Paulson e-Marketing insights for 2007

2006 is coming to a close. The landscape of online commerce will change and adapt as it has done in the past, and 2007 will not be an exception. Many e-tailers are becoming savvier when it comes to consumer acquisition strategies, retention strategies and buzz and viral marketing strategies. From my perceptive, many e-tailer’s have a better grasp than ever before when it comes to the cost effectiveness in advertising through the various online channels and the optimization of those channels. Adaptations to those channel strategies, as well as increased consumer lifetime value understandings, will encourage heightened conversion and consumer participation with many brands in the online arena. My predictions include insights into what I see are growing trends in online commerce for 2007.

2007: The year of extreme customer centric considerations!
Offering unique purchasing incentives can assist e-tailers in standing out from their competitive landscape. There are many strategies that can help a brand differentiate themselves to consumers.

More e-Businesses will offer consumer financing options

In Store Financing

Many e-tailers are now offering different payment options to increase the likelihood of a larger AOV from the consumer. Specialty retailers with high priced items such as Diamond.com and Ice.com offer in-store financing. This type of financing can predominantly be done through credit card sales, with the product being delivered after the financing term. Retailers are able to allow this type of financing without a credit check and or in some cases without offering a financing fee, which is obviously an incentive to the consumer to purchase high ticket items as well as to purchase them online.

In-Store Credit Cards

Typically, in-store credit cards are offered to consumers who are making a specific order value purchase. This offer increases the AOV of the consumers purchase to qualify them for in store credit. In-store credit helps the impulse purchase decision of the consumer and allows the company to offer financing rates that are either competitive and/or lucrative enough to warrant the program. CompUSA.com offers an in-store credit card with the minimum purchase of $199. (Credit card offer through hsbcusa.com)

More e-tailers will offer enhanced consumer administrative controls

Gifting and Registries

Consumers are expecting more from their site administration panels, an excellent example of a company who has heightened user administrative controls is Amazon.com. They offer an incredible gift organizer for consumers including gift certificates, gift cards, gift reminders as well as wish lists, wedding and new baby registries. Pulling consumers away from this type of administrative incentive will be difficult. Offering creative options or other incentives must be sought after to maintain market share for any e-business.

Viral and Referral Controls

Your company has paid the CPM, CPA, or CPC for that consumer. Turn that cost into free leads through administrative control options that help consumers promote your brand. E-cards, interactive games, contests, referral incentives, and promotional offers such as discounts or other rewards for consumers referring your products to their friends, relatives or business partners help enhance lead and consumer acquisition to your site. Managing these referral based programs through administrative controls can help a company leverage statistics concerning usage and trends.

Loyalty programs will synergize with buzz marketing programs to make 2007 the year of the buzz

Online loyalty programs that reward consumers in 2007 not only for their past but also for their future patronage will increase and synergize with integrated buzz marketing practices. Consumers will encourage the buzz by sharing incentives and loyalty rewards with friends, coworkers or business partners which in turn offer additional incentives for the referral. Companies like www.webloyalty.com and www.eprize.com offer assistance to brands interested in increasing consumer loyalty and will assist them in spreading their brand buzz through loyalty programs in 2007. Companies needing an offline and online integrated loyalty program for maximum point of sale impact check out www.loyaltygenius.com

Web.2.0 will change from a marketing buzz word to actual applications

According to Wikipedia.org, Web 2.0 refers to a perceived or proposed second generation of Internet-based services-such as social networking sites, wikis, communication tools, and folksonomies-that emphasize online collaboration and sharing among users. Web 2.0 is not a technology. It is a way of using existing or potentially new external or viably centered internal communications processes and methodologies. Peer production, open source and consumer centered events and site engagements are another way of saying heightened user engagement with your brand via many additional underlying principles and methodologies surrounding Web 2.0. An excellent article on understanding Web 2.0 is at www.oreillynet.com.

Mobile media marketing budgets will increase significantly during 2007

In my article, Mobile Media - is your brand ready for 2007, I touched upon a few of the exciting Mobile Media applications and the uses for mobile media. Now, according to PCWorld.com, Sprint Nextel will be rolling out a faster 4G network using WiMax the latter part of 2007. The fourth quarter rollout will reach more than 100 million people around the United States and will offer downstream speeds of two megabits per second to four mbps, with more consumers using lower cost mobile devices with more control and faster downloads experts are letting us know that means an upsurge of mobile media in 2007. Services such as mobile TV, music and gaming will increase, using 3G and with Sprint’s new 4G technology.

2007 will be a fantastic year and I look forward to what it brings. If you have any ideas concerning trends for 2007; I would encourage you to share them with us here.

HAPPY NEW YEAR!
Heather Paulson

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