AboutJim Novo Expertise Questions about using customer data to inmprove online profitability, particularly in retailing. Topics include profiling customers using weblogs, figuring out which ads generate the highest value customers, how to reduce the numnber of 1x buyers, how to generate higher sales from current customers, customer analysis, ROI calculation, reducing discounts while increasing resaponse rates. Do you collect customer data (purchases, page views, surveys) and not really use it for anything? Want to find out how? Just ask.
Experience
Past/Present clients Cellular One, MBNA, SteelTorch Software, Retek Direct, CBS Sportsline, Kobie Marketing, Aerial, Tupperware, Barnes and Noble, Comcast Corporation, Home Shopping Network
Expert: Jim Novo Date: 1/14/2006 Subject: Some Questions.
Question Dear Jim,
Actually when people shop at online shopping websites, do they actually prefer the typical website layout with all those pictures and sentences (seems like information overload to me) or do they prefer instead a simple website that show nothing instead except a few display of the desired products, the products' description, price, the company behind it and the benefits derived from the products? I mean, exactly how the templates should look that actually appeal to the visitors? Simpler? More complex? More information? Less information? More graphics? You tell me.
On average what's the advertising costs (from minimum to maximum, doesn't matter if it's banner, bullet, etc) at Yahoo!, Google and MSN each? What benefits can I usually get in spending on the minimum and maximum choice? I mean, if I spend $10000, will I certainly get $100000 in sales deals in return guaranteed, for example?
Answer As to all questions asked: It depends on what you are selling; different products have different audiences and so different requirements.
As to layout and templates: generally, simpler is better, people want it to be easy and clear. This does not mean less copy; generally, there is not enough copy on most selling sites. For example, compare the copy for the same product online and in a catalog; you will find the copy is 2 or 3 timers longer in the catalog. For most remote sales, all the product details need to be referenced and explained. The exception would be commodity products where features are few and well known.
I'm not sure I understand the last part of the question, it is too vague. I would never buy any display ad - "banner, bullet, etc. at Yahoo!, Google and MSN" - no matter how much they cost. All the advertising you need to do - unless you are involved in a "branding" assignment of some kind - is with pay-per-click ad services from Google (Adwords) and Yahoo Search (formerly Overture):
There no guarantee on anything that has to do with advertising, ever. Just because you get people to come to your site doesn't mean you will sell them anything. They have to like the product, trust you and your site, and get good service from you, at minimum.
The payback from pay-per-click advertising depends on your product margins and how good a seller you are. It's pretty easy to make $2 for every $1 spent; I have seen it as high as $25 for every $1 spent. But 25:1 is for a fully optimized niche retailer built from the ground up for search marketing.
