Channel Optimization for Q1 2009

With all the recent economic turbulence and the conclusion to Bloody Monday (68,000 jobs lost today nationally), I feel it’s time for a guide to making online marketing dollars extend further. The idea for this site is about how to intelligently channel efforts, so the return is a consistent stream of positive results or profits; hence, ChannelDollars. Thus, writing this piece is easy-

Rule #1 to Efficient Optimization in Q1: Look to Commission Based Channels

This seems like a no brainer, but many people still have not explored some significant opportunities to sell their goods.

Amazon: The biggest retailer online and still growing, holds significant advantages for the majority of retailers. There are many obstacles to over come, from order and product integration to competing directly against Amazon in some cases, but the updside is obvious. Any retailer should expect to see a significant portion of revenue come from Amazon when getting on board, and the commissions are flexible by category. Joining Amazon is not a new idea, but it works.

Cashback (formerly Jellyfish): An easy channel for integration, and the admin of it is simple. Microsoft is still figuring out the best way to market this site in conjunction with other properties, but the ROI is there. The merchant determines the commission rate, starting for as low as 3%. Funds are only paid by the merchant after a sale has occurred, so the only up front cost is the resources to integrate. As long as the merchant can validate the orders coming through, this is a no brainer.

Rule 2: Focus on Google Product Search

Google is still growing, and with that growth comes enough change to need constant monitoring. Too few merchants get on Google and just leave their feed there abandoned. How can I say..no, no, no. Google is constantly altering their search algorithms around product display and every merchant should watch carefully. Because of the mammoth growth curve Google Product Search has seen in the last year even minor fluctuations can bury product results which used to rest on top of Page 1. Also, merchants should be asking about Google Checkout, implementing product reviews on a site which Google crawls, and checking their own site’s compatibility with Google’s systems (check that PageRank). All these things weigh into the equation. Also, I assume anyone reading this already knows, but just in case: Google Product Search is still free.

Rule #3: Focus on the Big Channels

If you see a small channel under-performing, then of course look into it. However, don’t spend too much time there because the big channels are where the real rewards are. Too many merchants get caught in a defensive posture, instead of taking time to look for positive changes and see what can be done to improve results. Examine product selection, bidding methodology, and even go back and just make sure all basic settings are correct. Shipping can and will make a difference, so even something small like setting a shipping table correctly will impact the bottom line. Don’t spend time pouring over stats and figures when sometimes the best question is, what can I do to improve revenue on this channel? Put the right kind of effort in the places where the most potential is, and see what happens.

Rule #4: Mind the Store

The next rule is that merchants pull in traffic and sometimes forget to ask why the traffic is not converting. Make sure the product landing pages where consumers are going make sense. Invite the consumer to either check out immediately, or find other products right away. It seems simplistic, but too many times I have seen merchants worry about the conversion rate or CPC costs without actually behaving as a consumer would and see if they can find what the consumer is looking for.  In short, make sure promotions are clearly advertised, shipping and contact information is easily found, the product is easy to order (big, bold, above the fold checkout button please), and make sure the landing page makes sense. Click somewhere else in the site, and then try to the find the product again. If that’s impossible, then maybe it’s time to think about changing the site a bit.

Rule #5: Check Your Resources

Sometimes it really is a question of resources. It’s always good to reevaluate things, and when looking to see how growth can be accomplished, take a look around. There are many companies who make their living being experts on individual tasks. See what opportunities exist for agencies who could perhaps grow with a merchant, or even if there are advantages to combining services from a vendor. Also, see what the recommendations are from internal staff. I can’t begin to count the number of employees who are wasting time doing repetitive tasks, but either haven’t been asked for a better way to accomplish their work, or haven’t been listened to when they suggest it. This is a good time to ask everyone in the company how things can be done better, and actually take those ideas and turn them into action.

Hope this helps, and of course if there are questions or comments, feel free to post.

January 26th, 2009