TopPodcast.com
Menu
  • Home
  • Top Charts
  • Top Networks
  • Top Apps
  • Top Independents
  • Top Podfluencers
  • Top Picks
    • Top Business Podcasts
    • Top True Crime Podcasts
    • Top Finance Podcasts
    • Top Comedy Podcasts
    • Top Music Podcasts
    • Top Womens Podcasts
    • Top Kids Podcasts
    • Top Sports Podcasts
    • Top News Podcasts
    • Top Tech Podcasts
    • Top Crypto Podcasts
    • Top Entrepreneurial Podcasts
    • Top Fantasy Sports Podcasts
    • Top Political Podcasts
    • Top Science Podcasts
    • Top Self Help Podcasts
    • Top Sports Betting Podcasts
    • Top Stocks Podcasts
  • Podcast News
  • About Us
  • Podcast Advertising
  • Contact
Not in our directory?
Add Show Here
Podcast Equipment
Center

toppodcastlogoOur TOPPODCAST Picks

  • Comedy
  • Crypto
  • Sports
  • News
  • Politics
  • True Crime
  • Business
  • Finance

Follow Us

toppodcastlogoStay Connected

    View Top 200 Chart
    Back to Rankings Page
    Business

    The Savvy Business Method

    The Savvy Business Method podcast offers practical skills for planning, starting, and growing your small business online. With 10 years of eCommerce experience, host Julie Feickert guides you through the start up and growth phases, so you can provide a better life for your family.

    Advertise
    • Apple Podcasts
    • Google Play
    • Spotify

    Latest Episodes:
    Important Traffic Metrics for Your Ecommerce Website Nov 27, 2018
    Show notes

    Episode 017: Important Traffic Metrics for Your Ecommerce Website Episode Summary: A high average order value can make it easier to run your online business. In this episode, Julie walks you through the benefits of a high AOV and specific strategies for increasing your website's AOV. Episode Links: https://analytics.google.com/ https://savvybusinessmethod.com/ https://www.youtube.com/channel/UCAHt2LynOZylOjlIz878okg https://fb.me/savvybusinessmethod Episode Transcript: Announcer: Are you looking to take your online business to the next level? Well, you're in the right place? Welcome to The Savvy Business Method with your host, Julie Feickert. Julie Feickert: Hello and welcome to Episode 17 of the Savvy Business Method podcast where we talk about how to plan, start and grow your small business online. I'm Julie Feickert and my goal is to help you build practical business skills so you can provide a better life for your family. Okay, before we start today, a quick reminder. If you have not come over and joined me on Facebook, please do so. I am hosting a couple times a day on there, I have links to videos, these podcasts, other really cool resources I find are on the Internet. Or, you know, if you want to ask me a question, that can be a great place to do it, as well. I am at Savvy Business Method on Facebook. Alright, let's dive into today's topic, which is important traffic metrics for your website and what they mean. Now today everything I'm going to talk about in terms of the numbers that we need to be keeping an eye on as small business owners, all the things today I'm talking about, are going to be available in Google Analytics. I am hopeful that if you have Google Analytics already installed on your website and are tracking your website information. If you don't, I have a great video on YouTube you should check out about why it is so important to put a Google Pixel on your website, even potentially before you launch your website so it can be ready to go and collect all that information. So if you don't have that right now, real quick, Google Analytics is a free tracking system. It gives you an enormous amount of information about people who visit your website and what they do while they're there. And to get Google Analytics on your website you need to create a Google Analytics account. And weirdly enough you can Google that. You'll also probably need a Gmail account, it's a good time to reserve your business' name, like I have savvybusinessmethod@gmail.com. Don't email me there, it won't go anywhere, but I own that email address. You'll also need to prove that the website is yours and then they're going to give you some code to put on your website so that things can be tracked. Now, Google is limited to tracking the website you own, right? And it does start tracking right away, but you aren't going to be able to install tracking code like on your Facebook Page or your YouTube Channel or anything like that. Google is limited to the website that you own. But, that is hopefully where most of your business is occurring and let's talk through the three sets of metrics that could be really helpful for identifying problems with your website, seeing what's working and then coming up with ideas for ways to improve. Okay, so those three sets of metrics are who is visiting your site? What they're doing while they're there? And how they're leaving? Okay? So let's dive in. Alright, first up, we want to know as much as possible about the people who are visiting our website. So, one of the metrics that I look at regularly for my websites are the number of visits, okay? So that ideally the number of people coming to our websites each day should be going up, right? Like, that's what we want now, granted, we do want quality visits. So just because we got more visits on a certain day doesn't necessarily mean that those visits were possibly going to buy anything and I'll talk about that in a minute when we talk about sources. But this number is helpful because although we definitely want to see it trending upward, sharp moves in either direction can be a sign of a problem. If your website suddenly one day has a ton of traffic, for example, you need to identify where that traffic's coming from and make sure it is at least legitimate traffic and not say, some sort of denial service attack on your website, okay? A sharp downturn in that number could signal that you're having a problem. It could mean that something about your website isn't working properly anymore, so maybe your website is not as ranked as well on Google. It could mean that one of your major traffic sources is no longer sending you traffic. Maybe your Facebook ad stopped working, or something like that. So, keeping an eye on that number can be a good clue, both when things are going well for you, but also maybe even more importantly, when they're not. Now, a sharp downturn may not be something you have to fix. It could be, I'm just throwing this out there, it could be a legitimate reason, something predictable, right? It could be if you have a very seasonal-type business, you'll probably see a pretty sharp downturn at the end of your season. So, this is where you have to take all that other information that you know about your business when you're looking at this number. This number does not necessarily tell you anything in and of itself, it is a clue for what else you need to look at. Next up, you want to look at the sources of your traffic, okay? So this can help you figure out where your efforts need to be put in terms of driving traffic to your website. And it also can help you see what is quality traffic for you and not, because you're able to actually segment in Google the source traffic comes from and then what they do. So, how quickly they leave your site, or, you know, whether or not they buy anything, something like that. Now, something you'll commonly see as a website owner, if you've been doing this longer than maybe three months, you're going to end up having a day where you suddenly have way more traffic than you should and it's all coming from like maybe social media and you go frantically drilling down into your reports, trying to figure it out. And it turns out it's coming from a site like Stumble Upon. And those people did not stick around, they didn't buy anything. So it's just kind of a blip on your traffic radar, right? So that's something to think about. The source information can be really useful. The other thing I like to look at with my sources is I, as a website owner, because I tend to be a very risk-adverse person to begin with, I do not like risky adventures. I like to be seeing in my traffic numbers a good spread across various sources. So, yeah, I want some of my traffic coming from organic traffic from search engines like Google. I want some of my traffic coming from Facebook or some other social media sites. I want some of my traffic coming from email. I do not, as a website owner, want all of my traffic coming from one place because something can always happen to any of my sources. You know, Google could have some sort of algorithm change in the middle of the night. The rules that they have in place on what websites are number one versus number 10 on their search results, that can suddenly change. There are a lot of website owners out there who are still upset over some of the algorithm changes over the last couple of years. And so I don't ever want all of my traffic coming from one place because what if that goes away in the middle of the night, okay? Because that can happen. So I really like to look at my sources of my traffic so that I can not only see where people are coming from and maybe where I need to beef up my efforts but to make sure that I'm maintaining kind of a spread across various sources and so that my business is more stable. Alright, also in terms of who's visiting my site, I like to look at the entry pages. What are the landing pages that people are coming in on? And this can help me kind of understand what pages are bringing in the most traffic and kind of recognize that, oh, I have that article out there and I've been putting it out to various bloggers or out on social media and look, now that page is a landing page. People are coming in to the site via that page. Now, for established websites with strong category pages, strong product pages, good content marketing strategy going on, one thing you'll start to notice is that your home page becomes less and less important as a driver of traffic for you, which is so counterintuitive if you're just getting started. So you'll just have to take my word for this. You know, home pages are great, they can be very keyword heavy. They're obviously a good entrance into your site, but from a search engine's perspective in particular, something like a category page or a product page or a really good content article might be fulfilling the needs of the searcher more than your home page. And the Google and being in all the other search engines, their algorithms are constantly trying to find the best place to route people. And so your home page may not always be that and as you get more established, as you get better at managing your website, you're likely to see your home page drop in popularity as a landing page for your website. Alright, so let's move on to what your visitors are doing once they're there. This is another set of metrics that we really want to look at. One thing I like to look at is the average pages per visit. This is the average number of pages that someone views before they leave the website. This can be an indicator of a couple of things. The big ones are the quality of the visitor. So someone who is potentially interested in the information you have is probably going to surf more pages than someone who is not. This could also indicate to how well your site is internally linked. So let's say you have a category page or an article that comes up and ranks really well with the search engines and someone, a lot of people tend to come into via that page. That's the first page that they see when they get on your website. If you have a good linking strategy, and there are links on that page to other related pages, you'll have a better chance of keeping them on the site for a second page and a third page and so on and so forth. If you have a ton of your traffic only visiting one page on your website, it might be worth taking a look at whether you have a good path for them to follow, right? Among your pages if your pages are well-linked. So, average pages per visit, again, is one of those clues, right? It helps us understand maybe where we need to look to possibly improve our websites. Alright, related to that is the page path that people generally follow. So what I mean by that is what is the first page they look at and then what page do they go to after that and what page do they commonly go to after that? This can give us, as website owners, a lot of information about how people are using our website. So again, we can make tweaks, right? In what links we want to direct people to and what best information for them to see next. You know, the good example of this is if you look at Google Analytics and you see that the page path that people are following is not really conducive to the sales process, you might need to change out the way that your pages are linking together or your menus or something to try to get people to click on a better page next, right? A page that will move them down the sales funnel so they go from being maybe aware of your product to being interested in learning more to being interested in possibly purchasing it to getting them to that purchase process. And so this is kind of a way to double check that we're funneling people through our website in a logical manner and if we see that we're not, then we need to go back and play detective and figure out why it is that they're not moving along that path successfully. Alright, next up are two metrics in terms of customer behavior on the website that we all should love and adore. One is our conversion rate, that's the number of people who place an order during their visit to the website and the other is their average order value. Now, we talked quite a bit about average order value in the last episode, in Episode 16. If you haven't heard that one yet, please be sure to go listen to that. But, the conversion rate and the average order value are kind of our best case scenario, right? This is what we want people to be doing on an E-commerce website. I mean sure, we put the articles in there, we put lots of information, we want them to feel good about making a purchase, but in the end, we need them to make a purchase That's really important. And so we need this conversion rate to constantly be going up. It could be a big indicator of how our site is doing. It can also be, like a traffic number, an early sign if there is a problem. If we start to see our conversion rate going down, we need to dig in hard to the rest of our metrics to figure out why that is happening. And then in terms of AOV, I'm just going to say briefly, because I just talked about this in the last episode. I'd really encourage you to go listen to that. You know, your site's AOV can make a huge difference, it's the Average Order Value, a huge difference in how difficult it is to run a profitable site and to have the cash necessary to grow. So again, that's a metric we always want to see going up when we're checking on our metrics each day. Alright, third set of metrics we need to be looking at. The how are they leaving metrics? How are our customers leaving our website? Now the first metric you should look at in this category is called the bounce rate. Now, if you haven't heard the bounce rate before, the bounce rate is the number of people who land on a page on our website and then immediately leave without visiting a second page. They're bouncing, right? Like a ball, they hit the ground and they go right back out. Now every website has a bounce rate. If it does not have a bounce rate, and you'll see people claim they don't, generally they're doing something with like a click bait situation where they're getting someone to click something while they're on the website and then basically they don't have a bounce rate, right? Because everybody clicks whatever it is. So a bounce rate, I just want to assure you, especially as an E-commerce website, a bounce rate is perfectly normal thing to have. Having one does not indicate a problem. This is actually kind of a strange metric because even having sometimes a high bounce rate, you know, in the 70s and 80s, it might not indicate a problem, okay? So think about this from the search engine's perspective. A company like Google, as a search engine, cares that people who search on their search engine platform are getting the information they need from your website. So if they're going to put your website at number one in the ranking, they want to be pretty darn sure that that person's going to get exactly what they need by clicking on that link, okay? So, sometimes, let's say you have a really great article on your website about how to pick the perfect camera for you and you might actually have a very high bounce rate on that article because people come in, they look at the article, they find the information they need and they leave, okay? So in and of itself, a bounce rate isn't necessarily bad, okay, but here's kind of the thing about bounce rates. From Googl…

    Full show notes at the publisher

    Increasing Average Order Value Nov 19, 2018
    Show notes

    Episode 016: Increasing Average Order Value (and how to get one) Episode Summary: A high average order value can make it easier to run your online business. In this episode, Julie walks you through the benefits of a high AOV and specific strategies for increasing your website's AOV. Episode Links: https://savvybusinessmethod.com/ https://www.youtube.com/channel/UCAHt2LynOZylOjlIz878okg https://fb.me/savvybusinessmethod Episode Transcript: Announcer: Are you looking to take your online business to the next level? Well you're in the right place. Welcome to The Savvy Business Method with your host Julie Feickert. Julie Feickert: Hello and welcome to episode 16 of The Savvy Business Method Podcast where we talk about how to plan, start and grow your small business online. I'm Julie Feickert and my goal is to help you build practical business skills so you can provide a better life for your family. Today's topic is how to increase the average order value on your website this is such an important topic we all need to be working towards an increasingly higher average order value right? Because having a high AOV has a couple of advantages. You know one is that we have to self view our products to pay for our fixed expenses for our business right? Because every month you have to pay for your marketing systems and your website maintenance and maybe you have to have staff on hand for customer service or for shipping orders and all those expenses have to be paid whether you ship a 100 orders or whether you ship 10 thousand orders. And so having a higher average order value means more money is coming in with every order which means there is more money available to pay those expenses. There's also more money available to spend on advertising cost, or budget for those customer acquisition costs and so the money it costs us to go out and bring customers to our website and get them to purchase something. Having more revenue coming in also can lead to the ability to pay better wages right? Which means we can pay benefits and so we can possibly attract better people who can help us continue to grow our business and of course in the end higher average order value generally means that our business will be more profitable right and more stable and have more cash available to grow which is so important. Now if you're listening to this podcast and you're trying to figure out how to first start your business and may not have picked your products yet let me go ahead and just put it out there that it is really worth considering targeting higher priced products where you're going to have a higher average order value because honestly your path to successful Ecommerce is going to be smoother if you have to sell less things in order to pay your expenses and to generate a profit. Okay but that being said most of you listening and you know myself included already have our products right? We already have things we're trying to sell and now this becomes about trying to get the highest average order value we can with the products and the websites that we have. So let's start talking about ways that we can increase the AOV on our websites. All right first up a fairly reliable way to increase the average order value on your website is to actively recommend best-selling products, trending products or complementary products. Okay so what we're doing here is we're trying to convince customers that there are other products they should also put in their shopping cart. Okay so there's a couple of ways to do this one is to really dive in and work on your product recommendations. Okay so depending on the Ecommerce platform you're using, depending on the plugins maybe especially if you're working with something like Shopify that tends to have a lot of apps and plugins, or if you're working with a more custom built site having good product recommendations might be built into your system but most likely you're going to need to go out and find a plugin or potentially have some development work done to get those product recommendations working properly. Now product recommendations can work two different ways. The simple way, the inexpensive way that you can generally get a good plugin for or some fairly simple development work is to do manual product recommendations and so this is where let's say you have product A and you know from experience as the website owner that product A generally sells well with products D and E, okay or maybe you have a report or something but you know that if you recommend products D and E with product A that those are complementary products and the customer will recognize that and are more likely to buy those additional products. Okay so that's one way to do it, another way to do it is to use a system that works on an algorithm and this is so powerful. The systems that work on an algorithm tend to be much more costly and involved but generally you set up basically recipes and you say I want the product recommendations being shown to be based on what the computer knows people also buy when they buy this product, or that people who also look at this product also buy these other products. So a good example of this in action is Amazon so if you go to any Amazon's sales page and you scroll down there's always that section about people who bought this also bought that, right? And so having those dynamic product recommendations can be really powerful for getting people to add more items to their cart which that means a value of their order is larger. Okay so couple things about product recommendations to keep in mind, you generally want to put them on the product pages right where people are shopping just like Amazon does, you can also think about putting them on the cart page okay? The shopping cart itself and this is something that you can test to kind of see how that works. Now go back to episode six if you haven't listened to episode six yet where I talk about the goals of each of the major pages that any Ecommerce site has and one of the things I talked about in that episode is that we don't want to put things on the checkout page that might distract people. The cart page we can do a little distraction we can try to get the top sell them a little bit but we don't want to put like products recommendation on the checkout page because once someone gets to the checkout page the only goal is for that to hit that place order button and nothing should be distracting them, okay? Now product recommendations can also be shown in the form of up sells so you can have like a pop-up on the way to the cart page or on the way potentially to checkout where it says do you want to add this additional item, possibly do you want to add this additional item for a discount is even a way to do that, and there are generally plugins for the major Ecommerce platforms out there that will allow you to do that. Another way to actively recommend your best selling products, trending products, complementary products is to use a live chat system. So if you have a chat system set up on your website check and see if it allows you to see what's in people's carts or what people are browsing on currently, this is going to be generally the higher end of chat systems just tell you it's not going to be the free chat systems but your staff if you have a customer service team when they have time available they can see what people are looking at or have in their carts and then they can pop-up with the chat box and make active suggestions and engage that customer in conversation. So on one hand this seems kind of creepy right? Because we're used to browsing anonymously online but in reality this isn't much different than standing in a cell phone store and looking at a particular cell phone and having the sales person come up and talk to you about that phones features and how okay well now if you want to buy that phone you need to get a case, you need to get a screen protector all that sort of thing, okay so it's the same general concept. This will work great for some Ecommerce sites who have a certain type of customer and this will be disastrous for other Ecommerce sites with another type of customers so this is just something to think about if this sounds like something that your customers would find helpful it might be worth looking into. All right but if you're going to do it two things you need to check out okay. So one is like I mentioned not all live chat systems are going to be able to do this so check that out first, there are higher end systems out there and there are lower end systems with less functionality. Also you might want to look at automating this if you're checking out functionality see how much of this can be automated because it can be really time consuming and yeah it's one thing if your customer service people have timed like in between calls or emails or chats to do this but you're not going to catch every customer that way so if there's any automation or kind of a bot system built into any of these chat systems that might be something to think about as well. All right so as much as it can work well to make recommendations for customers and try to get them to put more items in their cart in the end we're dependent on them putting more items in their cart right? So the other way we can tackle this is to increase the value of the items that they do put in their cart okay so what do I mean by that? Now one thing that companies can use really strategically is to create product bundles so instead of having say a small product that cost $10 or $15 you could that product together with all the accessories and all of a sudden buying that product is a $50 purchase. Okay so you think about you can have a kit to make something instead of just buying an ingredient you can have the kit to make something I've done that myself, or if you're offering cell phones or cameras or a piece of electronics equipment you could bundle that product together with the accessories and that would increase the size of that order without having to depend on the customer to see the product recommendations and make the decision to put those additional items in their cart, okay? So that could be a really good strategy. Another strategy is to use deals to increase the average order value. Okay so this is where we give customers a very clear incentive to buy more. Now one way to do this is to use either shipping costs like some sort of shipping cost incentive or some sort of discount incentive are the two that I see most often. Okay so let's do some examples. You could for example offer free or discounted shipping for orders over a certain amount this is really popular on the internet right now with the Ecommerce company so for example you could say we have free shipping for orders over $50, or we have you get 20% off the shipping with orders over a certain amount something like that or flat rate shipping with orders over a certain amount. You can also look at doing free gifts I have tried this on one of the sites that I had we had a free gift for orders over a certain amount and so we figured out what our normal average order value was and then we said I think you know let's say your average order value is $50 and you offer a free gift then for any order maybe over $60 or $55. So when I'm saying free gift I'm talking about something that's very inexpensive to you but it's meaningful to your customer so you can get them maybe to put just a little bit more in their cart to get their free gift. I've also seen a lot of Ecommerce sites do discounts for a higher order value so you can advertise $20 off an order of $100 or more something like that that could really incentivize people to get to that higher mark and these types of deals tend to work even better if you make them time sensitive so if there's a limited time only. Some websites can even get away with putting like a countdown timer on their website that is not going to work for every brand or for every website but for websites whose customers are incentivized by that countdown timer that could be really really powerful. All right now let's just launch into some random ideas if none of those or if you've done all the things that I've already talked about here are a few extra ideas for you as well. Some companies have really good luck getting their average order value up when they put a loyalty program in place and so if your customers know that they're going to be earning points for buying with you they might be tempted to buy more right? Because they know they're going to get points towards a future purchase or a discount or something like that, those loyalty programs can be really powerful and they're common enough now that not only does the software exist at an affordable price to get one put in place customers know what they are so I mean I feel bad for the people who first did loyalty programs way back when and had to explain to every customer what it is, we're in a much better position now as companies we can put a program in place and have the basic details and customers get it, right, they know what they're doing. Another system that is available now just in the last couple of years is to offer payment options. Okay so payment options sound really scary as a website owner don't they? You don't really want to be taking the risk as a website owner about whether someone’s going to pay you or not but there are some systems out there PayPal Credit is one of them where you get your money upfront and the risk is actually taken by PayPal or at least that's how it worked the last time I checked into it. Those systems tend to work really well if you have higher end items, okay of you can nudge your average order value up over their minimum and I think PayPal's minimum is like $100 or right around there. So if you're sitting at like an $80 $75 or $80 average order value now and you're trying to nudge that up closer to $100 having that systems available might be what you need to help get customers to purchase just a little bit more from you. Okay now remember in the last episode when I talked about how important it is to choose an email service provider who had the functionality that your specific business needed? Okay well here's an example of where you can use this to your advantage. If you look at your average order value across your customers and you start actually making a list of all of your orders and all the value you may find that they fall into very distinct buckets. So let me give you an example. Let's say your average order value is $40 you may find out if you line up all your orders into like a statistics table right? That 75% of your orders are actually $25 an average order value $25 and 25% of your values are actually an average order value of $100 you may have that kind of really deep spread which then gives you you know maybe an average order value of something like $40, okay? If you know that information then you can go into your email system if your email system is properly hooked up to your Ecommerce platform it should be able in theory to segment out the people who had the larger orders and then you can start directly marketing to them and in that email campaigns that directly look to bring them back to the site right? Instead of marketing the same sale to everyone you can start to segment your list. It is also potentially possible to do this with Facebook and it's going to depend a lot on technology and what Facebook decides to change next week about what they allow and don't allow but it is something to look into, so if you find that you have very clear spreads in terms of order value buck…

    Full show notes at the publisher

    Choosing an Email Service Provider Nov 12, 2018
    Show notes

    Episode 015: Choosing an Email Service Provider Episode Summary: Email marketing is typically one of the best returns on investment for most ecommerce websites. In this episode, Julie talks through the factors you need to consider when choosing an email service provider including your goals and budget as well as your functionality and level of service needs. Episode Links: https://mailchimp.com/ https://www.constantcontact.com/ https://www.klaviyo.com/ https://www.activecampaign.com/ https://savvybusinessmethod.com/ https://www.youtube.com/channel/UCAHt2LynOZylOjlIz878okg https://fb.me/savvybusinessmethod Episode Transcript: Announcer: Are you looking to take your online business to the next level? Well, you're in the right place. Welcome to The Savvy Business Method, with your host, Julie Feickert. Julie Feickert: Hello, and welcome to episode 15 of The Savvy Business Method podcast, where we talk about how to plan, start, and grow your small business online. I'm Julie Feickert, and my goal is to help you build practical business skills so you can provide a better life for your family. Today we're going to talk about email marketing, and we've done a few episodes talking about email. And one of the reasons I like to talk about email is because email marketing tends to have a higher rate of return for small business owners with websites, ecommerce websites, than a lot of other types of marketing. And so this is something that I feel really strongly that ecommerce website owners need to have in place and need to do well so that they can get the best rate of return on their investment and grow their business. So today I want to walk you through choosing an email service provider. Now, before we get into the factors you need to consider, I want to clarify that an email service provider is the service you're using to send out both your automated and manual email marketing campaigns to your mailing list, so like your sales emails and your abandoned cart emails. This is different from who hosts your business e-mailbox. So I have an email address through my website, SavvyBusinessMethod.com. That email address is hosted and managed by a different service than what I use to send out the emails for Savvy Business Method. So hopefully that makes sense. That's just a point of confusion occasionally, and I want to make sure we clear that up in advance. All right, well, there are a number of good options out there for an email service provider, or an ESP. I'll probably use ESP throughout this so I don't have to keep saying email service provider. Now, a couple of them you've probably heard of. If you've been around ecommerce at all for a while, companies like MailChimp, Constant Contact, and Klaviyo are really popular with small website owners. And so we're going to be talking about companies like that today. And really the company that you choose or the company that's the best fit for your business is going to be dependent on a number of factors, including how large your email list is, your budget, and the features and the level of service that you specifically need. So let's walk through each of these and really dig into how you can figure out which service will best meet the needs of your specific business. All right, first off, I would recommend that you think about the goals that you have for your email marketing. Now, are you looking, for example, to just send out periodic emails to your email list, to maybe announce a sale or a new product or just remind them your business exists? Or are you looking maybe to do more triggered marketing? These are the automated campaigns, things like a shopping cart abandonment campaign, when somebody abandons their shopping cart, or a welcome series that starts sending out emails to them as soon as they sign up for your email list, or a post-purchase series that follows up with them after that sale, to support that sale, maybe get a product review, and also try to get them to make that second, third, fourth sale, et cetera. So those are some different types of campaigns that you could be considering running. Now, those are typical ecommerce campaigns. But if you are selling an item that requires a great deal of education or thought by the consumer, they really have to consider this purchase, or maybe it's a very high dollar value item, you may also need to run a sales funnel. So that's sort of a different type of campaign, right, where you're catching them at various points in the sales process and kind of funneling them through to the sales process. And so knowing your goals in advance can really help you understand the level of functionality that you're going to need from an email service provider. All right, on top of the type of email marketing specifically you're looking to do, you do need to also give some thought to what are your goals for growing your email list? Is your email list growing very quickly? Is it likely to get very large? Do you need specific tools built into your email service provider to help you grow that list and capture email addresses? Or are you using a separate system or something like that? Email is either a small part of your marketing for some businesses, or it's a very big part of it. And knowing that in advance can be really useful before you go out and try to choose a company. All right, next up, you need to know the types of features that are available in each system that you look at, okay? So let's talk first about automation and the functionality of the automation system within any given email service provider. Now, knowing what kinds of campaigns you want to run is really helpful, right? So then you want to look in the system at what kinds of campaigns can be automated. Now, let's talk, for example, about shopping cart abandonment, because generally most decent email service providers are going to have support for an abandoned shopping cart campaign, because that's a very common need for an ecommerce website. So if you're looking at an SCA campaign, are there campaign templates in the system that you're looking at to get you started? Are you going to have to come up with the code for the emails by yourself? Are you going to have to come up with the sequencing and the delays all by yourself? Now, there are some trade offs here, right? So if you're just getting started with your business or you're not particularly tech savvy or you don't have a particularly large budget to do a lot of custom coding, having an email service provider that has a drag-and-drop system or has some example campaigns already set up, where you're just plugging in your logo and the colors and the time delay you want between the emails, that can be fabulous, especially when you're first getting started. But as you grow, one thing you need to be looking at with automation functionality in any of these email service providers is whether there is flexibility long-term. So I have great faith in you. I know that as you go on in your ecommerce journey that you become more savvy in how you run your business, and you start noticing some trends with your email marketing, you are going to be in a position to be a little bit more strategic about how you lay out your emails and how you lay out your sequences. And having the ability in a system to then go in and be flexible and set up your own campaigns with these custom layouts or custom timing can be really important. So this is just thinking ahead, right? So as you become better at this, are you going to have the flexibility in the automation system to do the campaign that you want to do? All right, also with the animated, or automated, excuse me, automated campaigns, if you could do animated campaigns, that'd be cool, too, but with the automated campaigns, you want to be asking the email service provider about the level of service they're providing here, right? So are they building the campaigns out for you, or is that something you do? And if it's something you do, be sure to get a demo or a trial period so that you can make sure that your level of technical skill meshes nicely with the complexity of the system that you're looking at. There are systems out there that are so ridiculously easy, drag-and-drop systems, they're great. There are systems out there that require a lot more tech skill, and they also tend to have a lot more functionality long-term. So those trade offs are there. Just be thoughtful before you sign any agreements or sign up for a year plan or something like that, that you're picking something that you are going to be able to work with and get those automation sequences set up well. All right, next up, I would encourage you to look at the tracking and reporting that is available through the system that you're considering. This may not seem like a big thing. And to be honest, it isn't a really big thing when you're first getting started. But again, as you grow, as your email list is bigger, as you're generating more revenue, and as you get more savvy as an ecommerce marketer, you're going to want to see more and more metrics of how your email is doing. And there can be major differences between the tracking and reporting in different systems. So for example, most systems will track things like clicks and opens and how many people purchase something after reading the email. But if you're planning on running more complex campaigns from the get-go, you might want to think through what information you would want about those campaigns, and then verify that those metrics are available in the system you're looking at. Also, as you start running more and more campaigns and more complex campaigns, it's really useful to be able to download your statistics into a spreadsheet program like Excel so that you can analyze the statistics. So just double check that you have that ability in whatever system you're looking at, too. So again, thinking ahead, right, we just want to make sure we can grow, and as we become better at this, that we have the information available, and it's not going to be this huge pain to pull the information out of the system. All right, when you're looking at a system, I'd also recommend you look carefully at their template options. Now, templates are the pre-built emails that are available that, in theory, you're just going to drop your logo in and change the colors and maybe tweak the layout just a little bit. But basically, it's a plug-and-play system, right? You plug your information in, and you're able to send emails that look reasonably professional. Templates are amazing, I mean, especially when you're first getting started or you don't have the tech skills or you don't have the budget for something custom. They can just be the best thing ever. But it's important to look and make sure that the company that you're looking to work with has templates, if you're going to use a template, that they have templates that are going to be able to be adjusted enough to match your branding so that your emails are recognizable to your customers, because you're going to have a much easier time using email for marketing if your customers recognize the email is coming from you and it's reinforcing whatever branding and messaging that your site has going on. All right, so in order to look at templates, you need to think through a few things. Most of this is about thinking through the types of emails you'll be sending out. When we think about batch and blast emails, those newsletter or sale emails that we send out manually to our lists, having a big image, that hero image at the top is pretty common. But then you need to think through, are you just going to be sending out emails with that one image and maybe some text? Are you planning on sending supporting articles or recipes or guides or something else further down the email that you're going to need space to drop in? Maybe you're planning on doing product highlights, or you want to have multiple product recommendations in your emails. All of that are things that you should be considering when you're looking at templates, because you don't want to mess with those templates too much unless you are some sort of coding expert, because those templates are really finicky, because they're meant to work both on a desktop and on a tablet and on a mobile device, which is great. It used to be that we didn't have that functionality, even a few years ago. But now it's standard. But it also means you can't mess with the template like you used to be able to. All right, so let's say that you're not finding any templates that work well for you. You need very specific branding, or you need a specific layout. What are your options? Most companies, especially the higher-end email service providers, and believe me, there are some high-end email service providers out there, and they are fabulous. I miss them dearly. They often offer a service where you can draw out what you want for an email, have a designer draw it out, and then there are people who will build that template for you. And that service generally runs anywhere from $1,500 to $3,000 in my experience. So that's just something to think about. That is a chunk of money. So if that's something that's in your marketing budget, great. You can have a really nice, well-branded email. But if it's not, you're going to need to figure out how to work with the templates that are already in the system. All right, next up, this won't matter to everybody, but if you work a lot from your phone or mobile device, you may want to check and see if whatever email service provider you're considering has some sort of mobile app so that you can log in to the system on the go. This requirement, if this is really important to you, I'm going to tell you up front this is going to limit your options, because a lot of the email service providers do not have apps. And the ones that do have very low functionality apps, from what I can find. But just something to think about. If you're used to having constant access to systems from your cell phone, then you need to take that into account when you're picking somebody, and decide how important that's going to be, if that's going to be a hill you want to die on or not. All right, next up, you need to make sure that whatever system you choose can be fully integrated with both your ecommerce platform, so this is where you sell things, right, like Shopify or Magento or BigCommerce or CoreCommerce or whoever you're using, as well as any other systems that are critical for operating your business, okay? So these are things like if you have a customer relationship management system, if you're doing more sales focus, you might have a CRM. Your ecommerce platform has to, or excuse me, your email service provider has to interface with your CRM. If you're using a landing page system like Leadpages, you need to make sure that that is interfacing with your email service provider. If you are using a separate system for email capture and you've got your popups and your static banners and all of that on your site through another system, you need to make sure all of these systems can talk to one another. It does not work for you to be manually downloading email addresses out of one system and putting them in another. Don't get stuck in that idea. That doesn't work because part of the effectiveness of email is when someone signs up that they are immediately getting whatever follow up you promised them. Otherwise you're going to end up with a lot more spam complaints. So don…

    Full show notes at the publisher

    Tackling High Abandoned Cart Rates Nov 08, 2018
    Show notes

    Episode 014: Tackling High Abandoned Cart Rates Episode Summary: A high rate of abandoned shopping carts on an ecommerce website is so frustrating! In this episode, Julie walks through how to get the abandoned cart rate down as well as strategies for getting customers who abandoned their cart to return and make a purchase. Episode Links: https://www.adroll.com/ https://savvybusinessmethod.com/ https://www.youtube.com/channel/UCAHt2LynOZylOjlIz878okg https://fb.me/savvybusinessmethod Episode Transcript: Announcer: Are you looking to take your online business to the next level? Well, you're in the right place. Welcome to The Savvy Business Method, with your host, Julie Feickert. Julie Feickert: Hello, and welcome to episode 14 of The Savvy Business Method podcast, where we talk about how to plan, start, and grow your small business online. I'm Julie Feickert, and my goal is to help you build practical business skills so you can provide a better life for your family. Okay, quick reminder, there is a full transcript of the show in the show notes, along with any links for any resources I talk about. I want to be sure that you are in a good position to go back and quickly and easily find what you need, because this is an important topic today. Today we're going to talk about how to tackle high abandoned cart rates. Now, abandoned shopping carts are probably one of the most frustrating issues we deal with as ecommerce website owners. This is where people add items to their shopping cart, and then they don't complete the checkout process. And I think it's really frustrating because we've managed to get traffic to our website, we've managed to get them to add something to their shopping cart, but for some reason they're not making it to that last important step of actually purchasing the item. That's a terrible place to be failing, right? So let's dive in by first asking ourselves if we actually have a problem. Okay, so that might seem like an odd thing to say, and I get it. Anyone abandoning their shopping cart is a problem. Even after all these years, I go in every couple days to my ecommerce system and look specifically at how many people have abandoned carts on my website. And the number always makes me cringe. So here's the thing. Running a successful ecommerce website means that we all have a lot of competing priorities, right? So one of our biggest challenges is to prioritize the things we need to work on. And so this idea of abandoned shopping carts becomes a prime example because while the number makes all of us cringe, and we would definitely like to have our abandoned cart rate be zero or near zero, that isn't realistic. So here's the deal. The average ecommerce site has about a 75% abandoned cart rate. Seriously, out of every 100 customers who place something in their shopping cart, on average only 25% of them are going to complete that purchase. The other 75 are going to walk away. I mean, how frustrating is that? But I wanted to start off this discussion today by giving you some perspective, and especially if you're new to ecommerce, so that you can be thoughtful about what you're getting upset over and what you're deciding to put time and resources into. So here's the deal. As a general rule, if your website's abandoned cart rate is higher than 75%, then I would absolutely agree that you need to work on that ASAP. You're leaving money on the table, and it's going to be a matter of figuring out what is going wrong and why that rate is so high. But if your site's abandoned cart rate is lower than 75%, I'm not telling you not to work on it, of course you should always try to improve that number. But I would encourage you to consider if that's the best use of your time right now. So if your rate's under 75%, your odds of improving it significantly honestly are probably not that great. You can probably nudge it down a little bit, but you're not going to get, make some huge impact on it. So this is when we need to kinda step back and think about a few things. If you aren't happy with your sales numbers right now and your abandoned cart rate is at 75% or lower, honestly your time is probably better spent working on getting more traffic to your website than it is trying to make a dent in that abandoned cart rate. Hopefully that makes sense. So this is about how we spend our time and understanding what is normal and where we need to stop and take a deep breath and understand that our time is spent better elsewhere. Now, don't get me wrong. Once you have better traffic numbers and your traffic numbers are closer to what would be your goal or your ideal, you can absolutely circle back around and start nudging that abandoned cart rate down. But you need to be thoughtful about whether you actually have a problem and whether it's something you need to prioritize. Okay, so let's assume that you have gone into your ecommerce platform, you looked at your abandoned shopping cart rate, and it's higher than 75%. And so this means that your priority does need to be bringing that down. Let's dive in and talk through specifically how you do that. All right, first step, you need to thoroughly evaluate your cart and your checkout process, since this seems to be the part of your website that's hanging people up or is causing people to stop this process. If they were abandoning on the product page, we would go to the product page and look. But they're abandoning on the cart or the checkout page. And so going through both of those with a fine-toothed comb is really important. And yes, you should go through them with a fine-toothed comb. But I'm going to tell you, really you need to get three or five people to do the same, ideally people who can give you some honest feedback. So if you have experienced ecommerce entrepreneurs in your life, that would be a good person to ask. I would also suggest you ask maybe some friends who are not in the ecommerce business but who shop online, and ask them if anything makes them nervous or causes them pause. The goal with both your cart and your checkout is to have a super slick process where the customer doesn't stop to reconsider their purchase. We want them just to slide on through to checkout. Now, we had a pretty thorough discussion about this back a couple episodes ago where we talked about the 11 pages every ecommerce site needs, and I talked about the different parts of a cart page and a checkout page and how we have to be really careful that we're keeping those slick, that we're not creating distractions. We want people to slide right to the end and press the place order button. Okay, so as you're going through and looking, there are some things that you specifically should be looking at. Number one, is something in the process too complicated or just too much? Okay, what do I mean by too much? All right, so things to ask yourself, is it simple for the customer to see what they're ordering, like how many they're ordering, the price, the discounts that are applied, the shipping, et cetera? If people can't see clearly what they're getting and what they're going to pay for it, that's a really big reason to start being mistrustful and to walk away from a website. Another thing to consider is whether you are potentially asking for too much information. It's really important to keep the checkout process quick, and so you only want to ask for information you absolutely need. So for example, you need their name, their email address, and where you're shipping this thing, right? You don't need to ask them their birthday. So just going through and double checking that you don't have any extra questions in there that might be causing people to take longer to go through the process, giving them more time to potentially change their mind. All right, another thing to consider is whether there are too many choices in either your cart or your checkout process. So yes, in the cart we often want to do upsells or try to push complementary items. But if those are getting to be too distracting, you might need to tone them down or remove them to see if you can improve the number of people who are making it all the way to the end of the checkout process. Also, look at how many shipping choices you have or how many payment options you have. It's easy to think, oh, I'll present my customers with as many options I possibly can. But we do know from research that there's that paralysis of choice, right? When we're presented with too many options, it is easy to stop and not make the decision at all. So sometimes having two or three payment or shipping options can actually be superior to having four, five, six, okay? Just something to think about. Finally, if you have any customization in your product process, that can throw a massive uncertainty wrench into your checkout process and create doubt in people's minds. So just again, something to think about. All of these choices, payment, shipping, customization, it can just get to be too much for people. All right, next step, you need to ask yourself if your customers are facing any shipping surprises when they get to the cart or the checkout page. Now, what do I mean by that? Nobody likes to be surprised that they're either going to have to pay for shipping when they didn't expect to or that the shipping charges are going to be higher than they expected to pay. And this is tricky, right, for website owners. I'm actually going to do an episode a few podcasts from now specifically about the challenges around pricing our shipping, what the deal is with free shipping, that sort of thing. But in the meantime, this is just something you need to think through. In a perfect world, you really need to have, say, free shipping or flat rate shipping that's clear on the site prior to them getting to checkout so there's no question. They know for sure that if they order more than $40 in product, they're going to get free shipping. So there's no surprise at checkout. Maybe you have a banner or something on your website. Or they know that the flat rate shipping option is 2.99 or something like that, right? So it's not surprising them and causing them to change their mind once they get to the cart or the checkout page. Now, if that, having free or flat rate shipping isn't an option for whatever reason, you do need to start thinking about how your shipping needs to be perceived as being reasonable to your customer. And this could mean, if your shipping's too high, you're going to need to figure out a way to bring it down. It could be adding maybe some slower shipping options that people can choose or working part of the price of the shipping into the product itself. Another thing you need to look at with shipping, and we can talk more about this in a couple episodes, but if you are adding surcharges to your shipping, you may need to get rid of those, as well. All right, almost as annoying to customers as shipping surprises are probably payment issues. Be sure when you are going through your checkout carefully that you are running test orders for each of your payment options and making sure that each is working perfectly. When people are putting their credit cards into a website is the wrong time to have any glitches or odd behavior. Also make sure you're testing realistic scenarios. So you're putting items in your cart, you're removing them, you're adding a coupon code, so on and so forth. Think of all of the really ridiculous things that someone might try on your website, and then try running those scenarios through with each of your payment providers. And again, if you have friends who could do this, have them do it. Just obviously cancel and refund those orders. But have them go through the payment process, because this can be a place that we have a lot of hidden problems that can cause heartburn for our customers. All right, so going through this process of evaluating your cart and your checkout and making them as slick as possible and making sure there are no hangups or odd behavior or anything going on that can trip up a customer is ultimately how we bring our abandoned cart rate down to an average level, hopefully to right around that 75%. Okay, so that's the goal. This is where we're bringing it down. Now, having said that, as I talked about earlier, everyone has an abandoned cart rate. And it's generally 75%, maybe a little more or a little less, depending on your industry. All right, so let's shift the discussion, then, to talking about how we take these people who abandon the shopping carts and get them back on our website to purchase these products, because this is something anyone with any shopping cart abandonment rate should be using, the strategy of getting people back on the website. And the reason we want to put effort into this is because people who made it all the way to the shopping cart, I mean, they liked an item enough to put it in their shopping cart, these are are warmest leads, right? They're going to be the easiest for us to convert if we can get them back on the next visit. And so you need to have a strategy in place to reach out to them in as many ways as possible and then be providing them an incentive to come back and make that purchase. Okay, so let's start by talking about the ways that we can reach out to them, and then we'll move on and talk about incentives that you can use, all right? So option number one, all of us with ecommerce sites should be using remarketing. This is where we show ads specifically to people who have visited our website. Now, if you go back to episode three of this podcast, you can check out the remarketing episode. I did kind of a deep dive into what are remarketing systems and how they're set up and all of that. There's also a YouTube video, which is a much shorter summary that you can check out, as well. Now, with remarketing, you're showing ads to people who visited your website. But specifically when we're talking about abandoned shopping carts, what we want to do is create a segment in our remarketing system, so this is AdRoll, Facebook, something like that, where we are segmenting out people who have abandoned their shopping carts. And then we can run a specific ad campaign to those people. And that allows us to really control that conversation and potentially put some promotions out there for them. So maybe could offer them a coupon or free shipping or a bonus in an ad to help encourage them to return and make that purchase. Now, the nice thing about remarketing is you can generally run a remarketing campaign to almost anyone who visits your website. People with popup blockers are going to be a little hard to get a hold of. But hey, they're probably on Facebook. So you'll get them there. But even if you don't have someone's email address, even if they didn't sign up for your mailing list, you can still run effective remarketing campaigns. So these are really important to get set up. So go back and listen to episode three if you don't have a remarketing system set up so I can talk you through how to get the pixels set up, how to build your audiences, and how to get those ads up and running. All right, next up, I would also recommend that you have an abandoned shopping cart email campaign running at all times. So if someone comes to your website and they opt into your email list, so you've got their email, right, and your site will be tracking that, and there'll be that little cookie attached to them that keeps track of what they put in their shopping carts. And then when they…

    Full show notes at the publisher

    Preparing for Black Friday and Cyber Monday Part 2 Nov 05, 2018
    Show notes

    Episode 013: Preparing for Black Friday and Cyber Monday Part 2 Episode Summary: In this second episode of a two-part series, Julie dives into how to get your customer service team, inventory management, and shipping systems ready to tackle Black Friday and Cyber Monday. Episode Links: https://savvybusinessmethod.com/ https://www.youtube.com/channel/UCAHt2LynOZylOjlIz878okg https://fb.me/savvybusinessmethod Episode Transcript: Announcer: Are you looking to take your online business to the next level? Well, you're in the right place. Welcome to The Savvy Business Method, with your host, Julie Feickert. Julie Feickert: Hello, and welcome to episode 13 of The Savvy Business Method podcast, where we talk about how to plan, start, and grow your small business online, especially during the holiday season. I am Julie Feickert and my goal is to help you build practical business skills so you can provide a better life for your family. Are you starting to shift into holiday mode? You know, it's that time of year, and as ecommerce website owners and ecommerce marketers it feels like we have to make this holiday shift so early in the year. But it's really important. We want to take advantage of the revenue available during the holiday season. So if you haven't had a chance yet, be sure to go back and listen to the previous episode that came in your feed on Thursday, November 1st. And that's where I went over in great detail how you need to set up your marketing systems to be ready for Black Friday and Cyber Monday. And if you set your marketing up properly, hopefully you are going to be seeing a lot more traffic to your website, a lot more orders placed, more people contacting customer service. The whole thing just becomes bigger and potentially harder to manage. And so today, I want to continue the Black Friday and Cyber Monday discussion, but I want to cover a series of topics I don't think I've ever seen anyone else talk about. You know, everyone is so focused on marketing for Black Friday and Cyber Monday, and marketing is really important. And also, of course, it's honestly like really interesting and even a little sexy, but I have been running ecommerce websites for 10 years, and during that time I have at some point done every single job myself. I've answered customer services emails. I've ordered inventory. I've packed orders. And even once I got to the point where I had an amazing team, on a big sales weekend like Black Friday and Cyber Monday, you better believe I was out there with them working alongside them. So in all those years with all those holiday seasons under my belt, let me tell you, marketing is only part of your responsibilities as a business owner. And there are some really important things you need to get in place in terms of your customer service, your inventory, your shipping systems, to make handling what is hopefully going to be a huge influx of orders a more positive experience for you and your team. All right, so today's topic is about getting the rest of your business ready for Black Friday and Cyber Monday. Now, this long weekend we have coming up, it's such a crucial opportunity to bring in substantial revenue and hopefully gain a lot of new customers you can continue to market to the rest of the year. So the last thing you need is to be getting behind on answering customer's questions, or taking a week or longer to ship out their orders because you know if you take too long to ship out their orders, they're going to call customer service, right? And those interactions are going to cost you money and customers will perceive this as a negative experience. So you really have to not only be on your marketing game during the season, you have to kind of be on your management operations game as well. And so that is what we're going to focus on. What tweaks or changes can you put in place now so that you can be in the best possible position? All right, well let's start with customer service. Now, whether it's just you doing your customer service, or you have a team, you need to be ready to handle more customer service inquiries. And like I just said, you can't afford to get behind, right? This is the time when you need to stay on top and be getting back to people quickly. All right, so let's talk about your staffing. Now, I will tell you from experience that realistically you probably don't need to increase your staffing. You don't need to go out and hire anybody. You don't need to necessarily bring in temps. I've had good luck over the years with just encouraging everyone to be a little bit more on their game or work a little bit faster than normal. You know, you can't do that to your staff every day of the year, of course, but if you can create the positive environment, the energy, and maybe even some reward systems in place, you can probably get everybody to be a little bit more energized and working a little bit harder and faster than they normally would. They'll be able to do that for a couple of days, right? You've got good people, they'll help you out here. Now, as a practical matter, there are some things though that you can do with your staffing to make this a little bit easier. Now, one is making sure you have staffing the day after Thanksgiving. A lot of companies like to give people that day after Thanksgiving off, and who doesn't love a four-day weekend, of course? But I have generally found that I at least want to have some staff around the day after Thanksgiving. So on a Friday, typically, with one of my companies, we'd have two or three people working. On the day after Thanksgiving, one person would generally be able to handle it. And that sounds strange, right? But the thing that we found was that most people shopping online didn't start shopping online till later in the day anyway. They were out standing in line for the sock sale or something first, or to get that big screen TV, and then they ended up shopping online later in the afternoon. But in the end, just make sure you have some coverage on Friday to keep those inboxes cleaned out and to keep them caught up. Now, the same general idea applies to the weekend. I find that it's generally best to make sure that there is someone, at the very least, logging in every few hours to clean out the inbox. If you can staff your customer service department all weekend so that you can do chat and phone calls and email real time, that's awesome, but if that's not something you can do, see if you can get a volunteer to work some overtime and to clean out that box every few hours so your staff aren't facing a huge onslaught when they come in on Monday. Now, the other reason you want to stay on top of your customer service inquiries over this really important weekend is because if there are problems with your website, or if your coupon codes, your promotion isn't working properly, having staff who see those emails or chats quickly can make a huge difference in how quickly you can get that problem fixed. All right, next up, when you're thinking about customer service for Black Friday and Cyber Monday, you want to give some thought to the promotions that you're running. Now, we talked about promotions on Thursday in the last episode, but in this case, you're going to want to really sit down and think about what is everything that could possibly go wrong with the promotion. Sounds so negative, right? You want to be sure though that your promo or your coupon is working perfectly. This is not a time to be confusing customers. It needs to have a clear spot it goes in the cart in checkout. People need to easily be able to see that the discount that they're expecting is being applied properly. Now, if it turns out that something does go wrong, and your staff are getting complaints from customers, you want to be sure that there is a system in place so that they can resolve those issues. So this could be making sure, of course, that you're easy to get ahold of, as a business owner. It could also be making sure someone in your customer service department knows how to work your promo system on the backend and can fix any glitches. It also may be that, you should always, of course, have your developer's phone number on hand or a quick way to get ahold of them in case you have a major website issue. Something else that I have found personally that really works well for reducing the number of customer service inquiries that come in over that Black Friday, Cyber Monday weekend, is to make whatever promo that I'm running on my websites automatic, so that people don't need to add a coupon code, okay? And there's a couple of reasons for this, but the main one is that people will inevitably forget to add the coupon code and then they'll be calling you a couple days later asking you to add it retroactively. And every ecommerce system I know of does not make that easy, and so it's a very manual process. You end up having to do a manual refund. It's a mess, but it's also difficult to turn people down, right? Because then you're creating customer service issues. So all I'm saying is that if you are letting everybody have the discount automatically, you can save yourself a lot of headaches later. If you decide though you want to use coupon codes and you want to make your customers apply those, be sure you have some scripts, some practicing going on with your customer service staff, some processes in place to handle those inquiries when people forget to apply those coupon codes. All right, now as we discussed on Thursday, I generally recommend that you make whatever promotion you're running for your Black Friday sale a little bit better or a little wider than what you run for your Monday sale. This will help prevent complaints of customers who bought on Friday and now feel that they would have gotten a better deal if they waited till Monday. So that's just a small thing you can do in the way you set up your promotions and the order you do them in to help reduce those customer service complaints. Also, make your coupon codes, if you're going to use coupon codes, work for a day or two longer than you advertised them. So let's say that your Cyber Monday coupon code expires the Wednesday after Cyber Monday. I would suggest from the backend of your system that that code actually expire on Friday, because I assure you, people are going to be going through their email later in the week, they're going to find it, they're going to try to take advantage of it, and it's not going to work, and they're going to get upset, and then they're going to call you. And again, those interactions cost you money. It is far better for you to get that sale even at the discount than it is for you to have to pay someone to talk to that person, and then inevitably probably give them some form of compensation or the discount anyway. So just save yourself some time, money, and headaches. All right, last up in terms of keeping customer service a doable situation for that weekend, be sure you're not making any major changes to your website right before Black Friday and Cyber Monday. Trust me, and it's Murphy's Law, right? Something will go wrong. Also, you'll want to double-check that your website can handle extra traffic. If you are using a hosted ecommerce solution, something like Shopify or BigCommerce or CoreCommerce, you probably don't have really any say in where your site is hosted, it's being done by the company for you, but if you are on a platform, something like, we were on Magento for nine years, we had to host our own server, so we had to contract for a server. So if you're in that situation, double-check with your developer that there's been some testing done, that you're going to be able to handle increased traffic so your site doesn't crash, because that is truly the last thing you need, right? Also, as I mentioned before, make sure you know how to reach your developers is there is an emergency, and that they are going to be around the holiday weekend to be able to help you. So that'll help keep, you know, if your customer service people are getting complaints about the website, just having those things in place allows you to fix problems more quickly. All right, next up, let's talk about inventory. So inventory, there's just a couple quick tips here over the years that I've learned. One, is make sure you're ordering far enough in advance to allow for problems. It's really easy as small business owners, especially for cash flow, that we'll wait until the last moment to order our inventory because we don't want to spend the money, right? But keep in mind that everyone is bringing in new inventory right now, not just you, and so often it can take a supplier longer to ship your inventory. Freight systems might be backed up a little bit. So allow yourselves at least a couple extra days, preferably an extra week or two, just in case something goes wrong with your shipment. It would be such a shame to not be able to reap the rewards of this holiday weekend because your inventory didn't come in on time. Now, I truly understand that balancing having enough inventory, but not too much because you didn't want to tie up your cash is really hard. I would just encourage you to think about how people shop on your website normally, and then you're just going to have to make some guesses in terms of how much extra you're going to sell. Now, keep in mind, depending on what your promotion is, if you're offering free gifts as part of your promotion, all of that has to be taken into account in advance with your inventory numbers so that you have enough on hand. And if this is your first year or two of doing Black Friday and Cyber Monday, please rest assured that this does get easier. Years three, four, five, six, and beyond, you'll feel like a pro at this. Yeah, I mean, there's always a little bit of uncertainty. You're never sure until you get to that weekend, how things are going to go, but at least you'll have some data to work with. So do your best, hang tight, it gets easier from here. All right, so if you have done your marketing well, you have met your customers' needs, you have product in stock to sell, with any luck you are going to have a lot of orders coming in, right? That is the goal. And so let's talk about getting those orders out the door. Now, this is something you really have to give a lot of thought to if you are shipping your own orders. If you're outsourcing that to a third party, congratulations, your life, your weekend's going to be much easier than the rest of us. But for those of us who do our own shipping, let's stop and talk about what this looks like. Now, I would recommend that you sit down the next couple of days and give some thought to what scaling looks like. So let's say you get twice as many orders over Black Friday and Cyber Monday as you normally would over a weekend, okay? What does that look like? That's probably not too big a deal, right? Your system can probably adjust for that. What if you get five times as many orders? Okay, now it gets more complicated, right? You have to start thinking about people and processes a little bit more. I would really encourage you, you know, obviously you don't want to get your hopes up that you're going to have the greatest weekend ever, hopefully you will, but still, but I would also encourage you not to assume that this is just going to work itself out. Save that attitude for the day that you're on some big cable news show with no n…

    Full show notes at the publisher

    Preparing for Black Friday and Cyber Monday Part 1 Nov 01, 2018
    Show notes

    Episode 012: Preparing for Black Friday and Cyber Monday Part 1 Episode Summary: As an ecommerce website, you get one chance a year to bring in big revenue numbers on the Black Friday/Cyber Monday weekend. In this first of two episodes, Julie walks you through setting up your ecommerce marketing to bring in as many sales as possible during that holiday weekend. Episode Links: https://www.adroll.com/https://savvybusinessmethod.com/ https://www.youtube.com/channel/UCAHt2LynOZylOjlIz878okghttps://fb.me/savvybusinessmethod Episode Transcript: Announcer: Are you looking to take your online business to the next level? Well, you're in the right place. Welcome to The Savvy Business Method with your host Julie Feickert. Julie Feickert: Hello, and welcome to episode 12 of the Savvy Business Method Podcast where we talk about how to plan, start, and grow your small business online. I'm Julie Feickert and my goal is to help you build practical business skills so you can provide a better life for your family. How is it already November 1st? I hope you had a fun Halloween last night. I feel so fortunate we live in a great neighborhood for Halloween. Everybody gets really into decorating and handing out candy and it makes it so much fun. But that fun is short-lived, right? Because as website owners, you and I tend to do Halloween maybe a bit differently. It's ushering in a really critical season for most websites. And so, today I wanted to take some time to talk about planning for Black Friday and Cyber Monday because that weekend is a big deal for most websites. Unless you happen to have a really odd seasonality to your particular e-commerce company, you're probably looking to make as much revenue that weekend as you possibly can. As a friend of mine likes to say, people are in the mood to hand over their money at that point, and we should be in the best possible position to take it. So, let's talk today about what a solid Black Friday and Cyber Monday plan looks like. Now, I'm going to put a twist on this. This is actually going to be a two part podcast. We'll do the first part today and the second part on Monday. I'm going to also get a lot more specific than I typically do with this podcast. So, we're going to get really into the weeds and flush out how to get ready for this really important weekend. So, the goal today is to talk you through what you need to do from a marketing perspective so you can have the most successful Black Friday and Cyber Monday possible. On Monday, I will be back in your feed with a new episode where I'll focus on what you need to do to get the rest of your company ready. So, what does it look like for customer service to be prepared, your inventory management, your shipping systems? I trust that most of you knew deep down already that you needed to be thinking about marketing to prepare for such a huge potential revenue-generating weekend, but I also realize things like customer service and shipping can be easy to forget. I think we have this tendency as entrepreneurs to just consider that, oh well, things will work themselves out; I'll just get people to my website; they'll buy and I'll figure out how I'm going to get all these packages out the door later. But I can tell you after 10 years of doing this, there are definitely things you can and should do to prepare in advance. That's going to be a long, rough weekend. You're looking at potentially a long, rough following week for both you and your team if you have people working with you, and I would like to see that 10-day period go way more smoothly for you guys by helping you get prepared and having all your systems in place and everything organized in advance. Alright, let's talk about some reality here for a moment. Black Friday and Cyber Monday are a constantly evolving situation, right? They change every year. Historically, Black Friday was huge, and of course, Cyber Monday didn't even exist. I was thinking the other day, back when I was a kid I had this really clear memory of my mom dragging us out of bed at 5:00 a.m. so we could be at Fred Meyer in Portland at 6:00 a.m. for the 50% off sock sale. And there were so many people, and I remember, as a kid, just thinking I was going to be trampled. And if you are older than probably 30, you probably have that memory, right? This was when everything got purchased, on Black Friday. Now with e-commerce became more popular, people would shop online the following Monday when they returned to work, and they had internet access, which again, I realize if you're under 30, probably sounds really strange. Let me assure you, most of us did not have internet access for at least part of our adult life outside of work; I mean, that was normal. And so this is where this whole idea came from, but clearly some things are changing. Every year, Black Friday and Cyber Monday become less concentrated, right? So, there are less people who are really focusing their shopping on that, what is that, four, four, five day period, okay? So, some things are changing and companies, though, have gotten really addicted to this idea of being able to generate a bunch of revenue in a couple day period, and so you often see some really outlandish behavior between Black Friday and Cyber Monday by various companies trying to attract sales that weekend. You know I’ve got to tell you, honestly, this is my favorite day of the year to be online watching the emails and the ads. If you are an e-commerce marketing geek, this is the best because you could get all sorts of ideas for things you can incorporate into your marketing for the rest of the year. So that's another reason to do your planning work now, get your whole situation set up so you've got some bandwidth that weekend to sit and look at what everybody else is doing. Alright, so let's start talking about planning our marketing for what is, ultimately, potentially a big weekend for your company. Sure, in the end, it's gray November and December, and lots of people will spread their purchases out, but for most businesses, you're going to see a significant jump during that weekend so you want to have all your marketing set up and ready to go. Alright, the first thing you've got to do is plan your promotions, okay? These are the sales that you're going to run, and I'm saying sales as in multiple sales. You actually need to run two different sales, one for Black Friday, and generally, I like to run that sale Friday through Sunday, and then one for Cyber Monday, and of course, that starts Monday and I personally recommend you look at running it through Tuesday and possibly Wednesday. And in a few minutes I'll get into why you should do that. Alright, so, with two sales let's talk about why we're running two sales and not just one sale, right, this seems like it's making our lives more complicated, as well as why I think this is the cadence you should be using. Email is going to play a big role in your marketing strategy during these days, and really, the same principles I'm going to talk about with email is going to apply to things like social media, too. Okay, so, step back for a minute and think about other sales that you run during the year. What are your best sale days? So if you send out, let's say emails or social media marketing for a sale for, say, Labor Day, you'll generally see that your biggest days revenue-wise are going to be the day the sale's announced, the day you tell them there's one day left, and the day it ends, you know, last chance, save now, right? Those are your big sale days. If you run one sale over that four, five day period between Black Friday and Cyber Monday, you get potentially three big revenue days based on that cycle. If you have two sales, you can almost squeeze a big day out of every day by creating that sense of excitement and urgency because you're running through that cycle twice, announcing the sale, limited time left, last chance, and you're doing that twice. So you're able to squeeze potentially more revenue out. I have done this both ways over the years, and absolutely, no question, the two sales strategy generates far more revenue. Alright, so let's talk about this idea of timing. Like I said, I tend to run my Black Friday sales Friday through Sunday. That gives me a day to announce the sale, a day to tell them to hurry, that's Saturday, and then a day to tell them they're almost out of time on Sunday, so the sale ends on Sunday. Now I'm just going to interject here that there is a big trend to start sales on Thanksgiving Day. I am sure you have noticed it. I find it so funny that like part of people's Thanksgiving traditions is starting to be to eat dinner and then go to a store, and start their shopping. Now, there is a huge debate over whether this is a good trend; I mean, obviously, there's a social debate going on; there's also debate in marketing and e-commerce circles. Most email experts agree, though, that, at the least, you should be sending an email wishing your American customers a happy holiday. Alright, so, why would you do that? This is generally about goodwill. We're there with you; we're happy you're celebrating. We're happy, you're happy kind of thing, and then maybe a few people will see that email and go, oh, yeah, I wanted to go to that website and buy something, and I really want my aunt to stop talking to me, so I'm going to go hide on my phone over in the corner and shop. So, you'll get a few of those people, too, if you send out an email. Now, the other strategy is to start your sale on Thanksgiving, and it's common to see an email, like a VIP early access type thing. So, you send out maybe Thanksgiving afternoon or Thanksgiving evening saying, hey, for our email subscribers, you're our VIPs; we're going to give you, the sale starts now, and we're going to give you 20% off or whatever it is. So, that's a strategy that a lot of companies are starting to use. Now, whether or not you just send a goodwill email, whether or not you send a sales email, whether you just leave your customers alone that day is entirely up to you, alright? Part of this is your own comfort level. What does your gut tell you about whether this is a right or wrong thing to do, and I'm going to just throw in there, I would suggest you consider how easily offended your market is, okay? If your customer base tends to be older or more conservative, you probably should think twice about sending any marketing emails at all on a holiday that's considered fairly sacred in American culture, okay? If your audience tends to be more of the young, more liberal type, then you might be able to get away with this and actually benefit from it. So that's just something for you to think about. Alright, so, in a normal cadence, you're going to send your big sale email out on Friday. You're going to tell them they only have one day left on Saturday, and then you're going to tell them they're out of time on Sunday. Something else to keep in mind. That Saturday after Thanksgiving is, of course, Small Business Saturday. Honestly, I wish they'd move it to the next weekend, but it is what it is. Now, this is something that you could potentially leverage in your marketing especially if you're easily perceived as being a small business. So, if your customers look at your website and they generally know that you're a small company, you can get out there with your marketing efforts and add in that element of, you know, hey, one more day to shop and support a small business like us, that sort of thing. Now, if you have the kind of website where you may not easily be perceived as a small business, there are some ways you can leverage this, too. Let me give you an example. When I had my health food company, we actually were very much a small business, but most people didn't realize that. We had a pretty slick website, a pretty professional setup in terms of our marketing, and so people didn't necessarily see us as a small business, and so one strategy we could use is to highlight the stores we sold to because we had a wholesale channel where we were working with a lot of small natural food stores. So we could potentially send out an email saying, oh, we're highlighting this company in Cleveland, or this small mom and pop store in Cleveland, so remember it's Small Business Saturday, support small businesses which was a great way to get an email out there to get some goodwill going on, of course, to promote a customer that we cared about. And so, it was a win-win all the way around. So, just don't forget Small Business Saturday, you can kind of work that into your marketing as well. Alright, so moving on to Cyber Monday, you have a couple of options here. It is very common to see businesses have one-day sales, some big blowout, right? I am going to encourage you that you should actually extend that sale beyond Monday, and here's why. On Cyber Monday, you are going to be competing against hundreds and thousands of other companies for someone's business. Now, hopefully your customer aren't subscribed to that many different email lists, but still, they're likely to be getting a lot of email in their in-box. I don't consider myself to be subscribed to a ton of companies. I think I had 150 emails when I woke up on Cyber Monday last year. So, this is just something to think about. It's really hard on Cyber Monday to get through all that noise, but if you run your sale until Tuesday or Wednesday, you can kind of catch those people who are still potentially in shopping mode, but you can be reaching them in their in-box and their social media accounts on days when maybe they're not quite as flooded with promotions. Now, the way to do this is to run your Cyber Monday sale and then on Tuesday morning, send out an email that says, hey, we've extended the sale; you can still get the Cyber Monday deal until tomorrow. And then of course on Wednesday, you're going to run another email that says, this is your absolute last chance to save whatever it is, okay? So, you're kind of milking that sale for a few more days to kind of help you get through the noise of what is normally Cyber Monday. Alright, so if you're taking notes, look back through what I've just said. You've probably noticed I have given you a darn good excuse to send an email every single day, and to be able to actively create that sense of excitement and urgency. You don't have any days in here that aren't exciting and urgent. You just have to be careful about how you present them, right? So, let's move on. We now have talked about the schedule that you're going to use for your sales. Let's just talk, briefly, about the promotions that you're going to run. First off, not surprisingly, it is wise to make sure that your Cyber Monday and Black Friday specials are better than your typical promotion that you would run as a company. So, whatever you ran for Labor Day, you're going to need to kick that up a notch. I'd also recommend that whatever promotion you pick should seem like a big deal, and you want to think about this from your customers' perspective. Can you present this in such a way that it seems like a big sale, that it seems like a big discount? Now, you can get a little creative here, but I'm going to tell you that I really encourage you to remember that noise, right, how much competition you have for your customers' attention during this weekend. So, the sales that you run really do need to be straightforward; it needs to be so…

    Full show notes at the publisher

    Developing a Return and Refund Policy for Your Ecommerce Website Oct 29, 2018
    Show notes

    Episode 011: Developing a Return and Refund Policy for Your Ecommerce Website Episode Summary: If you are selling items online, at some point you will need a return and refund policy. In this episode, Julie dives into the different parts of the policy you will need to think through, how to implement a policy, and knowing when to make exceptions. Episode Links: https://savvybusinessmethod.com/ https://www.youtube.com/channel/UCAHt2LynOZylOjlIz878okg https://fb.me/savvybusinessmethod Episode Transcript: Announcer: Are you looking to take your online business to the next level? Well, you're in the right place. Welcome to The Savvy Business Method, with your host, Julie Feickert. Julie Feickert: Hello, and welcome to episode 11 of The Savvy Business Method podcast, where we talk about how to plan, start, and grow your small business online. I'm Julie Feickert, and my goal is to help you build practical business skills so you can provide a better life for your family. Alright, before we start today, a couple of quick notes for you. A reminder that a full transcript is available in the show notes if you need to go back and find a piece of information. That's there for you. You can also find me both on Facebook and YouTube. On YouTube I have a bunch of short videos up if you'd like to check those out. Lots of quick tips for managing an online business. Alright, today's topic is designing a refund and return policy. Now, I realize this does not sound like a good time So before we get too deep into a what your refund and return policy is going to look like, let's stop and talk about why you really need to have policies in place as a website owner. Now, I realize, especially if you're just getting started, there is a lot of temptation to just go with the flow and make it up as you go along. And I'm not saying you can't do that in the very beginning. There is definitely something to be said for getting to know your market, your customers behavior, kinda the nature of the products, and just kinda see how things go. But once you have maybe a few months at the most under your belt, maybe shorter if things don't get off with a bang for you, really important to sit down and start thinking through some of these issues so that you can get a written policy pulled together. Now, why have a written refund and return policy? First and foremost, it's reassuring to customers. Think about your own online behavior. How likely would you be to go purchase something from a website? You're probably gonna know it's a fairly small website, right, you're a pretty savvy online shopper, so you know it's a small website. If there doesn't seem to be any information about what happens if you're not satisfied, that probably lowers your incentive to shop with that website, okay. So that reassurance we can provide our customers by having even a really simple refund and return policy can be huge. It's just that legitimizing factor there. This is a safe place for you to spend your money. Alright, next, having a policy in place keeps you and your staff consistent. Okay, again, if you're just getting started, it may just be you. You may not have a team. But let me tell you something. From years of experience, as well as years of experience, there was a couple years there in the beginning that I didn't have a team. It was just me with my first company. You don't really want to be making all your decisions on the fly. It's exhausting. Having thought through some of these issues in advance can really help streamline your processes, even if you're answering every email. And then really, we always want to preserve our ability to very easily hand off these tasks to a virtual assistant or customer service person in the future. We don't necessarily want to do all of the things in our business ourselves long-term. So having these policies written out can be really useful. I've seen cases where entrepreneurs went for many years without written policies and it just got passed down from one person to another and there was definitely a point in my business where that was happening. And boy, it makes it really hard if you suddenly do need policies, if you need to hire somebody new, or train someone. So just something to think about. Having that consistency by having a written policy can be really helpful and save you a lot of frustration later. Alright, having a policy also really does save some awkward conversations with customers. If a customer can quickly find a policy on your website that let's them know what they need to do if they want to return a product and receive a refund, then you're not constantly having to have that conversation. Those conversations can be tricky, awkward. You really end up walking on eggshells sometimes. So having that written policy in place means at least part of the people that you're going to need to work with this on are not going to actually contact you and have that conversation. So that's a win-win. You're not paying for that customer service interaction, paying someone to do it, or taking away your time, and you're not having to have yet another awkward conversation. Okay, well besides benefits directly to you as a website owner you may have some outside factors too that really drive whether or not you need to have a written policy. One is that a lot of payment providers, especially the higher quality payment providers, we talked a couple episodes ago about credit card processors, some of these processors are going to require you to have a written policy on your website. It is a way for them to help prevent problems with customers. Going forward, it's a way for you to demonstrate that you're a legitimate company to work with and that you have your act together. Also, site verification processors might require it as well. I'm trying to remember, it's been a few years, but I think when we went through the Google verification process that was one of the things they wanted to see. We did have the policy on the site, but the policy was not as very specific as they wanted it to be and didn't include certain terms that they wanted. So that's just something to be aware of too, is when you go through if you apply for any site verification or badges or anything like that, you may need to have a better return policy in place, even if you have one then you might have currently. So that's just something to keep in mind as well. Alright, well hopefully I've convinced you that having a written refund and return policy is important. So let's talk about what that looks like. Grab a cup of coffee or a glass of wine, depending on the time of day, or not, because I just simply won't judge you, because I truly understand what it's like to run your own business Alright, let's talk about the parts of the policy that you need to develop. First off, let's talk about the actual policy itself. This is the thing that you are going to write down. Those terms that you need to come up with. Now, there's a couple of factors to take into account here. One is the number of days someone has to return an item or apply for a refund. A minimum here is 30 days. You are probably going to run into problems without outside payment providers, the site verification services, if you don't have at least a minimum of 30 days for a return policy. And realistically, 30 days really is considered like an E-commerce minimum. A lot of stores have longer than that. So if you are less than 30 days, that might be a red flag to your customers. Now, you will need to factor in your customers behavior, the prices of the items, what bracket you're in there, your cost of the items. All of those things can play a role into the number of days you actually decide on. If returns are very rare in your industry, or you are in a highly competitive industry where you need to be the most forgiving, awesome website out there, I would really encourage you to be as generous as possible in terms of these number of days. You know, you don't want to get into a bad situation where you're being taken advantage of. I am not advocating that at all. I'm just saying play your cards wisely here. Take into account all of the different factors, like how likely your customers are to actually take advantage of the policy, and if you could have that longer policy, it looks good on your website. It can help people decide to purchase from you versus someone else. Okay, next step you're going to need to give some thoughts to the reasons someone can return an item. Are you going to have any rules about this? So for example, common rules have to do with whether an item's been used or if it's in unused condition, whether it's resellable or not. I would really encourage you to keep this as simple as possible. You may, as a website owner, be in a position to dive into a ridiculous level of nuance on this. Your customers are not. They are going to simply look at it as whether or not you are being difficult. So when you're thinking about these things, you really are thinking about them in terms of hills you want to die on, okay So I would encourage you unless there is a really good reason that you not be putting a lot of restrictions on what can be returned. A good rule to keep in mind is that showing grace can salvage an otherwise bad situation with our customers. We'll talk more in a few minutes about what a bad situation might look like. Next up, whether there will be any fees involved with returning. I'm talking mainly about restocking fees. Restocking fees used to be really common. So if you haven't run into this before, this is where let's say you bought something for $10 and you decide to send it back. The company keeps like 15% to offset their cost of putting that item back in stock. So it used to be really common, not so common anymore. And I'll tell you, I would really encourage you to avoid these like the plague. I used to use them too. I think most E-commerce websites did. But they are now looked as being petty for lack of a better word, and they really tend to make customers who are already not thrilled with the situation angry, and we do not want angry customers. Restocking fees can also make it hard to get through a site verification process, again. So that might be something to think about as having that restocking fee may make it harder for you to do some of the other things that you need to do. Alright, along with restocking fees something to think about is who pays for the return shipping. So if the customer's gonna send this item back to you, who's gonna pay for that shipping? Now, it is general rule of thumb, it is okay to have a customer pay the return shipping if it's the customer's fault they're returning the item. So if it's something like they decided they didn't want it, or they ordered two of something and they should have only ordered one. Something like that. In theory, you're on fairly solid ground by telling them that they need to pay for the return shipping to get it back to you, okay. Now, Amazon, Zappos, some of these other big E-commerce companies are kinda make this more problematic. They've been doing it for a few years where they have these free return shipping situations for a lot of their items. Not everything. I mean, you can return just anything to Amazon and get free return shipping. But especially if you're looking at things like clothing and shoes, generally you can return those items for free. And that, if you're in one of those industries, that can put a lot of pressure on you to do the same. So again, this is something you really need to be thinking about in terms of how often is this actually happening? Can you factor this cost into your margin? All of those things will come into play when you decide whether or not to do this. And along with that who pays shipping, you need to be thinking about whether you're going to be issuing return shipping labels. And there's two ways to do this. If you've ordered clothes online recently, you have probably received a return shipping label in the box with your order. And that's very common because if you aren't in the clothes industry, you may not know that the return rate for clothing is ridiculous. Like, it's a mind-blowing number. Don't, yeah, just be afraid. Now, if you have a high return rate, if you are in one of those businesses, putting those return shipping labels in the box actually might end up saving you a ton of customer service costs. Last time I checked there's a cost to print those return shipping labels. It's like 50 cents a label or something, but check into that. If you're in a high return rate industry, it might be well worth it to just go and put those in the box. Now, even if you're not putting them in the box, and I've never personally been in a situation where that made sense for my company, if someone's gonna send something back, there is an argument to be made that sending them a return shipping label is good customer service. It keeps things simple. It helps control that process of that item coming back to you and helps you be able to track that item. So you're a little bit more in control of that situation. So that's just something to think about as well along with who pays for shipping. Just how that shipping is actually going to occur. Okay, next up and the last thing we need to talk about in terms of just the actual policy itself, these are things you're writing down to put on your website for your customer, how are you going to do refunds? Are you going to do a refund to the payment method they used? Or are you going to issue store credit? I'm gonna tell you upfront the best practice is to issue refunds to the form of payment that they used. So if they used their Chase credit card, then that's what you're going to issue the refund to. Store credit is a little bit of a dangerous game to play, especially if you made them return the item. You might be able to get away with store credit if you let them keep the item. But once they've returned the item, you're in kind of a dangerous situation in terms of chargebacks and things. I'll talk about that in a minute. But your customers have a lot of options to make your life pretty miserable if they decide that they're not happy. So I would encourage you to stay away from store credit if you can. Now, couple things to think about, sometimes you're not going to be able to refund to their credit cared. For example, 90 to 120 days after that purchase, you typically lose the ability to refund that payment. Also, if the credit card's been closed or has expired since that purchase was made, that can happen really quick, then you can have a problem as well refunding the payment. You know, cards expire all the time, of course, and then if somebody has like a fraud issue with their card and has to close their credit card, you won't be able to easily issue them a refund. So just a side note, you'll need to have a process in place potentially for issuing checks to customers for refunds. And that makes no one happy at all. Not you, not them, no one. But you do need to have that process in place, because usually by the time you're having to explain to someone you cannot issue a refund directly to their credit card and no, you can't issue a refund to their other credit card that they didn't use, people tend to be a little bit upset. And so you're gonna need to be able to get a check out to them really quickly. Okay, so now we've gone through all of the things…

    Full show notes at the publisher

    Efficiently Using the Hours in Your Day to Build Your Ecommerce Business Oct 25, 2018
    Show notes

    Episode 010: Efficiently Using the Hours in Your Day to Build Your Ecommerce Business Episode Summary: Most ecommerce website owners are balancing so many competing demands between work, family, and maybe some self-care. It's the nature of small business! In this episode, Julie discusses practical strategies for using time efficiently and keeping all the balls in the air. Episode Links: https://www.canva.com/ https://asana.com https://trello.com/ https://basecamp.com/ https://www.lastpass.com/ (password manager) https://savvybusinessmethod.com/ https://www.youtube.com/channel/UCAHt2LynOZylOjlIz878okg https://fb.me/savvybusinessmethod Episode Transcript: Announcer: Are you looking to take your online business to the next level? Well you're in the right place. Welcome to The Savvy Business Method with your host Julie Feickert. Julie Feickert: Hello and welcome to episode 10 of the Savvy Business Method podcast where we talk about how to plan, start and grow your small business online. I'm Julie Feickert and my goal is to help you build practical business skills so you can provide a better life for your family. Okay before we get started today a couple of quick things. The transcript of the show is in the show notes along with the lengths to the resources I'll talk about today. And I think there's going be a decent number of links. So you'll be able to go back and find those pretty quickly. Also be sure and come on over to Facebook and check us out. I'm posting there a couple times a day and there are videos and links to the podcast. And then just some fun things I find are on the internet to help us all stay focused on this idea of growing our business online. Alright so today's topic is efficiently using the hours in your day. I am getting the distinct impression from those of you I've heard from. That many of you are in the same position that I was when I first started my online business 10 years ago. And to be honest to an extent, the same position I'm in now. And that is being very busy and having to fit your work in around your family, around your other commitments, working from home. This seems to be a really common. A common theme for a lot of you. It's like why don't I take this episode to talk with you about some of the things that I have learned over the last 10 years. In terms of how to better structure my days, my weeks, my months. So that I can be as effective as possible at growing my businesses. While also being able to be there for my family okay. So let's think about this for a moment. Do you ever lay in bed at night and insist that you will do more tomorrow? That you're somehow going to find more hours in your day or you're going to accomplish more tomorrow. I know I do this. I'm guessing a lot of you do this and today's episode is really about making that conversation with yourself more productive. So you can be more efficient and effective with your time and grow your business to reach your goals and take care of all these other responsibilities that you have. You know being ridiculously busy seems to be an inherent part of our culture at this point. And we can probably all agree that this is not a healthy situation. But I would wager that you don't feel like you have much of a choice and neither do I. You know you may have kids, relationships, social commitments. Your house probably should be clean at some point. You have food to cook. Maybe you could throw some self care in there on a good day. You know what is self care? And all of that on top of having one or more businesses that you need to grow and run. Meanwhile our families are depending on us. So it's not like we can just flop down and say I give up. It's a lot and so let's dive in and talk about some of the strategies that are out there for better managing this busy situation that we have. And making the most of the time that we do have. Alright strategy number one is to be honest about the time that you do have. Alright now I have no doubt that if you suddenly had twice as much time during the day. Five times as much time. Ten times as much time that you would find ways to fill that time. And be productive and continue to grow your business. You didn't get to this entrepreneurship thing by accident. That's probably part of who you are. But having huge slots of time isn't a reality for most entrepreneurs. And so we need to be realistic about what time we do have. So for example maybe you are in a position where you get to work during business hours. You're getting to work eight, nine, ten, twelve hours a day on your business. This may be less of an issue for you if you're able to spend that really large concentrated time on your business. You still need to organize your time but still you're in a little bit better position. But for many of you listening I'm guessing based on the feedback I've gotten. That many of you are doing this at night. You do it on weekends. You're doing it during nap time for your kids. And I just want to tell you I really understand. You know my first business my spouse worked full time plus then some. I had two little kids, they were two and under. And I worked in five to fifteen minute bursts while my little kids played. And I've got to tell you my now much older self has absolutely no idea how I did that. Clearly I did and clearly it worked but it is a hard way to live. And I realize now the only reason I was able to develop my business is because I did make the most of those small amount of time that I had available. And so accepting what time we do have instead of constantly wishing for more time and trying to pretend like we have more time. Just owning up to this reality of our situation makes easier to at least make the most of the time that we do have, okay. Strategy number two. It's really helpful if you always know what needs to be accomplished. When it needs to be accomplished and how it needs to be accomplished. Now most things that we do as small business owners and website owners can kind of be divided into two camps. There are things that we are just one off. That task that just need to get done. So maybe you need to put it in order for something or you need to answer a customer service email. But most of the priorities and tasks that you have are going to be what I call dependent task. And that means that there is a series of events that have to take place in more or less a certain order in order for you to get that task done. So I'm going to use an example of this podcast. Okay so in order for you to be listening to this podcast right now. At some point I had to come up with a topic for today. I had to outline it. I had to run through it usually at least twice to look for any holes because I value your time. And I want to make sure that if you're gonna sit down and listen to this or listen to while you are making dinner, that you are getting the best information possible so I don't want to be leaving major things out. I then have to record it which is a small problem because that requires quiet. And I have four children and I do work from home. So I have to plan that carefully. I also edit this, I have to lay it out with the intro and the outro. I have to send it out for some wonderful soul to transcribe it so that you have those show notes. I then have to write up the show notes and the links and then get it posted to the distribution service. And then I have to get it posted on the Savvy Business website. And I had to schedule it on Facebook. Okay, so this is an example of a set of dependent tasks. Like I can't do a whole lot with the order of those. Those have to be done in a specific order. And if you start thinking through the tasks you have as an entrepreneur. You'll probably find that most of your tasks are these types of things. Where you're going to have to line up sub-tasks in a certain order to make them happen. And this has been one of the most important things that I have had to work on. As someone who works from home. As someone who has multiple businesses is making sure that I always know what my tasks are that are out there. And what is the next thing I have to do for each of those tasks. Alright so, even if you sit down and you outline all of these things that you need to do. I'm going to take a guess that it's probably still way too long of a list and way too many things. So next up you're going to need to do some prioritizing. And I would recommend a couple of things to be thinking about as you're prioritizing. One, you want to be thinking about how successful something is likely to be. We as entrepreneurs can come up with so many really cool things we want to try to promote our business, to improve our business. But we have to be honest about what are the things that are concrete good ideas likely to succeed. Likely to be something that we can actually do and pull off? And what are the things that are more. Boy, someday I'd really like to try that. It might work, it might not type of thing right. So that's really important. I'd also encourage you to think about the time that any particular task is going to take. Or the financial investment and what that trade off would be for rewards. There are things we do as small business owners that can be huge for us. For example, I truly did not understand the power of the email marketing. Until I made a major change in my email system. And this was many years ago. But that time I spent at the time it seemed like I was gonna spend a lot of time on it. The amount of financial reward for that decision was huge. And so it's really about trying to identify those things that yes. They may take us some time but the rewards are significant. I'd also prioritize your list based on what has to be done in blocks of time? So if you have a block of time in your schedule. If you have small children. Maybe your spouse comes home and can watch them or while they're sleeping at night or something like that. Maybe if you can get a block of time how do you be more efficient with a certain set of tasks then you might otherwise be? So it's just some things to think about. I've also found it really helpful to organize my tasks by daily, weekly and monthly to do lists. So I actually keep separate to do lists of the things I need to accomplish. I also keep separate lists or I mark on my list things that can be done in quick moments. So for example when I'm tired and I don't have. Maybe at night I'm tired and I don't have the ability to really focus on something. My quality is probably not going to be great if I'm trying to come up with a complete outline for a podcast. Or a brand new marketing campaign for my e-commerce business okay. But I can for example, I often work on improving an outline like when I'm sitting in my car waiting for my kids to get done with some appointment. I can sit there and work on Evernote on my phone and improve my outline and get that done. You know cause those small moments can really add up. So if we always have things on our mind that oh, when I get a free minute and I'm just sitting there. I can quickly that. You can actually get a lot accomplished that way. Alright, strategy number three. Any of you who are parents are going to laugh at me but strategy number three is to find some quiet. And I know that is way easier said then done isn't it. So I just wanted to put out a few ideas here for you. One is to think about getting some noise canceling headphones. Obviously this only works if there's not something you need to hear. Like an emergency or the alarm for dinner going off or something like that. But noise canceling headphones make a great Christmas gift. Ask me how I know. And they could be really helpful if you're working from home. And there's just that noise factor that you're dealing with. Or alternatively you need to be working at a coffee shop or something having noise canceling headphones can be amazing. If quiet space is rarely an option for you. Again, you want to prioritize those tasks that have to be done in that moment. So for example I save all of my podcast recording and my video recording for when my spouse is out running errands with the kids and my house is momentarily quiet. And I'll get a couple of blocks a week like two hours each and that's when all of my recording has to be done. And so that just means that I have to have all those other dependent tasks done first right. So organizing my schedule around when quiet will be available is pretty important. Alright, strategy number four is to get organized. More organized than you already are because having our own businesses is both a blessing and a curse right. So one hand we get to have this scheduling flexibility because we are our own boss. But on the other hand if you're not naturally the kind of person to be very organized and driven about your work. No one is standing there to make sure you do it. And so this was something that. Especially the organization piece is something I really struggled with early on because I was used to having my work come to me. And like I know my spouse was really struggling with us two being self employed. His job was all about people bringing him problems all day and he would solve them. And to suddenly be in a position where you are the one who has to decide what's going to get done and in what order. That is a huge mental shift. So if that's something that you're working on be encouraged. You know being more organized can be really helpful for that. So let's talk about a few things that you could do to kind of get in that mindset. One thing that I personally found really helpful is having a computer set up in a specific place in my house. With a set up that works well for me. So for example for me that's having two different monitors so I could have a bunch of things open at once. And for me that means not having to constantly drag equipment around to try to find a place to work and set up. It also keeps my equipment safer because I have small children including a toddler. So now that doesn't mean, I do of course have a laptop and I can go somewhere else and work. But for me I can be faster and more efficient at my computer that's set up the way that I work best. We talked earlier about having this to do list right. The daily, weekly, monthly to do list. Focus versus non-focus tasks. And I would encourage you to keep your notes and your to do list some place that you could access them from anywhere. I personally really like Evernote. It's inexpensive. It can be on my computer. It can be on my phone. Everything is synced so I can sit in the car and update an outline for a podcast. Or I could be writing up copy for some ads for my commerce business. All of that gets saved and I can access it later. Some people find project management software really helpful especially if you're working on very complex tasks, dependent tasks. Or if you're working with multiple people. I personally have used Asana quite extensively. I have friends though who love Trello. I have someone I know who loves Basecamp. So those are some options for you for project management software. There are often free plans or very inexpensive plans. So if you're working by yourself and you just want something that's going to set everything up where you know it or you have to do stuff. And what date everything is due. Those systems can be really useful. Now remember back in episode five when we talked about data security and I was encouraging you to go make sure all your data is secure. And you're backing up all your systems. So I just want to revisit re…

    Full show notes at the publisher

    What is Content Marketing Oct 22, 2018
    Show notes

    Episode 009: What is Content Marketing? Episode Summary: Is content marketing a buzz word or is it really something we as ecommerce website owners need to be spending time on? In this episode Julie talks about what content marketing is and is not as well as give an overview of developing a content marketing strategy. Episode Links: https://savvybusinessmethod.com/ https://www.youtube.com/channel/UCAHt2LynOZylOjlIz878okg https://fb.me/savvybusinessmethod Episode Transcript: Announcer Are you looking to take your online business to the next level? Well you're in the right place. Welcome to the Savvy Business Method with your host Julie Feickert. Julie Feickert Hello and welcome to episode nine of the Savvy Business Method podcast, where we talk about how to plan, start and grow your small business online. I'm Julie Feickert and my goal is to help you build practical business skills so you can provide a better life for your family. Now before we get started today, talking about content marketing, I have a few housekeeping things for you. First, I want to remind you that you can find links to resources I talk about in any of these podcasts in the show notes along with a transcript of the show. I realize that most of you are probably multi-tasking right now, right. You're either driving or you're picking up your kids or you're making dinner, or you're trying to organize all of your receipts for your accounting program. And you may need to go back later and find a piece of information so the transcript can really help with that. Next up I wanted to let you know that I have about 30 mini videos right now up on YouTube and I have more coming soon. There all about two to three minutes long and they're just quick tips for running e-commerce websites. They encompass everything from customer service to marketing to running a warehouse and shipping orders so lots of different things up there and if you have any ideas or things you'd like me to talk about in a video going forward, be sure to reach out to me at savvybusinessmethod.com I am also up on Facebook. So I'm posting there a couple of times a day now at Savvy Business Method on Facebook and I'm putting up videos, links to these podcasts, as well as just interesting resources from around the internet too. Be sure to come on over and "like" the page and check that out so that we can connect there as well. All right enough with the announcements let's move on to today's topic, which is content marketing. Now content marketing seems sort of like a buzz word, right? Especially if you're new to the e-commerce sphere. It can sound like something that maybe we talk about at marketing conferences to make ourselves sound cool and customer-focused but I really want to get in today to the nitty gritty of what content marketing looks like and what are the things you need to be thinking about if you decide to use content marketing for your e-commerce website. All right. So there's a lot of confusion about what content marketing is and isn't so I wanna start out with two quick stories of what content marketing looks like in action. Now this first story I don't have a name for this company because this is a story that's been around the internet for a while but I'm going to tell it to you because it is such a good example. There was a swimming pool company that of course didn't have a lot of work during the off season, right. Not very many people putting in pools in January in most of the country. And so they spent their off season writing up answers to every customer question they could imagine and then putting those short articles up on their website. This ended up generating loads of traffic from all over the world. It gave them plenty of customers for that next season and really established their business and with a steady stream of customers in the long run. So it was really important for them in terms of their growth to have all of that content up on their website. All right my next example is personal. I had a health food company for about nine years and we sold ingredients, food ingredients. In the beginning I decided pretty early to start putting up articles, like how to articles and recipes for using these products. Then we expanded to videos eventually which were made in the upstairs of my house. But I gotta tell you that content ended up being really valuable. In the end we ended up with about 2,000 pieces of content on the website which is a ridiculous amount and I'll talk in a little bit later in today's podcast about why you probably don't wanna go that overboard. But that content allowed my website to become well known as the place to go for those products because we had all that information in addition to having the high quality products. So content marketing can be really valuable for establishing your authority in a market. So let's talk about what this looks like from a customer's perspective. Content marketing is about providing valuable information that isn't selling anything. All right. So because you're offering such great information without a direct sales pitch, people tend to become loyal to your brand. They know your name. They see you as being helpful, and an expert in this area. Content marketing from your customer's perspective is also about having an information eco-system around your product. So this can be things like articles or recipes, if you're working in food like I was. It can also be things like polls or quizzes, or videos. In-person events. Apps, e-books, webinars, infographics, there's so many options, right. So many things that you can do to create content that would support your customer's use of your product and make your brand more valuable to them. Because at it's core content marketing is about education and engagement. It's not about direct promotion. Now all that being said, from our perspective as business owners who are selling products online, we actually do need to sell our products, right. This is how we stay in business, this is how we pay our bills. So what does content marketing provide from our perspective as business owners? Well first it elevates the perceived value of our brand. This is good for building that long term value and customer loyalty. Right. It also can set up apart from our competition unless you're lucky enough to be in a market where you have no competition. First off, that's probably a temporary situation, right. So you gotta bulletproof your situation. But you need to be able to show value to your customer that is different from what your competitors are doing and content marketing is a great way to do that. Now I wanna be clear here though that you want to be helpful and even though we as business owners are trying to sell things, we really do need to go into our content strategy with this idea that we wanna be helpful, that we wanna be educational. That we're building a long term relationship with our customers. This is not the time to be sneaky. And be trying constantly sneak in sales pitches. Customers are smart and I gotta tell you especially this younger generation, the millennials that are coming up behind us Gen-X'ers. They are extremely savvy and the generation behind them even more so in terms of identifying when they are being played or their perception of they're being played. If they're reading an educational article and it's clear that you're just trying to sell them something, they're gonna pick up on that really quickly. So get in that mindset if you gonna do content marketing, you gotta get in this mindset that you are being helpful and educational. Okay? Okay. Let's start talking about some guidelines for getting started with a content marketing strategy. The first thing I wanna talk with you about is that content marketing is not a quick fix. Now I know that those two stories I told at the beginning of this episode sound like a quick fix, right. We talked about the pool company that over their off season it ended up building up their business with content marketing. I told you about my health food company where we had the 2,000 articles. This sounds very quick. A lot of the success stories that you will hear about content marketing on the internet, on the wiles of the internet. The fabulous stories are gonna sound like they were a quick fix. And I just wanna be clear about this upfront. A lot of the stories that you're going to hear are going to be from several years ago and by several I mean, 5, 10, 12 years ago. Back when the internet was a great deal less crowded. There were less websites, there were less articles, videos, content in general and so the competition to rank on Google was a lot less stringent. Okay. And so because of that it was easier back in the good ole days, back when I had my first e-commerce website, I'm gonna tell you it was easier to rank on Google for a piece of content. But even with that easier situation that we no longer have, darn it. When I first started putting up content in 2009 there was no magic bullet there. Like truly. It helped people decide to buy from my company but it wasn't sending me a ton traffic. So about four or five years later I have this really clear memory, so that would be what, 2013, 2014. I had come to work. I was sitting at my desk in the corner of our warehouse. E-commerce management is a really glamorous situation, I had no walls but that was my desk. I was looking at Google Analytics which I did pretty much every day and it suddenly hit me. For the first time that Google liked us. Google was actually sending a significant amount of organic traffic to my website via this now, it was probably 1,000 pages, articles at the time. So we were actually starting to get decent traffic numbers. And don't get me wrong, it wasn't like it was an overnight thing, it had been building for the last four or five years but it had finally happened. I just remember being shocked because I had just been putting up that information to be helpful, I knew you were supposed to put information up. After four or five years you kind of start losing hope that is really gonna do something for you. So this is just an example of even you know back in what were the good ole days of e-commerce, it was still a thing. Right. It was not an instant success. You might have some limited success when you do a content marketing strategy. Maybe you'll have a piece of content or two that will get shared out by a number of social media influencers. Or you might have a piece of content that does really well in a newsletter. I remember one night we had this one strange recipe that for some reason everybody opened, it felt like. We suddenly had great traffic to the website. So you just never know but this a long term strategy. It's not something that you should plan on being successful overnight or even in a season or quarter, or even in the next year. This is about building that long term loyalty. All right so now that I burst everyone's bubble that this is not gonna be a quick fix, let's talk more about how you do this. Now the first thing you're gonna wanna do with a content marketing strategy is to look at what your competition is doing and not doing. This is not the time to copy what your competition is doing. You wanna figure out what they're doing in this area and then figure out how you're going to do it better. And on brand. Right. Because this is about building brand loyalty and value. So you wanna look at what they're doing as a guide but you also will need to come up with your own spin on the situation. Along with that is this idea of having a clear idea of what your customer needs. So who is your target customer? What are their different points in the sales funnel? What does it look like when they're first finding out about your product or your company. What does it look like when they're making their sales decision? What does it look like when they purchase, what do they need to make that last push to purchase and then what sort of support do they need of the product they purchased. So that you can engender that loyalty and you can have that repeat purchase behavior that we need for e-commerce. Each piece of content you write really does need to have a clearly defined purpose. You should know who you're targeting. You should know where in the sales cycle they are at. You should know whether this is a piece of content to help someone see the value of your product to help support the product once they've bought it. To help them get other ideas for how to use the product, I mean there's so many options out there. But you don't want to use a shot gun approach here, right. Honestly you don't wanna do what I did. Where we wrote 2,000 pieces of content over the course of about eight years. Then suddenly you have 2,000 pages that don't necessarily have a clearly defined purpose but a couple hundred of them are getting really good traffic. And now that you have so much content you have to hire somebody to manage it all and believe me, you do not want to do that. I am very grateful for the people who managed the content for my health food website, they were amazing, they did a great job but that is another person to employ and a lot of content to manage. And so, I'm just encouraging you to be more strategic than I was about that. You also when you're writing content, you wanna make sure that you're not trying to use any SEO tricks okay. So this is things like thinking you're gonna stuff a bunch of key words or meta tags or something like that. And I think this is less of an issue now than it used to be. People used to do this stuff all the time because frankly at one point it worked okay. But the search engine algorithms are very smart. Smarter than all of us, and you are not going to trick them. The goal here needs to be to produce the most user friendly, highest quality piece of content you can. Do not skimp on quality. Those search engine algorithms are looking for the best piece of content for what the user is looking for when they type a search into the search engine. Okay. So now that you have a clear idea of what your customer wants, that all of your content has a clear purpose, you've written amazing, high quality content. The next step is to make sure that you have a plan for promoting each piece of content. Now a general rule of thumb you'll see often floating around with bloggers, now remember 'cause bloggers are selling their content essentially, right. By selling advertising for their site. So these are great people to follow and to pay attention to the techniques that they use because they are [inaudible 00:14:37] tend to be content masters. One of the rules you'll see in blogging circles is that you should plan to spend at least 2x as much time promoting your content as you did developing and writing it. Now that sounds weird, right? Like wait, wasn't writing that high quality content good enough. But no one's going to beat a path to your door with content that you just throw up on your website. The search engines don't see that as being valuable, people are not going to magically find it. You're gonna need to do some promotion. And so here's what this looks like. You yourself when you put an article up on your website, you need to be interlinking your content together. Like articles get linked together, they all link maybe to the product that they go to, that sort of thing. You're also going to need to spread your content around social media. You might even look at boosting a Facebook post for example. You'll want to use your content in a newslette…

    Full show notes at the publisher

    Choosing a Credit Card Processor for Your Ecommerce Website Oct 18, 2018
    Show notes

    Episode 008: Choosing a Credit Card Processor for Your Ecommerce Website

    Episode Summary:

    Feeling overwhelmed choosing a credit card processor? Or maybe not sure you have the right one? Never fear! In this episode, Julie reviews the factors you need to consider so you can choose the right processor for your online business.

    Episode Links:

    https://stripe.com/ https://www.paypal.com/ https://savvybusinessmethod.com/ https://www.youtube.com/channel/UCAHt2LynOZylOjlIz878okg https://fb.me/savvybusinessmethod

    Episode Transcript:

    Announcer

    Are you looking to take your online business to the next level? Well, you're in the right place. Welcome to The Savvy Business Method with your host Julie Feickert.

    Julie Feickert

    Hello and welcome to episode eight of The Savvy Business Method Podcast, where we talk about how to plan, start, and grow your business online. I'm Julie Feickert and my goal is to help you build practical business skills, so you can provide a better life for your family.

    Our topic today is How to Choose a Credit Card Processor. If you are looking at starting a website or you already have one, you may have figured out that there are a ton of companies who would be more than happy to process credit cards for you, so how do you go about choosing which company is best? They all have good marketing. Right? They're all telling us that they're the best provider, most reliable, lowest rates. Yes, some of those are objective factors that we may be able to sit down and make a spreadsheet and compare, but are those really the only things we should be thinking about? Are there other factors that need to be top of mind when we're choosing someone to work with? Let's sit down today and talk through the different things that you need to consider when you're choosing a credit card processor.

    Now, there are generally three types of credit card processors out there. There are the big companies that have been around for many, many years and I'm talking about companies like Authorize.net. They've been around for many years for good reason. I mean, [they're 00:01:27] tend to be very stable, very reputable companies. There are also what are generally thought of as web payment providers. These are companies like Stripe and its pile of competitors where they are set up primarily for doing business on the internet, so they integrate with different websites and they are mainly targeting website owners like ourselves.

    There are also payment account providers who also offer credit card processing services. For example, you can process credit cards through PayPal. PayPal is normally thought of as a way to run PayPal accounts on your site, but PayPal is their own merchant credit card processor as well. You can use them to process your credit cards or you can use ... I believe you can use Amazon Payments as well. There are three different pipes of providers that you can be looking at and today I'm mainly going to be talking about the web payment providers, like Stripe, and then the payment account providers, like Amazon and PayPal, since those are generally the more popular options for small business owners who are trying to integrate a credit card system onto their website.

    Alright, next step let's talk about fees because credit card fees add up quickly and the first thing you want to do when you're choosing a credit card processor is figure out their fee structure. Now, there are generally three types of fees that would be involved. One is a monthly fee and this is just a flat fee that is charged for using their service. Then, there are transaction fees, so every time there's a credit card charge run through the system for your website, you'll get hit with a transaction fee. Those generally tend to be right around 30 cents. That's kind of the going rate right now.

    Then, there are variable fees and this is the percentage that you pay on each transaction, so you'll get hit with that, you know, say 30 cent transaction fee, and then the variable fees are a percentage. On a $10.00 order, you might pay a 29 or 30 cent transaction fee and then you would pay, let's say it's 2%, you would pay 20 cents for that variable fee. Your total would be like 49, 50 cents for your credit card fees for that order. Now, understanding the fee structure's important because this is part of how you're going to compare between different companies because each one is probably going to have a slightly different structure. Although, I'm happy to report in the last few years most of these companies have all standardized their fees, so you're going to see the same basic rate on multiple companies, which makes it so much easier.

    No joke, these credit card fees matter. They add up so quickly. Six years ago, I cut my credit card fees in half by switching companies to process my credit cards. I saved over $4,500 a month, I mean, that is an insane amount of money, simply by switching from one company to another. This is really something that you want to be paying attention to.

    Next up, you want to look at data and how the information from your credit card processor is going to integrate into your accounting system. It is really frustrating to have to enter this data by hand. It's possible, but it's really time consuming, so this is a good time to stop and ask yourself how is your payment processor going to talk to your eCommerce platform and how are both of those pieces of software going to talk to your accounting system? If you can get all of these systems reliably talking to one another, you will save yourself so many headaches and errors and just a ton of time over the years. If it turns out that it is not possible for you to fully integrate the system and you are going to be entering data by hand, make sure you take a good look at how transparent the reporting is from the credit card processor. You really need easy to read reports where your fees are properly broken out, so that you can easily enter this information or give it to your bookkeeper to enter.

    Another accounting issue you need to be concerned with when you're using a credit card processor is how fees are paid. Now, most of the web processors out there now take their fees off the top. For example, if you have a customer buy something for $10.00 and the fees are 49 cents, then you would have $9.51 deposited into your bank account. Okay, that makes sense, but sometimes credit card companies charge the fees in bulk at the end of the month. I used to have this with one of the processors I used is we would get to the first of the month, first or second of the month, and $8,000-$9,000 would come out of my checking account and that was all of my fees for the month for the credit card transactions. I'm only saying this because if you're going to have a bulk amount come out of your account, you need to be aware of that and if you're not looking at your reports every day, it would be really easy to miss maybe that those fees are not coming out piecemeal, but rather are going to come out in a lump sum later on. Just something to be aware of, so you don't have issues with your cashflow.

    Alright, next I would suggest that you take a good look at what setup looks like. Now, most credit card processors are going to require a significant amount of information in order to set up a credit card processing account for you. This is perfectly normal and nothing to be worried about. For example, they're going to need to know what your business's name is and how it's registered with the state that you're in. They're going to need to know your tax ID number. This is a federal requirement. They have to send you a 1099-K at the end of the year. I see so many small business owners on my Facebook groups and forums who freak out when they're asked for this information and it's like, okay guys, but they have to send the paperwork to the government at the end of the year and it has to be for your business. Just be aware that these are the types of things that they're going to need.

    They generally also need to know who you are personally. Again, this is perfectly normal and it has to do ... at least in the United States I believe it has to do with the terrorism prevention acts, so be prepared that you're going to have to part with some of your personal info as well. They'll likely run a credit check on you personally because they want to make sure that you are in a position that you're not going to be tempted to do something nefarious with your credit card account.

    You'll likely hear entrepreneurs claiming about their money being held by a new processor and this can happen with any type of payment processor, a credit card processor or an account like Amazon or PayPal. There are lots of reasons that a credit card processor or a payment processor of another type might hold your money, but the most common are going to be that you have not provided that important legal information, like if you're withholding your tax ID number, that could be a reason for them to hold your deposits. It can also be that they have a policy. If you aren't someone they know or if you haven't done business with them in the past, they may hold a portion of your money and sometimes a significant portion for a certain period of time to make sure that customers aren't going to be complaining and asking for their money back. This is just something that you need to be aware of.

    I would definitely plan that you are going to have a portion of your money held for at least several weeks by your payment processors and just plan your cashflow accordingly, but you might be able to ask some questions in advance when you're looking at processors to determine what the likelihood is of that happening and the amount that they're likely to hold, so that you can be prepared. Even beyond their policies, be aware that your behavior as a business owner is going to affect how smooth this relationship is and how quickly you're getting your money from your processor. Here's some things to think about.

    Processors are going to be easier to work with and generally be less likely to hold your money if they thoroughly check you out first. If you find a credit card processor that will just sign up anyone with very little information, just know there's going to be a catch somewhere and it's likely going to be down the road. They're going to hold your money until they get the information that they need. You also want to identify any best practices that are suggested by the credit card processor and this could be things like entering tracking numbers into their system and then follow those, especially for those first few months when you are establishing a good reputation with them.

    You'll need to stay on top of your customers and any complaints, too. You want to handle those promptly. If you have somebody who has a charge back where they're asking the credit card company to reverse the charge, you want to stay on top of that situation and be available to provide information. You're not likely going to win that dispute, but you still need to show that you are being a responsible merchant. Also, I would recommend, if at all possible, try to avoid wild swings in either your deposit or your withdrawal habits. This can be a tough one. If you are putting together a business where you are likely to have a really successful launch, first of all, congratulations, wouldn't we all like to do that, but something you need to be aware of is that if you go from collecting no money or very little money on a daily basis and you suddenly are putting through transactions totaling in the thousands or tens of thousands of dollars, that it looks like very suspicious behavior to a payment company.

    On the flip side, if you don't do your withdrawals regularly and then you all of a sudden start withdrawing large amounts of money, again, that can trigger their system that that looks like suspicious behavior. You are probably not doing anything wrong, but their system works on algorithms and you just want to be thoughtful about your behavior. If you're going to behave outside the norm and you cannot keep that from happening, then you need to understand that you're probably going to trigger their system and you're probably going to run into some problems. It's going to be frustrating, but be persistent and most likely you can work it out with them.

    I know that was a lot of information, but hopefully you are now in a better position to evaluate the credit card processors you are either using or look at new processors, so that you can save yourself money and find a situation that works best for you. Thanks so much for joining me today. I hope this information is helpful and if you have ideas or feedback for future shows, you can find me at SavvyBusinessMethod.com and on Facebook and my YouTube channel. Lots of videos up there. Be sure to head over. I will back in your feed in a few days. If you haven't subscribed yet, please be sure to do so, so that you can be notified when that new episode is available. Of course, I always appreciate fabulous ratings and reviews. We'll see you next time.

    Announcer Thanks so much for listening to this episode of the Savvy Business Method with Julie Feickert. If you enjoyed today's episode, please leave a review and subscribe for more great content and to stay up to date, visit SavvyBusinessMethod.com and Savvy Business Method on Facebook. We'll catch you next time.

    Episode 008: Choosing a Credit Card Processor for Your Ecommerce Website


    1 2 Next

    Related Podcasts

    How I Built This with Guy Raz

    1

    How I Built This with Guy Raz Business
    Planet Money

    2

    Planet Money Business
    Inside Strategic Coach: Connecting Entrepreneurs With What Really Matters

    3

    Inside Strategic Coach: Connecting Entrepreneurs With What Really Matters Business
    BiggerPockets Real Estate Podcast

    4

    BiggerPockets Real Estate Podcast Business
    The Smart Passive Income Online Business and Blogging Podcast

    5

    The Smart Passive Income Online Business and Blogging Podcast Business
    Bad With Money With Gabe Dunn

    6

    Bad With Money With Gabe Dunn Business
    footer-logo

    Contact Us

    Toll Free: 844-670-7747

    Links

    • Home
    • Top Charts
    • Networks
    • Apps
    • Independents Podcasts
    • Podcast Advertising
    • Podcast News
    • Contact Us
    • About Us
    • Analytics & Insights

    Stay Connected

      Privacy, Terms of Use & Our Code of Ethics Protecting Content Creators Copyrights