FutureNow is part of the public company Future Now Group, Inc [OTC BB: FUTR.OB] and from time to time we are going to publicly disclose information on this blog. GrokDotCom has wider readership than any press release we could issue. Press releases do get wide “distribution” but distribution is not the same as readership. When we include our email channel, to our rss and blog visitors GrokDotCom has more than 100,000 unique readers per month.

Practicing what we preach means we can track the difference. When we wrote our press release about “Dr. Phil” project there wasn’t nearly as much response as when we blogged about it here. In fact, the reponse was so good that we added almost all the paid alpha-testing clients we needed. We could still use three more testers in lead generation and one more retailer with a considered purchase, contact us if you want to be an alpha-tester or even if you just need to improve your results. The trials are going very well and we’re on target to launch in beta next quarter. Oops Not really a slip of the tongue. The software- as-a-service line will carry the name OnTarget (TM) – powered by Persuasion Architecture (R).

The “Always Be Testing: The Complete Guide to Google Website Optimizer” launch and marketing are going full steam ahead. Bryan did get writer’s cramp while hundreds stood on line at Search Engine Strategies in San Jose to have one of the 500 books Google gave away autographed. The post-release reviews match the advanced praise and are so positive that I’m glad I didn’t co-author it or I’d have to blush.

Most importantly FutureNow’s thinking shined in the book. We’re proud of the interactive marketing optimization processes and systems developed by FutureNow. We get clients great results. In fact, I just confirmed today that we have another new client, working with our newest employee, who early on in their engagement already has a 142% increase in top line sales. Natalie is sharp and because she uses our processes she is able to deliver exceptional advice.

Without that advanced thinking we could never automate to the degree that our new SaaS lines allow us to. We are able to scale the development of quality recommendations. While that may put margin pressure on other consultants; that’s not our main goal. OnTarget is a highly disruptive business model. OnTarget will make it possible for many more small-to-medium size businesses to afford quality marketing optimization systems while being simple enough that they can effectively use it. That is why we are certain that OnTarget will increase the addressable market size dramatically.

Best of all, all that publicity is really being appreciated by our sales team who are rocking and rolling with the best pipeline FutureNow ever had and they are on target to exceed our quarterly goal for new contracts signed. That’s the kind of news no company ever gets enough of. Keep up the great work team!

That’s all for now. Now you can ask me how are we doing. Or you can wait to read the interview with The Wall Street Transcript that I’m doing this Friday.

Customers will be buying subscriptions to a web-based expert software system  for continuous improvement of their online revenue goals. It solves the problem of how to prioritize and project manage online marketing optimization so that customers’ existing resources are focused on the changes that will have the largest revenue impact.

It doesn’t replace any tool you have today and it’s not consulting! It actually complements the resources you already use, because it’s software-based and requires only a minor amount of human intervention on our part to make sure the recommendations are top notch. Imagine having Bryan Eisenberg installed on your desktop.

We’re revolutionizing online marketing. Keep your eye on FUTR.OB.

Formerly available only to AdWords users, Google Website Optimizer can now be accessed by anyone with a basic Google account. Even if you only have so much as a Gmail account, you can start testing your website — for free — regardless of whether you’re running a paid search campaign. (No worries, AdWords users, Website Optimizer still works seamlessly with the rest of the Google product suite.)

Companies of all sizes are getting results with Website Optimizer. And since it runs independently of your analytics program — or in sync with it, if you have Google Analytics — there’s little room for argument between departments as to whether or not your company should be testing. You should.

To find out more about Google Website Optimizer, visit their new…

• Website – Unglued from the AdWords site, you can visit Google.com/websiteoptimizer directly.
• Blog – Subscribe to websiteoptimizer.blogspot.com for product updates, case studies and ideas worth testing.

Why is FutureNow so excited about Google Website Optimizer? A few reasons:

1. Authorized Consultant – FutureNow was one of the original firms to be invited to test GWO with clients, and the case studies have been remarkable so far. Is yours next?
2. Writing the book on GWO – Bryan Eisenberg & John Quarto-vonTivadar, inventors of FutureNow’s patented Persuasion Architecture® methodology, have teamed up to write Always Be Testing: The Complete Guide to Google Website Optimizer, in book stores this August.
3. It works! – The results speak for themselves.

Of course, knowing what to test — design elements, copy, etc. — is everything. If you’d like to start testing and you’re not sure if you need to hire a firm, here are several free resources to get started with Google Website Optimizer.

Got questions about Website Optimizer or testing in general? We’d love to hear your comments.

Bad news first. In aggregate, online retailers fall far short of offering good or even adequate customer experiences. A pathetic 4 out of 330 sites would get a passing grade in Customer Experience 101. It’s frightening to consider how much money is being left on the table and how many conversion opportunities are missed.

The good news? Companies show improvement over the last survey, though they’re falling short on many basics. These basics, however, can be relatively easily addressed and fixed. Companies committed to improving their customers’ online experiences can prioritize lower-cost and less-complex changes to improve their customer experience scores.

Improving Customer Experience Basics

While it’s easy to stare at the puddle of spilled milk and fight back the tears, there’s little profit in it. It’s a bit painful to get a less-than-stellar grade, but the smart marketer will look at missed opportunities and be sure not to miss them again. Provide an intense customer focus, and you’ll see more customers vote for you with their wallets.

Here are some actions retailers can take in the four key customer areas:

• In product presentations, provide:
  • Better and more enticing product descriptions.
  • Better-quality product images.
  • Multiple images.
  • Customer reviews.

• For fulfillment options, offer:
  • Product availability.
  • Easily visible return policies, shipping policies, and guarantees.
  • Customer-friendly and easy-to-read and -understand return/exchange policies.
  • Gift options.

• For checkout options, include:
  • Multiple payment options (e.g., by check, PayPal, etc.).
  • Estimated delivery times, and show in-stock availability for items.
  • In-store pickup where physical stores exist.
  • A progress indicator in the checkout process.
  • Simpler or fewer steps or both in the checkout process.
  • Third-party seals and security assurances.

• For customer service options, implement:
  • Faster and more accurate replies to customer e-mail inquiries.
  • Chat options.
  • A visible phone number for questions and problems.

All these are significant factors that customers have come to expect online. Your customers notice little things that can make a huge difference. Companies that lavish attention on improving customer focus will reap more sales and will experience superior customer-retention rates in the long term.

You can continue reading on my column on ClickZ or read the full study on GrokDotCom.

Our 2007 study clearly shows that online retailers are not capitalizing on the customer experience and are overly focused on innovation while ignoring the basics.

U.S. online retail sales will more than double over the next six years, reaching $316 billion by 2010, according to a new report from Forrester Research — they expect e-commerce will grow to account for 12 percent of total retail sales in 2010, up from nearly 7 percent in 2004.

Industry observers report that, since the advent of the Internet, online sales have increased overall by about 25% annually (“Online Sales Lose Steam,” The New York Times – June 17, 2007). But they also note that sales are leveling off as customers return to brick-and-mortar venues for a more satisfying shopping experience.

A similar Forrester study in April 2006 revealed that only 26% of online consumers were simply satisfied with their shopping experience. This suggests a whopping 74% — three-quarters of online shoppers — weren’t even satisfied. And what of the remaining 26%? They weren’t delighted. They were merely “satisfied.” In other words, the shopping experience was, at best, adequate. Are retailers in a race to see who can be the “most adequate”?

The Importance of Customer Experience

With all the investments and improvements within the last five years in redesigns, usability, analytics, multivariate testing, and the increases in broadband speed and availability, one might have expected significant improvements in bottom line. Yet, according to Shop.org, conversion rates are still hovering around 2.5%. Customers aren’t delighted.

Research by companies like Bazaarvoice, however, paints a different picture of the current “leveling off” in the e-business world. Their results indicate the problem doesn’t lie in the allure of the offline shopping experience, but in the failure of online stores to present a customer-focused shopping environment. In our experience, many of these sites also fall short of customer-focused excellence because they fail to effectively integrate with their offline counterparts.

Sam Decker, CMO of Bazaarvoice said, “According to customers, what were once ecommerce nice-to-haves are now table stakes. Easy checkout, product search and the right policies are as important as multi-channel integration and authentic user-generated content, such as ratings and reviews. The way customers research, shop and buy has evolved. Future Now’s study underscores the need for retailers to do the same and reconsider priorities.”

To analyze the extent to which websites focus on the customer experience, Future Now sent mystery shoppers and Conversion Analysts to over 300 retail websites to gather information for our 2007 Retail Customer Experience Study.

What the Customer Focus Study Reviewed

The study consisted of visiting a retailer’s website and answering a series of Yes/No questions about the availability of 69 different factors that reflect a focus on customer experience. These factors were weighted based on our 10 years of optimizing retail website experiences and totaled to arrive at an eventual score for each site. The features we asked our shoppers and analysts to address include:

• Quality and detail of images (e.g., “Could the shopper zoom in?,” “Did the retailer provide product images from multiple angles?”)
• Product copy description answering the shopper’s implicit questions
• Whether the retailer offers customer reviews
• How the retailer met the shopper’s gift buying needs (e.g., “Did the retailer offer gift wrapping, messaging or gift certificates?”)
• Ease and simplicity of checkout (e.g., “How many pages did it take to check out?” “Did the retailer provide a progress indicator?”)
• Retailer’s ability to address the shopper’s concerns (e.g., return policies, guarantees, third-party seals and security assurances)
• Ease and clarity of retailer return policies
• Providing of shipping and tax totals early in the checkout process
• Offering multiple payment options (e.g., pay-by-check, PayPal, etc.)
• Offering estimated delivery times and showing in-stock availability for items
• Offering in-store pick-up where physical stores exist

We specifically asked the mystery shoppers to ignore:

• price points (inclusive of tax, shipping and handling);
• the ease in locating the products;
• the efficacy of the brand in conveying confidence;
• the impact of overall design on credibility and sales;
• the entire customer experience from search to purchase fulfillment.

Rather than evaluating the entire customer experience, this study provides a benchmark for retail sites based on more objective criteria. Therefore, our 2007 Retail Customer Experience Study provides a thumbnail view of how businesses speak to the needs of their customers.

There’s much work still to be done and plenty of opportunity for improvement. The top-rated site in this study scored only 67 out of a possible 100. Even the top-rated company has plenty of room to grow before it has thoroughly delighted its customers and improved its bottom line.

Given the results of our study, Future Now further believes that companies which lavish attention on improving customer focus will reap more sales and experience superior customer-retention rates in the long term .

The Results: 2007 Online Retail Study for Customer Focused Excellence

Congratulations to the top fifteen retailers for their efforts at providing visitors a customer-centric experience.

The Overall Leaders:

1. SmartBargains.com 67
2. BestBuy.com* 66
3. Compactappliance.com 66
4. BlueNile 65
5. EasternMountainSport 64
6. BackCountry.com 63
7. TigerDirect.com 63
8. CDUniverse.com 63
9. Ebags.com 63
10. Staples.com 63
11. AmericanMusical.com 62
12. Landsend.com 62
13. Crutchfield.com 62
14. Walmart.com 62
15. Walgreens.com 62

*Moved from 11th to 2nd since launching customer-generated reviews.

Average score for all retailers = 43 (± 11)

The Leaders by Category:

Apparel / Fashion
1. eBags.com
2. Landsend.com
3. Lids.com, Bluefly.com, LLBean.com

Electronics
1. BestBuy.com
2. TigerDirect.com
3. Crutchfield.com

Food
1. SurLaTable.com
2. Cooking.com
3. Berries.com

Jewelry
1. BlueNile.com
2. Ice.com
3. Diamond.com

Children / Toys
1. OneStepAhead.com
2. KBToys.com
3. BabyAge.com

Housewares / Kitchen
1. CompactAppliance.com
2. BedBathandBeyond.com
3. SurLaTable.com

Office
1. Staples.com
2. OfficeDepot.com
3. OfficeMax.com

Mass Merchants
1. SmartBargains.com
2. Walmart.com
3. Target.com

Selected highlights learned from the study:

* 58% offer gift certificates.
* 24% do not allow customers to enlarge the product image.
* 37% offer multiple image views of products.
* 33% offer customer reviews.
* 38% of sites have difficult to read fonts. (This is especially telling considering that, this year, our average age of reviewer was younger than ever before. Only 14% allow customers to change the default font size while viewing their website.)
* 43% offer free shipping.
* 61% do not offer any information on the product page regarding in-stock availability
* 52% of retailers have physical stores; only 10% of all retailers offer in-store pickup of orders.
* 74% offer estimated delivery times.
* 42% provide shipping cost early in the checkout process. 35% have a checkout process with more than 4 steps.
* (Only) 58% correctly answer an e-mail question within 24 hours.
* 20% offer pay-by-check, 10% offer Google Checkout, 20% accept PayPal and 18% offer Bill Me Later.

This study reflects significant factors that customers have come to expect. Having worked with online retailers for the past decade to observe how customers buy at retail websites, Future Now knows that customers notice the little things. In the long run, customers vote with their dollars for companies that have an intense focus on satisfying their needs.

Curious to know how your e-tail site measures up? Contact us to find out how you rank.

Bryan Eisenberg

…marketing in an era when the customer is in greater control than ever. That businesses can ‘Always Be Testing’ (for free!). And, of course, for Hannah, Sammy & Stacey.

Cinde Johnson

…the fact that more e-tailers are coming to the realization that relevance, scent, and my buying process, are more important than their selling processes, and for making their sites more persuasive. (When you live in the “official” middle-of-nowhere, shopping online isn’t just a convenience, it’s a necessity!)

Holly Buchanan

…companies and marketers making more efforts to truly understand and communicate with their female customers. I fully believe this will lead to better results for marketers, and better results for women in general. When women are surrounded by advertising that doesn’t speak to them, isn’t relevant to them, where they don’t see themselves reflected, it’s a real problem.

Documentary filmmaker John Pilger once asked, “Does culture influence advertising, or does advertising influence culture?” I believe the answer is both. (Dove’s “Onslaught” video gives just a small taste of what it’s like to be surrounded by advertising to women.)

My hope is that in the near future, I can create video that is the opposite of “Onslaught” — that promotes all the thousands of ads that are relevant, inspiring, uplifting, and break through stereotypes. I’ll call it “Breakthrough.” I can’t wait to work on it.

Peter Lee

…all the people who now believe in the power of conversion optimization. You’re making my job much easier.

Marijayne Bushy

…an environment that fosters growth and learning, and provides me with an opportunity to help businesses and organizations of all variety and sizes. I’m grateful for colleagues who are supportive, intelligent, insightful, and prolific. And lastly, I’m grateful for our wonderful clients, who are open to new ideas, putting a new spin on old ones, and taking criticism in a positive light — and for those who’ve never hired us, yet use our free resources to dig deep and explore innovative ways to grow their organizations.

Howard Kaplan

…among other things, the Boston Red Sox for winning their second championship in 89 years.

Melissa Burdon

…the fact that people are finally seeing that they shouldn’t settle for a 2% conversion rate and are investing in conversion optimization before spending more budget on search. I’m thankful to Robert for editing my articles. I’m thankful for all the male employees at FutureNow. (But I’ll be even more thankful when we hire more females. ) Oh, and I’m thankful that the ski season starts this week!

Brian Bond

…analysis and metrics becoming a much bigger focus for marketers this year. I’m also thankful that Google finally launched a pay-for-performance ad model.

Robert Gorell

…our readers. In nine short months, you’ve helped transform a cool bi-monthly newsletter with several thousand subscribers into a top marketing blog with 100,000-ish repeat monthly seekers of knowledge. Thank you for stopping by. I’m thankful for everyone who shares their comments — you challenge our thinking and help us to (hopefully) give you a better GrokDotCom. You keep the conversation going. I’m thankful for our writers, whose insights never cease to impress me. And for all of the bloggers who inspire us. Because of you, good ideas keep spreading — quickly.

Anthony Garcia

…a lot of things, but especially my beautiful wife & children, my clients, our team, and anyone who’s kind enough to read this. Most of all this year, I’m thankful for one of my favorite emerging brands — my brand-new, burping-yet-gracious baby daughter.

John Q(uarto-vonTivadar)

…finding this cool Thanksgiving t-shirt to add to my collection!