Home Blog Web Business

The mystery of online shopping is nothing like The Stig

Share/Save/Bookmark

So, Ben Collins IS "The Stig"; which is very strange because my 10-year-old son has a T-shirt which says "My Dad is The Stig". If you don't know - "The Stig" is the mysterious test-driver on BBC TV's "Top Gear". He appears in all-white and has never removed his racing helmet. For ages, it has been a mystery as to who was behind the mask - but now we know. And that's a real shame.

Part of the excitement, the fun and the enjoyment of Top Gear is NOT KNOWING who The Stig is. We love mysteries - we love knowing there is some kind of secret that only a select few know the answer to and that we can try our hardest to find out. Mystery, detective work - it's all part of human nature. Indeed, as children grow up they engage with the world as mini-detectives - working out the clues that surround them, connecting all the mysteries together so that they can begin to make sense of the world. We are all brought up trying to solve the mystery of the world around us, so is it any wonder we like a mystery?

Knowing that "The Stig" is a professional racing driver has destroyed the mystery and made the program less alluring for many of us - a point well-made by a rather angry producer of Top Gear...!

But is mystery really something we can utilise on websites? In some situations, it seems we can. YouTube videos that purport to be one thing, but end up amusing us by being something different - they are amongst the most loved video clips online. Similarly, people enjoy "surfing journeys" where they click on links, wondering where they will be taken next. Indeed, Google exploits this mystery dimension of our behaviour with its "Feeling Lucky" button beneath its standard search box. And we love exploring and finding new things out on the web - new services, wonderful products - the excitement of uncovering that mystery is something which people love.

However, there are times when we detest a mystery. For instance, how often do you want to know the price of something on a web page but cannot find it? Some marketers will explain that the mystery of the price is what is alluring and keeps people connected. Wrong. When we have made up our mind that we are really interested in something our immediate question is "how much?".

Similarly, when you have bought something do you want the mystery of knowing when it is going to be delivered? Even knowing it will come in the next 24 hours is sometimes too much of a mystery. Will it be morning or afternoon? After all I have to plan my day - so I need to know; I don't want the mystery.

Being mysterious can help in marketing - but it can also lead to a reduction in engagement if you take it too far. Indeed, new research published by The Royal Mail today shows that companies are losing almost £3bn a year in online sales because of the mystery of delivery for many shoppers. Shopping carts that don't explain that there will be a delivery charge - keeping it a mystery until the last minute - are a bugbear. So too is the mystery of not knowing where the products you have bought are - have they left the warehouse or are they still waiting for someone to get off their butt to process the order?

When we buy things online, mystery can help - it makes the products and services attractive as we explore and increase our desire to purchase. But once we have made that decision to buy, all mysteries must be removed. When we want mystery, we love it; when we don't want it and we get it, we depart quickly. Maybe many websites which don't get the sales they want are using mystery in the wrong places?

Which only leaves one mystery to be resolved...how will Top Gear replace The Stig...?

Add a comment
 

Speedy websites are food for thought

Share/Save/Bookmark
Fast food makes you think fast - so will fast websites
Fast food makes you think fast - so will fast websites
I am writing this as fast as I can because I know you want to read it quickly. OK, old joke I know, but....there is a point. Honest. I have just primed your mind to think of speed and now you want everything that happens to be quick. Rapid fire. Speedy.

New research shows that the mere thought of "fast food" makes us want everything else we consider after that to also be rapid. Even seeing a logo of a fast food chain can make you impatient. When people were shown a logo from a fast food chain and then given the choice of having a small amount of money now or waiting for a while and getting a larger sum - guess what, they wanted the small cash reward straight away. But when they were offered the cash rewards without prior sight of a fast food logo, they were prepared to wait.

It confirms earlier studies which show that something we have "on our minds" affects our subsequent behaviour. And that is important to anyone operating an e-commerce site or retailing online. Say someone has just been to Amazon and bought something with the one-click buying process. Then they visit your site and have to register, confirm this and that, go to a separate screen to finalise their purchase - hey presto, you've lost a shopper because their patience has worn out.

Similarly, consider the person who has just searched on Google for the very thing you sell. Their search results arrive in 0.25 seconds and then they click on the link to your site and wait and wait and wait. You got it, they are already fed up.

People do not just come to your site to shop without any prior "on their mind" stuff. When they visit your shop their head is full of experiences and expectations from other websites and online services. If those websites have done things rapidly, this new research suggests that people expect your site also to be speedy, your shopping cart to be fast and your delivery to be rapid.

Because you have no idea at the moment they arrive on your site what prior experiences your visitors have, you simply must assume their mind is impatient; they could be primed by other online experiences to want things rapidly. Fail to do that and they will not wait around in your online shop for very long.

It means you need:

  • Fast loading web pages
  • Easy, shallow navigation (no more than one click)
  • One-step shopping carts

Provide those and you will sell more. Because of this speed-priming of people's minds they will expect your shopping cart and your website to be at least as fast as the site they have just come from. People prefer "instant reward" rather than waiting for it when they are already in "rapid fire mode". Do anything slowly on your website and they could be heading away from your site and down to the nearest take-away for some sustenance..!

Add a comment
 

Online shoppers prepared to sell you their privacy

Share/Save/Bookmark
People would rather keep their cash to themselves
People would rather keep their cash to themselves
Online shoppers don't like paying for material they have previously had for nothing. And internet users in the UK are the most miserly in the world. A new study shows that eight out of ten people would go elsewhere rather than pay for goods and services online. Even so, around 43% of people worldwide would pay for online information if they had to - but in the UK that number drops to a mere 19%. British people really are mean, it seems.

The problem for many website owners is that they trade in information. Business to business consultancies, lawyers, accountants and so on all sell information. With so many people unprepared to pay for that information, there is a real problem opening up. Information based businesses want to sell more via the web, yet customers of those businesses want more and more free of charge.

But don't worry too much. Money is only one form of currency. Another study shows that many of the people unprepared to "pay" for goods and services online are willing to give up something else in return. According to The Future of Digital Content report, many people will give up privacy in return for goods and services. In other words, people might not pay you cash for what you sell, but they are prepared for you to connect their "purchase" to other suppliers who may then offer them other products in the future.

In other words, information about "customers" becomes the asset that you trade, instead of cash. Your "customers" receive your information in return, for instance, you being able to sell their contact details to a third party. Your customer gives you one currency which you exchange for another currency - real money.

Interestingly, people seem more prepared to give up privacy than to relinquish cash. That's an important point - people are prepared to pay in many ways. Cash is not the only currency, so your online offers do not have to be priced in cash. You can offer goods and services in a variety of "currencies", including privacy, and then you can sell those currencies on other "markets". Think of it rather like foreign exchange. If you sell in the USA in Dollars, but bank in the UK in Sterling, you simply exchange one currency for another. But if you sell goods in exchange for privacy in the UK, you can swap that commodity you acquire for cash with other businesses in the UK. In other words you still get your cash, but not from your original purchaser - in just the same way as when you sell for US Dollars you still get your UK Pounds, just not from the original American buyers.

This study is a useful reminder that people will pay you for what you sell - but they might not always be prepared to use cash. So what can you sell in exchange for other "currencies" and how can you exchange those "currencies" with other business connections for actual cash? There is more than one way of actually making money...!

Add a comment
 

Bookshops beware - ebooks are on the march

Share/Save/Bookmark
The new Amazon Kindle DX
The New Amazon Kindle DX
When Jeff Bezos launched Amazon.co.uk on 15th October 1998 he was told it would never work, because people in Britain preferred to shop in "real bookshops". Presumably, with Amazon just reporting quarterly income of almost $7bn, those critics are eating their proverbial hats. Online book selling is a huge international success. Period. Of course, they could do better. It is still true that the biggest proportion of books are sold in bricks and mortar stores. But since the advent of Amazon the total sales of books have dramatically increased. Amazon have helped make the pie bigger and are continually taking a bigger slice of that pie.

But if you scroll down through their financial press release, you will find a hidden figure which is somewhat astonishing. In the past quarter Amazon has sold 180 ebooks for every 100 real books sold. In other words, ebook sales are approaching double the volume of physical book sales. No doubt the critics who said ebooks would never catch on are now sitting at the same hat-eating restaurant as those naysayers who reckoned online book selling was a fad.

The huge popularity of the ebook reader, the Amazon Kindle, has clearly made ebooks more usable and approachable. Up until the invention of the Kindle, ebooks really could only be viewed on a PC screen or you had to print them out. And the cost of inkjet ink and your own paper was usually much, much higher than buying the printed version of the book in the first place. On the whole, old-fashioned ebooks were never really going to catch on. But thanks to ebook readers they have just become a whole lot more popular.

Ebooks are convenient - you can take your entire library in your pocket. They are also cheaper than printed books. Price is clearly a factor driving ebook sales on Amazon. In fact, price is going to be a driver for a lot of online sales in the coming months. New data shows that shoppers are cutting back on spending and are looking for more ways to save money. In spite of the "end of the recession" (ha, ha) people are still feeling the pinch and want to spend less. That means whatever you sell online has to be priced well. Ebooks for the Amazon Kindle are a classic example of a new technology being able to provide a more cost-effective alternative at a time of financial hardship, resulting in wider acceptance of that technology.

You can expect ebooks to become more popular, more widely accepted and to be the staple of education establishments - largely because it means otherwise expensive and out-of-date textbooks can be replaced with much cheaper up-to-date material, thereby improving education. Classrooms will have them instead of whiteboards. They will become the new "chalk slate" of primary schools.

It all begs two questions:

1. What are you doing about your online prices and product availability while people are continuing to look for cheaper alternatives?

2.Are your information products being provided cheaply in Kindle form? If not, you are missing out on a potentially massive market.

The Kindle success shows us that when times are hard, people look for the same products at a cheaper price and in a more convenient form. If your online shop can achieve that, you will do well even though people are preparing to spend less. Avoid the need to innovate and to be price conscious and your business will likely face even tougher times in the year or two ahead.

And, if you are in the USA, you can read my blog on the Amazon Kindle...! USA copyright restrictions actually prevent other countries downloading my blog to a Kindle - even though you can get to it via the web...! Clearly the legislators need to catch up - again...! Oh, sorry, they can't - they are too busy eating their hats.

Add a comment
 

Mobile users hang up on internet retailers

Share/Save/Bookmark
Millions of people go shopping on their mobile, but most online businesses fail to meet their requirements
Millions of people go shopping on their mobile, but most online businesses fail to meet their requirements
How do you know if someone has an iPhone? Don't worry they will tell you soon enough. Indeed, anyone with any kind of smartphone is likely to be rather public about their ownership of their favoured mobile device. The mobile world is divided between those who love and use smartphones (21% of mobile owners) and those who have an "ordinary" mobile. Most people who use mobile phones appear to want to use them for, well, er, phone calls....! There's a surprise...!

However, six out of every ten retailers are trying to sell their products using "m-commerce" - online selling via a mobile phone. But here's the problem - according to a new study almost all of those retailers have failed to do anything about making their online offering suitable for even a smartphone screen, let alone an "ordinary mobile". That's a bit like advertising your product in China in the English language - some people will be able to cope, but the vast majority will not.

The survey which showed the extent of the gap between what companies offer using "m-commerce" and what people experience is backed up by another piece of research from Brandbank which shows that only 4% of consumers find buying via a mobile phone "pain free". In other words, almost all people using their smartphone to buy something have problems in doing so.

It seems that online retailers just don't "get it". They appear to think that all they have to do is have a web site for mobile phone users and that's that. But these two studies show that most of the companies trying to sell via mobile phones have failed on two basic counts. Firstly, they have failed to take into account the difference in the technology and secondly they have failed to take into account the way in which people are using their mobiles during the purchasing process.

It is all reminiscent of the early days of online retail - in fact it is rather reminiscent of much online retail now. Businesses appear to think that all you have to do is set up a website and people will flock to it. Whoopee. With m-commerce, they seem to think the same way; just create a "mobile site" and whoopee-doo we'll sell millions. Once again, research finds that retailers are woefully short of the mark.

Understanding your customers, what they do, how they behave and how they use technology is essential if you are to truly connect with them. Ask Tesco. They transformed their business from a company that was focused on price and competition to one that was geared to their customers, resulting in becoming the world's third-biggest retailer. It's nearest competitor, Sainsbury, makes it to the 529th position. Clearly, focusing on the customer relentlessly has an impact. Yet, in the m-commerce world the two studies published this week reveal that's the last thing retailers appear to be doing.

As ever, this is a lesson that repeats the lesson of all business: understand your customers and you will do well. Fail to understand them and you won't make as much money as you could.

Even if you don't sell online, one in five of our website visitors are likely to enter our site via a mobile. Are you geared towards them, or ignoring them? For a simple approach go to DomainMonster and buy a ".mobi" domain. For an additional £19.99 a year their "Instant Mobilizer" product will automatically convert your website into a mobile phone version. It may not be the best answer to "mobilizing" your website, but it is an excellent start. (If you want to look at my site on your mobile, visit www.grahamjones.mobi.)

Add a comment
 

Online shopping - it is worse than we thought

Share/Save/Bookmark
Your business needs more people to buy rather than to visit your site
Your business needs more people to buy rather than to visit your site
Prime Minister David Cameron said last week that the UK budget deficit was worse than we thought. Then a week later the new "Fiscal Watchdog" downgraded the growth predictions for our economy. Now, today, we know that part of the problem is because internet sales are much worse than we thought. A new study by the accountancy company Sage, has shown that 93% (yes, almost everyone) gives up buying stuff online. Only 7% of people who go to an online shop ever end up buying anything. Imagine, for a moment, that you run a high street store - indeed you may have your own physical retail outlet. What would you do if 93% of people who came into your shop walked out without making a purchase? If only 7% of your footfall actually dipped their hands in their pockets you would be out of business pretty fast.

Next year, online retail is expected to be worth £52bn in the UK alone. If that is a mere 7% of shoppers, just imagine where we would be if more people bought online. And just think what your own life would be like if you could convert more visitors into buyers.

The real tragedy is that online shops of all kinds are failing to do that. In spite of the success of Amazon and others, they actually still represent only a tiny proportion of total sales. Less than a third of all retail sales happen online; people still like physical shops. But perhaps we don't actually really prefer all that tedious driving, parking, carrying heavy bags and driving back home again. Perhaps it is simply more convenient than the hassle of much online shopping?

After all, online shopping carts are notoriously complex and much more cumbersome than paying in a shop. There is plenty of advice on reducing shopping cart abandonment, which helps, of course. But the Sage study released today highlights other issues which are important if you wish to sell more online.

Some of it is obvious, yet few online stores appear to do it. For instance, the fewer pages you have to click through to actually buy something, the better. Amazon has had its "one click" buying system in place for several years. Why don't other sites do the same? Payment pages that are customised get more people to buy. With shopping cart "software as service" providing only limited customisation it appears that online shoppers are confused as to actually who they are buying from. That reduces the likelihood of purchase.

Importantly, the study also found that shoppers were more likely to buy if an online shop is an active user of social media. In other words, if your internet business is not active on Facebook and Twitter you are less likely to be able to sell anything via the web. Another reason for needing to get to grips with social media.

Overall, the findings of this study make somewhat depressing reading. In spite of all the advice available on improving online selling, few businesses actually take it. Perhaps they are so focused on driving traffic and getting to the top of Google, they have forgotten that the real success goes to people who convert most of their visitors into buyers. This research confirms that people are not converting anywhere near enough online shoppers as they might be able to. Part of the reason is failure to truly connect with those visitors, but perhaps another part of the reason is that online retailers are too focused on the wrong target - Google. Even though search engine marketing is important, more important to your business - and ultimately to the sad economy - is conversions. That should be the principal target of your business, not other online activities.

Add a comment
 

Your customers want to return what they have bought from you

Share/Save/Bookmark
Would you like the Vuvizela sent back...?
Would you like the Vuvuzela sent back...? (Picture courtesy: Flowcomm
Television viewers the world over are almost united in wanting a single product returned, sent back to the manufacturers, never to be used again. It is, of course, the Vuvuzela, which is responsible for the constant droning racket at every World Cup match. Indeed, even the BBC is debating how it might be filtered out from broadcasts, without much luck it seems. And the French players have complained the din these trumpets create is partly responsible for the team's poor performance in their opening match. It would be fantastic for the players and fans worldwide if these instruments (of torture?) could be sent back.

But they can't. FIFA has ruled that they are part of the the culture of South African football and so they are here to stay. That's in spite of ear-plugs selling out and the fact that the South African Medical Journal has carried a research paper showing that the noise level of the Vuvuzela is higher than the nation's permitted occupational sound exposure. Indeed, the researchers say that anyone within 2m of a Vuvuzela risks permanent hearing damage.

The trouble is, sending them back. After all, they are sold by vendors around the stadium - so even if you decide to protect your ears and take it back to the shop, where is the shop...? Even if after buying one of these items you wanted to take it back you would have real difficulty in doing so.

And according to research published today, that could be almost as annoying as the darn sound itself. It seems that when we want to return something we have bought, we expect to be able to do so easily, quickly and without any real trouble at all. And therein lies a problem for anyone selling items online. If your returns system has any weaknesses, or puts your customers to any trouble, there is a real risk they will avoid using you again in the future.

Indeed, the study found that almost six out of every ten people would avoid an online company if their returns system was weak. And one of those weaknesses is charging for returns while another is making people take stuff back to specific return centres. What people want is a local and free returns systems - or for your company to arrange to collect the unwanted items. Making it difficult for people to return items to you makes them think negatively about you.

Like it or not, the easier you make it for people to return what you sell, the better your company will do in the "word of mouth" stakes. Your business success could depend on making it clear to your customers that you are happy for them to send items they have bought back to you, without them having to spend any money doing it.

Add a comment
 
More Articles...