Yes, I have received that subject line, and no, I did not open the piece, and yes, I did promptly flag the email as ‘spam.’ Other email campaigns at more reputable institutions, however, might have you similarly asking, “Why you speak like preschool toddler?!”

Here’s why: according to the Direct Marketing Association in their October 2009 Annual Economic Impact Study, email continues to deliver the highest ROI of any marketing channel, with an average of $43.62 returned for every dollar spent. In a distant second is internet search advertising, with a still strong $21.85 return for every dollar.

Pruning the Digital Money Tree

With the low cost and high return, marketing departments run the risk of taking a laissez- faire approach to email marketing. Because new revenue is always good, right?! How can anyone argue with results? Let’s try.

MailerMailer.com recently published their 2009 results study, showing over the past two years, they have seen the open rate percentage fall from 14% to 11.2%. With ‘list fatigue’ cited as one of the major factors, and all the emails sent on a daily basis from <insert retailer’s name here>, I think I can hear a collective “amen.”

The other main factors MailerMailer.com cited in the reason for the drop, however, appear to be interrelated: image blocking and handheld devices. Though many smart phones are indeed image capable, image wrapping just isn’t the same as text wrapping at the end of the day. It is a trend that should be noted, as The Radicati Group* estimates mobile phones accessing email will increase from just under 200 million in 2009 to a billion (yes, that’s a ‘b’) by 2013! Note to self: make sure to account for mobile devices in email campaign.

But, images themselves aren’t that bad in email campaigns (just image-only emails). Consider a couple of stats side-by-side. MarketingSherpa** released findings that only a third of email campaigns contained an image, while Forrester Research*** found video in email (even as an image with click-thru to the video) could increase click rates by two to three times! There’s a lot of room for video in the other two thirds of email campaigns! Note to self: get that multimedia crew back in here for the next email campaign.

What is completely unforgivable, however, is a really bad email campaign which drives not just potential customers, but loyal customers away. Poor grammar, inappropriate humor, ineffective promotional offers and bad decisions in general might show new revenue for a time, but erode a company’s future. All it takes is one really big mistake. Just consider this: Richard Nixon ended segregation, was the only President to achieve a balanced national budget between 1961 and 1998, is largely responsible both for creating the EPA and helping to end the Cold War, and had one really big lack in judgment. What do you remember Nixon for?

Getting Email Right

Matt Levy here at Credera, has written of several important factors in considering an email marketing implementation. Here’s a good process to follow:

“First, leverage existing customer information stored within internal IT systems. The goal is to provide a personalized and relevant experience and therefore, mining and utilizing existing customer information is a tremendous resource to the savvy marketer. Understanding the steps required to integrate customer data into the email marketing solution can make or break a successful campaign. One recent client required 39 different customer data fields to ensure the customer relationship was managed effectively once an email marketing solution was deployed.

Next, recognize that email marketing is a responsibility as much as an opportunity. Email marketing is a primary touch point for many organizations and must also be utilized to update and keep customer information reliable. Most departments within the marketer’s organization don’t have the resources or the ability to enable updates to customer information with the same magnitude or significance that marketing does when utilizing email marketing as a tool. The words from a popular movie a few years ago come to mind, “With great power, comes great responsibility”, I believe this was Spiderman’s uncle, but this seems relevant here too.

Have a plan. Email marketing is only one component of your integrated marketing and communications plan. Implementing email marketing should be tightly integrated with this plan. Understanding the implications of the various moving parts of email marketing will affect your plan. For example, implementing an internal or outsourced email marketing solution will affect budgets, timelines and internal resource requirements. Similarly, have you decided to use the email solution for internal communications as well? If so, how does this solution tie to the internal communications plan? If you are like many of our clients, internal and external communications are handled by different people within marketing. The need for a well understood plan across marketing and affected departments becomes the foundation to build consensus and direction while providing the necessary leadership to keep the ship moving in the right direction.”

Beyond building and deploying an effective email campaign, then, consider your best way to monitor and measure results, whether through tracking of total opens from time of delivery or click-thru rate to that cool new video you just embedded as a picture with a play icon. And don’t forget to get social. From 2008 to 2009, the number of marketers planning to grow their email list via social media rose by 32%.** Joining social media and rewards programs appears to be one area receiving current attention (but that’s for another article).

What do you want from me?

In an interesting study on restaurant email marketing at Bennigan’s**, personalized coupons were offered to customers in a four-day-only offer. The offer was relatively big: two entrees for the price of one. But the payoff was also big: a 12% lift in overall sales, including a 12.7% lift in beverage sales, 7% lift in appetizers, and 10.8% lift in dessert sales. The study notes Bennigan’s restaurants which even ran out of menu items!

Being personalized and purposeful, the email coupons were coded in order to track the exact effect of offline sales, providing the stats for the campaign. The personalized part was the time boxing: rather than sending on a specific day of the week for a mass blast, the email was sent to a restaurant customer based on how they plan visits.

Without a purpose, email marketing might as well not be done. Without personalization, it might as well be a mass mailing. Always remember you are unique. Just like everyone else.

I’ll bet you didn’t know my laptop (a Dell Latitude E6510) could have been ordered in exactly 4,777,574,399 different combinations than the one I have now, did you?!

“Five billion different combinations for a single laptop?!” you say? And how many Dell employees does it take to make a laptop, much less screw in a compact fluorescent light bulb?! Enter B2B eCommerce…

Experiencing Technical Difficulties

“Occupational specialization continues within multinational supply chain.” It’s a headline you’re liable to see in any business publication within the past two decades, whether discussing Dell’s process for building computers or Kraft’s approach to food and beverage manufacturing and distribution. Business-to-business (B2B) eCommerce transactions are no exception, with purchase orders, invoices and payments rolled-up into an automated solution.

Where B2B has business-to-consumer (B2C) beat in terms of complexity, though, is in supplier’s negotiation ability, the natural outcome of volume aggregation cost savings associated with channel, rather than customer, management. Don’t you expect a discount when you’re purchasing hundreds of units rather than a single item? Aside from order volume, wouldn’t you expect a B2B eCommerce solution to track purchase frequency, account settings, product-level pricing based on customer contracts, inventory location and availability, and have advanced specialized shipping and freight settings? Assuming so, how are the lines blurred between B2B eCommerce and a full-fledged Customer Relationship Management (CRM), or even Enterprise Resource Planning (ERP) solution?

Technical configuration considerations include the process complexity of tying multiple customers, each with the potential to have multiple accounts, locations, and contracts, to multiple suppliers, each with the potential to have multiple products, locations, and prices. If that conundrum doesn’t get the database dude named Erwin and his fancy diagrams fired up, I don’t know what will.

Throw on top data integrity standards, governance issues and master data management considerations and the complexities exponentially increase.

Alphabet Soup

For purposes of defining scope, we will limit the role of B2B eCommerce to solutions with a more traditional eCommerce (online shopping cart-esque) flavor, but retrofitted with advanced supplier management tools and better back-end integration, including CRM and ERP integration. While there are B2B eCommerce solutions that uniquely focus on Electronic Data Interchange (EDI) applications (better called B2B Integration solutions), for the purposes of our discussion, a B2B eCommerce system discussed herein would support EDI (and XML) translation, but not be centered around the translation.

Analyst Brian Walker of Forrester has even identified the following “range of models” (read: favorite new acronyms) in the B2B eCommerce world. He notes these models are at times supported by a single solution. Most of the acronyms, though, like most tech talk, leave executives wondering “so what?!”

B2C - .com site
B2B – large wholesale account site to dealer
B2B2b - dealer to distributor portal to small parts dealer
B2b2C – product extranet to distributor portal to dealer B2C shop to consumer
B2E – sales support intranet to support materials
B2C/B2B – call center
B2B2C – B2B2C platform to .com retailer site

Besides, at the end of the day, do you really need to know if your B2B system offers A2A interfaces for CRM and ERP integration through EAI? Not to mention whether your CSR has CTI through your CRM so the ACD/PBX can pass-thru what came through the IVR?!

Quarter Ton Monkeys

Now that we’ve completed the B2B eCommerce vs. B2B Integration solutions discussion, effectively setting aside such offerings as IBM’s WebSphere and Oracle’s Fusion solutions, then who are some of the 500 lb. gorillas in the space? Glad you asked!

On the supplier side, Ariba is a clear leader, with impressive website collateral stating their Supplier Network includes 300 buying organizations purchasing from 150,000 suppliers, clearing over $8B per month across 66 currencies and 115 countries. The online environment allows a new supplier to become ‘Ariba Ready’ by incorporating Ariba’s web standards and therefore have immediate access to the buying organizations. Not to miss out on the capitalization of strategic sourcing, contract management, spend analysis and supplier management services (and by services, I mean deployed in a Software as a Service, or SaaS model), Ariba acquired Procuri, further developing the buyer-side of the B2B equation.

Speaking of M&A activity, then, I’d be remiss if I didn’t mention the pending GXS and Inovis merger. Purporting to have a combined 6M trading partner relationships and 10B annual transactions with over 40,000 customers and 2,500 employees all exclusively focused on B2B eCommerce and integration, it would be safe to say this ape’s going to be eating a lot of bananas. Though much of the product offerings do hinge on the B2B integration solution, there are core B2B eCommerce plays here as well.

Finally, NetSuite has an interesting offer in the deployment of (as their website states) “full-featured financials, CRM, inventory and eCommerce software – all in a single system.” ERP, CRM and eCommerce all together?! I thought they were supposed to be sold separate by the likes of SAP, Oracle and Microsoft!

Though not a comprehensive list, you at least now have a broad market overview and starting point for looking at the technical and functional considerations for your organization.

Because You’re Mine, I Walk the Line

As an example of growing your corporation’s top line through broadened reach or bottom line through decreased transaction costs, consider the health care sector in the States. According to Steve Keifer, VP of Industry and Product Marketing at GXS, US health care providers process between 8B- 18B transactions annually. With only 30-50% of payer transactions being electronic, you can do the math! There is plenty of room to grow.

NetSuite even compiled a white paper on Cartridge World, touting bottom line impact of $200,000 in annual IT and administrative costs removed, and a staggering $320M top line growth enablement.

The most significant bottom line impact, regardless of industry affiliation, is widely regarded to be environments where:

a) The supply chain is highly fragmented

b) Suffering exists in the area of inventory management

c) The business’ suppliers are willing to collaborate using the web

Because of these obvious cost-benefit ratios, back in Y2K, research firms Forrester and Gartner were predicting close to a $4 trillion B2B eCommerce industry by 2003. No, the number was not hit. Yes, much of the reason was the sunk investments and lack of integration between traditional B2B platforms already deployed. The systems were integral to businesses and also lacked easily configurable integration engines (producing the gi-normous B2B Integration space).

The End of the Beginning

Back to Dell. The cornerstone example of the just-in-time (or lean) manufacturing space, Dell was able to revolutionize the custom computer order experience both at the customer and business level. They electronically tied in their supply chain, highlighted by a five to seven day build and deliver process*:

Though the Dell model is not new, the overall benefits are widely lacking within the industries Dell does not operate. Industry verticals such as Healthcare, Utility, Education, Transportation, and Retail (to name a few), have significant room for waste reduction and productivity improvements.

Focusing on efficiency and effectiveness, then, is the measuring stick for effective B2B eCommerce in 2010 and going forward. Just as Peter Drucker penned, “Efficiency is doing things right; effectiveness is doing the right things.”

We, Credera, can partner with you to “do things right” and to help ensure you are “doing the right things” by:

• Assessing and rationalizing your corporations’ eCommerce Solutions across the complex B2B spectrum
• Engaging in a Software Selection ensuring fit and value across the varied and growing range of B2B eCommerce suppliers
• Equipping your business through Business Process Reengineering for the best results possible with your B2B eCommerce deployment, and/or
• Implementing the right B2B solution for your organization

Though many businesses have yet to unearth the transformational promise touted by B2B eCommerce in the wake of supplier integration complexities and dubious cost-benefit analysis, the results are in. B2B eCommmerce has proven its value, as varied as the applications are, and is here to stay.

*Dell example based on Lucas, Henry C., Jr. (2005). Information Technology: Strategic decision making for managers. New York: John Wiley and Sons. Page 53.

It’s Black Friday and your eCommerce server utilization has spiked for hours, sending DoS (denial of service) errors out to over 5,000 potential customers!!!

At this point, most IT professionals would deploy another server in the eCommerce environment as quickly as they could – or ratchet up resources on an eCommerce virtual server instance. What else can be done? Enter cloud…

Cloudy Introductions

I was first introduced to ‘the cloud’ a decade ago, looking at a network topology on a technical architecture diagram (try saying that fast five times). The ‘as-is’ state was a point-to-point solution using multiple T1 lines (but not yet cost justified for a DS3 solution, for you technophiles out there), and the ‘to-be’ state incorporated Frame Relay “over the cloud,” which simply meant there were several T1 lines a hop, skip and jump away from the two physical locations that the network provider would magically manage and integrate, providing network redundancy and ultimately a higher class of service.

It sounded great, but just as in all service contracts at the end of the day, the daily operation of the Frame Relay network came down to service level agreements and penalties. If the penalties weren’t strong enough, the network provider would invariably lower the priority on a service issue until an executive-to-executive (yes, E2E drives B2B) conversation took place along the lines of, “I’d like to review Section 14, Termination, with you.”

So, flash forward to today, where ‘the cloud’ is defined by eCommerce prognosticator Armando Roggio in a June 2009 blog as:

“a somewhat ambiguous concept that describes a blend of software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), grid computing (multiple computers working on a single application), and utility computing (pay for consumption) all bunched up in a package that some say should be more scalable, faster to implement, and less costly than traditional application and computing models.”

Roggio goes on to predict that 90% of online retailers will be using “some form of cloud computing” by 2014. Not a bad prediction considering the ambiguous definition and current marketing spend poured into anything ‘cloud’!

Cloud Auditing 101

So, what’s the tangible benefit to the ‘cloud’? Generally, most cloud deployments use a utilization model, so services not being used are not being paid for, same as your electricity bill. With seasonal shifts in online sales activity, then, the cost-benefit is obvious. Then there’s the outsourcing of risk. With a cloud provider taking on the commitment to offer the appropriate resources when your business needs them, not only is your IT department’s migraine reduced to a throbbing headache, but there’s the possibility of actually reducing your audit requirements! That’s great news for any business having to deal with PCI DSS, HIPAA, or SAS 70 audits (not to mention GLBA or SoX).

With regards to general auditing outlooks around the different regulations, then, it’s helpful to look at a summary of Lamont Wood’s Computerworld article on Cloud computing and compliance:

Of the three areas, then, the PCI DSS rules are obviously the most concerning, as the concern involves a discussion on what constitutes a server. Without getting overly technical, and based on the definition of cloud computing already discussed, cloud servers are generally virtual servers, and many virtual servers sit on top of a single physical server. Where PCI will be concerned, then, is in the difference between dedicated physical servers vs. virtual servers, and whether virtual server instances can be ‘locked down’ tightly enough to pass PCI requirements. Ahhh, an auditor’s dream for eCommerce.

This is Major Tom to Cloud Control

So, can eCommerce servers be deployed in the cloud? Of course! Here at Credera, we’ve deployed the Broadleaf Commerce solution to both Rackspace Cloud and Amazon EC2 environments for a testing/development environment with much success! PCI issues aside, cloud computing will continue to be a focus area for both our Technology and Management Consulting groups, especially as it concerns the eCommerce space.

Rackspace has even developed a white paper on cloud based PCI compliant eCommerce solutions, with general notes that an API must be developed with a separate (out of the cloud) payment provider that stores ALL credit card data, so even the user entry of credit card information must be done via the payment processor in a non-cloud environment. Rackspace notes:

“By designing your e-commerce site in this manner, PCI compliance is reduced to a Type A SAQ (Self Assessment Questionnaire) for merchants processing less than 6,000,000 annual transactions. The current version of the Type A SAQ can be obtained at: https://www.pcisecuritystandards.org/saq/instructions_dss.shtml. To achieve compliance when all cardholder information is handled by a partner, you only need to address two of the twelve sections of the complete PCI-DSS (Payment Card Industry – Data Security Standard) and only a subset of the controls in each of those sections. The two sections are (9) Restrict physical access to cardholder data and (12) Maintain a policy that addresses information security.”

Predicting the Weather

A current hot topic in the cloud computing space, PCI is being addressed currently, though the forecasted solution is – well – cloudy. In the meantime, eCommerce retailers and other businesses facing seasonal or inconsistent data processing needs would be well warranted in being better versed on the main question – what can cloud do for you?

In a recent article on eMarketer.com they forecast that eCommerce in the US will grow by 12.7% in 2010 compared to 2009. Is your company forecasting the same growth for eCommerce?

If not, what do you need to do to meet or exceed that average? What are your customers asking for that you aren’t providing? Do you have the right products online? Is the usability of your site deterring shoppers? Are you leveraging social networking (if appropriate)? Are you missing out on other online revenue channels (e.g., Mobile, B2B, etc.)?

Low costs. Unlimited scalability. Constant availability. Quick and easy implementation. What’s not to like? Sound too good to be true? Well, you know how that ends…

Cloud computing is the buzzword du jour, conjuring images of worry-free profits and improbable ROI in the minds of many IT managers. And, hey, what’s not to like? Three big players in the IT world, Microsoft, Google, and Amazon, have all thrown their hats into the ring, heralding cloud computing as the next big thing. In fact, if one were to believe the hype, he or she might think that could computing will solve all problems, that it is the Holy Grail of IT.

“I don’t have to worry about servers, software licenses, or other capital costs,” says one.

“Disaster recovery? Taken care of!” says another.

A third manager piles on, “I won’t need a support staff anywhere near what I have now.”

“Think of all our savings! And, it’s so easy!”

Slow down there, Turbo… It is time to tap the brakes.

Cloud computing does indeed have benefits, within reason. The problem is all of hype surrounding it. It is starting to sound like ERP, and we all know where that went. For the sake of bringing the discussion down to earth, let us just agree that benefits exist and not discuss them here. Instead, let us discuss some areas of concern around cloud computing.

Scalability and Throughput

One of the largest selling points of the cloud is its scalability, or more specifically, subscribers do not have to worry about its scalability. For the subscriber, enough capacity will always be available to provide the throughput needed. Is that true? For example, take Amazon EC2’s recent problems. In January 2010, ping latency tests revealed increased latency in the network, seeming to indicate less throughput available for subscribers. Some will argue that this is just one of the natural bumps in the road for emerging technologies. Is it so hard to imagine a scenario in late autumn where retail subscribers to clouds might quickly need capacity that is not available? No doubt, there are mathematical algorithms that determine how many servers or processors are needed to support X number of subscribers, etc. It appears, at least in the EC2 example, that those algorithms need to be revisited. It is probably not an unsolvable problem, but it is something to keep in mind when considering a cloud solution.

Strategic Advantage

Perceptive CIOs see their purview as a strategic advantage for their companies. While not every process within an IT organization is a value driver, some can be. Take Business Intelligence, for example. Custom reporting solutions, data mining, forecasting processes, etc. can all differentiate a business from its competitors. If one retail chain is able to identify a customer segment previously under served, it can increase sales (and profits) by addressing that segment. Sophisticated statistical models are often used to identify these opportunities. Now, imagine that those models are sitting in the cloud, where everyone has access to them. What has that chain gained? Sure, it might be possible to find a provider who will customize solutions to that detail. Again, it is something to consider when you are thinking about the cloud.

Privacy laws/Data Security

It matters where data is stored. Bill Thompson argues in this BBC article that the location of servers does matter. Many countries do not allow the sensitive data stored on servers within their borders to cross those borders. Different standards exist in different global areas (see here). What happens when your data ends up in a country you never knew it would be? It is in the cloud. You should not care, right? Think again. Data privacy is complex. When you outsource your data management, you at least need to provide strict oversight of that data and that data management process. Your data is a strategic asset. Think twice before you outsource it.

Cloud computing may well indeed be the wave of the future. It does seem to have some promise. Do not get carried away, though, by the wave of hype. Instead, as you think about a cloud solution, think strategically.

• What are your strategic advantages in your IT department?
• What business processes and components would you rather your competitors not see?
• What service level is necessary, especially during peak times? Can you accept less?
• How important is your data to you? Is it really something you trust to someone else?

There might be room for a cloud solution, but come down to earth to think about it.

How can you ensure success in your eCommerce initiative? Why do you even want eCommerce in the first place? Once you figure that out, you will need a plan, a strategy, to achieve your goal.

First, decide on your end goal. Do you want this merely to provide information about your company to anyone who clicks on your website? Do you want a retail site to collect sales orders for your product or service? Is your goal loftier, like a site without which your customers cannot live? Will this eCommerce solution augment your sales platform, or will it become your sales platform?

With your goal identified, you now need to decide what your eCommerce solution needs to achieve that goal. If it is a purely informational website, you only need a web presence. If you want a truly invasive solution, you need a lot more.

eCommerce Needs Model

One helpful way to look at it is through the lens of Maslow’s Hierarchy of Needs.

Needs Hierarchy

Each level of need corresponds to a set of technologies that are required for your website. As you move from the base of the pyramid to the apex, the eCommerce solution requires technology that is more sophisticated. The technology involved in the implementation is not self-contained in a website (internal), but interacts with systems within the company’s firewall and outside with the customer. The level of involvement with the customer moves from a basic introduction to a deep involvement in the customer’s life. In that deep involvement, your company and your customers exchange data in a mutually beneficial relationship.

So, what do you need at each step?

Basic Web Presence

You need a website, plain and simple. It does not have to be flashy. It needs to communicate to any visitor what you want that visitor to know about you. You might have some animation or some visually appealing graphics. However, you have a relatively static website. Your goal is not to interact with the customers. You want your name out there, but only for those looking for you.

Secure Order Collection

Now you have moved from a static website to an online store. You want your customer to interact with you some. You should provide your catalog and implement a secure shopping cart solution to get basic customer data. You want them to order and pay for that order. Your site has minimal integration with your accounting system, and it has no integration with any CRM system. This is a purely transactional presence.

System Integration

This next level in the hierarchy allows you to collect customer data. Now your web presence interacts with your customer data solution. It could be CRM, CDI, or some MDM solution. You are now trying to get to know your customer a little more. What are his or her buying habits? What kind of product does he or she prefer? You also can offer special deals to returning customers, rewarding their loyalty to you. You are beginning to exchange information, now, not just data.

Feedback Loop

Information exchange begins to move to a new depth at this stage. Customers can interact with your web presence and provide feedback about products, the site, or your company itself. The site is very dynamic, responding to the customer feedback quickly. Perhaps you will implement a chat feature, allowing real-time data exchange. Maybe you will implement other social networking tools as parts of your solution. Now, you are beginning to know your customer intimately, where you both exchange more than quantitative data.

Invasive Presence

In this highest level of interaction, your eCommerce solution has become a part of your customer’s life. You might have developed a mobile component, allowing your customers to take you wherever they go. Your site might even have become a part of colloquial vocabulary, where customers refer to you for certain types of actions or transactions. Your customers need your product or service, and they enjoy interacting with your company through your eCommerce implementation. Web 2.0 is definitely part of your solution, and you are pushing the boundaries as to how it is used. Your solution is dynamic, quickly evolving to meet your customers’ needs and to bring in new customers. Your product or service has become a part of your customers’ lives.

So, are you meeting your eCommerce needs?

Can’t afford to advertise your products and services on T.V.? Then “Broadcast Yourself” on YouTube. Many people only think of YouTube in comedic terms in reference to the popular videos of Charlie Bit My Finger, Laughing Baby, or the infamous Wedding Entrance Dance. However, YouTube can be a powerful advertising and marketing tool which will drive traffic to your ecommerce site. Wouldn’t you rather watch a video than read an article? YouTube is the nation’s third most popular website, indicating that most of America would rather watch than read.

Of the websites that made the Internet Retailer’s 2009 Hot 100 list, 13 companies are leveraging YouTube. From household names: Best Buy, Dunkin Donuts, North Face, Roxy, Journeys, and Wet Seal to less recognized, yet very successful: Crutchfield (electronics), Gaiam (yoga), Sweetwater Sound (audio), and Drs. Foster & Smith (veterinarians). Each company’s YouTube “Channel” (equivalent to a Facebook page) hosted a variety of videos from product promotion and review to instructional “how-to”s, contest advertisements to customer interviews, and event broadcasting to photo shoot montages. Check out some of their videos firsthand:

Best Buy: The Way to Lead: Making Best Buy a Great Place to Work

Gaiam: Yoga for your Head and Eyes

Dr. Foster & Smith: Why We Love Our Pets

Think Greek: Timmy O’Riley

Dunkin Donuts: Create Dunkin’s Next Donut 2010

Crutchfield: Monster In- wall Speaker Cable

Wet Seal: Kristina DeBarge Spring Photo Shoot

Not only do these companies use YouTube to promote their products and services but they also seek out ways to creatively message to, and engage with, their viewers. In an article on webworkerdaily.com, Meryl Evans lists 34 Ways to Use YouTube for Business. The main three concepts discussed are leveraging the social medium to highlight expertise and thought leadership, marketing and advertising efforts, and customer service solutions. The two latter concepts are imperative to any type of commercializing campaign, but it is the expertise and thought leadership piece that can really set your business apart. Start thinking about where your company’s expertise lies.

The message and intent behind your video is very important, but not any more so than its quality and logistics. In an article in Business Week, Carmine Gallo gives advice on Making YouTube Work for Your Business. He highlights three tips to making effective videos: 1) Keep it short. YouTube co-founder, Chad Hurley, says the average viewing time for a clip is 2.5 minutes so keep your video under three minutes adhering to the age old adage “short and sweet.” 2) Make it loud and clear. Many users only use the camera microphone, hence poor overall sound. Make an investment in an external microphone to give your video professional audio. 3) Avoid bulleted PowerPoints. You have to make your videos more visual then a few lame slides. Now it is understandable that you might not have a professional film crew at your disposal, in any case if you have to use PowerPoint use more pictures than written words and splice in voice over. Make sure to provide a direct link on your e-commerce site to your YouTube channel like all sites on the Hot 100 list. Once you have uploaded videos utilize Insight, YouTube’s reporting function that helps you understand views, viewer demographics, popularity and community…it’s free!

So “Broadcast Yourself” and broadcast your company on the nation’s third most popular website. To find out how to set up an account, upload videos or customize your channel, visit YouTube for tutorial videos. And while you are at it, have yourself a laugh and check out my all time favorite video: Otter’s In Love.

It might be obvious, but it is worth stating: eCommerce is more than just a website. Most companies figured this out 10 years ago when everyone just wanted an “e-presence.” Now, we all know that a lot more goes into an eCommerce strategy than HTML. eCommerce implementations are complex programs that receive input from most business functions of a company. Add that to the challenge of integrating the technology stack with an existing infrastructure and you could very well have a major program on your hands.

You need to answer several questions first:

• What are our goals for ecommerce? Are we trying to extend our current brick-and-mortar presence or are we ecommerce only? What is our overall business strategy and how does ecommerce fit into that?
• Where are we today, from an ecommerce standpoint? What type of systems, processes, order volume, traffic patterns, etc. are in place?
• What do we want our ecommerce channel to be in 3 years? How can we get from where we are today to where we want to go?
• What is our target audience? How can we best reach them?
• Do we need a marketing campaign to announce our new program? To whom do we announce it? Do we even know who our customers are?
• Is our master data sufficient, or will we need to change it? Do we even know what master data we need?
• What development process should we use? What tools are best suited for this process?
• Is our architecture robust enough? Do we need more servers? Do we need to think about mobile devices?
• Do we have enough FTEs? Do we hire more? Does anyone have experience doing this?

The questions go on…

According to an article in The Journal of Academy of Business and Economics, company size and number of prior eCommerce implementations greatly influence the success of an eCommerce project. Of course, this makes sense. Experience matters, as well as resource availability. Many organizations do not have the resources to implement a full eCommerce program, or even to develop the strategy for that matter. Many organizations just do not have the experience. These organizations need a partner who can come aboard to fill in those gaps. That is why choosing an experienced eCommerce partner is critical.

When you are looking for a partner, consider the following factors:

• Competence – does this company have experience in eCommerce?
• Innovation – will this company provide creative insight into your specific circumstances?
• Unbiased – is this company open to all possible solutions, or are they focused on one or two?
• Pragmatism – while standardization has its benefits, there is no cookie cutter solution. A big-box retailer is much different from a specialty boutique.
• Trust – finding a long-term, trusted partner is critical with ecommerce. Make sure you find a partner that you believe has your best long-term interests in mind and can help you accomplish your ecommerce vision.

In your interviews, ask for client references and sample deliverables. Determine what that company’s point of view is concerning your issue to be solved. Does it match what you were thinking? Of course, you will need to know fee structures and payment schedules. Ask the interviewee to demonstrate that its fees are worth the value you will get out of the project. In addition to the factors above, there is also a less tangible factor. What type of culture and core values does the company have? Will it fit will with your culture?

Picking the right partner is important. It is something to which you should give much thought. In the end, the right partner will ensure the success your eCommerce program.

Here is what our partners say about us:

• “[Your team] hit home runs the entire time…”I didn’t think it could be done. You did it and its fantastic. Congratulations.“ This is the highest compliment your team can receive. I am thrilled! And you all should feel very proud and thrilled as well. Thank you to the entire team!”

- Counsel, Law Dept. Internal Operations – Boeing

• “We needed outside expertise that we did not have internally available. We now have a 3 year plan in place that we have been following for a little more than a year. We have a standard method to determine the ROI on all of our IT initiatives and have begun to consolidate all of our business systems to a common platform. We could not have accomplished this without [them]. They were crucial in allowing us to make this possible.”

- EVP of Strategic Planning – Kerr-McGee

• “The partnership between Credera and the US Postal Service delivered a successful working solution to a significant management problem in 12 weeks. Our VP of Engineering is not shy about his approval, support and use of the system. He frequently points to the development as an example of good systems management. I am not shy about telling anyone that will listen about how this project made me successful”

- Program Manager – United States Postal Service

• “They did an outstanding job for us. They truly endeared themselves with all of our people by engaging everyone from administration all the way to top management. They really earned everyone’s trust and allowed them to share information and opinions…as a result, we now have our roadmap. It has allowed us to better plan, prioritize and allocate resources more effectively for projects.”

- EVP of Information Technology – Dollar Thrifty Automotive Group

• “I appreciate all you do for us, but more importantly how much you have personally invested in our success”

- VP Marketing – Freeman, The Leading Convention &Trade Show Organization

• “Credera has been fabulous to work with .. their consultants are knowledgeable, professional and work great with our internal staff. Probably the best overall consulting company I have worked with in my 20+ years in IT”

- SVP of IT – Alpha Natural Resources, A multi billion dollar coal producer

Would you like to say the same about your ecommerce partner?

Answering Twitter’s “What’s Happening” question will help you gather real-time market intelligence and establish a cost efficient advertising and promotional tool. My goal for this blog was simple: seek to understand Twitter (yes I am the only twenty something on the planet that hasn’t been tweeting to my hearts delight), its features and functional benefits, and then take a look at utilization by e-commerce companies who made the Internet Retailer’s 2009 Hot 100 Retail Web Sites.

In an article on twitip.com, when asked why users love Twitter, the response was “I can ask a question and get an instantaneous response” or as another put it “tap into the collective conscious.” Let’s first define a few simple terms so you too can start tapping into your customer’s “collective conscious.” Tweet: an individual message in 140 characters or less, equivalent to updating your Facebook status, Twitter in its simplest form is microblogging through “tweeting.” Your tweets are displayed on your profile page for the public to see. Follow: means to subscribe to a users messages, you will have a list of followers and those you are following. Tweetfeed: where you will be notified when those you are following post a message, you can view your tweetfeed on your computer or mobile device. iPhone and Blackberry have several customizable tweetfeed options, view by topic, favorites, etc… Before you get started the Twitter 101 Special Guide For Business encourages potential new users to “listen” by searching on search.twitter.com (no profile required) for tweets about your company, your industry, or your competitors. Once you have a good idea about what your customers or potential customers are talking about, simply create a profile and start responding. Search for the profiles you were “listening” to and click follow to add their tweets to your tweetfeed. In an article on problogger.net by Darren Rowse he outlines the 5 Tips to Grow Your Twitter Presence: 1) leverage other profiles– put links to your twitter page on your website, Facebook, blog and even on your business card 2) tweet and tweet often 3) be conversational–ask questions or take polls engaging followers to respond 4) provide value–the same principal that increases blog awareness, tweet about a variety of relevant subjects 5) tweet in peak times. In addition to being conversational you can also target other users (similar to “tagging” in Facebook) with these types of tweets: @username (i.e. @blockbuster) is a public message to or about an individual on Twitter and d username (i.e. d blockbuster) is a private message similar to Facebook’s private messaging or email. If you are overwhelmed or confused by many of these terms, don’t be discouraged, it’s a matter of research or trial and error, whichever method you prefer. I too was overwhelmed and again I am among the twenty somethings who are supposed to understand and speak in this cyberspace lingo. I must admit that the first thing I googled was “Twitter for Dummies!”

Now let’s take a look at how some of the top e-commerce companies are leveraging Twitter. Of the 100 sites that made the Internet Retailer’s list, 36 have links to Twitter and are tweeting away about special deals, contests, blogs, polls, tips and everything in between. Pointing users to particular blogs or other websites requires a special condensing function due to tweets being limited to 140 characters or less. Users can shorten their URLs through http://bit.ly/. For example, Overstock.com recently tweeted: Get things sizzling with a new Anodized 12-inch Sauté Pan! Save 25% on twitter today! http://cot.ag/9otUAK which is a shortened URL for http://www.overstock.com/Home-Garden/WearEver-45313-Admiration-Hard-Anodized-12-inch-Saute-Pan/4044579/product.html?cid=149139Some. Some of my favorite company tweets were: Gaiam –a yoga and fitness company: “What are the principles for happiness,” Journeys – a shoe retailer: “Vans or Converse,” Meijer – a supercenter equivalent to Walmart: “Giving away two Dr. Seuss 6 book libraries today,” Muttropolis – a pet accessory retailer: “Meow, we have GREAT stuff for cats too,” and my very favorite Eye Buy Direct – an optics store: “How to kiss with glasses.” As you can see many of the top companies are adhering to Dan Rowse’s third tip about being conversational. It is all about increasing your “cult following” per say. Speaking of loyal followers, take Dell for example who reported in December 2009 that its total sales via Twitter had reached $6.5 million!! Read the full story in the Twitter 101 Special Guide For Business. Once you start tweeting there are a number of ways to capture your new found market intelligence. Check out an article by Phil Glockner on the 7 Top Twitter Topic Trackers. Whether you keep detailed records or just make mental notes, you are sure to reap the rewards of tweeting. Twitter is a one stop shop for consumers to be updated on the latest deals and “what’s happenings” of their favorite companies without having to spend time browsing through each individual website. From information to promotion, rapid feedback to competition analysis, the opportunities and advantages of Twitter are “tweemendous!!” …. oh c’mon you knew it was coming! Check out more Twitter Terms… however, I take full credit for “tweemendous!”

From eCommerce to mCommerce – Is it time to go mobile?

Like most businesses, you have a website. Even better, it seems to be working ok. Your site attracts a descent number of new visitors. Perhaps sales even increased after your last release. Is your website doing all it can, or is your web presence just the launch pad for a new way to drive sales and retain customers? Is it time to go mobile?

Before we go on, I need to make a clarification. When I refer to website, I mean a website designed without a thought to viewing it on a mobile device. A mobile solution would include a mobile website, a mobile application, or any combination thereof.

Customer needs

First, we need to examine what customer needs would be met by a mobile presence. We should look at the following five categories:

• Social interaction – Is there a desire for interpersonal contact or communal input in the process? Is the transaction one that does not require or benefit from social interaction?
• Geographic scope – Does the user need information beyond his or her immediate location. Does he or she need data that are more global?
• Level of customization – Can you or the user benefit by allowing the user to customize his or her interaction with the application? Is a standard application without customization appropriate?
• Use of information – Is the user gathering information, as in research? Is there a desire to contribute and share information as well?
• Availability – Is there a need to access this process when an internet connection is not available or when the user is not in a fixed location?

Methodology

We can now use the following framework to help determine whether a mobile presence is appropriate.

A lower score indicates that a mobile presence could be the way to go.

Examples

A couple of examples best illustrates the usage of this methodology. First, let us look at a case where a website would be most appropriate. A research firm would be a good example. This company gathers data, analyzes it, and publishes results for its customers. A web presence advertises its services, generates prospects, and provides a distribution method for final reports. Sally, a customer of this firm, would not necessarily benefit from social interaction with others during this transaction. She does not need her friends’ input while she is researching the company or downloading a report. Neither does Sally benefit by having the transaction tailored to her location. It does not matter if she is at work or at home. Beyond a basic shopping cart, she does not require any personal settings that must follow her and that must be stored on the device used to access the website. Sally is gathering information. She might share it; she will, more likely, analyze it and use it in a different form (think marketing plan, or something like that). Finally, Sally does not need this anytime/anywhere. Granted, we could sit down and brainstorm some neat features that would make a mobile presence seem like a logical next step. In reality, though, would those feature lead to higher hit-to-sale conversions? Would they increase customer retention? Would you get the ROI you would need for them?

Now, let us examine a case where a mobile application might be more appropriate. A retail business is a good example. Now imagine that Sally needs to go shopping. She has a list of people for whom she needs to buy gifts. Imagine that Sally’s mobile device has an application that functions as a wish list. She would build this wish list as she talks to her friends, as she shops with them, or as she comes up with ideas for them. Sally would compile this list over time, storing it on her mobile device. Then, when Sally is ready to shop, she could connect this wish list with a store’s website to automatically shop for her. It could return a list of suggested items. Sally could use this application to order from the website. If she does not have time to wait for delivery or the budget to rush the delivery, Sally could search the company’s store list to see the closest location to her with the item(s) she needs. She could even put them on hold at the store to ensure they are ready when she arrives. This application on her mobile device would track her preferences, her shopping habits and lists, and other data points important to the company who owns the application. The application would then send the data to the company, which would use it to refine further sales promotions, business strategy, etc. For her trouble, Sally could receive rebates, coupons, or special offers for items the company would like her to buy. The possibilities are limitless.

Summary

When assessing the criteria for the methodology above, it is crucial to keep the perspective of the end user in mind. Market research is critical. We could develop the best mobile solution the world has ever seen, but if the end users do not own mobile devices, it would be a failure.

So, is your web presence enough, or is it time to go mobile? Here is a tool to help decide.