EBizInsider

Archive for January, 2008

The Promise of Facebook: Social Media Marketing with "Friends"

o your online store is finally paying off. You have a well-designed site, you’re fully optimized for organic listings and your paid search program is providing healthy returns. How do you prevent stagnation? Or, perhaps your business is starting to take off but you don’t have the time or resources for traditional marketing. Where do you turn for growth? Examine Social Media Marketing. Some call it a trend, others call it evolution of the Internet, but either way Social Media is the new home of the masses.

Wikipedia defines social media as “the democratization of information, transforming people from content readers into content publishers. It is the shift from a broadcast mechanism to a many-to-many model, rooted in conversations between authors, people, and peers.” Hmm?

Traditional marketing was rooted firmly around broadcast. You had a product and you broadcast it to potential customers as much as possible through mailings, radio ads, television ads, billboards etc. Even pay-per-click ads for search engines simply broadcast to the widest “specific” audience possible.

Social Media Marketing lets you communicate your message and by allowing your customers to interact with this message, mash it up and re-invent it, all while generating instantaneous feedback.

One main Social Media arena that facilitates this flow is Social Utilities, with sites like Facebook, Myspace, Nexopia, etc. They’re networks of people connected together by common interests, geographical locations, schools, or places of employment. The cleanest and fastest growing social utility is Facebook. Recent numbers show Facebook growing at over 3% a week with 3 million users age 25-34 and over 380,000 ages 35-44. With 47,000 college, high school, employee and regional networks, the chances of finding your target niche is high.

Moving In

A Facebook profile can house your company’s unique content, whether it’s a video of your latest product, a blog describing a positive user experience, picture albums of a new design, or a podcast explaining its benefits. Your e-commerce store houses your products and Facebook is the PR van that hits the road to connect you directly with potential customers.

Participate & Connect

Millions of people are connected to Facebook through shared interests, videos, pictures, messages, blog posts and stories. Sellers of skis can search millions of Facebook users for skiers. By sending out a custom message inviting them to be “friends” with your company you open your doors to your customers.

The key is to offer a product or social object compelling enough for customers to share with friends and increase your potential for viral marketing.

Create a Group

“Groups” are based around interests and can update the members about certain news, activities, events or causes that interest your niche. Toy companies can create Facebook groups to promote awareness of toys from China. They could push for safety legislation, or be an information hub with the latest list of recalled products. This builds trust in the community and can result in more traffic to your website. If your message matches the pulse of your customers, they’ll help you spread it. You can also make announcements, post updates and announce sales.

Build an Application

By far the most powerful aspect of Facebook is its open source nature. Facebook gives freedom to outside developers to create custom applications. The cost of Facebook’s code to develop this is—zilch! With a little technical know-how you can create a custom application that will capitalize on the viral components of the social utility, spreading your company’s story and products throughout the community.

A prime example is the Washington Post’s Compass application. It sits on a user’s profile page and can be clicked and added by friends. With this application you take a simple survey and a compass is put on your home page showing how liberal or conservative you are. This is a simple concept, but when shared among friends becomes a powerful branding tool for the Washington Post.

Facebook is completely free. Free to store pictures, free to post fresh content, free to create groups, free to network with customers, and free to communicate with your niches. Now that you’re familiar with Social Media what do you have to lose?

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By: Jeff Petrosillo jeffp@solidcactus.com

The Promise of Facebook: Social Media Marketing with “Friends”

o your online store is finally paying off. You have a well-designed site, you’re fully optimized for organic listings and your paid search program is providing healthy returns. How do you prevent stagnation? Or, perhaps your business is starting to take off but you don’t have the time or resources for traditional marketing. Where do you turn for growth? Examine Social Media Marketing. Some call it a trend, others call it evolution of the Internet, but either way Social Media is the new home of the masses.

Wikipedia defines social media as “the democratization of information, transforming people from content readers into content publishers. It is the shift from a broadcast mechanism to a many-to-many model, rooted in conversations between authors, people, and peers.” Hmm?

Traditional marketing was rooted firmly around broadcast. You had a product and you broadcast it to potential customers as much as possible through mailings, radio ads, television ads, billboards etc. Even pay-per-click ads for search engines simply broadcast to the widest “specific” audience possible.

Social Media Marketing lets you communicate your message and by allowing your customers to interact with this message, mash it up and re-invent it, all while generating instantaneous feedback.

One main Social Media arena that facilitates this flow is Social Utilities, with sites like Facebook, Myspace, Nexopia, etc. They’re networks of people connected together by common interests, geographical locations, schools, or places of employment. The cleanest and fastest growing social utility is Facebook. Recent numbers show Facebook growing at over 3% a week with 3 million users age 25-34 and over 380,000 ages 35-44. With 47,000 college, high school, employee and regional networks, the chances of finding your target niche is high.

Moving In

A Facebook profile can house your company’s unique content, whether it’s a video of your latest product, a blog describing a positive user experience, picture albums of a new design, or a podcast explaining its benefits. Your e-commerce store houses your products and Facebook is the PR van that hits the road to connect you directly with potential customers.

Participate & Connect

Millions of people are connected to Facebook through shared interests, videos, pictures, messages, blog posts and stories. Sellers of skis can search millions of Facebook users for skiers. By sending out a custom message inviting them to be “friends” with your company you open your doors to your customers.

The key is to offer a product or social object compelling enough for customers to share with friends and increase your potential for viral marketing.

Create a Group

“Groups” are based around interests and can update the members about certain news, activities, events or causes that interest your niche. Toy companies can create Facebook groups to promote awareness of toys from China. They could push for safety legislation, or be an information hub with the latest list of recalled products. This builds trust in the community and can result in more traffic to your website. If your message matches the pulse of your customers, they’ll help you spread it. You can also make announcements, post updates and announce sales.

Build an Application

By far the most powerful aspect of Facebook is its open source nature. Facebook gives freedom to outside developers to create custom applications. The cost of Facebook’s code to develop this is—zilch! With a little technical know-how you can create a custom application that will capitalize on the viral components of the social utility, spreading your company’s story and products throughout the community.

A prime example is the Washington Post’s Compass application. It sits on a user’s profile page and can be clicked and added by friends. With this application you take a simple survey and a compass is put on your home page showing how liberal or conservative you are. This is a simple concept, but when shared among friends becomes a powerful branding tool for the Washington Post.

Facebook is completely free. Free to store pictures, free to post fresh content, free to create groups, free to network with customers, and free to communicate with your niches. Now that you’re familiar with Social Media what do you have to lose?

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By: Jeff Petrosillo jeffp@solidcactus.com

Unused Gift Cards & Gift Certificates – Tracking, Reporting, and Staying Legal

Fresh off the holiday season, you probably sold and received gift cards. Last year consumers spent $73 billion on gift cards. Approximately 5-10% of the cards sold are never redeemed. Did you know there are some states with laws that require you to report unused cards and certificates? This raises some questions gift card sellers should be addressing:

1. How do I track gift cards?

A. Each card/certificate should have a unique identifying number.

B. Each card/certificate sold should have a start date or in using a “credit card” certificate, should have a written start date.

C. Each card/certificate should have an expiration date or the words “or as required by law”.

D. If selling different cards/certificates for different promotions, be sure to have a code to identify the card sold for each promotion.

E. Track the certificates that are actually redeemed.

F. Keep a list of outstanding gift certificates.

G. If possible, get the customer name and address purchasing the gift card. Consumers may be reluctant to part with that information, but it is very helpful when the gift card goes unredeemed.

2. How do I stay legal and report unused gift cards?

With the increased number of gift certificates sold over the past several years, state governments are taking notice. Many have established “escheat laws” as it pertains to abandoned property including gift certificates.

In the simplest terms, “escheat” refers to the process through which property that is, or is deemed to be, unclaimed or abandoned becomes property of the state after a certain period of time. All states have escheat laws that, while being similar, are all somewhat different. Each state defines how long property must be unclaimed before it is considered abandoned. Most states have a three to five year period before the gift certificate is considered abandoned. The chart below shows some examples of how the laws differ by state, according to the “National Conference of State Legislatures” website.

With each state looking to increase revenues without increasing taxes, some states have established “Unclaimed Property” reporting where depending on the state, corporations and businesses now are required to file “Unclaimed Property” returns and submit payments for the unclaimed property, which includes unused gift certificates. Most states require that gift certificates carrying a partial amount must also be turned over to the state. Reporting is done on an annual basis.

The penalty for violating the gift certificate law can result in severe penalties, including fines, multiple damages, and attorney fees.

Should you request more information, you can visit the National Conference of State Legislatures at www.ncsl.org. Here you can access each state’s statutes regarding abandoned gift certificates. Learn the laws that apply to coupons where you do business now, that way you will be able to avoid any unwelcome surprises later. eBiz

The list below shows some examples of how the laws differ by state, according to the “National Conference of State Legislatures” website.

California – Gift certificates purchased after 1997 are not subject to escheat. The escheat law does apply to any gift certificate that has an expiration date and that is given in exchange for money or any other thing of value.

Connecticut – Gift Certificates do not escheat to the state.

Pennsylvania – The consideration paid for a gift certificate or gift card which has remained unredeemed for two years or more after its redemption period has expired and for five years or more from the date of issuance if not, redemption is specified.

Utah – A gift certificate greater than $25 that remains unreconsidered for more than five years after issuance is considered abandoned. The amount considered abandoned is the price paid for the certificate itself.

West Virginia Gift certificate, three years after the thirty-first day of December of the year in which the certificate is sold, but if redeemable in merchandise only, the amount abandoned is deemed to be 60 percent of the certificate’s face value.

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By: Patty Sleboda pattys@ebizinsider.com

Unused Gift Cards & Gift Certificates – Tracking, Reporting, and Staying Legal

Fresh off the holiday season, you probably sold and received gift cards. Last year consumers spent $73 billion on gift cards. Approximately 5-10% of the cards sold are never redeemed. Did you know there are some states with laws that require you to report unused cards and certificates? This raises some questions gift card sellers should be addressing:

1. How do I track gift cards?

A. Each card/certificate should have a unique identifying number.

B. Each card/certificate sold should have a start date or in using a “credit card” certificate, should have a written start date.

C. Each card/certificate should have an expiration date or the words “or as required by law”.

D. If selling different cards/certificates for different promotions, be sure to have a code to identify the card sold for each promotion.

E. Track the certificates that are actually redeemed.

F. Keep a list of outstanding gift certificates.

G. If possible, get the customer name and address purchasing the gift card. Consumers may be reluctant to part with that information, but it is very helpful when the gift card goes unredeemed.

2. How do I stay legal and report unused gift cards?

With the increased number of gift certificates sold over the past several years, state governments are taking notice. Many have established “escheat laws” as it pertains to abandoned property including gift certificates.

In the simplest terms, “escheat” refers to the process through which property that is, or is deemed to be, unclaimed or abandoned becomes property of the state after a certain period of time. All states have escheat laws that, while being similar, are all somewhat different. Each state defines how long property must be unclaimed before it is considered abandoned. Most states have a three to five year period before the gift certificate is considered abandoned. The chart below shows some examples of how the laws differ by state, according to the “National Conference of State Legislatures” website.

With each state looking to increase revenues without increasing taxes, some states have established “Unclaimed Property” reporting where depending on the state, corporations and businesses now are required to file “Unclaimed Property” returns and submit payments for the unclaimed property, which includes unused gift certificates. Most states require that gift certificates carrying a partial amount must also be turned over to the state. Reporting is done on an annual basis.

The penalty for violating the gift certificate law can result in severe penalties, including fines, multiple damages, and attorney fees.

Should you request more information, you can visit the National Conference of State Legislatures at www.ncsl.org. Here you can access each state’s statutes regarding abandoned gift certificates. Learn the laws that apply to coupons where you do business now, that way you will be able to avoid any unwelcome surprises later. eBiz

The list below shows some examples of how the laws differ by state, according to the “National Conference of State Legislatures” website.

California – Gift certificates purchased after 1997 are not subject to escheat. The escheat law does apply to any gift certificate that has an expiration date and that is given in exchange for money or any other thing of value.

Connecticut – Gift Certificates do not escheat to the state.

Pennsylvania – The consideration paid for a gift certificate or gift card which has remained unredeemed for two years or more after its redemption period has expired and for five years or more from the date of issuance if not, redemption is specified.

Utah – A gift certificate greater than $25 that remains unreconsidered for more than five years after issuance is considered abandoned. The amount considered abandoned is the price paid for the certificate itself.

West Virginia Gift certificate, three years after the thirty-first day of December of the year in which the certificate is sold, but if redeemable in merchandise only, the amount abandoned is deemed to be 60 percent of the certificate’s face value.

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By: Patty Sleboda pattys@ebizinsider.com

Holiday Year End Review

If you’re reeling from this year’s holiday season and want to hibernate, bring your laptop! This is a perfect time for a holiday review. While it’s good to see how well you did compared to previous years, it is also good to see how your online competitors have done. No two businesses are identical, but this may help give you a baseline for comparison and improvement.

E-commerce is still exploding. Forrester Research expected online holiday retail sales to increase 21% in 2007. How did you do? No time like the present to review the past! Many lessons from the holiday season can be carried through the year.

Your year-end review should include:

1) Website Analytics

2) Promotional Activity

3) Marketing Performance

4) Inventory Management

5) Customer Service

Website Analytics

If you created special holiday gift sections or categories; how did they perform? Rather than examining the number of people who visited those sections, instead see if the holiday promotions increased conversions. Study the data to see if people shopped via search, regular categories or the gift sections.

Many analytic programs give you this type of insight with the click of the mouse, but if you don’t have those stats readily available then compare the number of visitors to that page with the sales of the products in that area. Make a note of any changes that might boost traffic and awareness to those areas.

Promotional Activity

Promotions are more important than ever during the holiday season. Review which promotions drove the most traffic to your website and which promotions led to the most sales. Ask basic questions. What worked, what didn’t and why? Which promotions generated the best conversions? Best sales?

If you see a promotion that generated traffic but few conversions, you may need to tweak your landing page, the spot where you send your customers. If a holiday promotion worked, see if it has success during the rest of the year. Tweak and refine your promotions to boost sales.

Marketing Performance

Review your holiday marketing efforts. You might have the right message, but did you get it in front of the right people? How well did your banner perform? How about your pay-per-click marketing? Did you see any improvement during the holiday season?

Analyze the traffic and see which types of marketing provided the highest conversions. Then, focus your marketing budget on the winners.

Inventory Management

All the data analysis in the world won’t help if you’re out of stock. If you had problems filling specific orders because your inventory ran out the door too quickly, fix the problem. Review past holidays sales and plan on increasing inventory levels by September. Monitor new items or items that you feel will be big sellers during the holiday season and adjust stock accordingly.

Do you have extra inventory on hand that didn’t move as quickly as you hoped? Get rid of it! Now is a perfect time for a website promotion or e-mail blast. Get rid of any excess inventory now and fill your shelves with products that will move.

Customer Service

Service is vital during the holidays. You may have been able to get away with e-mail correspondence the rest of the year, not during the holidays. Your customers want attention! Toll-free numbers are worth their weight in gold for confused customers. Providing live chat services allows you to answer questions immediately, without requiring someone to pick up a phone. Review the complaints you logged this year and see where you can improve. While you’re at it, remember to improve your strengths too.

There is no excuse for letting your customer service voice mail fill up. If you found yourself overwhelmed this year with calls, e-mails and chats, consider adding part-time help during the peak season or talk to an outside call center.

Looking Ahead

After completing your holiday review, take the next step and create a roadmap for the coming year. Note important deadlines and dates so you don’t find yourself making changes at the last minute, or worse, the same mistakes as this past year. Make the effort now so that you can reap the rewards tomorrow (and beyond).