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Ten
E-Business Proverbs for 2006, Part 2
By Bryan Eisenberg |
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My
last column shared the first 5 of 10 e-business
proverbs from Sam Decker, former e-commerce and
customer-centricity leader at Dell. Today, the second
five.
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Choose your results.
Choosing a result means you publicly stake a flag in
the ground to achieving a forecast goal. The
forecast is what I call a "results rabbit": once
people commit to a result, they go after it like a
greyhound chasing a rabbit.
To achieve e-business results, decide what results
you'll achieve on a daily, weekly, and quarterly
basis. Forecast key metrics in your online business:
online revenue, margin, visit, conversion, average
order value, and so on. Assign ownership to these
measurements and report (red, yellow, green)
progress against your forecast. Set stretch goals.
All will work to achieve a goal, but they must know
what it is, how they're responsible, and where they
stand.
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Compete with something.
Forecasts and reporting align everyone with the
goals. For fun and motivation, add competition to
the mix. Of course, you compete with competitors,
but you can also have healthy internal competition
(fun). I used to divide up my team. We'd do A/B
split tests, and whichever sub-team came up with the
best merchandising idea got a monetary reward. The
reward was nominal, but the competition was
everything. Add this dynamic to your operations. It
makes it fun to win.
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Design on purpose.
Creative can get out of hand. I'm not talking about
creative people. Ironically, it's business and
marketing managers who often come up with crazy
ideas for a Web site. Design and pages should serve
a purpose that maps directly back to a visitor's
task, goal, and persona. In the quest to grow
business, the business grows new site designs and
content. You may want more real estate for a new
product, but a microsite rarely works. Less is more.
Focus on the primary purchase path. Designs that
balance customer and business purposes are win-win.
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Grok your customers.
To grok something is to understand it so well, it's
fully absorbed into oneself. (Robert Heinlein coined
the word in his 1961 novel, "Stranger in a Strange
Land.") Team members should sip from multiple cups
of insight to fully grok customers and visitors.
This means triangulating insights from Web
analytics, order data, usability studies, focus
groups, surveys, verbatim feedback, ratings and
reviews, word-of-mouth content outside the site, and
persona exercises. Managers and decision makers must
grok customers to achieve the right state of mind to
make strategic decisions on design, copy,
merchandising, and development priorities.
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Get real.
It's a paradox; you must underestimate customers to
make your site easy to use, but you must also
appreciate that customers are smart and cynical.
Superlative claims and fancy merchandising aren't as
persuasive as they used to be. I've tested headlines
with substantiated, factual claims (e.g., "this is
the best seller") against general, superlative
headlines (e.g., "we recommend this," or "great
product"). Factual headlines outperform superlative
ones, four to one.
E-commerce sites have a huge opportunity to bring
authentic voices, whether their own or their
customers', to their sites. Ratings and reviews, for
example, in which customers can share their product
opinion with others, are under utilized. A Shop.org
2004 study found only 26 percent of online retailers
had online ratings and reviews, but 96 percent of
those who did suggested it was an effective tactic.
Put customers more in charge of your brand,
merchandising, and copy. Let their voices prioritize
and direct decisions (that's why it's important to
grok customers). Their authenticity and transparency
is compelling to other customers, and you can put a
system in place to help customers build your
business.
Bazaarvoice, where Decker now works, is a new
company doing just that. It provides managed
technology and services to bring word of mouth
closer to a company's online experience (full
disclosure: I'm an advisor for Bazzarvoice.)
Now, go out and practice these proverbs.
Have a blowout 2006!
ABOUT THE AUTHOR
Bryan Eisenberg cofounded marketing consulting firm
Future Now with his brother in 1998. Future Now
applies persuasion architecture to increase online and
multichannel conversion rates so prospects purchase,
subscribe, register, make referrals, or accomplish other
goals that can be measured and optimized. Bryan helped
invent and develop MAPSuite, a suite of software
applications that allows non-experts to apply persuasion
architecture to their businesses. He is the publisher of
GrokDotCom and has authored
several books and reports, including the "New York
Times," "USA Today," and "Wall Street Journal"
bestseller "Call
to Action"; his latest is "Waiting
For Your Cat to Bark?"
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