Archive for February, 2009
FTC decides no privacy laws for Behavioral Targeting
By Wendy Davis
The Federal Trade Commission said there’s no need for new privacy laws that would regulate behavioral targeting companies’ efforts to collect data about consumers.
In a 55-page report, the agency called on online ad companies to provide clear and prominent notice about behavioral targeting and also allow consumers to opt out.
The FTC eschews the need for new laws, but privacy advocates quickly indicated they disagree. The Center for Democracy & Technology issued a report saying that it “looks forward to working with the agency and the Senate Commerce Committee on legislation that could address online behavioral advertising and general consumer privacy.”
Advocates also are continuing to press for a do-not-track registry. Chris Hoofnagle, director of information privacy programs at Berkeley Center for Law and Policy, said in a conference call that consumers weren’t likely to opt out of targeting at each Web site they visited. For that reason, he said, any system that relies on site-by-site opt-outs is “calculated to fail.”
Posted by Tom Polanski in Advertising on February 14th, 2009
Here’s why companies shouldn’t have music on a website
By Tom Polanski, EVP, eBrand Media and eBrand Interactive
Yesterday, a new client asked if there was any evidence, either way, as to the effect music has on conversion rates. My first thought was that music is unnecessary and dangerous. The eBrand Media belief is this; we want the end-user to take as many actions as possible to get to a site e.g. turning on the computer, opening a browser, typing a long-tail term in the search field, clicking the search button, and so on. However, once the guest arrives at the site, we want the guest to take as few actions as possible to find and buy.
The love of music is a personal journey defined by culture, beliefs, and generation, among other elements, so it’s safe to assume that the music chosen for a site is a hit or miss proposition, mostly missing. That means while on the site the guest will probably have to reach over to turn off the music. Not only is this an added action while on the site but it causes a loss of focus, which if we’ve marketed correctly should have been honed by the time the guest arrives at the site.
In the end we ask, why take the chance?
In addition, sites with music are neither quick nor convenient. A few years ago they may have been the rage, but today music or voice playing on a website is somewhat dated. It won’t work, and chances are you will annoy your customers and they will be relaxing with a competitor where things are more peaceful.
Why is noise such a bad idea? We could fill pages, but here are another three reasons:
Posted by Tom Polanski in Marketing on February 13th, 2009
Online flower prices grow as you go
By Bob Sullivan
Companies often advertise one price to lure customers into their stores, then charge a higher price. In days gone by, this was called “bait and switch.” Now, it’s called fees and surcharges.
On the Internet, this tactic has another fancy name: “landing price.” Advertisements include a low price to persuade customers to land on their e-commerce site. But by the time shipping and handling is piled on, the “out-the-door” price is substantially higher.
This tactic is most clear in the world of online florists, and most prevalent during Valentine’s Day. A quick survey of the top online florists shows that consumers using the two top sites typically pay at least 50 percent — and often as much as 100 percent — higher than the advertised price.
Take ProFlowers.com, which this week was running nearly ubiquitous ads with offers like this: $29.99 for a dozen roses and a free vase. But any consumer wanting the arrangement delivered on Valentine’s Day will pay at least $55, after shipping, taxes, handling and a Saturday delivery fee are added. Shoppers who agree to early delivery on Feb. 12 will save $10, but will still pay around $45 (when $10 shipping, $1.99 handling and about $3 in taxes are added in). That’s still 50 percent above the advertised price.
Making matters worse for shoppers: The total price isn’t revealed until the last possible moment — after the recipient’s name and address, credit card number, billing address and even the “Love, Bob,” note are entered. This reporter counted seven screens before the real price was unmasked. After all that typing, consumers are less likely to abandon the transaction.
ProFlowers says all its advertisements indicate customers will face additional fees
“ProFlowers advertising…clearly states that shipping and handling are additional costs,” spokesman Mike Rosen said in an e-mail. He said the company has not received any complaints that its advertisements are deceptive.
Rosen also pointed out that consumers can add the total cost on their own within the first click or two. But to do that, consumers must notice and click on a link named “details” while picking the delivery date.
“I don’t think you give consumers enough credit,” Rosen countered. “In this day and age customers understand this process better … and expect to pay shipping charges.”
Posted by Tom Polanski in Customer Centric on February 12th, 2009
Delete cookies, score some dough
By Melinda Fulmer
If you’re a new customer at the Bradford Exchange, you can get four boxes of personal checks for $23.97 with a new-customer coupon. The same order will cost a repeat customer who doesn’t have the coupon $59.60.
It may seem counterintuitive, but in the online shopping business, loyalty isn’t rewarded.
The best discounts are typically reserved for new customers. And one of the easiest ways to make Web retailers think you’re a new customer is to delete the cookies they leave on your computer, says Robert Weiss, an attorney specializing in information technology at Neal, Gerber & Eisenberg in Chicago.
Bit of text can tell a lot
A cookie is a piece of text that a Web server sometimes stores on your computer when you visit a site. When you go back to that site, your browser retrieves this file, and the site identifies you as someone who’s shopped there before.
Retailers use this information to figure out the best way to sell to you. They can determine:
a. What departments you visited on their site.
b. How often you’ve been there and how long you were there.
c. What you’ve put in a shopping cart.
Amazon.com says it uses this type of information only to make product recommendations, not to decide who gets discounts. The e-commerce giant came under fire a few years ago for allegedly using this information to offer different prices to different customers.
Posted by Tom Polanski in Customer Centric on February 11th, 2009
Consumer Voice Is Not Effectively Leveraged By Companies
By Tom Polanski, EVP, eBrand Media and eBrand Interactive
According to a new study by the Chief Marketing Officer (CMO) Council, with Satmetrix, 58% of the 480 executives surveyed said their companies do not compensate any employees or executives based on customer loyalty, satisfaction improvements or analytics. 38% said their companies have no programs in place to track or propagate positive word of mouth among customers, and only 29% said their companies rate highly in their ability to handle and resolve customer problems or complaints.
Senior marketers admit their companies are failing to take decisive, company-wide action to integrate customer voice and experience into key business and marketing processes, says the report. The study underscores critical deficiencies in the way companies measure, optimize and leverage customer experience to drive loyalty, improve brand value and increase business performance and growth, including:
a. Insufficient availability and aggregation of real-time customer experience data across touch points that should be shared across the organization
b. Poor use of customer interactions to collect insights and intelligence or maximize up-sell and advocacy opportunities
c. Lack of Internet processes and systems to track online word of mouth and drive customer advocacy
Intermittent or deficient monitoring of customer experience that fails to provide true and timely insights into problems and opportunities
d. Too few compensation programs tied to customer experience, loyalty and satisfaction gains
Posted by Tom Polanski in Growing a Business on February 10th, 2009