Monday, August 31, 2009

Increase Average Sales


When you go to your local McDonald’s and order a burger the clerk will automatically ask you if you want to have fries as well. Every customer who answers “Yes” adds $1 or more to that particular sale. If just a fraction of McDonald’s 54 million daily customers say “Yes,” that means millions on extra dollars. This strategy is an effective way of increasing average sale.

The same strategy used in increasing average sale should be observed by start-ups. These businesses have not yet built a large customer base so they need to increase average sales as much as possible from each person who buys from them. It is like the old story: A bird in the hand is worth two in the bush.

During the first few months of operation your focus is not the market share but increasing average sales. Boost the dollar value of your average sale, and you boost your cash flow and bottom line. Here are some tips to help you increase average sales.

1. Crunch the figures. To start increasing average sales you have to understand the dollar value of your average sale. Say for example you have 30 customers and your total sales reach $1,500 on a normal day, then your average sale is $50. After you figure out your average sale in a day you can set a higher target from then on and plot your strategy as to how you can reach your goal.

Depending on the nature of your business it would be helpful if you can calculate your average sale per hour, day of the week, location, marketing campaign and other variables. The answers that you get will most likely lead you to your plan of action. Say for example you average sales on a Monday is pretty low compared to other days then you can plan special Monday promos.

2. Change the product or service mix. Adding or subtracting to what you sell can help you increase average sales. Take the case of a bakery that had an average sale of just $5. The problem was they offered virtually no higher-priced items. When they added specialty cakes and other premium goods, that figure jumped to $14.

You can achieve the same effect if you get rid of lower-priced products. Say for example you sell three different types of jeans drop the $35 jeans and the customer is forced to get either the $45 or $55 jeans instead.

3. Give bundle offerings. A good way of to increase average sales is by encouraging your customers to spend more. How? You can provide consumers with a packaged deal on various products or services. Take McDonalds for example, they do have what we call Extra Value Meals that include burger, fries and a drink.

4. Raise prices. Being the cheapest in the market is not the right technique to increase average sales. If you are just starting your business, price your products or services on the high side and then figure out how to offer more value. Being the cheapest in the market is not necessarily going to pay the bills, and you will be left high and dry when a competitor beats your price.

If you use these strategies I have cited you would be able to increase average sale by maximizing every transaction you get. You help keep the cash flowing while you are getting your business off the ground. And once business has taken flight, these same strategies can develop your flight plan for generating peak profits. Master the art of supersizing your sales early and it will pay off many times over.


Acquiring New Customers


It is so sad to see a customer walk-out of the door empty handed. A potential sale goes up in smoke so does the potential for acquiring a new customer. Nowadays a lot of small businesses turn to plenty of channels to acquire new customers. However some of them are expensive that it acquiring new customers cuts down your business profit. Acquiring new customers does not have to be tedious and expensive.

For start-up businesses every sale counts. As a newbie in the industry you have to make sure that you maximize every customer you acquire, every sale that you make.

The first step to acquiring new customers which will eventually increase sales is to calculate your actual conversion rate. Since you are running an online business, web analytics software should do the trick for you.

The optimal conversion rate of course will vary from business to business depending on the product being sold. However, knowing the ratio is the key because many businesses overestimate this figure. Seeing the actual numbers is a signal for entrepreneurs to focus more on acquiring new customers hence sales are improved.

Once conversion quotient is determined, you are on your way to improving it. These strategies will help you close more sales and of course assist you in acquiring new customers.

1. Stress your USP (Unique Selling Proposition). Making your business unique, separating it from others is an effective way acquiring new customers. You have got to deliver you message loud and clear.

2. Figure out the bottleneck in your sales process. If you are set on acquiring new customer you also need to analyze the steps required to convince prospects to buy from you and pinpoint the weak spot. Say for example you are in the wedding dress business. To help you acquire new customers you need to show photos of your work, propose a design for your client, price the item etc. Look closely at the pictures you provide are these pictures clear enough? Are these pictures detailed enough for your customers? Figure out the flaws and for sure acquiring new customers will not be far behind.

3. Rewrite the sales pitch. One of the biggest roadblocks to acquiring new customers can be traced to sending the wrong message. Take the home security firm whose opening line will be, “We heard there have been series of break-ins in your neighborhood and we would like to assist you in keeping your house secured.”This approach was a major turn-off so it has to be changed. With the revised opening the firm acquired new customers and hence increased their sales.

As you can see acquiring new customers for your start-up business need not be expensive. It is more of a controllable facet that some entrepreneurs fail to look into. Do not make the same mistake and start acquiring customers for your business and in doing so you also increase the sales of your business.

Saturday, August 29, 2009

Setting Prices


One of the biggest obstacles an entrepreneur can face is setting prices for his goods or services. Difficulty in setting prices is experienced not only by startup businesses but also established businesses. The frequent topic with setting prices is risk: risk environment prices too high and you may push potential customers away; risk environment prices too low and you cut business profits.

Due to this pricing paradox most owners turn to discounting. However the risk in most cases can be removed if you have the right information. In general if you know more the less risk you perceive. From that standpoint, pricing is all about getting as much information as you can about your market, your customers and your own internal numbers that drive your profit.

There are no secrets to a successful business, it just takes knowing the right information. When it comes to setting prices, here are some tips to help you avoid mistakes most entrepreneurs make. If you can avoid these, you'll not only be ahead of your competition, but also you'll be ahead of most other businesses.

1. Going too low. Some entrepreneurs set low prices as a strategy. Setting prices that are low will of course increase their top line revenue numbers however they fail to consider their bottom line profit number which is important. An entrepreneur has to profit and price accordingly. You might not get business out of all of your price-conscious consumers, but that is fine. Your competition will--and in doing so they will have to figure out how to profit from the "price shoppers" when there is little or no profit to make.

2. Using the same margin for all items. When setting prices always remember that there is no law stating all products must have the same prices. Keep in mind that slower moving items need higher profit margins. You can afford a smaller margin based on high sales volume. But still you should find ways to add value and increase those margins. Because in the end, even those incremental increases over time will have a huge impact in your bottom line.

3. Not understanding the difference between margin and mark-up. In setting prices these are things you should know margin and markup. Margin is based on the sales price; on the other hand markup is based on the cost. In setting prices most small businesses utilize markup formulas, but many overlook margin. That is a mistake, according to some consultants, since utilizing margin as a tool for analysis helps improve profitability. It is well worth the time for any businessperson to know the difference between margin and markup and how to use both.

4. Doing what others do. Sometimes we set our prices according to the price of competitors. Instead of setting price the same as them why not do a little more research and start to discover and uncover the value you truly offer your customers. Then price for value. IN doing so you will be in the best position to defend your price against competitors with your own “Why list.” Make your customers realize that your price is well worth it.

These are just some mistakes that you should avoid when you are setting prices. Avoiding pricing blunders and being strong in your pricing scheme go hand-in-hand in constructing a profitable business. Master the so-called "pricing paradox" and you will master an area of business in which even the most experienced business people sometimes struggle.


Friday, August 28, 2009

Advertising Online (part 2)


Advertising online is a type of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to catch the attention of customers. As a budding entrepreneur one of your biggest obstacle probably is producing advertisements online. I mean if you are not going to ask for any assistance from ad agencies, producing an advertisement online of your own will be a little difficult. The key is to engage your target audience, because for advertising online to succeed, it has to be remembered.

Here are some tips to make advertising online a success:

1. Address the right audience. Advertising online involves understanding your target market. How well do you know your prospects? Your ads should immediately appeal to prospects and speak to them in their possess vernacular, including buzzwords. Your advertisements online must at all times ring true, without the use of gender or cultural stereotypes, or exaggerated claims, so prospects automatically understand that your offer directly relates to their needs and wants.

2. Visual focal point. Since you are advertising online you need to create ads that use a single, eye-catching visual to provide central focus. Competing visuals will make your online advertisement cluttered. Advertising online should be about attraction right? If your page seems cluttered and disorganized prospects will no doubt get turned-off. With so much competing advertising, make your ad stands out by virtue of clean, clear design, with an appealing focal point and simple elements.

3. Create “THE” moment. If you have been advertising online for some time now, you must be aware that the word “new” is used quite often. That is because our brains are actually alert for new information about various topics. Advertising online is all about providing new information; great ads have the ability to open minds. Your ad has the power to show your customers a new way to achieve a goal or provide unique insight. In return you will get greater audience attention and elevated response rates.

4. Make things happen. Any ad value its salt should move a prospect to take some kind of action. Advertising online should show the benefits a customer can receive. The headline must contain these benefits and include features in your body copy; your prospects will be motivated to learn how to take advantage of what is pledged.

5. Powerful benefit. Formulate a headline that pulls your readers. Make use of it to point out a desirable benefit or offer. Find out and understand what your customers want that you can provide.

Advertising online can be done in a lot of ways but however way you do it, it is vital that you use the form that is best suited for your online business. If you do not advertise your business online nobody has a clue that it exists. Trial and error is a great method for advertising online, so try out some of these tips and increase your online sales.


Tuesday, August 25, 2009

Advertising Online



Before, advertising online was considered as unusual. In the past companies invest most of their capital on tradtional advertising. If you get to see their budget plan, marketing probably holds the biggest share after operating expense and advertising online was not used. But with the dawn of the internet this was changed. The internet has brought many unique benefits to marketing, one of which being lower in costs and greater capabilities for the distribution of information and media to a global audience. In short advertising online became essential to many businesses.

Here are some tips you can you when you are advertising online:

1. Network. Was there a time that you received a message from someone asking you to send that same message to 10 of your associates? If you pass along emails to your associates who are in your address book whether it is about a virus alert, crime alert, and stories -- you can use the same strategy in advertising online. Inform your family, relatives and friends about your new online business, and then ask them to do the same thing and let their friends know about your online business. Compose an email that will describe your business and how people can benefit from it. Hopefully, your email will be passed on to some more of your friends’ friends. This is an effective way of advertising online. Do not forget to ask for their comments and suggestions on how make your site better.

2. Viral marketing. Another effective way of advertising online is through viral marketing. Viral marketing is a strategy that relies on individuals rather than traditional campaigns to pass along a message to others. Two of the most successful online businesses who used this strategy were Hotmail and BlueMountain.com.

Referrals are also an effective way of using viral marketing. If you are one of those sites who offer content service, you can place a “Tell a Friend” button that will enable customers to recommend products or web pages via email to their friends. Some services that you can use are Recommend-It and BigNoseBird.com. These services will allow you to keep track of those who recommended your online business and to whom did they recommended it to.

3. Start your own newsletter. Formulating your own newsletter is an effective way of business advertising online. Newsletters and e-zines have become valuable tools in building loyalty and repeat visitors to your online business. You have the option to develop the content of your newsletter, or use articles provided by other authors. Establish your mailing list as you go along, but remember that you should never send unsolicited letters. Spam is simply not worth it.

4. Participate in forums. A lot of websites provide message boards because this is a good way of attracting traffic. You can post messages and invites to your site, but of course make sure that the forum you will join is relevant to the product/services that you sell. Participate in the discussion, and end your post with a link to your site. This is another way of advertising online.

Do not throw away your hard earned profit on traditional advertising. Find cheaper means and ways to let people know your online business exist. In doing so, you can use the money on other important things that will benefit your business in the long run.



Monday, August 24, 2009

Products to Sell Online


The internet is considered as one huge market place and everyone came up with their products to sell online. In the past I have told you about the success story of Hewlett-Packard and where it all began. A lot of small businesses were inspired to gain their own share of action so they came and everyone is just so eager to introduce their products to sell online from houses to handcrafted tapestries.

If you are an aspiring entrepreneur, you read other people’s success stories and you feel like, “I CAN DO THAT TOO!” However, the product that you will sell online is the thing that should be dwelled on.

Keep in mind that not all products can be sold online. Some products may be better suited for online sales than others; some products simply are not built to be sold online. According to a study done by Ernst and Young the most popular online item purchased were computer related products at 40 per cent, books at 20 per cent, travel at 16 per cent, recorded music at 6 per cent, subscriptions at 6 per cent, gifts with 5 per cent and investments with 4 per cent.

The types of products/services that sell best online take advantage of the internet’s convenience. We all know that convenience is one of the reasons why a lot people opt to shop online. The choice of products you sell online determines the success of your online store. Keep an open mind about the suitability if products for online sales, and to increase your chances of success it is imperative that you choose a product/service that exhibit important characteristics. Here are some tips to help you choose what products to sell online:

1. High value.
If the product you sell online is unknown to many people rest assured it will create a commotion, and this has been proven time and again. Consumers are highly attracted to products that are unusual. Say for example the product that you sell online are toothbrushes; do you really think people will buy it? I mean sure it is convenient for them however if you are going to charge shipping then it will cost more compared to buying it from some store. Some online entrepreneurs stick to selling special cheeses, rare cigars, Persian Carpets, etc.

2. Information products.
Like what I have said time and again, the internet is a great source of information and it is also used for entertainment, communication and research. Since people use it for such, good products to sell online are softwares, books, magazine subscriptions etc. These are the most popular products that sell online nowadays.

3. Services.
Some people think that selling or offering services online is not possible, but think again. Hotel reservations, air travel and investments have successfully transitioned their business online. If you travel frequently then you must know how convenient it is to book a flight online and also reserve a hotel room. Everything can be done at your convenience.

Whatever product or service you decide to sell online always remember that a successful online business is the one that is able to provide convenience combined with excellent service and outstanding reliability of delivery. Keep in mind that the choice of products you sell online determines the success of your online business.




Building Customers Online


Success online depends on how well you understand people. I mean sure you have a great product / service, but is this what your target audience need? Before anything else it is imperative that you know and understand what customers want on the Web. If you want to build customers online you have to formulate the right strategy and determine the best goals and objectives. Building customers online is essential because your customers can also point you as to when you should start looking to change direction.

Here are some ideas to keep in mind when building customers online:

1. Understand what the internet can do for you.
The internet as a whole is a very powerful channel and building customers online is one advantage you get. And since we all have different goals in mind as an entrepreneur we need to understand what the internet can do for our business.

Some entrepreneurs opt to start an online business because they cannot afford the demands of a physical store. The good thing about an online shop is that everything can be done from your computer and of course it is less expensive. With an online store you are also able to market to the global community, for a little cost or at times none at all.

2. Give customers pertinent and valuable information
The internet has become a necessity and is a good source of information to users. A lot of people nowadays use the internet to find the information they need, whether shopping for books, looking for directions, etc.

If you want to build customers online you should be able to provide the best information. If you are publishing an e-newsletter on online marketing, make sure it is the best resource the customer will ever read. If you are selling information products like eBooks, take note that people look for information first meaning they want a background on what you are selling. So instead of doing full-on sales pitch, it is ideal that you provide an excerpt of your information product which will make visitors stay longer.

This is just like promoting a new movie. Producers provide a “trailer” so you will get an idea of what the movie is about. In doing so the audience become curious and hence builds interest.

3. Harness the familiar
Many people fear the unknown, which is of course normal. True, that shopping online is way different from actual shopping (traditional); there are numerous ways wherein you can make the experience less scary for your prospects.You are on your way to building customers online once you have eliminated this apprehension.

If you are selling products online, your major challenge will be show to show the products clearly on the computer. Since customers won’t be able to see it up close nor touch it providing them with big, clear and detailed pictures are necessary. Many returns and exchanges over goods purchased occur because customer expectations are different from the actual product.

One great technique of building customers online is by providing them with online assistance. Through this customers can be easily assisted with products, ordering, returns and exchanges or any problems with your website.

4. Listen to your customers
In building customers online, you have to listen and understand their needs. Why is the customer shopping online? Convenience and price, as well as product assortment, are just a few reasons why people shop online. Understanding the customer also entails understanding their concerns which prevents them from shopping in your site.

Take time to listen to your customers. Remember that building customers online is crucial to your online business's success.


Saturday, August 22, 2009

Expanding Your Business Online


There would come a time that an offline entrepreneur would think of expanding his business online. But something stops them because they think expanding their business online is a cost consuming thing, but this should not be the case. Expanding your business online will provide you with a lot of advantages. These advantages are not possible or unlikely if you are selling using conventional methods.

Here are some advantages you will get by expanding your business online:

- Widens market potential
- Immediate interaction with prospects
- Lessens the "time to market" for new products
- Enables you to reach globally
- Compete with larger businesses and operate 24 / 7, sharing information about your business, your products and services accessible anytime, even days, nights and holidays.
- Give customers direct access to sales literature at no additional cost.

Expanding your business online is not as easy if you do not have any experience as well as knowledge on the right things. To make your business expansion online a success, you need to have a deep understanding of the intricacies of selling on the Internet. You have to consider things from product presentation to customer fulfillment, doing business on the internet can add some complexity to your existing operations.

Below are the some steps you need to take to make the transition or your expansion online as smooth (and as successful) as possible:

1. Envision your goals and set them.
If you plan on expanding your business online you also have to decide on how you want to use the Web. The internet has a lot of purpose; it can serve as an online brochure for your company or product presentation. Your prospects and existing customers can go to your online shop and get information about your product and services, and they can either call you, visit your store or office to place the order. A simple informational site is good if you just want to tell your customers of the products that you offer. You do not have to think of the complexities of an e-commerce operation.

Once you have decided on expanding your business online you should have a clear goal of what you want to achieve.

2. Think differently
Remember that a traditional business is way different from an online business. In a retail store, a likely client who enters and looks around your display shelves may stay for a few minutes, allowing your sales clerks enough time to talk to the customer, address their concerns or respond any questions they may have.
With an online shop, however, a prospective customer can hit the “back” button immediately or as soon as they decide that your site is not at par with their expectations – e.g. perhaps your site is loading up too slow for dial-up, too cluttered to navigate, etc. A worst case scenario is that they are already shopping on you site but then they abandon their cart without giving you any reason for their decision to stop the purchase.

3. Make sure that your product is suitable for an online store.
Before you go spending a fortune in developing your web site (which is a requirement when you expand your business online), you need to know that not all products or services sell well on the Internet. What sells well on the Web? Studies have shown that the following are the characteristics of products that are suitable for the Web:
• Digital products

• Products requiring lots of information
• Products that do not need to be handled or tried on
• Products that are difficult to find locally

Expanding your business online from the traditional type must be planned carefully, implemented and monitored to enable continued efficiency. The profile of a business that is best suited to the online environment includes those that have a distinct product or service portfolio that requires little manual invention to facilitate a sale. Ideally they will have a fixed pricing policy that applies to all customers and have products or services that have a predictable lead time in terms of delivery.


The Marketing Plan


A good marketing plan is like a game plan; it should act as a road map and a blueprint for the procedures you will follow to grow and make your enterprise successful. It should also have some flexibility because as you move to testing and measuring your tactics, you will be required to change strategies from time to time, to capture or gain a share in a specific market.

Jay Conrad Levinson (known for his Guerilla Marketing tactics) says you can create a great marketing plan in just seven sentences. This makes us think, “Can such a concise document be effective?” Remember that a good marketing plan does not have to be complicated.

Keep in mind that a prizewinning marketing plan has the right combination of good strategy and tactics, and you cannot do either one effectively without the other. Do not be tempted to wander from these fundamentals.There are some things, however, you should avoid when putting together your own marketing plan for your business.

1. Not doing the numbers.
If you don't know your numbers, you will not succeed in business. A good marketing plan is about math, and math is about figures. Taken a step further--business has a lot do with numbers. Creating some marketing plan without knowing how much it will cost to gain your customer, what your average sale needs to be, what your profit margins need to be and how many times your average customer needs to buy will set you up for failure If you plan to run on a $1,000 advertisement, how much leads and sales do you need to cover the cost of your advertisement and how much profit will you make?

2. Relying heavily on creativity
Creativity is okay, I do not find anything wrong with it. However, if you focus or rely too much on it at the expense of tactics it can hurt your business.

A great example of this is the difference between the once-famous and now-defunct brand Pets.com and the still famous and thriving brand eBay. Pets.com relied heavily on its famous sock puppet icon and television ads to drive its brand, eBay on the other hand used a tactical approach to business. eBay moved from its original model of being known as a collectibles auction site to something more upscale. This is why knowing the right figures are important because that will ultimately drive your business.

3. Thinking marketing is JUST advertising
Advertising is an integral part of any marketing plan that is true. Your marketing plan is not limited to how you sell your products or services, but it is also how your receptionist answers the phone and how you set up your company culture. Marketing is also the strategic and tactical aspects of identifying and segmenting your customer base, figuring out your competitive edge and USP (Unique Selling Proposition), setting your pricing strategy, sales strategy , etc. All of these things come into play if you want to maximize your ROI.

4. Forgetting to market to existing customers and prospects.
For businesses that have moved beyond the start phase, there is no better or quicker way to massive growth than your underway customers and prospects. In truth, it costs more to acquire new customers than to sell something to an existing customer. Your marketing plan should always include your current customers; they are your business’s biggest resource.

Your existing customers are your goldmine, which is something that many marketers tend to forget because they are so busy chasing after new markets or customers. A good marketing plan should include strategies to tap into what could be your business’s most valuable resource.


Pitching to Investors (Learn to succeed with investors)


Shortly after my academy graduation, some of my friends started a small business which of course includes me. Within a few weeks we fleshed out the concept, formulated a business plan and set out to seek financing. With a little hustle, we managed to get an appointment with an acclaimed investment firm to discuss the opportunity. Admittedly our business had yet to earn profit, and none of us had been the CEO of any clothes boutique more so a multi-million dollar enterprise, but we were all assured that we had an abiding affair on our hands. Afterwards all our banking projections forecasted gross revenues of $200 million. What broker could say no to that? But of course we were wrong. I realized we as entrepreneurs need to learn more about real-world fund raising. To this day, whenever I pitch investors for capital, I always remember these hard-learned lessons:

1. Remember that less is always more.
Filling your presentations with flowery words and extensive explanations will not affect investors, and most likely it will turn them off. Present your business in an approach that is short, candied and straight to the point. Investors need the assurance that your business will attract and absorb customers. If they do not get or understand your concept in a short time span, they may assume that your prospects will not accept it either.

2. It is better to execute than hypothesize
.
A good pitch should inspire. Provide them with pertinent facts, not fiction. Most investors seek out low-risk businesses with people who have proven themselves successful in other ventures. A company with cash flow, a track record and real-world experience has a better chance of getting investors than a business plan forecasting large returns. Find means to test your business’s capability on a limited budget, and turn your idea into a functional business before you seek investment.

3. Leave the hockey sticks on the ice.
Stimulate investors with a big picture, but be rational and responsible. Avoid hockey stick projections. Respectable investors will not believe you or take you seriously if you present them with banking graphs that shows your company’s revenues will abound from $100,000 to $50 million in three years.

Show investors that you have a grasp on reality with three versions of financial projections: best case, reasonable case and worst case. A good pitch contains facts coming from past and present performance, industry and competitor analyses and of course a series of well-thought out assumptions.

4. It takes time, perfect necessary skills.
Perfect your marketing tactics, sales strategies and operational procedures. Demonstrate that your business can crawl before you say it can walk. Investors appreciate companies with sustainable step-and-repeat business models that are poised for exponential growth. Remember, even Google’s success is based on a single product. Investors are wary of funding over-eager businesses that seem destined to bite off more than they can chew.

Before asking for millions of dollars to fund 50 divisions and hundreds of product lines, prove how well you can create, manage and fulfill demand for a single product.


Saturday, August 15, 2009

Start A Business Debt-free


The original Hewlett-Packard headquarters


Starting a business be off line or online is no easy feat, most especially in a very unstable economy. As of the moment the unemployment rate in the United States has reached 9.7 per cent, and foreclosures are at an all time high. In short starting and profiting from an online business is quite hopeless and impossible.

However, for the optimist an opportunity is always available even in a situation such as this. There are still advantages if you decide to start your online business during a recession, and yes it can be done without being too-deep in debt. Okay you may not believe me, so let me cite the best example for you guys. Hewlett Packard, or simply referred to as HP started during the Great Depression. Would you ever guess that HP started in a garage? Yes it indeed started in a garage near Palo Alto wherein the founders William Hewlett and David Packard raised $538 as their starting capital. Now look at HP, it is the first company to exceed the $100 billion in revenue and it is at present operating in various countries worldwide.

Starting a business when the economy is okay is already risky, what more if it’s unstable then it is more so right? The high risk of failing should be considered so make sure to keep the start-up costs as low as possible. Businesses that start and survive during a recession are in the best position to take advantage of the inevitable economic upturn. Of course it is not going to be down the entire time, there would come a time that the economy will improve. If you are one of those people who would rather postpone launching until the economy recovers then by the time you do, you are already behind. Here are some things you can do to keep the start-up low:
  1. Keep your day job. If you still have a job today you are lucky because you can actually start an online business while working fulltime for someone else. The steady income that you receive from you regular job should be sufficient enough to prevent yourself from borrowing money. The income you get should also be able to pay for your living expenses and hence you can start business without much risk.
  2. Use your own space. The beauty of an online business is that you do not have to invest money on office space. You can actually make do with what you currently have: your home. It all requires a dependable internet connection and an up to date computer with the necessary software.
  3. No need to hire employees. Another advantage of an online business is that you really do not need employees. Unlike with a brick and mortar business wherein you designate tasks, in an online business you can do it all on your own it just takes the right time management.
  4. No advertising involved. Yes, you do not have to waste precious money on advertising your online business. There are numerous ways wherein you can tell people about your company. You can actually start by informing your friends, family and co-workers about the products / service that you offer online. Marketing online is not only expensive it also has a global reach.

If you decide to start your online business whether it is product or service that you offer, you need something that will set you at par with other companies. In short you need to have your own signature when it comes to selling online. Your long-term success is defined by your ability to make your company unique and far better than your competitors; by adhering to these things you will fill a void in the marketplace.




Thursday, August 13, 2009

A Loyal Customer Base


What does it take to make your online business a success? The key to a successful business be it offline or online is the steady flow of customers. Indeed attracting new customers is good for business but it can also be costly for you as the entrepreneur. I mean you have to invest on new marketing programs that are specially designed to attract new customers. Have you ever thought that it is more logical to keep your existing customer base? Keeping your current customer base is more cost effective.

Here is an article showing the importance of loyal customers:

“The survey also found that 70% of online shoppers belong to loyalty or frequent buyer programs and 42% use comparison engines to compare prices before buying. Online shoppers feel that member discounts and members-only specials are very important to online shopping (53%). Online shoppers are also apt to shop several stores, looking for the best price, before buying.”From: bizreport

Do not misunderstand me, there is nothing with wanting to attract new customers, there is nothing wrong with that. What I am trying to suggest is that you make do with what you currently have. If you provide special attention to your current customers they will feel appreciated and they will tend to be more loyal to your business. Always remember that loyal customers are those people who are willing to spend more and they will for sure tell other people about the shopping experience they had with you. So how do we build customer loyalty? Here are some tips for you:

1. Your customers are on the lookout for something special. If that is the case then you should be able to provide them with what they need. This is reason enough for them to return for more.

2. Go beyond what they expect. It is always good that you go the extra mile for your customers; they will feel that their business is very much appreciated. In short they will feel special. Let us face it, it is human nature that people want to feel special and as an entrepreneur you have the opportunity to provide this to your customers.

3. Be knowledgeable about your product or service. As the owner of the business you should know your product like the back of your hand. Of course your customers perceive you as the expert when it comes to the product they intend to buy. But what if they ask you a question and you are unable to answer it? How would they feel? They will of course feel that you are like a fraud, because you do not know your own product. They will probably think, “Are you sure you own this business?” For sure that is not good for business right?

4. Make the shopping experience enjoyable and pleasant. When a customer feels that they had a great time shopping at your website, you can be sure that they will be back for more.

In building a loyal customer base, think about your own experience as a customer, and what made your shopping experience special? Building a loyal customer base will surely pay off in the years to come. After all your customers is the core of your business.


Tuesday, August 11, 2009

The Abandonment Of Shopping Carts


Was there are time that you went shopping in your local supermarket, you pick the stuff you want to buy and then at the last minute you abandon your cart. That explains why there are plenty of items left on the counter, ever noticed that? This particular situation happens not only in supermarkets but also with online stores.

People flock a web site, find something they really like but then end up leaving the stuff they put on their cart. Basically, shopping cart abandonment happens when a visitor initiates your checkout process but leaves before completing their purchase. Shopping cart abandonment suggests not just a loss of orders but it also means a loss to your business. If you have higher shopping cart abandonment rate, it suggests a lower conversion rate and you will have to work harder to achieve your business goals.

The main goal of an online business is to sell goods / services, and shopping cart abandonment can mean the difference between profitability and loss. So, it is important for an entrepreneur to know the reasons why a customer abandons their cart.'

Here are some reasons why they do so:

• Expensive shipping prices or long delivery times

• Total cost of purchased items is high

• Checkout process is tedious

• Site requires registration before purchase

• The site is unstable

• Checkout process is confusing

I have narrowed down the list of reasons to those which are controllable. Meaning as the entrepreneur you can do something about these things and hence avoid cart abandonment. Always remember that cart abandonment is a definite NO for any business be it offline or online.