eCommerce Q&A

Michael Bower and Dillon Holst

Fast answers about ecommerce topics for store owners and managers.

  1. Inventory replenishment + FBA with Jeremy Biron

    31.10.2017

    Inventory replenishment + FBA with Jeremy Biron

    Episode Quotes "If you don’t fix the fundamentals and the rest of it is isn’t any good." "You not only need to focus on marketing, you need to focus on the core fundamentals of business as well which it will all come down to cash flow." "My whole kind of philosophy is you need to start at the core of the issue. The core of the issue is demand forecasting." "We don’t do Amazon marketing or ecommerce marketing. All we focus on is inventory replenishment and everything that goes into that." "If you aren’t organized when you’re small then you’re going to be a lot lot lot less organized when you’re larger." "A lot of times I think I’ve learned a ton from podcasts." Listen to Learn 00:40 Jeremy's Forecastly story. How did it started? 05:28 Ecommerce pain points and the importance of cash flow more than marketing 07:07 Solving demand forecasting 08:27 Why Fulfillment By Amazon (FBA) is a good move for business? 10:14 Inventory in FBA 11:34 How does Forecastly interact with FBA? 13:40 Forecast and demand planning on normal ecommerce sales 15:42 Importance of being organized, inventory management 17:12 What are some software for demand forecasting 21:40 Jeremy's MBA experience 23:00 Jeremy's main insights for the audience 24:10 Employment, operations and business process 26:10 Calls to action 26:35 Contact Us (Michael and Jeremy) Transcription Michael: Hello folks! Welcome to ecommerceQA. This is the show where we talk about ecommerce sellers, directors, managers. Basically if you’re dealing with ecommerce and you want to listen to this show. We’re joined today by Jeremy Biron who is the founder of Forecastly which is a really cool solution to problems that I think most of you listening are having. Hello Jeremy! Jeremy: Thanks for having me on. Michael: Absolutely. Jeremy, tell us a little bit of your story. How did you get into thinking about Forecastly which implies it has something to do with forecasting inventory which we’re going to talk about today. Jeremy: Exactly. Forecasting inventory for Amazon FBA specifically but he has smelled my background and I think he kind have to go a way back. I started as an ecommerce seller. I think it’s about 10 years ago now. I did it part time, I had a full time sales job. I was a business to business sales rep and I started in an office supply company selling office supplies online. Came across this thing called ebay and started selling office supplies on ebay and grew a Magento store. Eventually heard about Amazon which at that point is more of like a bookstore online and started selling office supplies on Amazon, then I came across Amazon FBA. I actually got a phone call from somebody from the FBA. It was the FBA department there. Michael: I was like you got a phone call from the FBI, but no. Jeremy: Yeah, no, no. It was a data program for Fulfillment By Amazon. Of course I was skeptical of it. Why would I want anybody else sell my products out. I could just do it myself. Well, anything is worth a test. In my mind, show me the data and I’m good to go and I took off, so I was one of the data testers of the FBA program in Amazon in the office products category. There was of course, they’ve already done it in several other categories Michael: Nice, and this company we’re talking about. This is the Honest Office which I think is a great name. Jeremy: Thank you very much! Took a long time to think about that. Michael: It’s not the one you started to. Jeremy: See, I think we started with something longer than that. I can’t remember exactly what it was, “Discount Office Supply” It wasn’t Discount Office Supply. Yeah, I can’t remember, it was at the top of my head. But it was a much longer and the domain name was really really long. So I picked honest office, domain was available and I like it. Michael: There you go, a bunch of awards here in internet retail and magazines, like what is that? Six of their awards. Fastest growing from multiple years, Top 1000 leading [term unclear – 2:43] retailers. This is a legitimate business here. Why did you shut it down? Jeremy: My god, office supply is a funny category plus it was drop shipping. It was a combination of I really didn’t have a segment that it was my niche. I wasn’t growing my own brand. It got big, you’re right. We were a multimillion dollar seller. It got fairly large and we did develop some of our own brands that are sold around today, all of which that I don’t own. But what happened was is I was having frustrations. What was happening was there are cash flow issues. It was definitely my lifestyle, my lifestyle was taking a hit the time I was working and also the stress as I was feeling. The cash flow was probably really the biggest issue that I had and that was causing the most stress. Dug into it, I got a bunch of my mentors around the table. We sat down, dug through the numbers. What it came down was a funny thing, I was just having tons of excess inventory and way too many stock outs on our best products, and that’s how I get into software. Ended up building some in house software to solve the problem, and it did not solve it completely because building in house software is easy as it sounds. I learned pretty quickly and then at least I was doing a better job than the inventory management software we’re using at that time. Michael: Which we will leave as unnamed. Jeremy: Yeah, it’s still around today and I don’t want to. They’ve improved quite a bit but it’s all about fundamentals. If you don’t fix the fundamentals and the rest of it is isn’t any good. Michael: So what happened after that? Building software? Jeremy: I had some in house software that we built on this office. We used it for about three years on our own. And then I kept going to this Amazon conferences and hearing other sellers or ecommerce conferences as well and these other sellers are selling, “Alright, you’re running a multimillion dollar business.” How are you not having like tons of excess inventory and stock ups? They are having exact same issues I was having three years prior to that. The thing is I had the answer. Well, I have software unfortunately you just can’t use it. It’s not set up to use in multiple businesses and I feel a little bit [term unclear – 4:58] Day in and day out 00:05:00 was the same thing. At that point I decided, alright I’m going to make a leap. I’m going to start a software company. We kind of use our previous, our in house software as a baseline but we didn’t use a single line of code when we started Forecastly. Forecastly solves the same problem but we went about it a different way. It’s much more advance than any software that could anyone build in house unless they are Amazon or Fortune 1000 company. Michael: Let’s talk about this. I mean, what are the big concepts, pain points that you’re looking to address specifically? Jeremy: Sure. Mile thing is there are with ecommerce or it’s not just selling on Amazon. It’s kind of ecommerce in general, right? Everyone likes to focus on fancy marketing tactics which are awesome. Don’t get me wrong marketing is really important. I depend on it every day. But it makes it easy for folks to forget about, you not only need to focus on marketing, you need to focus on the core fundamentals of business as well which it will all comes down to cash flow. In ecommerce if you own inventory you need to watch that inventory. The inventory need to turn over and if it’s not you’re going to end up with cash that’s sitting on a shelf or you’re going to end up with your best products running out of stock and you’re going to miss out on the profit. Relatively simple. Michael: I was just saying, problems are huge, you have to walk this tight rope. The funny thing is there is a lot of sellers don’t realize that though. They don’t realize how important that cash flow statement is or upon looking at your assets at the end of the month or end of the quarter and saying, “Where is my cash being tied up?” They forget about that stuff, because it’s truly easy too and I’m guilty of it as well. I did it on Honest Office for a long long time and I almost ran a multimillion dollar business into the ground because of it. And if you don’t have the right reporting, or the right tools to help you see what you need to see even if it’s just Excel. If you don’t setup your right Excel reports to give the info that you need to make decisions then you could run into a serious issue. Michael: So we are aware of the problems. How does you software specifically solve those problems? Jeremy: We look at things a little bit different. My whole kind of philosophy is you need to start at the core of the issue. The core of the issue is demand forecasting. I have a pen sitting next to me right now, and let’s say you sell pens, Michael. If I can’t tell you exactly how many pens you’re going to sell in Q4 then how I’m going to tell you when to replenish. Why does it matter if I can print off fancy shipping labels. Why does it matter if I can have the most beautiful PO that you’ve ever seen in your life and I can send that to you supplier. None of that matters if you cannot focus on the core number of how many units you’re going to sell because if I can’t tell you exactly how many units you’re going to sell then I can’t tell you how much safety stock you need. I can’t tell you when you’re going to run out of stock. Can’t tell you exactly how much money you’re going to need in Q4 to buy inventory. All of these numbers come down to the accuracy of that prediction. So that’s what we focus here on Forecastly. We focus on the core problem at hand and we don’t do bells and whistles. We don’t do Amazon marketing or ecommerce marketing. All we focus on is inventory replenishment and everything that goes into that. Michael: I want to take a bri

    28 Min.
  2. How to innovate with Daniel Burrus

    23.10.2017

    How to innovate with Daniel Burrus

    Episode Quotes "Moving fast in the wrong direction can only get you into trouble exponentially faster." "Innovation is really about risk taking, and a lot of companies don’t like to take risk." "Opposites work better." "If it can be done, it will be done. If you don’t do it, someone else will." "If you continue to play the old game and think you know what it is you’re going to undershoot." "Whatever problem you’ve got, that’s not it." Listen to Learn 00:24 Introduction about the guest speaker (Daniel Burrus) 00:46 Daniels new book and what it is about? 02:06 Daniel talks about his article, as well as insights about innovation 04:12 What does being proactive means? The idea of being preactive - hard trends and soft trends. 07:38 The science of "cycles" 09:00 Three categories of hard trends (Demographics, Regulations, Technology) 15:40 The idea of "Opposites work better" 18:17 What are some hard trends in ecommerce? Transcription Michael: Hello everyone and welcome to another episode of Ecommerce QA. This is the show where directors of ecommerce, ecommerce founders, strategists, anybody that’s very close to the growth of any ecommerce company come here and we talk about what we are learning. We are very privilege today to have Daniel Burrus. Daniel is a world leading futurist and expert in innovation. He has written many books. Daniel, it’s wonderful to have you. Daniel: Thank for having me on. I appreciate it. Michael: Absolutely, so you just finished a new book and it’s called The Anticipatory Organization with a sub line “Turn Disruption and Change into Opportunity and Advantage” Tell me about it. Daniel: Well, technology driven change is accelerating at an exponential rate. But moving fast in the wrong direction can only get you into trouble exponentially faster. So it’s not just about speed, it’s also about how do we determine some kind of direction. Then secondly, reacting to problems and digital disruptions no matter how agile your organization are just isn’t good enough because of the speed of change. So instead of just focusing on agility which is the current big focus, we got agile innovation, agile this, agile that. But remember agility is reacting fast to something fast that’s already happened. What I’m talking about is the other side of the coin, and that is how to anticipate disruptions before they disrupt. How to anticipate problems before you have them, and how to anticipate game changing opportunities before others see them so that’s the idea of the book The Anticipatory Organization. It’s a proven model that’s working great and now it’s in book form. Michael: That’s wonderful. I want to dig into your model. But I have a question an article that you wrote in Huffington Post. It’s this article titled Is it Time to Innovate? What Netflix Got Right (And WebTV Didn’t). This is a little bit funny to me because I’m a member of WebTV. Whenever we hear this new technologies or innovations spaces opening up, you wonder which one is going to win, right? And then, of course, there is the in the looses, sometimes we don’t easily know which one is going to come out on top. I find the title of this article very intriguing, is it time to innovate? I mean, I think people like me we think it’s always time to innovate. Talk to me about that. Daniel: Well, you know, it’s very interesting because I work with small, mid-size as well as the largest of companies. No matter what their size is a lot of companies will say, “We have a culture of innovation.” But if you really dig in into it, they haven’t innovated in 10 years. They haven’t innovated in 5 years or even longer. They innovated long ago and have been milking the cashcow they created and they lost the culture of innovation. Secondly, innovation is really about risk taking, and a lot of companies don’t like to take risk. But what I have done is through this methodology which I know we’re going to talk about. What you can do is do innovation with low risk and high reward which is really a flip. It’s kind of an opposite. It is truly accelerated innovation and really transformed results for organizations. And by the way, I know this system works because I came out with leadership learning system, a video learning system about two years ago. I call it The Anticipatory Organization, and corporation of all sizes around the world have been using it. It got a product of the year award in its first year. It’s been used by the Pentagon even for leadership training and it’s been working so well I decided to put that out in book form. So the book is not something that’s been not tried. Actually it’s been working extremely well and now again it’s in a book. Michael: I want to talk about the framework and some of the specifics of what you’re alluding to here, but I have one more high level question which is when we think about being reactive which is what we as managers know we should never do, right? We should be proactive and so on and so forth. Do you see that the trend towards enterprises especially in the tech space and particularly with software thinking in terms of agile. Do you feel like this is a new phenomenon, probably speaking like in the last 5, 10, 15, 20 years or do you feel that the need to bring things back to a proactive basis has just been around forever? Daniel: Well, that’s a great question. Thank you. First of all what I’m doing is redefining what proactive means. Proactive means taking positive action now. And what I would say is let’s call it being preactive to future known events. So when you have the methodology of, in this case I start to get into it that methodology has to answer your question. One of the keys to it is separating what I call hard 00:05:00 trends from soft trends. Hard trends are based on future facts. They will happen guaranteed and you cannot stop them, but you can see them before they happen. And that allows you to turn disruption and change into indeed an opportunity and advantage. The other type of trend is a soft trend, and that is not based on the future fact. That’s actually based on an assumption. But unfortunately a lot of companies of any size have treated a lot of things as facts, in reality they are assumptions. Before I go any further on this let me just say I like both hard trends and soft trends because hard trends let me see the disruptions and the changes before they happen giving me a choice. Now I can be the disruptor or I can just choose to be disrupted. I have a choice. Soft trends, if I don’t like them, I can change them. Let me give you a really good example and that is I was just speaking to CEOs. It’s about 500 of them of a big healthcare conference. And they were CEOs from hospitals of different sizes as well as suppliers to the healthcare industry. One of the things that they were all assuming to be true is that healthcare cost will continue to rise. And they all saw that as unstoppable. They saw that as a future fact but in reality it is a total soft trend. We could change that. Let’s see if we don’t think you can change it you don’t even try. And by the way here’s how you could change that. Healthcare reform basically has really health payment reform. Otherwise, how are going to pay for that mess out there. Instead of using innovative new technologies, transformational technologies to, for example, transform how hospitals purchase, supply chain, logistics as well as using the technologies like Blockchain to bring transparency to consumers. I mean let’s face it, you would be paying $300 for an aspirin if you really knew how much it cost when you’re in that hospital. So we could actually lower the cost of healthcare if we use these transformational technologies and realized, you know what you could, or we can just continue to let it go. Michael: Daniel, what’s an example of a hard fact? Something that we know in the future? Daniel: Yes, that we know this will happen. Well, first of all, there’s already a well known science to it and that is cycles. Like right now we know after spring is summer, followed by fall, and by the way there are over 300 known cycles. Business cycles, weather cycles, biological cycles, there are even sales cycles. By the way, if there is a sale cycle, I like to have the sale completed before the cycle begins obviously to my advantage. An economist used cyclical as a way to predict the future, but as everyone listening to this knows, the economists have been increasingly wrong. And the reason is there is another kind of change and I’m addressing that very powerful in the book. And that is I would call that linear in that it’s one way/exponential meaning that it’s going almost vertically. It’s getting faster every year. Once you get a smartphone that’s not a cycle. You are not going back to dumb phone. You’re going one way. Once people in China park their bicycle and get a car, it’s not a cycle, you’re not going back to the car. And once people in India get refrigeration in their home they are not going to say we don’t need refrigeration. So these are linear changes driven by exponential technologies that give us predictable opportunities as well as predictable challenges. And to further answer your question to really add some real value here for our listeners, really it’s not that hard. There are only three categories of hard trends or future facts. And that is one, demographics. Example, simple example, there are 78 million baby boomers in the United States and hard trend, they are going to get older. They are not going to get younger. They are going to get older, guaranteed, and that gives us some opportunities. For example, if your company, you’ve got a lot of people predictably that are going to be retiring that have a lot of knowledge and wisdom. You got a database, do you have a wisdom base, you have a knowledge base

    24 Min.
  3. Onsite Search With Derek Wisnewski

    18.09.2017

    Onsite Search With Derek Wisnewski

    Shownotes: Nextopia.com ecommerceqa.com/nextopia Transcript: Michael: Hello folks and welcome to eCommerce Q & A, this is the show where, as you know, store owners and directors of eCommerce and eCommerce managers can stay up to date on the latest and greatest in eCommerce. I'm Michael Bauer, your host and self-proclaimed eCommerce junkie. Basically means I'm really into this topic, super passionate about it and frequently host on this show. Our guest today is an expert onsite search and personalization, his name is Derek Wisnewski and his company is called Nextopia. We've been working with Nextopia actually for about five or six years with clients and just been extremely happy with their company and what they offer. But we've never done a podcast together so here we are. Derek, welcome. Derek: Hey, thanks Michael. Thanks for bringing me on to this podcast. Excited to share some more knowledge about onsite search. Michael: Absolutely, it's wonderful to have you. Derek, can you tell me a little bit about your background? I understand you're a senior account executive at Nextopia. How do you come into the situation? Bring me your shtick. Derek: Sure, absolutely. I started here seven years ago at Nextopia. I was kind of an experiment where we were looking to branch out our sales team, so I was brought on board to try to connect more retailers that needed improvement in their onsite search. Over the course of time our product has evolved. My role has evolved in doing podcasts, all sorts of marketing, getting involved in the technical aspect. During the course of that time, I've worked with hundreds of retailers on all sorts of various platforms and it's a never ending learning job because, even after seven years when you think you've heard it all about the challenges that people have with onsite search and navigation, there's always something new that comes up. Michael: Yeah, well, onsite search and navigation, those are the two things people do on a website, right? They're looking for things or they're browsing for things. Now, before we move on from that point, I'm kind of curious which platforms would you say people are most happy with right now and most unhappy with from the merchants you're talking to? Derek: That's really the big question out there because it's all over the map, so oftentimes we get retailers saying, "What platform would you recommend?" There isn't any perfect answer out there. There's no perfect platform out there. There's certainly a lot of brand names out there that you hear, everything from Magento, Shopify, Big Commerce of Illusion, but they're constantly evolving and always changing. What I've seen over the years is that some platforms stagnate, some other ones evolve, other ones simply just fall by the wayside. There's always new platforms coming up. It's really hard to say what our industry's even going to look like five years from now. I often say to a retailer that are saying, "Which platform should I choose and go to?" My answer to them is always- Michael: Call Sellry, because Sellry can tell you which platform to use. Derek: Yeah, exactly. Exactly. Michael: I just couldn't resist. We actually have a platform selection service that we offer. Nobody ever pays us just for that so don't tell anyone I told you that. Derek: Okay. Michael: Well, Derek, today we want to talk about one particular topic which we've hit upon before. We've had a couple of guests before that have talked about this topic but it's one that we just can't get enough of because it's one that a lot of stores are still just don't fully understand, don't know how to start working and [inaudible 00:03:58] on, which is site search and the related topic of navigation. Today I want to mainly focus on site search. Now, I understand from a blog on moz.com, that nearly 84% of companies don't actively optimize or measure their onsite search. That blows me away. Search is one of the main things people ever do, what do you do when you go to Google? You don't browse. You search, right? Derek: Right. Michael: When your site, do you really think they're just browsing? I don't think so. Derek: No, no, absolutely not. That search box out there is about the closest thing you can actually get to actually talking to your customers. We've seen time and time again when people are looking at their onsite search analytics that those that are using that search box are sticking around on the site longer, they're contributing to more revenue, they're definitely more objective focus and more serious about purchasing something on your site than somebody that's just clicking around a whole bunch of different category links. Michael: Yeah, yeah. I think the corollary maybe would just be a window shopper or even just somebody just browsing around in the mall. They're just going around, looking around, seeing what's there. Very different from somebody who comes and says to you, basically says to your salesperson, which is your website, "Hey, I want to buy this." Or, "I'm interested in this exact thing. Do you have this thing?" Wa-la, yes we do. Well, guess what? That's a much more likely sale. Let's dig into some of the common misconceptions about onsite search and navigation that you see a lot. Several of the top things you think of. Derek: Well, absolutely. There's several misconceptions that I've seen over the years. One is that I've been hearing a lot of retailers that we talk to is that all onsite search and navigation solutions are built the same, which is absolutely not true. Solutions out there are all over the map. There's some that do a better job than others. There's many that just cut corners, they see their website and say, "Oh, they do search and auto complete. Nextopia does search and auto complete. It's essentially the same." But there's a lot of things that happen in the background. For example, there's some that offer very limited functionality, controlling your algorithm, bringing back results or even limited analytics. We've been doing this for over 12 years in this space. We've got a whole wealth of experience in dealing with hundreds of unique onsite search challenges because we truly believe that no two data sets are exactly the same. If you're a retailer that spends a significant amount of time, let's say, designing and implementing your eCommerce site, why would a solution that costs a fraction of your site, and that can amount to a large portion of your revenue on your site, be overlooked so easily? Another misconception is that onsite search should be a "just set and forget it" job. In some cases, it is, maybe if you're a small retailer. But in our past experience, retailers that are analyzing their onsite search reports, that are engaging, let's say, with their platform, are able to move their metrics even more because they're capitalizing on all that onsite search data to merchandise their products that are congruent in the way that their customers are shopping on their site. Michael: I have a question for you. I've heard that search-assisted conversion or conversions that involved a search are four or five times more likely to happen than those that don't use search. Is that true? Derek: Absolutely. We see this time and time again. It's not an anomaly that anytime a retailer looks at their onsite search report and their Google analytics they spend much longer time on the site. The average order value's higher. Their search to exit rate is significantly lower. Why is this the case? Well, as I mentioned earlier, their objective focus, they know what they ... Or they're serious about buying something on the site. For example, I was talking to a retailer the other day who mentioned, "I don't think that onsite search is that important." He said only 5% of his visitors use a search box. When we dug a bit deeper, he noticed that 5% of those users account for 41% of his revenue. That means that every visitor that uses the search box is 8 times more valuable than those that browse around on his category pages. That means even if he were to move the needle a little bit, or even take, let's say, a portion of his spending that he does on paper click in AdWords, it would have a huge impact on his bottom line. Michael: Now, I think you could say, looking at that, well, that could be a causal relationship or not. Meaning you could say, "Oh, well, those people are making those purchases because they're using the search," or you could say, "These are the type of people that are ... They are targeted searchers and they're looking for something specific." Which basically ... To me, that's the more plausible. I don't think that just because you have a search magically makes people more willing to buy. I think it's more like no, people that are coming and using this pathway, if you're giving them a good tracks to run on they're going to run on those tracks. If you don't give them what they're looking for, if you don't give them a good searching experience, they're ready to buy. They're not going to buy if you're not making it possible for them to easily find what they're looking for. Derek: That's right, absolutely. I think we've been spoiled by the likes of Amazon and Google out there is that people are expecting that search box to be in front of them. When we look at some of the top retailers that are driving a majority of the revenue out there, such as the Amazons, an eBays, and Walmarts out there of the world, that people are expecting that type of experience on your site. If they're not, they're just going to end up going somewhere else that does offer that experience. Michael: Let's talk about that experience. What is it about a fully [org 00:09:54] and well put together search experience that is so transformative for an online retailer or brand? Derek: Well, I think one of the main things is to have good relevancy and to have some sort of level of personalization as well. When a visitor's coming t

    29 Min.
  4. To Replatform or Not To Replatform?

    10.09.2017

    To Replatform or Not To Replatform?

    Michael: Hello folks, and welcome to eCommerce Q & A. This is the show where we equip you, as a store owner, director of eCommerce, CTO, CIO, CMO, and many other titles like that at three letters long at an eCommerce company, or multi-channel companies to just kill it. I'm joined today by my colleague, and good friend, Chris [inaudible 00:00:25]. Chris, thank you for joining us. Chris: Hey, Michael. Thank you for having me. It's great to be here. Michael: Absolutely. Chris, can you give us a little background on the topic today, which is going to be around why you should, maybe, consider a re-platform under eCommerce. And also some reasons maybe why you shouldn't. Chris: Yeah. Absolutely. As you know, majority of commerce stores migrate every two to three years, according to Forester. It's important to know, what are those main reasons that can kind of flag and say, maybe we need to look at a new platform. Briefly, these points include legacy systems that don't allow you to scale effectively and efficiently. Also, not utilizing a platform in full, you know, it may have a whole bunch of bells and whistles that you're not using. Also, to initiate any new company goals, maybe product lines. Then, finally, also, if there's something happening with performance and security. Those are kind of a highlight able overview of the main ports of why someone should definitely looking into re-platforming. Michael: Tell me this Chris, you've been in this for a while. What are you seeing in your own personal experience, you mentioned some Forester research. But just maybe give a little bit of your background on this topic. Chris: Yeah. Definitely. I mean, it's funny that we always try to kind of come up with a general consensus of what we can expect. I think, ultimately, it really comes down to each individual use case. I've definitely see people that are very consistent with looking at new technology, through and through. Maybe a few years ago. But, with eCommerce platform specifically, it definitely ranges. You'll get a large number of companies that will be on a platform for seven, eight years plus. I've seen a lot of companies that make moves very quickly, every couple of years they change systems. But, ultimately, I think there is a good general rule of thumb, every three to five years. In my experience, it has been very common for companies to re-platform within that time frame. Michael: We didn't really go into your background at all though. So, where do you come into this picture? Chris: Absolutely. I've been in the eCommerce for a little over five years now, and had the honor of working with amazing and intellectual individuals across the board. I've been over at another agency that is very heavily [inaudible 00:03:00] Magento. I was leading business development there, and consulting companies on, ultimately, how to grow their business online. Evaluating each component of their business digitally and finding areas of improvement and [inaudible 00:03:15] and such. Over the course of my tenure at other agencies, I've been accepted onto ... As a eCommerce consultant for Oxford Digital. That kind of came about in my experience working with various companies, just kind of became invited on several occasions to take a look at other projects that maybe a particular group, from a very specific agency, may have taken on ... Maybe had run into some issues three months down the road, or even a couple weeks in. Kind of looking at what's happening there. My experience coming from SAP, high risk background. And looking at systems that relate to SAP. A lot of demand [inaudible 00:04:02] Magento as well, but I think kind of taking the run on where I am now. It's definitely a good place to be in terms of being able to look at all these other situations from various type of industries and companies. And really understanding what is it that they're experiencing. A lot of times it's funny, things will just be very simple, that just may have gone unnoticed. Today, I'm definitely happy to be [inaudible 00:04:33] VP of strategy over at Sellry. And taking everything that I've learned over the years, and applying it to help other eCommerce executives grow their company as well. Michael: [inaudible 00:04:44] SAP, Magento, [inaudible 00:04:47]. You're like the man with a plan when it comes to platforms. Chris: Yeah. Absolutely. I've done several comparisons to weight technologies against others. Forester comes out with really great reports on this. You know, B2B wave, B2C wave, I bet most post are familiar with. They have a lot of good information there on a high level as well. Michael: Let's do this, let's dive right in. Okay. What are the reasons that you maybe should consider a re-platform? Chris: Absolutely. The Legacy systems was one of the first ones I mentioned. It's a very common situation. Where a company will adopt a system, in a lot of cases in the 90's actually and still to this day are standing. Those systems typically don't necessarily allow you to scale effectively and efficiently. The complexity that are involved in maintaining those systems are very costly. Michael: Can you give me an example of a system you have in mind? Chris: I think an old system that's pretty common for companies to kind of maintain for several years, for many years, is ... Cold Fusion, I think is one. Michael: Cold Fusion. It has such a cool name. Chris: I know. It actually does. It's funny, they've powered some really intense sights. You'd be surprised. But ... Michael: Is anybody really using that? I mean, I thought you were going to be like Magenta 1. Magenta 1 is eight years old, everybody still ... A lot of people are still using it. Chris: Yeah. I would actually consider Magenta 1 to be a Legacy system, for lack of better terms. But Legacy as a whole really comes in a variety of packages. You'll have super Legacy systems from the 90's. Then you'll have Legacy systems like you said, just [inaudible 00:06:35] on eight or ten years or so. If you're still using Magenta 1 today, there's got to be some type of validity in that. Or maybe you're just not ready to make the move for whatever reason. But, considering the fact that they'll no longer be releasing security patches as of next year. It's something to definitely consider. Michael: What I see with these things, is there's a fatigue that comes from re-platforming once or twice. And you're like, I don't want to do that again. Chris: Yeah. Michael: [crosstalk 00:07:03] out a catalog every year. Thankfully, we don't have to do it every two months. The complexity, and I've definitely seen that there. If you're using a platform that's old, producing you're having to actually maintain old code because nobody else is even using that code. You're having to make it compatible for some of our screen plans, for example. They haven't made the move to [inaudible 00:07:24] yes. As a result, they're having to literally maintain for lack of a better term, this free platform. Just for their own usage. Rather than just getting onto the new thing. So, be said for staying current. Right. Now, can we jump ahead? I want to dive in more on this one, but I want to talk to you about your second point. About what if you're just not utilizing what's in your platform? Talk to me more about that. I mean, how many people ... There's the concept of a marketing feature. Right? When a platform just has something, so that you'll see it and be like, that's cool that that has that, or I really want that, then you're never going to use it. That just goes with every platform. I think you're saying something different. I think you're saying, there's a lot of platforms where you're way overpaying for a lot of things that you really don't need. And you don't have to. Is that what you're getting at? Chris: Definitely. If someone is under utilizing a platform, it really just depends on the type of company, and the business model as a whole. Ultimately, just like you said, it's funny how often that happens. You'll see all these really cool, fancy, marketing personalization, centralized data. There's a lot of things that will really kind of make you raise your hand say, that sounds like I want to try that. A lot of times these businesses aren't necessarily well suited in terms of resources to even utilize each of these various facets. Because, ultimately, if you only have one person that's going to maintain your platform internally, that's not going to cut it. Michael: What if you got a team of 100 merchandisers. I mean, in that case, you probably need more complexity. Right? Chris: Absolutely. But, even then, you have solutions revolved around that. SAP has a really interesting cockpit, where it can be centralized. So, if you're having all these different people on the same team, everything is centralized and viewable. And things can be moved around easily, you know, you can push product data across multiple sites at once. There's various things. To get back to your point though. In SAP, I've seen it a lot, in Demandware I've seen it a lot. You know, companies will look at ... Demandware specifically, with a particular type of compensation structure that they have, may be favorable in certain industries where you have high margin products. Looking longterm, Demandware does have a lot of really cool, fancy tools, that they go under utilized. Then, ultimately, if you're looking at a rev share model, then that may not validate the functions and features that that platform has. Michael: I think this is actually ... [inaudible 00:10:04] I just go on a brief tangent here. Because this is getting me all fired up about something. Well all heard about segmentation in the last few years. And we all said, we're going to do that. Then every single client that I've got has started doing it, and found really good ROI. Even 2X, 3X, and even more ROI, when you start segmenting. But the problem is, it's not scalable. Now

    23 Min.
  5. Louis Grenier Hot Jar

    04.09.2017

    Louis Grenier Hot Jar

    Shownotes: hotjar.com everyonehatesmarketers.com Transcripts: Michael: Hello folks, and welcome to Ecommerce QA. This is a podcast where store owners, directors of e-comm and e-commerce managers can stay up to date on the latest tools and tech in e-commerce. I'm your host, Michael Bauer, and my guest today is Louis Grenier from hotjar.com. Louis has three jobs, he posts a digital marketing podcast called Everyone Hates Marketers.com, it's a show for digital marketers sick of shady, manipulative marketing, like everyone who's listening here. Nobody on this show would ever do any of the things that you talk about on that show, right? Louis: Yeah, for sure. And then you put them under pressure and the magic happens. It's not easy to not be sleazy sometimes when you have [crosstalk 00:00:43]. Michael: Oh, that's wonderful. I'm gonna write that down. It's not easy to not be sleazy. Louis: Yeah. That should be amazed, actually. Michael: That's what my wife, love that kinda quote. You're also the content strategist at HotJar, which I want to talk a lot about, but most importantly, you haven't said the third item but I think that's because it's the most important. You are the fiance to the beautiful Jennifer, and you guys are getting married in two weeks. Louis: That's the biggest job, right? Michael: Yeah. Cool. Well congrats on that, first of all. Why are you talking to me on the show, you should be go, wedding planning or whatever people do. Louis: Yeah. It's already much, pretty much everything is done. Took us two years to organize it, it's not gonna be a big one, but we took it slow, one thing at a time. It's all ready. Michael: Nice. Well, two years to plan a wedding, that's what we should have done. Feel like we, it's hard to follow that one. Tell me this, Louis, why are you at HotJar? Louis: Because I want to make the internet a better place. Simple as. HotJar is really the best kind of company to join to do that, the solution we are building is really a good way for anybody to improve Internet as a whole, because you can make any website much better by listening to people, by understanding how people behave on your website, by understanding what you should improve on, and stop guessing, right? This is why I join. Michael: You're making me feel bad, because I thought my company was the best one at making the Internet a better place. Louis: Okay. Michael: So listen, I actually probably agree that your company is definitely way cooler than ours. We got hooked on HotJar back in, I think, '14 when a client of mine heard about your product when it was still in beta, and we were like oh my gosh, this is great. It's got all these useful things right in one place and they're really easy to use and onboarding is incredibly fast. We haven't even talked about what it is. So tell us in a nutshell what HotJar does and is. Louis: So, it's an all-in-one solution to understand how people behave on your website or on your app. What they do, what they don't do, what they like, what they don't like, and using that, you are able then to identify what you should improve on and where you can grow. So that's really it in a nutshell. Yes, as you've mentioned, HotJar was launched as a beta in our first strategy, so they really got a lot of early adopters, like yourself, to test the product and improve on, so the way we use HotJar is the same way we expect people to use it, which is constantly using it, making sure that we listen to people and we get back on board. Michael: So you're using HotJar with HotJar, obviously, right? That sounds- Louis: Yeah it's pretty, pretty metal, right? So that's exactly what we do. Michael: Nice. So let's talk about this a little bit more. When we're talking about HotJar, we're talking about a few different things. The way we've used it is for funnel evaluation, so you tie in so you can evaluate your funnel. Check out funnel is usually what we're doing, as well as you can do user recordings, you can do user polls, you can do, oh, heat maps, obviously. What else can you do? Louis: You also have a new feature called incoming feedback, which is a way to understand what people like and don't like about specific elements of your page or the page on its own. So it brings a bit more emotion to the user experience. It's brand new and we just literally launched it yesterday. Michael: Okay, well I need to turn this on for a client. We went live with a client site last week, and we ran all the other stuff in HotJar but we should have waited til we got that, because this was the main thing we were trying to figure out is what are people reacting negatively to and positively to within the experience in general, and in specific areas. So I need to turn that on, I'm making a note about that right now. But you do content at HotJar, tell me more. What's your vision for how the internet needs to change in healthy ways? Louis: Right, so my role is really to try to help inspire as many people as we can using content. Guide, blog posts, anything. Podcasts, anything like this, right? Division we have is really trying to, as I said earlier on, to make Internet a better place by really trying to make as many people understand that you should listen to people. If you understand how they behave, if you truly ... if you truly give a damn about your users, you will have an unfair advantage, and you will be able to go faster than anybody else. You will be able, in the long run, to have a system and a business. Michael: Talk to me about the fact that the tooling that you provide in HotJar is a kind of a mixture of qualitative and quantitative, and why have you guys decided to go with the exact mix that you use right now. Louis: That's the question, right, why we've decided this way. Initially it was really about putting, trying to get all of those tools together. So all of the known tools together, as an all-in-one solution, right? So heat maps is not new, polls are not new, recordings are not new, all of the features we had weren't new on their own, but we put them together in a way that really enabled you to get the full picture, the full funnel, the full journey. Now we are in the phase where we are moving on to just providing stuff to move on to things that are new, brand new, like true innovation such as the incoming feedback, which is not something that is being seen anywhere else. We are moving on to that next phase, right. Michael: Yeah, you know, it seems like a super big pain when you're trying to make any kind of substitute change or even kinda just understand what you have on a website, because you know, there's user testing but that seems to take forever to get good quality feedback, and I just think that it's great that you're making that that much simpler, and things like that. Now, let's say that somebody wants to be really, really quantitative, and you know, maybe they've got mixed panel or they've got Periscope or they've got Giraffe or some kind of super duper quantitative metrics tool. How do these tools play together? How would HotJar work in tandem with these other tooling? Louis: Those tools that you mentioned, I would also include in analytics. Those are, those give you the what. So they give you the key pages that you should focus on. They give you the number of people going there and leaving. They give you the big picture and the what's, right, and HotJar gives you the why. So this is how you should connect them together. HotJar is not intended to compete against [inaudible 00:06:55] on this panel. HotJar is really intended to compliment them, to give you more context around why certain people are doing certain things. If, for example, you have an e-commerce shop called Fat Pillows, because you said those pillows are actually better than anybody else, right? And you have this check out funnel, and you don't understand why you have such a drop off. Maybe like 90% of people landing on checkout end up leaving. Well, you can use HotJar there to understand why. You set up a heat map, understand where they click. You set up a poll, asking them why they are leaving or about to leave. You set up recordings to understand how people behave on the page, and after a day or two of traffic you will know the answer. You will know exactly why they are leaving. Michael: So can you lay this out step by step? Let's say that somebody wants to improve let's say the check out. So we've got a check out, what are the steps that you're gonna use, and don't just talk about HotJar, maybe talk about what the other tooling is that you'd need to set up to do this properly. Louis: So the first thing is, whatever tool you're using for that analytics, you need to understand how many people are coming to this check out. It can be done via Google Analytics, fairly simply. So you need to understand what type of product they are adding to their cart and the last step of the funnel, which is the check out. So, you can use any type of free tool to do that. The main thing here is really understand ... I think the check out might be something that we can talk about in the next two minutes, but I think the best example to give to start with as a rating and action plan would be maybe at the top of the funnel. So when people land on your website in the first place, because the check out is kinda the last thing. But actually, if you improve, maybe if you improve the first step of the funnel, you might have a much bigger lift than if you put the check out, right? You figure out that when people land on your home page or on a specific landing page where you're paying a lot of money for people to land on, if you find out that many, many people drop off, maybe 80%, maybe that's where you need to look first, right? You need to look at the number of people landing on this specific page and then the amount of people leaving, the amount of money you're potentially losing, and therefore the opportunity that you have

    29 Min.
  6. How To Hire Remote Employees That Make Things Happen

    28.08.2017

    How To Hire Remote Employees That Make Things Happen

    Dillon: Hello everybody! This is Dillon Holst and today, I am joined by the founder and CEO of Freeeup, Nathan Hirsch. Nathan is a serial entrepreneur. He is an expert in remote hiring and e-commerce in general. Nathan, thank you for being on with us today. Nathan: Dillon, that's for having me. Dillon: One of the things that I found interesting, just browsing through your site, how many people it seems, really have latched onto this idea of remote hiring and are really excited about the things that it can do, just in terms of either augmenting, or completely staffing their workforce. Maybe you could just give me a little bit of background about how you were introduced to the idea of remote hiring and how you decided to kind of make this your thing. Nathan: Sure, so, going way back, when I was 20, I'm 27 right now, I started an e-commerce drop-shipping business out of my college dorm room. It quickly blew up. I was running a multi-million dollar business before I knew it. Hiring my friends for the first time. I hired my first employee before I could legally drink. I really just had no idea what I was doing. I got lucky and I made some really great hires. People who are still with me seven years later. Like every entrepreneur, I made some bad hires as well. My business was always drop-shipping, so you never have to touch any products. So, I could hire people that could work at their place or across the hall in a different room, or whatever it was. It didn't really matter whether they were with me at any point. We would have group meetings and what not to get on the same page, but, for the most part, we could be in different states or any part of the world and still do your job. When I graduated and I decided to become an entrepreneur full-time, and I moved to Florida, I actually did end up opening up an office, which I think was one of the biggest mistakes that I've made. I've hired a lot of full-time people, employees. I quickly realized that if I'm paying someone $50,000, $60,000, $70,000 a year, I need to get the most out of them, because I'm an efficiency person. It was really bothering me that they were spending a lot of their time doing very easy data-entry work or answering simple emails. It didn't feel like I was getting good value. I didn't feel like I was challenging them either. They enjoy their job more when they're being challenged and building rather than doing. So, a buddy of mine that was actually on my softball team when I moved down here, introduced me to oDesk, which was Upwork at the time, and I just fell in love with it. I mean, in my mind, and I'm a pretty logical person, I'm very limited in the talent that I can get in Orlando, Florida. If I open myself out to the entire world, the possibilities are endless. Not to mention the other benefits of no payroll taxes for hiring contractors, hiring, maybe outsourcing certain tasks, although, I did remote hiring, so, it wasn't all international. But, I was determined to build this army of remote workers, which I did. I found that hiring these remote workers allowed my full-time people, the people who I was paying to think rather than do repetitive tasks, would really excel and would be able to put a lot more of the company, enjoy their jobs more. We just grew so much faster, to the point where I got rid of the office and made the entire company remote, and I kind of had the idea that I wanted to help other businesses do the same thing, because, there are tricks to the trade. It took me a while, just like it took me a while to learn how to hire employees correctly, it took me a while to learn how to hire remote workers and even international workers correctly. I created Freeeup to help other business owners free up their time the way I have for the past seven years. Dillon: Sure, okay. In terms of just building a workforce, I love the fact that you identified that your most valuable employees were maybe not using their time in the most efficient manner, or the way that they might have wanted to be spending their time, do you feel like that is something that exists across all industries or is that specific to the tech industry? Basically, remote teams, is that something that can work for every industry or is it just specific industries that you see as being in need of augmentation via remote teams? Nathan: I mean, there's certainly some industries that it might not apply, if you own a bakery or something like that. But, for the most part, most businesses are online in some way, shape, or form. Even if you own that bakery, someone should run your social media, someone should build your website and run it, and all that. If you're not tapping into remote workers and talent from across the world, you're really missing out on a huge opportunity to expand your business at a fraction of the cost of what it would require to hire internal employees. Dillon: Yeah, sure, okay, so let's say somebody comes to your site and they're looking for somebody to do some specific thing, let's say data entry. What should that person be looking for in terms of qualities. What should we be looking for in people? What makes somebody a good, remote team member? Nathan: Sure, and that's one of the reasons why I created Freeeup, because, there are a lot of places out there, where you go to them, and you want to post a job, but it's hard to really figure out what you're looking for. Especially if you've never hired before, or you've never hired remotely before, and you're trying to pick out from 50 people that are in the Philippines, it can be challenging. A lot of times you don't know what to look for. From my past seven years of hiring, I have a pretty good idea of what I want to look for, and I'll get into that a little bit later. So, the cool thing about us, is we identify these people, we vet them, we test them, we have a strict communication policy that they have to follow, which I'm sure we'll touch upon later as well. Then, we make these workers available to our clients. On our site, there's very little thinking involved. You tell us what you want in terms of skill, "Hey, I have this project day, I need this full-time position," whatever it is, and we pick someone from our network that's already been pre-vetted, that we already know has those qualities, and we introduce them to you. It's really that simple. Dillon: What kind of metrics are you testing people for when they come to you and they say, "Hey, I want to be a freelancer. I want to work for you guys."? Nathan: Sure, so there's three things. One is skill. Obviously, if you're hiring someone to build your website on WordPress they have to have years of experience in WordPress. We're not that new, freelancer marketplace. People that are freelancing for the first time, they don't get into our network. Dillon: What's the requirement like there? Nathan: We want people with three plus years of experience for the most part. It can be less if it's a newer platform or something that just came out, but that's a baseline. There are really talented people that learn fast that are the exception to the rule, but, for the most part, three plus years. We have people on our team that have 10, 15 years of experience. We're really looking for that. A track record of success with past clients and years of experience. Two is their attitude. We want people that care more about money. That are workaholics. That really like working. Where work is the number one priority, or close to the number one priority in their life, and that can really care about our client's business as if it was their own, and not just doing it for the paycheck, like I said before. Then, quality number three is communication. Because, to me, communication is everything. I don't care how talented of a person that you hire, if you can't communicate with them, it's going to go south so fast you won't even believe it. Those are really the three things that we look for when we're hiring a worker. Dillon: Okay, somebody might argue that building a remote workforce could leave yourself open to people leaving early, or maybe they'll feel like you, as a company, are not investing them because you're remote. Is employee turnover more difficult to handle, I guess, when you're dealing with remote workers? Nathan: If you treat your worker like they're not part of the team, like you're just using them, and you're just giving orders, and they don't care at all about your business, the turnover is going to be high. What I teach is to change that mentality. Make them a part of the team. Make them care about your business. Make them want to be part of the journey in growing your business, and your turnover will be pretty low. I mean, we have a pretty large network of workers, and our turnover is extremely low. The lowest it's been in either of my two companies at this point. It's all about how you treat people, how you vet people. Whatever your company culture is, if you're adding people to the team that are like that culture, or if you're adding people that are more of that corporate mindset, but you're a start up, or vice verse. Anything that you can do to make people fit in to what you're building, is going to reduce turnover. To me, it's not the fact that their remote workers that leads to turnover, it's your whole attitude and how you treat people in general. Dillon: You say what you teach, do you offer resources for business owners who are using a remote workforce for the first time? How does that work? Nathan: Definitely. I mean, we offer free consulting. I do a lot of webinars and podcasts about it. We have e-books that we have continued to come out with. We have our Freeeup blog that you can check out. We always talk about building a culture, and managing people, and how to hire, and stuff like that. We have an online masterminds Facebook group that people can post questions in. We're pretty responsive. We try to answer every single one in as m

    25 Min.
  7. Disruptive Ecommerce Conversion Rate Optimization

    21.08.2017

    Disruptive Ecommerce Conversion Rate Optimization

    Show Notes: Get Your Conversion Rate Optimization Starter Guide Courtesy of Disruptive Advertising. Tell Us Your Ecommerce Pain Points Check out our episode with Nick Disabato Use Unbounce To Build Beautiful Landing Pages. (FOR FREE if you can be considered a startup) Optimizly or Visual Website Optimizer or Adobe Target to create a better version of your current landing page Talk to Chris On Twitter Transcripts: Michael: Hello folks, and welcome to eCommerce Q&A, this is a podcast where store owners, directors of eCommerce, and eCommerce managers can stay up to date on the latest tools and tech in eCommerce. I'm your host Michael Bower, self proclaimed eCommerce junky and my guest today is Chris Dayley, the VP of testing inside optimization at Disruptive Advertising. I'm reading Chris's bio here. It says, "When he's not fixing his hair, you will most likely find him pushing the boundaries of AB testing. Disrupting the website design space, Chris frequently speaks on the topics of CRO and other things like that." Chris, welcome. Chris: Thank you guys so much for having me on the show. Michael: Absolutely. Tell me what the most disruptive thing you did this year was. Chris: Well, it's actually, I'm not even going to give you an example in the website realm. The most disruptive thing I've done this year is, and I haven't even uploaded this to the site yet, but I started growing out my mustache. I decided this might be something that I need to try before I'm an old man, so I've got a long curly mustache going on and I just- Michael: I've got to see this. You got to see this. Can you send a picture? Chris: Just this week, I will say ... I will send you a picture. Just this week, I got a full curl in. It goes all the way around. It's a big accomplishment, it's pretty disruptive. Michael: Nice, nice. You know I'm imagining a world where you can have a curly mustache and people not think you're a firefighter. Chris: Or a painter. Michael: Painter, okay. I don't know about the painter thing because what I've seen with painters, at least the painters that I know, they're all a little bit quirky because they've been drinking too much paint. What I mean is like ... A painter, to get those nice edges on his brush he'll stick his brush in his mouth to get it just the right moisture. At least this one painter I did a lot work with 20 years ago, he was a total weirdo, okay ... So mustaches. Well Disruptive Marketing, can you give us the big idea in a few words? Chris: Sure. Michael: Start with advertising and advertising marketing. Chris: Yeah. There's a couple reasons I love the name Disruptive Advertising. Number one there are so many marketing agencies out there and there's a lot of marketing agencies that you can go out there to get an all-in-one solution. Lots of agencies that offer any kind of marketing service you want. We are just focused on one approach, and that is we are a data-driven marketing company that helps companies build advertising campaigns that convert and then convert that traffic on the website. So we take a very focused approach that is completely centered around conversions. So that's obviously a disruptive approach. That's one reason I really like it, obviously, our approach is different from everyone else in the space. But also, we're also very disruptive in the sense that we don't use traditional tactics. We're not a rote agency that goes in and does the same thing with every client. We are absolutely an agency that looks for anyway of getting in front of your target audience. If that is using Facebook or using Google Ad words that's great. If that is re-targeting, if that's figuring out e-mail campaigns, if that is running tests on your website. We dive in and we look for ways that we can learn what is actually going to convert each of our clients' audiences. That is also a disruptive approach. I am a huge fan of adapting ... We're in such a rapidly changing industry that you've got to be able to adapt and think on the fly and be strategic and that's our core competency. Michael: That's great, thanks for that. My understanding is that you mostly focus on lead gen, is that right? Chris: No, actually the majority of our clients and the space that we do the best in is eCommerce. I have a lot of background in legion and that may be what you're referring to. But I would say over half of our client base is eCommerce. Michael: You know what I'm seeing and what we're pushing right now for a lot our clients is use these strategies and tactics of info marketing in lead generation that have been proven over time, over the last multiple, honestly more than a dozen years and apply those to your eCommerce site. The main thing that I see when we're talking about info marketing or lead gen is that you have a single page that lays out a case if it's a persuasive argument that you're doing. A lot of us in eCommerce think that if we just show you our stuff that that will make you buy it, which is not necessarily true if everybody else is doing that same thing. You have to be persuasive, you have to give you a reason to buy this thing. Or if you're earlier in the customer journey, let you know why you need to be considering this type of thing in the first place. We're going through this with a client right now, it's an ebike company, which is in interesting space, being a biker myself I'm in to that and actually have been considering buying an ebike, which is freakishly expensive right now. Which is the point, right? When you have a ... When you're not competing on the basis of price, you're in, maybe a better industry or a newer industry or something like that. There's a lot of people that are going to be competing on the basis of a lot of other attributes other than just the price. That's where all these strategies and tactics can be really valuable. Chris: Well and what you said that I loved that's a big big part of what we do, you're talking about value proposition. And for me, someone's motivation to convert on your site is a simple, simple equation that I didn't make up. But someone's motivation to convert is equal to their perceived value minus the perceived costs. You have to build up enough value for your user that they think that that value is greater than the cost of either the dollar amount cost or the time cost it's going to take or the cost of potentially getting blasted with emails and texts from you. There's a lot of perceived costs that's in someone's mind and so almost immediately when someone comes to your site, you're working at a disadvantage. You're working with a debt that you need to repay them in the form of value. You need to show them that value. So I love what you said there. Michael: How are we working at a disadvantage? Can you elaborate on that? Chris: Yeah, so people in general, especially people that are web-savvy, which is everybody, is people are so familiar with the standard tactics. People are very familiar with the things that they encounter on websites everyday. So there's a lot of things that people, when they come to your website are immediately going to tune out. They're going to tune out probably 80% of your website experience. So you have to make sure that the things that you are really drawing attention to, the things that stand out to your audience, you have to make sure that those things within two to three seconds can communicate a tremendous amount of value. Because that's about all you have. You have about two to three seconds when someone comes to your website for them to psychologically draw context from your site and decide if they want to stay. Michael: Let's dig into this some more if you don't mind. Chris: Yeah. Michael: The whole idea of getting value within two to three seconds, let's say we're selling a product and that product's a physical product and I can't get that product to you within two to three seconds. So what do you mean exactly in an eCommerce site let's say? Chris: Ecommerce is probably the very best place and sometimes the hardest place to do this because we want to tell them so much about our product, right? It doesn't matter what the product is, it could be, I have optimized pages for doctors that are buying hereditary cancer testing kits. Extremely detailed, lots of components to this package and very scientific. There's lots of information that we could just barf all over these users. That's what we as marketers and we as business owners are really tempted to do, is just give them a ton of information. Whether it's doctors that you're advertising to or kids or mothers or whatever it is, you need to be able to show the value of the product in two to three seconds. There's two things that need to happen. Number one, you need to make it seem very easy to take action. It needs to be obvious what the user is supposed to do. The very best way to make it obvious what they're supposed to do is to use color contrast to your advantage. My eye needs to be drawn to the call to action immediately. Because psychologically if I feel like I have to figure out something. If I feel like I have to figure out what I'm supposed to do, if I feel like I have to scroll down your page or read a bunch of stuff, that immediately causes anxiety for me. That's never good for conversion rate. So you want it to be very obvious, what they're supposed to do. And then you want it to be very easy for them to figure out why they should buy your product. There shouldn't be a ton of information that you just spew all over them right away. You can have a lot of information on site. You can have a lot of information on an eCommerce product but you don't typically want to barrage them with all that information immediately. You probably want to have two to three things that are going to stand out to them, above the fold so that they can go, okay, there's a little bit of information here. If I want more I can scroll down. But it needs to seem ps

    31 Min.
  8. Quickly Optimize Your Google Adspend.

    14.08.2017

    Quickly Optimize Your Google Adspend.

    Show Notes: Tell Us Your Ecommerce Pain Subscribe On iTunes Set Up Merchant Center Set Up Adwords Set Up Remarketing SocialSEO twitter Josh@socialseo.com How To Setup Gmail Ads Set up Product Listing Ads Learn More About One of The Most Valuable Adwords Demographics Transcripts: Michael: Hello folks and welcome to eCommerce's Q&A. This is the show where store owners, directors of ecommerce, and ecommerce managers can stay up to date on the latest tools and tech in ecommerce. Our guest today is Josh Martin, pay-per-click manager at SocialSEO which is a wonderful agency down in Colorado Springs. Anybody that's doing this type of work in Colorado, we consider wonderful, but these guys are really amazing. We've done a lot of great work with them. We used to do SEO back from the day. Then we realized that it was a discipline where it wasn't really possible for us to stay on top of that and all the other things that we do, so we basically have opted to partner with really excellent providers like SocialSEO. Josh is a Google Premier partner, which means he is certified in all of Google AdWords and Analyics modules, which believe me is not an easy feat to get certified in. As mentioned he is SocialSEO's resident product, well I should say like AdWords and product advertising and things like that specialist. So today what we're going to focus on is talking about product listing ads, retargeting, and some other really interesting related topics. Josh, thank you for joining us. Josh: Yeah, thanks for having me Michael. And thanks for that glowing welcome. I really appreciate that. Michael: Absolutely. So let's go ahead and dig right in. Retargeting, by retargeting, in case you haven't heard the term, the way retargeting works is somebody comes to your website and then we know that they were there so that when they're off the website later on we're able to deliver relevant ads to that exact person. That allows you to optimize your ad spent. A lot of people will not do general search ads, but they'll do retargeting, because they know that if somebody has already visited their website, putting an ad in front of them again to bring them back may have a really good result. That's the basic idea of retargeting. Then what we're wanting to talk about today is taking that and putting that on steroids with product specific ads. So Josh how does this work, how do you have to, what does it take to be able to do not basic retargeting with AdWords, I think most people in our audience know how to do that, but product listing ads, what are the steps to get that set up? Josh: Sure. You're going to need a few prerequisites here, three. You're going to need to register for a Merchant Center account. This is going to be the handshake between your AdWords account and your actual inventory. You're going to need an inventory with live products hosted. Then lastly you're going to need that AdWords account. Those three things are what you're going to use to communicate what's currently in your products, or pardon me, in your inventory and that will be pushed out to Google. Now that can be done automatically with platforms like Magento. If you're using the Wiziwigs of the world, the what you see is what you get like Weebly or WIX you're going to have to manually upload your products, but those are basically the three prerequisites you're going to need to get started. Michael: So basically you're going to, if I can summarize that just for my own sake, you have to start with accurate inventory that is then going to be published to Google Merchant Center, is that right? Josh: Right. Michael: Right. Then what do you do after that? Josh: Yeah. So once it's published your products are now live in Google Shopping, which is great, you're now going to be put with every other site that sells similar products to you, and you're going to be in Google search with a picture of your product, price, and even a promotion. That's the only way to participate in Google Shopping. But from there if you're looking to retarget or remarket users, you're going to need to set up a remarketing campaign. This will be done by inserting a little script onto your website that's going to begin to kind of track the users behaviors on your website, whether they did or did not engage with your website, what they did or didn't do. And then from there- Michael: This is kind of tied in with your existing AdWords pixel, you have to change it a little bit I believe? Josh: Yes, exactly right. Your traditional pixel tracks conversions, so phone calls, form fills, or products sold, whereas this pixel is strictly there to track behaviors of the user. Michael: Right, so we'll include some links in the show notes about exactly where you need to go to learn about the precise changes that you need to make to your website. The point is once you've correctly added the scripts to your website, Google is going to know about shoppers behavior and which products they're looking at, which is the key last ingredient in being able to create these campaigns if I'm not mistaken. Let's say that you have gone ahead and correctly applied the retargeting code onto your website. Let's say that you have your product information being published to Google Shopping and successfully actually visible on Google shopping, and then you've gone into AdWords and you've created this campaign. What's the next step? Josh: Sure. So next we've got the what, it's your products, and now we've got to decide on the where, so where are you going to show these advertisements. There really is a plethora of options. You can have manual placements on relevant sites, let's say you're selling cooking ware. It would be great to have a placement on a cooking ware specific forum. Then you have Gmail itself, which can be an advertising platform and we have seen, not being bashful here, I've seen conversion rates on the Gmail side of things because what this does is it actually drops a relevant product into the users inbox and that user can purchase directly from Gmail. You really want to look at the types of products you're selling and the types of consumers that purchase them, because you can also begin to target based off of income, your traditional demographics, anything you can target within Facebook or social media you can target. You can also add a layer of what that user's behavior is in Google. So what's their search habits within the last seven to 90 days? Are they currently in market for your product or not? It's a very, very powerful medium. Michael: Josh, this is something I want to dig into much more towards the end of the call around how we can do Facebook style demographic targeting within AdWords. Just to continue this thread along the lines of the product listing ads, where in your campaign settings do you find the ability to let's say choose Gmail as the target or to use a particular forum, or is it going to be more of a general thing where you have to extend a little bit of trust towards Google that they will find the best locations to distribute the ads? Josh: Yeah, no, it's relatively manual actually. You're going to need to develop a individual campaign for each target type. So you'll need a Gmail campaign to target Gmail. You'll need a search product listing campaign to target the search portion. And then you're going to need a remarketing campaign to target users who have visited your site, but did not convert. Michael: Got it, and that sounds like something that a company like yours would be optimally suited to assist with at least on getting things rolling? Josh: Oh most definitely. Michael: Let's talk about this now. We've got our products being published to Google Merchant. We've got that being sucked into Google AdWords. Google makes all this really easy to connect all these accounts. And then you've got several campaigns going on. So we have a Gmail campaign, retargeting campaign, and maybe one or two other ones. The biggest thing that we've run into with AdWords, and I have a lot of clients that are always talking to me about this is our AdWords spend is not getting us sufficient ROI and sometimes it's not even getting any ROI. Can you share any tips for how to optimize the ROI of your ad spent? Josh: Sure. Yeah, and it's a very common sentiment, and a lot of people have been burnt by AdWords and paid advertising in general, and a lot of times it's a good intent but the effort is a little misguided. Michael: What do you mean by misguided? Josh: Typically, people are directed to and encouraged to sign up for search campaigns via a lightweight AdWords version called AdWords Express. Most businesses find themselves by virtue of AdWords Express starting with the search campaign. Now search can be very, very powerful in the right place. However, search can also be relatively expensive. So the advertis- Michael: By search just to be clear I think just so I'm clear you mean like search advertising what we normally think of as Google paid shopping ads, the ones that appear at the top of the search results when you put it any old keyword, right? Josh: Almost. Search would just be those text ads that we're familiar with at the top and the bottom of Google that have the ad icon, whereas remarketing also known as display would be those product listing ads at the top. Think if it's got an image or a video, that would be display. If it's text on the top of a search engine, that would be a search campaign. Michael: Got it. Josh: And so from there the cost per click in search on average is about $5, depending on the keyword it can go as high as $100 cost per click. Michael: Oh my gosh. I remember when it was like 15 cents a click. Josh: Well it still is in the remarketing world. That's what a lot of people don't realize, is when you come in to display video, or images, or product listing your cost per click is in the neighborhood of 40 cents and oftentimes, yeah, we see that 15, 13

    20 Min.

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Fast answers about ecommerce topics for store owners and managers.