Direct-to-Customer Commerce

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Strategic insights into the direct commerce industry, including ecommerce, direct marketing and related fields

You don’t have customer until the second purchase

When a customer buys from you the first time, it’s a test.  It’s a test of you and your business:

  • is the product what I expected?
  • was it easy to complete my purchase
  • did they treat me right?
  • did it arrive when and as expected?
  • if I have an issue, will they resolve it quickly and the way I want it resolved?

The answers to these questions will either increase or decrease the likelihood of a second purchase.  And if they do buy a second time, you probably really have a customer — good for you.

11 Personal Gestures to Turn Casual Buyers into Lifelong Customers  — this is a post from Practical Ecommerce that suggests additional things you can do to make a tentative Customer (that is, first-time buyer) into a Lifelong Customer.

Good points to consider for your business

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Filed under: Direct Commerce, Ideas, Opinion, , , , , , ,

Direct Commerce Sales, thru March, 2013

It’s critical to first, define terms.  By Direct Commerce, I’m referring to electronic & mail order retail sales, as reported by the US Dept of Commerce.

There are several similar reports out today, but they define their reporting term differently.  For example, comScore issued a quarterly report on non-travel ecommerce sales, excluding auctions, etc.  They reported about $50 billion of sales in 2013Q1.

The chart below includes all Retail Sales, compared to Direct Commerce sales, as defined above.  The 2013Q1 sales for Direct Commerce is $94.422 billion, year-over-year growth of 17%.  Direct Commerce now represents 7.52% of total retail sales

As you can see from the narrowing of the gap, Direct Commerce sales is growing almost twice as fast as retail sales, overall.  Retail sales in 2013Q1 grew only 1%, while Direct Commerce sales grew 4.2% in the same quarter (quarter-over-quarter).

Screen Shot 2013-05-13 at 1.19.20 PM

Filed under: Direct Commerce, News, , , , ,

Low Cost Digital Marketing leads to Lazy Marketing

Digital Marketing … especially, email and social media … is leading to marketing the easy way.

Marketers are just buying keywords, or blasting emails to everyone on every promotion, disregarding whether any part of the target market is already a customer.

I’ve bought vitamins from the same company for over ten years.  They send them every 60 days.  Once or twice a year, I start seeing Ads by Google for this company, everywhere I go.  Why?

Lazy marketing.

There are two broad categories of lists:  compiled lists and response lists.  In the digital world, we haven’t figured out how to “purge” our existing customers from email campaigns or PPC campaigns, because we perceive that the cost to purge them exceeds the cost of including them.

But, we’re ignoring the cost of irritating our customer base.  Denny Hatch, writes in Target Marketing, this month about getting a promotion from Amazon for two books he’s already bought from them.  How long before Denny just marks Amazon promotional emails as “Spam” and never looks at them?

There is a sense in which the Golden Rule applies to marketing as well.  Your customers are likely annoyed by the same things you’re annoyed by … pay attention out there!

Filed under: Ideas, Opinion, , , , , , , , , , , ,

Is show rooming a problem?

Well clearly, it is for some brick & mortar retailers.  At least they think it is.  It’s even reached the pages of the NYTimes (subscription required).

The NYTimes article even postulates that retail merchants should prepare a script of what to say when they catch customers using their store as a show room.

This is a losing battle.

Customers are going to use your store for a show room … at least if you’re selling products where there is a lot of content, a lot of price competition, or the products are simply expensive in the eyes of your prospective buyer.  You cannot stop it.

But you can combat it … but only by differentiating your business from the competition:

  • provide better prices
  • provide better customer service
  • provide a better guarantee
  • provide training
  • provide more information (content)

If you think show-rooming is bad now, this is only the start.  Younger buyers are ever more dependent upon their smart phones.  As they continue and increasingly dominate the buying public, show-rooming will become more and more prevalent.

This is a disruptive pattern.  Consider yourself disrupted.

Now what are you going to do about it.

Filed under: multichannel commerce, Omni-Channel Commerce, Opinion, , , , , , , ,

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