants.

ER: Getting a company and an idea up and running is hard, but so is maintaining success. How do you keep momentum building once you’ve achieved some initial success?

Taylor: When your current business hits its stride and begins to do well, that’s the time to begin a longer-term–or “second curve”–strategy. It’s very difficult to do, because as your product becomes profitable, all you want to do is keep your foot on the accelerator. It feels like a distraction to be thinking about changing your product or creating a situation where you might cannibalize your own product. But I think you need to seek out these situations; go to those sources. If you don’t do it, your competitor will.

I also believe the second curve should be managed by a separate group and that I, as CEO, should attach myself to this group, delegating my duties regarding the first curve. It’s the role of a fast-moving CEO to keep giving his job away and to keep re-inventing a new job.

ER: Can you offer any other tips for keeping one’s company vital and healthy?

Taylor: Hiring great people is absolutely crucial, but there’s more to it than that. You, as a business leader, need to force yourself to do an honest assessment of your own personality and skillset and hire into your weaknesses. It’s very difficult for many executives to identify their weaknesses. I’m fortunate–mine are glaring!

There are two other areas where you need to build out your skillset as an entrepreneur–either your own skillset or those of your employees. One is culture. As a CEO, I think you own that. Culture, as I see it, is the natural state of employee morale. There’s too much of a mindset today of the leader getting the idea up and running and then retreating to his office and not remaining engaged with his or her employees. That’s very dangerous. I believe that the culture and the founder or CEO are attached at the hip. But inevitably, as a company grows, the CEO transitions from being a people-oriented person, curious about employees’ lives, to being a person who motivates the 10 or 15 people at the center of the organization and teaching them those skills about having curiosity about their people.

Also, the way you market and brand the company is key, and I believe it should start with the founder or CEO. Being able to speak with clients–or importantly, with larger groups and audiences–about the expertise that you’re developing, without it being strictly an advertisement about your company, is crucial. It’s a way to stay close to your original ideas and motivations, and it operates as a powerful, more consultative promotional or sales tool. It also forces you to keep advancing your knowledge level in your subject area, which is crucial to your company’s success.

ER: Can you identify for us some of the key learnings you’ve taken away from the three companies you’ve founded: Monster.com, Eons.com and Tributes.com?

Taylor: At Monster, I learned the importance of naming a company. Everyone, from my wife, to my biggest client at my firm at the time, to all my employees and anyone else I tried it out on–no one liked the name. But I had the conviction to go with my gut. Monster is a descriptor that means “bigger than big.” And once we launched, after I explained to enough people that “monster” also equals “jobs,” that name helped protect our brand position and marketshare in a competitive space for more than 10 years.

Eons has taught me about marketing to Boomers. I’ve learned that the older we get, the more individual we become. It’s been an exercise in herding cats to get a group that’s known for rebelliousness and going their own way to come together en masse in a community–I’m still trying to crack that code. We have more than 800,000 registered users and about a half-million unique visitors each month, but compared to Facebook with its 300 million users worldwide, we still have a lot of work to do.

With Tributes, I have a challenge–similar to the one we initially faced at Monster–in instigating a behavior change. People have been placing obituaries solely in the newspaper for 150 years. In addition, the funeral home industry is one that is rather suspect of new entrants and of technology, so I am learning every day how to introduce change in an area that is very set in its behaviors and resistant to change. We’re now the largest company for placing national and local obituaries online, but have many challenges in front of us.

It’s daunting and somewhat humbling to realize that I’ve been responsible in migrating two of the newspaper industry’s biggest sources of revenue–job and obituary listings–from the classified section to online.

ER: With your unique perspective on social media, how might you advise the direct-to-consumer retail industry regarding entering the social space?

Taylor: Two adages leap to mind. First, you’ve got to be in it to win it. The second is a Woody Allen quotation, “Seventy percent of success in life is showing up.” You simply can’t learn about social media as an observer.

Also, one of the very key elements of social media is what’s known as one’s “social graph.” Once you have your Facebook page, your LinkedIn page, your Twitter page, your blog and your iPhone apps all tuned into and pointing toward the same place, you can start to mine all the customer data and IP that comes from the conversations and activity in terms of traffic building that comes from this social graph.

This explicit knowledge of your target audience and all of the associated behavioral data is invaluable. You can then begin to identify and connect with the key influencers, active consumers and influential bloggers and begin to spread the word about your idea or your company or your brand. And all of this comes out of your social media participation fairly naturally.

For example, just deciding on a persona or profile of your company forces some productive and eye-opening discussion. What kind of person is your company? You might react with a “yikes.”

There are barriers you need to push through. You need to be willing to ask customers questions and actually listen to their answers. You have give your customers a chance to engage and tell their stories about your product. “What happens when they don’t like your product?” you’ll ask yourself. But you have to trust that, if you’re doing things correctly, for every one of these customers, there are 10 others that will jump in to your defense. It can be scary.

It’s essentially a new business model. We’re familiar with B-to-B and B-to-C. But social media introduces C-to-C–it’s unorthodox, but it’s also really exciting and with almost limitless potential. You have to trust your customers to co-develop with you, but if you can enlist your consumers as your sales force, it’s fantastic.

Tributes.com is now the leading obituary and memorial source online.

ER: Where do you see social media heading over the next few years?

Taylor: The Internet started out with a closed network; this wave of communication was mainframe, with AOL, CompuServe and Prodigy as the major players. Then we transitioned to an era where open, web-centric properties dominated the landscape–companies such as Amazon, eBay and Monster, among others.

Next, after the dotcom boom collapsed, you had the emergence of Google and a re-confidencing (if I can coin a term) in the Internet–people began to believe again that it was a truly viable playing field for commerce.

Now, we’re seeing the explosion of more and more closed networks: MySpace, Facebook, Twitter, etc. For the younger generation especially, most of their communication occurs within these closed networks.

I think what we’ll see next is an opening up of these closed networks one more time, with the opportunity for the corporate world to join in the conversation and realize that it’s really about people. It’s not going to be about selling product with an advertisement, but how you create value and how that value and message is distributed.

I honestly believe that we’re working toward an era of haves and have not’s, with the haves being those who understand social and the have not’s being those who do not.

ER: Is it key for senior leadership to engage in social media?

Taylor: I can’t stress enough the importance for the leaders in a corporation to participate–even if only on a personal level–in social media and to learn the benefits and advantages of having a position of strength on any social platform. Otherwise, you’ll create a scenario where the marketing person is running the social media strategies for senior management. And that doesn’t work. As a corporate leader, how are you going to get to the new ideas if you’re not experiencing social media yourself?

ER: Are there any risks associated with an increased emphasis on social media, and online marketing in general?

Taylor: With the growth of the Internet and other “accountable” business platforms, I think there’s a real risk in letting quantitative analysis assume too large a role within your company. There’s this idea that your analytics, your data, tells all: you can’t do anything from the gut; everything has to quantitatively “add up.” But it’s your brand positioning that gives your company the emotive qualities that allows it to take on a personality–which is essential to taking full advantage of today’s (and tomorrow’s) social media-driven marketing. Having a completely quant-driven strategy will cause you to come up short in brand position, brand voice, brand attitude and brand power.

ER: Do you have any pragmatic advice for entering the social media fray?

Taylor: I would focus very hard on recruiting. The technology really has to be understood and leveraged correctly in order to master social media and you need the right talent. Relying on the team you’ve had for the last 10 years may not be the answer.

Secondly, I would limit your initial projects to those of a smaller, more manageable size. And technologically speaking, cluster small server boxes instead of using big boxes. Use open-source instead of proprietary technology. This allows you to let the leading developers in these emerging areas to step right in and use–and build on–these technologies.

ER: Any last words of advice to traditional direct marketers who haven’t fully embraced online marketing and social media?

Taylor: I would suggest starting to shift some media from traditional channels to Internet platforms. You don’t have to shift it all at once. And the beauty of it is that the measurement is so good, the quantitative elements are so well-established, that the ability to test and experiment and then press down on the levers that are working is already there. Just as in real estate, the web is “location, location, location” and you need to find the locations on the web that are going to work for you–and it’ll be different for every company.

But the reality of it reminds me of how our parents all hoped they could get out of the workforce without having to use a computer. There is just no way that traditional direct marketers today are going to be able to get out of their jobs and retire without learning how to master social media. But the good news is that the transition can be gradual, transformative and exhilarating.

December 2009 – Channel Crossing: Online

Four Ways to Capture Attention Using Online Coupons

By Christian Gordun

Now more than ever, frugality has become the standard for many consumers looking to rid themselves of bad spending habits. In fact, a recent survey commissioned by Coupon Craze and conducted by Harris Interactive found that 94 percent of all adults have used a coupon to make a purchase. The survey revealed that the most frequent online shoppers are affluent, educated and may be getting frustrated with negative experiences incurred with faulty or invalid coupon codes. This means that these ideal online customers may be generating a negative sentiment toward your brand without your knowledge.

Following are some statistics every marketer should know, and suggested tactics for leveraging online coupons to capture your customers’ attention and avoid shopping-cart abandonment.

• Who is shopping online: Adults with a household income of $75,000 or more are more likely to shop online than those who have a total household income of less than $35,000 (93 percent vs. 82 percent, respectively).

• Why they are getting frustrated: Ninety-four percent of online shoppers have had an expired or invalid online coupon code.

KEYS TO GETTING RESULTS
1 Control your brand: Several of the top websites let users share and post coupons. This means that expired coupons, which lead to consumer frustration and cart abandonment, are often passed around without your approval. To fix this problem, I suggest scanning coupon sites to make sure all coupon codes available to online shoppers are valid and beneficial to your business. Then, make sure that you have relationships with the sites that post codes on your company’s behalf. This will ensure complete brand control and eliminate the chances of shoppers abandoning a shopping cart because of a faulty coupon.

2 Post coupons; Be the chosen brand: The majority of adults (61 percent) say the availability of a coupon would make them forgo their favorite brand for the brand displaying the coupon. Posting online coupons is a simple way to engage with ideal online customers and encourage them to try a new brand–your brand.

3 Small offers go a long way: Nearly 4-in-5 adults (88 percent) would consider using a coupon for a purchase, and of these adults, over 3-in-5 (62 percent) would only need to save $1-$5 and over 1-in-3 (38 percent) would only need to save $1 to consider using a coupon. These statistics show that offering small discounts can go a long way. A $1-off coupon will generate brand exposure and provide you with a customer-relationship-building opportunity by promoting savings incentives instead of aggressive ads.

4 Think outside of the newspaper: Although at 88 percent, groceries are still the number-one item shoppers have coupons for, they are also using them to buy health/beauty items (63 percent), clothing (54 percent), electronics (46 percent), gifts (43 percent), travel-related items (32 percent), furniture (13 percent), as well as other types of purchases (18 percent). This means that you can use online coupons as an effective tool no matter what your service or product may be.

Christian Gordun is the founder and CEO of online coupon code and deal site Coupon Craze.