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Seth Godin's Blog

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"If you can't measure it - you can't manage it." (Drucker). Avinash tells you how to measure everything on your website.

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Posts Tagged ‘business’

Under Construction – NOT!

Finally, made it home from my holiday. Spent a LOT of time driving. This being spring, much of the driving was in road construction zones, constantly slowing down, speeding up and watching for flag people. All-in-all not very enjoyable.

We all know road construction is necessary. And, while we might not enjoy it – we all put up with it. However, ‘Under Contruction’ is something you should never see on a website.

Web page that waste their clients sites with links that go nowhere or to the all too common – “Page Under Construction” message have no place on any website – particularly a business website.

Keep your website professional – check that links still work and never – EVER – link to an “Under Construction” page.

 

What Is Your Backup Plan

If you are like most people you start worrying about your backups after your system crashes. And, if you are like most business people today, the fastest way to shut down your business is to have your system crash.

There are dozens, maybe hundreds of backup tools available. Some backup over the Internet, some to a DVD and some to a second disk drive. They all have one serious flaw – they only work if you use them.

Any backup system is better than no backup system — but you have to use it. Create a system that works for you and USE IT!! You don’t need to by a lot of software. For most small businesses, the data and document files can be backed up onto a flash drive -do it every day. Information on restoring your system can be burned to a DVD – do it once a week. Then take the DVD and store it in your safety deposit box. Too many businesses have lost their data because the DVD with the backup information was burn in the same fire that destroyed their computer.

Finally, test your restoral procedure!!!

There are few word that can adequately describe the feeling of, after religiously backing up your data, finding that all your backups are corrupted. IT HAPPENS – don’t let it happen to you. Check that the data really has been transferred to your backup media.

 

How To Drive Away Customers

In a resent post, Matt Cutts – the Google WebSpam guru talks about a problem he had over a data storage device from Data Robotics. The problem was NOT with the device, but an ill-concieved plan to increase revenue by charging for firmware updates.

Of course this is only one example of companies alienating their customers. It has only been a few weeks since Facebook was force to retract their changes to their ‘Terms of Service’ by complaints from their customers.

Historically, things weren’t any better. Coke lost millions with the introduction of ‘New Coke’. Back in late 1950′s sales at Ford tumbled when the Edsel was introduced.

Making chances that benefit you or your business instead of those that benefit your clients is the easiest way to drive away customers. Making changes becuse you ‘think’ you know what the customer wants, as was the case with ‘new Coke’ and ‘Edsel’ is another great way to dirve customers to your competition.

Keep your focus on what your customers really want. (Ask them if you are not sure.) And, make changes that truely benefit your clients – not just to serve the interests of your business.

 

To Die By Sudden Weath

In his poem "The Ballad of Blasphemous Bill", Robert Service lists "sudden wealth" as one of the many ways a man can die. For businesses as well, suddenly having your business "take off", can cause many problems. In some cases, it has cause businesses to fail.

As your business struggles to stay alive, it is a good time to consider the future.

By now you should have a good idea if you are going to weather this economic storm. If you are – consider the business landscape once the crisis has passed. Some of your competitors will have disappeared – will you be able to handle the increase in orders?. Some of your supplier to may have also scummed – do you have alternate sources? Will you need more space? More staff? How will you finance your growth?

These are only a few of the questions that will need to be addressed. Each business is unique. Only you know what problems are likely to face your business and your area. By all accounts – you have a lot of time to get ready. But, the sooner you start thinking about these problems, the less likely you are to die by "sudden wealth"

 

Tracking In Store Sales

At a presentation I did recently, I was asked how you track how much your website is contributing to in store sales. This is a very important point – so instead of a quick post I wrote an article Tracking Website Generated Sales. The article contains ideas for making the connection between visits to the website and in store sales.

 

Personalized Search

A few years ago I saw an article saying Google had applied for a patented on the concept of basing search results on the users response to the items. The particular application quoted in the article was to base future results on how long a user spent on a page before returning the the search engine. Since then Google has refined the technique to what we now see as personalized search.

Personalized search means your search results are based on your past searches. For example if you are trying to determine the position of your website on the search engine results page (SERP) and continually click on the page once you find it, you may see it rise to a higher position. The search engine has learned your preference for that page when used with a specific set of keywords. Now, the SERP you see has no relevance to that seen by other users searching for the same term.

This means that a high SERP position can no longer be used as the ultimate measure of a websites success in bringing traffic to a site. As personalized search becomes more refined the differences between what you see and what your neighbour sees for the same search results will become more varied.

Search engines are already doing a good job of geo-targeting search results. (see Island Pizza Beats Pizza Hut ) So, a search for a plumber here in Comox is not going to give the same results as a search for an plumber in Victoria or even Campblell River.

So, how do you measure the success of a site? Qualified traffic!

Traffic by itself is a rather useless measure of a sites success. Qualified traffic, users that remain on the site, view at least two pages or, better yet, take some action that will lead to a sale, is the only true measurement. of success.

We still need to use the tools to view the SERP position for someone who doesn’t have a history with your page or keywords. And, we still need tools to get the results of searches from different geographical areas. But, these results now have to be viewed through the lens of personalized search.

 

Race For The Bottom

The squeeze is on small business.

Customers have stopped spending and many businesses are starting to panic. All too often this results in poor decisions. And, while only you can decide what is right for your business you MUST take the time to evaluate the effect your actions will have on both the short and long term.

The ‘knee jerk’ reaction to falling sales is falling prices. As businesses struggle to reduce inventory, margins are cut and prices are slashed. And, while this may increase cash flow in the short term it may be devastating in the long term.

As with most crisis, there are those that are ready, and those that aren’t. While no one could have predicted the speed and depth of the current crisis – the fact that there would be a crisis was obvious. As far as we know, only the universe expands forever. Everyone knew, or should have known, the economy would, if not collapse, at least slow down. Those businesses that prepared are going to be fine.

What about the 99.9999% who didn’t prepare?

You need to look at your whole marketing strategy. The strategy you adopt now will set the tone of your business for years into the future. What is your marketing advantage now? How can you change it to bring in customers now? How will that change effect sales in the future?

Just as nothing expands forever, nothing contracts forever with out becoming a Black Hole. The economy will come back. When it does, the decisions you made now will effect whether your business will also come back.

While you want your business to survive – not all businesses will. Made that decision early and review it often. It is better to close while you can retain some of you capital than watch it all disappear in a lost cause.

Don’t race to the bottom. There are those that will under cut you. Unless you are a WalMart – selling on price alone is a poor strategy.

Take the time to consider all your options.

 

The Palin Effect

It used to be called the ‘Peter Principal’. Coined by Dr. Laurence J. Peter and Raymond Hull, it means promoting a person beyond there capabilities. The most resent example was thrusting the governor of a small, by population, state into the world of national politics. The effect is disaster all around and is completely unfair to the person being put in that position.

The Palin Effect also applies to business.

There are thousands of article on the Internet telling small business owners they to can be ‘national’ or ‘international’ players. And, it is true, your website gives you a global audience.

However, before taking that step, evaluated your businesses capabilities. Make sure your business is ready to deliver in a national or international market. Wait until your business is ready before moving to the next level.

Don’t let your business become a victim of the Palin Effect.

 

Take Business Email Seriously

Email has been in the news recently for more than just SPAM.

The biggest news item was VP candidate Sarah Palin’s use of Yahoo Mail for government business. Apparently, the email account was not breached by any high level hacker attack, but by a weakness in the Yahoo Password Reset.

The other, not a well know, was at the media agency Carat. In that case a private email intended for senior managers was sent to all employees. The email detailed layoffs and ‘talking points’ of how to deal with clients.

Both these cases high light problems with human side of email. In the first case, Palin either chose to ignore, or wasn’t aware of, rules for use of email for government business. And, like most people, wasn’t fully aware of how insecure email is.

In the second case, it appears structures were not in place to prevent this type of error. While the HR VP is taking the heat for the error, clearly the IT department deserves some of the blame for not disabling the “Reply All” option.

Email is, in many respects like sending a digital postcard. Any server handling the email can read, copy or scan (thats the NSA for you conspiracy buffs) your email. Your server mailbox is like your post office mailbox, anyone with the key can access it. Except, online, they can keep trying keys until the find one that fits. Or, as is suspected in Sarah Palin’s case, have a new key sent to them.

We all use email every day in our business. And, in most cases we don’t understand the technology behind it. It is up to each company to develop their rules for the use of email. They must also clearly explain the reason for these rules if they expect people to follow them.

 

USP Not UPS

Your Unique Selling Position or USP, is your most important marketing feature.

If you have a product that is truly unique in the market place – your product is your USP. Take advantage of it while you can. I won’t last.

Most of us, whether we provide a service or a physical product, have competitors. Our USP is what differentiates us from our competition. It is the reason a consumer will choose our product over other similar products.

For some, price is their USP. This is a dangerous position. It targets the segment of the population that by only on price. The problem with this position is it is hard to remain at the bottom. There will always be someone who is willing to go lower. Low margins and increasing costs make this a poor USP.

Adding features is another way of generating a USP. These are features that you can add directly to the product, or accessories that you can include in the sale. While this is a reasonable strategy because it increases your ‘perceived value’, it must be done carefully. Adding too many features will discourage this who are looking for a ‘plain’ version of the product.

Quality and service are, by far, the best USP’s. There are a number of problems with this strategy.

  • The buyer may not feel they can afford your product.
  • It takes time to build a reputation for quality and service
  • You MUST be able to deliver the quality and service you promise.

However, the benefits from this USP are huge. People buying on price or ‘add ons’ are not loyal. They will go to whoever offers them the ‘best deal’. Customers buying on quality and service are the repeat customers we all want.