Author Archive
The Demise of Borders Books: Death by Internet
The news that Borders is considering putting itself up for sale should come as no surprise.
Although the company used last week’s announcement that they’re seeking a buyout as an opportunity to blame a tight credit market and competition from discount chains like Wal-Mart, Borders‚ disappointing performance stems from a failure to take e-commerce seriously.
For Borders not to have an exclusive online presence in this day and age boggles the mind. The homepage is a drab catchall for store locations, gift cards, and company information. The coupons that Borders Rewards members receive via email are good for in-store purchases only. And if you do decide to shop Borders online, type in “Borders.com” and see where it takes you to an Amazon.com boutique, complete with “amazon.com” in the URL.
Why brand your biggest competitor (which, despite market conditions, grew by double digits last year)?
Borders does have a beta site that they’re testing and promoting on the current homepage (Bordersstores.com, not Borders.com), assuring visitors that “whole new Borders experience is coming.” The beta site is very attractive and conducive to buying — except for one minor detail. You can’t buy anything. There’s still no e-commerce attached to Borders, only the ability to “save” a book for pickup at the store nearest you.
To ignore the ways in which online shopping has permeated the lives of untold millions of customers is one of the biggest business failures of this decade.
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[About the author: Michele Miller is a guest contributor for GrokDotCom. Michele is co-author (with FutureNow’s Holly Buchanan) of The Soccer Mom Myth “Today’s Female Consumer: Who She Really Is, Why She Really Buys”. You can buy it online from Amazon.]
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Written by:Michele Miller
How Barack’s Strategy Could Help You Win Customers
I’m old enough to have grown up in the 1960’s, which was a “you-had-to-be-there” era of civic thinking and electrifying ideas. Not since that time have I found myself as excited as I am now over the upcoming presidential election.
I’ve been making donations to all of the major campaigns (Democratic and Republican) in order to see how each system works and talks to me, and while none of them do a bad job, there’s a definite divide between how the older and younger candidates communicate. The standout in the group is Barack Obama.
You may feel that Barack is not your candidate, but do take a look at his communication style, which is the definitive example for how to speak to customers (especially the younger generation) if you hope to do business with them.
No chest-thumping allowed. While other candidates focus on what makes them special as a candidate (count how many times a candidate uses the word “I” or “me” on their website), Barack’s campaign theme is “Yes We Can.” His website offers the theme of community, and uses terms like “you,” “we,” and “us” to draw you into the fold.
It’s all about US. When making a donation to the campaign, you are asked to write a short note about your feelings about Barack, the campaign, or anything you wish. Then, when you receive your thank-you note, it includes a message that another donor wrote (along with their first name and city). Suddenly, you are no longer a lone, isolated donor; you feel an immediate sense of community, belonging, and mission.
“Please, call me Barack.” As with any campaign, automatic emails and news items are sent to members and donors. The language used is serious in tone but not condescending. And each email is signed, “Barack.” Not “Barack Obama.” Not “The Barack Obama Campaign.” Just “Barack.” A decision as small as how you sign your name to a piece of marketing (because that’s what this is, after all), can make a world of difference.
After last weekend’s Barack Obama rally in California, an editorial in The New York Times said,
“The Times editorial board has endorsed Mrs. Clinton’s candidacy, and we are enthusiastic about her ability to be a great president. But candidates have to win in order to serve. Attending the rally here, we hoped Mrs. Clinton and her team were also watching and listening, very attentively.”
Not only should Clinton (and McCain and Romney) be paying attention, so should you. This is the communication style of the future.
Are you ready for change?
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Written by:Michele Miller
Has Netflix Taken a Step Back?
Hurrah for Netflix! In a move that I hail with a standing ovation, the company has opened a customer service call desk operation that’s based in the good ol’ U. S. of A. There’s an excellent article in The New York Times with details on the company’s move to ward off hot competition from big guys like Blockbuster. No outsourcing or offshoring; the call center is housed just outside Portland, OR, and is open 24 hours a day.
But here’s the part that disappoints me. According to the article:
. . .in July, Netflix took an unusual step for a Web-based company: it eliminated e-mail-based customer service inquiries. Now all questions, complaints and suggestions go to the Hillsboro call center, which is open 24 hours a day. The company’s toll-free number, previously buried on the Web site, is now prominently displayed.
Why remove the option to get customer support via e-mail? My husband and I have to be in the running for Platinum membership in Netflix, and I’ve always felt they had one of the best websites ever for member service. The few times we had problems, I simply had to drop an e-mail and things were fixed. I happen to prefer web-based solutions or e-mail to phone calls, simply because I tend to be introverted and would rather maintain control of the situation without having to interact with people.
Who assumed a call center could eliminate the need for Web-based support? An extrovert, no doubt. Netflix should think about what having both options means to its members.
Bring back e-mail support!
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Written by:Michele Miller
Carrots Worth Their Weight In Gold
Sometimes, it isn’t the carrot on the end of a stick that persuades a customer, it’s the direction that carrot is swinging.
Awhile back, I found myself in the middle of a conference call with the CEO of a young Internet company, in preparation for a consumer research project we were about to launch. The company, a west coast-based service firm, allows customers to securely file emergency contact information and medical files online for an entire family (pets included). Backed by a 24/7 call center, the business is a slam-dunk in giving caretakers peace of mind should any emergency arise.
Our initial work for the company had been to help create more compelling content for their website, with the goal of converting more visitors into customers. At the time of our conference call, web stats showed that while a percentage of people were following the content all the way through to the sign-up page, they bailed out before actually signing on to the service. The CEO was flummoxed.
As we sat there talking, I kept flipping back and forth between the homepage and the sign-up page. Suddenly, it hit me: they were saying the right thing, but not the right way.
CEO: “I don’t get it. Our service costs less than $35 a year, yet the process comes to a screeching halt when visitors have to sign up. What’s the hang-up?”
MM: “Well, your service is still a fairly new business model and perhaps with all you’re promising, it seems too good to be true. Have you thought about offering a free trial?”
CEO: “We do… you can see it on the sign-up page. We give two months for free.”
MM: “That’s great. So, why aren’t you advertising this on your homepage? Surely there are those folks who are a bit more impulsive and will want to check it out right away.”
CEO: “You’re right. We’ll get on that, first thing. Where do you think we should put the info about the $4.95 handling fee?”
You can see where this is going, right? My client was making two common yet potentially dangerous marketing mistakes. Mistakes that are easy to make, yet simple to rectify:
1.) Dangle the Carrot Right in Front of Their Nose
With an Internet business that is appealing-yet-unfamiliar to the consumer, this company needs to work a little harder to convince people it’s worth their time and money to buy the service. The company does offer an option to break through the price-resistance barrier, but they hadn’t thought of placing it on the most important page for price-conscious visitors: the homepage. By creating a graphic on the homepage that links to a detailed offer, the company will see an immediate increase in sign-up; customers looking for an easy way to dip their toe in the water can try the product without obligation. And the company now has a customer’s information to not only follow-up and sell a yearly subscription, but conduct ongoing consumer research directly with users of the service.
2.) Swing the Carrot to Make It Irresistible
Then there is the matter of that $4.95 handling fee. In a world where individuals are barraged with advertising and special offers everyday, consumers are highly sensitized to hidden fees and obligations. The customer’s first reaction to a “free trial” with a $4.95 handling fee is going to be, “Free, my foot!” Hyped advertising or offers with strings attached, either intentional or unintentional, will often do more harm than good. In the case of my client, I recommended either offering a “two month trial for $4.95” or, better yet, removing the handling fee entirely, depending on what their marketing budget can handle.
Honest, informative and persuasive copy is the key to convincing customers to take action. If you’re the person responsible for marketing your business, it’s easy to fall into the trap of “being stuck inside the bottle,” hindered by tunnel vision without being able to objectively view your marketing campaign. What can you do?
Well, for starters, share your strategy, message and copy with a small group of colleagues that can be trusted with giving you objective feedback. If they support you, they’ll work hard to look for holes in your message and make suggestions for developing an airtight strategy. Take what you learn from your support system to create a powerful, honest message that comes from your heart and resonates with consumers, convincing them to do business with you. Finally, don’t expect your message to be perfect the first time around – the most successful marketers constantly tweak and develop their marketing strategy with research and feedback from customers.
Spend some time with your advertising, website and peripheral marketing materials. Does the most important part of your message reveal itself in all the right places? And what is it you’re actually saying to customers… is it really what you meant to say? Only when you take the time to carefully develop and place your message will you have a carrot worth biting into.
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Written by:Michele Miller
Women, Blogging, and Boundaries
When Jeffrey Eisenberg sends you an email with “Read This” in the subject heading and nothing in the message but a link, you expect it to be important. And important it was; a post titled “Should Women Be Afraid to Blog?” commenting on Kathy Sierra’s decision to cancel a keynote speech after receiving perceived death threats. I won’t go into details; if you’re interested you’ll find Kathy’s post here (WARNING: disturbing images and language abound).
I don’t know Kathy; I’ve never met her nor have I seen her present a speech. I do read her blog and am often impressed with her theories and approach to general business, not to mention information technology. But know her or not, I’m not surprised at her reaction. Some say she may be overreacting, but elementary science will tell you that women react more strongly to situations like this, given that there are four times as many connections between hemispheres of the female brain that that of the male brain. Four times the speed of reaction; four times the power of deeply tapping into emotion, emotional experience, and four times the power of fight-or-flight reaction.
Women not only have a super-highway system of emotional brain response, they also have to deal with cortisol; the chemical released into the body during fight-or-flight situations. Studies show cortisol stays in the female body as much as three times longer than in the body of a man. Sustained threats, especially from an anonymous source, can pump more cortisol than an ordinary body can handle. You don’t have to experience a threat first-hand; Kathy’s experience certainly affected me and hundreds of others just by reading about what is happening to her.
Should women be afraid to blog? I think not.
There are rare cases of stalking and harassment but, for the most part, ugly comments, insults and threats are something many of us experience at the hands of a few. I’ve been called stupid, narrow-minded and even un-Christian (for posting about Dove’s Pro-Age campaign); female blogging friends have had their sexuality questioned and been “frozen” out of industry events. But will it stop us from writing? It shouldn’t. Blogging is about freedom of voice. Rare instances of online terrorism like Kathy’s (and yes, it’s terrorism, when it’s anonymous) shouldn’t be taken lightly, but nor should they stop women from participating online.
It will be interesting to see how this situation resolves itself, and if the cover of this anonymous yahoo will be blown. To explore the mind of someone who would stoop as low as this, and find out what it was that precipitated such extremes, would make for a compelling case study in online harassment. And should we even be assuming the guilty party in the Sierra case is a man? An interesting question, for sure…
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Written by:Michele Miller
Are Websites Just for ECommerce?
This past weekend, I had the pleasure of presenting a seminar on the topic of marketing to women, to the National Association of School Music Dealers. During the segment on the importance of effective websites, a participant raised his hand. “We don’t have e-commerce on our website,” he said. “If we’re not selling online, is it really important to invest in a good website?”
I could have given several answers, but with limited time, I simply presented him with one statistic. According to a recent study cited in eMarketer.com, 58% of broadband users who did research on a product made the purchase in a store.
Not surprisingly, the room became very quiet. I had just provided a wake-up call.
You may not be selling product online, but you’re definitely selling your brand. You’d better do a good job convincing me online that you’re my best choice; otherwise, you probably won’t see my face in front of your cash register.
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Written by:Michele Miller
Technology and the 2008 Presidential Campaign
John Edwards twitters me nearly every day.
It’s not quite as provocative as it sounds. The John Edwards campaign is working hard to connect and start discussions with people through technology. Whoever is in charge of the Edwards online presidential campaign has a firm grip on the effect of social media and is workin’ it hard.
Visit Edwards’ website and prepare to be amazed. On the home page, there’s a large section titled, “Connect With the Campaign,” which gives visitors a choice of plugging in via MySpace, Gather, Flickr, eAssembly, and more. The site’s blog doesn’t just report campaign news; it’s an interactive tool where anyone can write and post.
Then there’s Twitter, the latest social media platform that’s taken the Internet by storm. Allowing for only 140 characters per post, it’s a cool combination of mini-blog and IM. Almost every day, I receive a text message directly from Edwards:
3/8/07: Interviews, airplanes, and just arrived in Houston.
3/9/07: Left Houston this morning. Holding a community meeting on healthcare in Council Bluffs, Iowa today. Des Moines tonight.
3/10/07: Community meeting on healthcare in Newton, IA. Then 1 hr 1/2 drive to Burlington for a similar meeting. Later tonight, back in NC.
Suddenly, watching Edwards on the evening news, I can connect with where he is and what he’s doing. I am in-the-know. When I joined Twitter last week, I became Friend #256 on the John Edwards Twitter list. As I write this less than a week later, the number of friends has reached 738.
How cool would it be if John Edwards promised to keep Twittering if he were elected? Can you imagine how hooked into the White House we’d feel if we got a daily Twitter from the President?
2/1/09: Lunch today with Kim Jong Il. He wants to watch “It’s a Wonderful Life” afterward. Hope there’s popcorn.
4/12/09: Calling Mahmoud Ahmadinejad this afternoon. We’ll talk uranium, religion and peace.
10/23/09: Today is the vote on universal healthcare. Have you called your congressman to register your vote?
I don’t even know if John Edwards is my personal choice for president, but already I feel I know him better than any of the other candidates. His Second Life headquarters may have been trashed by insurgents, but his real life on the campaign and his attempts to reach out via social media are fascinating.
Could this be the election that hinges on connection… and winning… through technology?
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Written by:Michele Miller
