Yes, I’m from Mars, so maybe that’s why I find this so
bizarre: "Right now, about a third of U.S. e-tailers
use shipping as a profit center."1 That’s
a business model? And a way to keep customers? Some people
out there clearly need to know, "60 percent of those
who abandon their online shopping carts did so because
shipping costs were higher than they had expected."2
And there’s no way to really know how many customers did
complete their purchases, but were outraged when they
discovered later they had been hit with outrageous
shipping charges that were not disclosed A bunch of those
folks won't be coming back, ever.
A
friend of mine needed a special microphone line level
adapter for a Macintosh and had to have it within two
days. Nobody locally carried this $20 item, so she went
cruising the Internet. She found several companies who
would supply it, for roughly the same cost, within the
two-day deadline. One company located only a state away
wanted to charge her $30 for 2nd
Day Delivery. The other company, on the opposite coast,
offered to send the item for just $12.60, the amount the
carrier would charge them for the service. Guess who got
the sale? And guess who is never going to see my friend as
a customer again?
Your
customers aren't fools, and it's a rare customer who isn't
going to scratch his head when confronted with a shipping
charge that looks way out of line. Folks expect to get
charged something for shipping
-
after all, it's a trade-off for the convenience of not
having to drive anywhere or hassle with crowds. That's
worth something, and customers, for the most part, are
fair-minded. But they’re not willing to get taken to the
cleaners. When you pull this sort of sticker shock with
your clients, your credibility isn’t just weakened, it’s
destroyed.
What
can you do? You certainly don't need to ship at a loss
(although 50% of e-tailers lose money this way - another
brilliant strategy). But you can charge at
your
cost, possibly with a nominal handling fee if
absolutely necessary. You will make it up on more
sales volume (assuming you’re selling your product or
service at a fair profit, of course). Or, you can build
your shipping charges into the price structure of your
products. Another option is a "flat-rate"
shipping fee, which represents the average of all your
shipping costs. Naturally, you need some good historical
data to set this fee wisely, but your prospects do
perceive a lot of value in policies that promise
"$3.99 shipping to anywhere in the U.S." (or
wherever).
Equally,
if not more important, don’t make your customers wait or
guess about shipping charges. Most of them won’t; they’ll
bail. Make shipping charges (and any other extra charges)
clear before you ask for credit card information,
make sure the charges are fair, and make the bottom line
worth the convenience of foregoing a trip to the store.
Whatever
you do, don't abuse your customers with unreasonable (or
hidden) shipping costs. Do so and they'll quickly become
customers of someone who doesn’t.
1
"Five Battle-Tested Rules of Online Retail."
Paul Kaihla, eCompany, April 2001. <http://www.ecompany.com/articles/mag/0,1640,9599,00.html>.
2
Paul Kaihla.
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Another Out-Of-This-World (And Free) Source of Valuable Knowledge
In my never-ending search to bring you the very
latest and best e-business info in the galaxy, I've
come across a truly exceptional resource. MarketingProfs.com
is a terrific site written by some really smart (and
really great) people, and it has a ton of practical
stuff you can use to increase your business
right away. They also put out an excellent
newsletter that I look forward to and read
diligently (don't even THINK of interrupting me). To
learn more and to subscribe, check out MarketingProfs.com.
The
Grok
|
Hey X10, Pop This!
Hey,
X10.com
dudes! What is with you guys? I hear
you're getting more traffic than Amazon, but we all know
only one metric counts. So … anybody buying? I got an idea for you. Want to convert more folks
to buyers? Here’s the deal: you promise if we buy even one
of your products then we never have to see another unwanted
pop-up from you again! Personally, I'd leap at any chance to
get rid of those awful annoying ads! Who wouldn't?
Feedback?
All You Gotta Do Is Answer the Question
Remember
the Dick Van Dyke Show from way back? I wasn't in this
sector of the galaxy at the time, but your late-night TV
never seems to get tired of this stuff. So, not too long
ago, I got to watch an episode that a) had me rolling on
the floor and b) got me thinking how humans have an uncanny
habit of missing the forest for the trees and making
mountains out of molehills (I'm getting to like your
clichés a lot!).
Here's
the scenario: Little Ritchie comes home and asks Mom and
Dad where he comes from. Rob and Laura immediately
launch into fits of excruciating angst - "It's the
"S" question!! What do we tell him??"
After lengthy agonizing, they decide on a course of
discreet honesty, plunk their lad onto a living room
chair and spill the beans. Ritchie bemusedly takes it
all in and concludes, "Yeah, okay, but …"
Turns out the neighbor kid comes from Chicago, and all
Ritchie wanted to know was his own geographical origin.
Rob and Laura, never assuming the answer was that easy
all along, look at each other with a mixture of relief
and embarrassment. And sometimes real life is even
funnier. At the age of 11, one of the Future Now guys
saw the word “prophylactic” on a toothbrush at the
drugstore and, being a bright and inquisitive kid, came
home and innocently asked his parents, as they were
watching TV together, what “prophylactic” meant.
Just imagine that scene. Rob and Laura had it
easy!
Don't
see where I'm going with this yet? Stick around.
You
(Mom and Dad) are bustling about your cyber-store,
minding the shop and waiting for prospects. Your
customer (Little Ritchie) arrives with an implicit
question: "Can I safely, confidently, easily and
happily get what I want to get from you?" What
do you do? These days, the Rob-and-Laura approach to
e-commerce seems to be to take your prospect by the
eyeball and lead her around the store. "Check out
this really eye-catching Flash presentation … we make
sure you can't avoid it. Oh, and get a load of these
totally nifty, strobing icons that draw your attention
to our product categories. See, if you let your cursor
hover over the category, it turns into a picture of the
product rather than that boring pointing hand … our
programmers worked a full three days on that one
alone!"
This
lunacy is perpetuated by the assumption that when your
prospect arrives, her principle desire is for
entertainment. You think you enhance your brand, your
image and your appeal by offering it as an inducement,
when that clearly is a distant second to her desire to
make a purchase. Every study of online buying
behavior proves it. Yet there are folks out there
telling you that simple design simply bores your
prospects and sends them racing to your more clever,
more creative competitors, ergo you need to be more
clever and creative with your own site.
And isn’t it funny how most of the people who
try to convince you of the need for gimmicks are the
people who sell the stuff, actual online sales data be
damned?
As
for the pundits, Martin Lindstrom would have you
believe:
"What's
more, the rising generation craves constant
diversion, change, surprise, and innovation. … The
sites that offer surprise and creativity will be the
ones that capture consumer attention and brand
loyalty."1
Nick
Usborne, a guy we admire a lot, is also concerned about
homogenizing the online shopping experience. "Every
site seems to be in a mad rush to have the exact same
systems as everyone else. And in the process, they're in
a mad rush to make the customer experience the same.
Undifferentiated. Boring." To counter this dreadful
fate, Usborne advises, "I think one of the first
targets one can aim for is to surprise people."2
Nick
is on the right track in being concerned about sites
becoming boring, but we need to be careful to
distinguish between being refreshing and being
surprising. Trust me, the last thing your
customer wants when she is in the process of making a
decision to purchase is to be surprised! Cute and sexy
may have a place, but not when she's deciding whether to
trust you over an Internet connection with her credit
card number.
What
you really need to ditch, if you are interested in
making your e-commerce site sell more, is the idea that
tools need to look and function like something other
than tools. Think of it this way: when
did you last see a carpenter's hammer in the latest
designer colors that plays a medley of MP3 faves every
time you whomp a nail? Sure, it might have
novelty value, but after a few days, its real value is
going to depend solely on how well it whomps nails. If
it can't whomp nails, all that frippery is going to
become a liability that singles you out from the crowd
in a truly embarrassing way! When you go to Nordstrom’s,
do their salespeople sing, dance and do back flips
before they’ll help you find what you came for? How
would you feel about going in to shop there if every
time you wanted to buy something, you had to wait while
they did?
Scads
of research out there says it plainly: when folks go
online to shop, they want to find what they’re looking
for, quickly and easily, feel secure about the process,
and buy - with no confusion, delay or hassle. You
want to distinguish yourself? Then pay attention to the
questions your customers are actually asking. Give your
prospects true value, safety, confidence, clear and
concise options, intuitive navigation. Instruct them,
help them, ensure their privacy - in short, convince
them you understand and respect their needs, not
that your main interest is in parading the latest gizmo.
You
don't have to be "boring" about it at all.
That's the delightful challenge of Design: how do you
accomplish the basic tasks supremely well while wrapping
it with appealing, distinctive style? And there is
even a role for surprise; it was Rudyard Kipling who
said, "Words are, of course, the most powerful
drug used by mankind." So, by all means, in the
copy and content of your site, harness the magical
power of the word to inspire, delight, persuade and even
surprise your customers!
But
don't get lost in the wrong question here. Everything
you do on your site must support the sales
imperative, not the entertainment imperative. Think of
it as your “prime directive.” You choose among possible
layouts, the only question should be which one
will sell better (and while not the only factor by
any means, an important ingredient of that is which one
will download faster). You pick a particular color -
make sure it's a color that's going to support sales
(you do know color theory, right?). You choose a word -
it's gotta be a word that advances your prospect
closer to a buying decision. And it's important to
keep in mind the great power of any successful process
(be it hyperlinks or a shopping cart or anything else)
does lie in standardization: people come to have
clear expectations of how things work, at which
point you can use that to your advantage, or not.
Reinforce them and sales go up; “surprise” them and
sales go down. The choice really is that clear. When
they don’t have to figure out how you’ve twisted the
basics, then they are free to focus on shopping. Buying.
Spending money. On your site.
Back
to Nordstrom. Heed
these words of wisdom from CEO Dan Nordstrom, "You
don't get paid for innovation …," Mr. Nordstrom
says. "You get paid for execution."3
This is a man well-grounded in old-fashioned
retailing, who admits he is definitely not a
technological visionary, wants to avoid the dangers of
frivolous design, and yet has managed to make
Nordstrom.com a hugely successful proposition. How? By
sticking to the basics and executing perfectly.
The
vivid history of the past year ought to teach you Little
Ritchie is going to sit there nodding in bemusement
while his parents tap dance around his question only for
so long before he decides to bag it. Funny though this
might be in a sit-com, in the real world, watching an
e-business go belly-up because it’s busy getting in
the way of what its customers really want isn't very
funny at all.
1
"Where Are All the Sexy Surprises?" Martin
Lindstrom, ClickZ, August 17, 2000. <http://www.clickz.com/article/cz.2241.html>
2
"Buying Online is Boring." Nick Usborne, ClickZ,
March 24, 2000. <http://clickz.com/article/cz.1479.html>
3
"Shop Talk: Nordstrom.com says execute, don't
innovate." Ken Yamada, Red Herring, October 17, 2000.
<http://www.redherring.com/industries/2000/1017/ind-shoptalk101700.html>
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