Business.com Blog

What to Make of E-Commerce and Millennials

Business.com Editorial Staff — Fri, 04 Oct 2013 12:00:30 +0000

There’s a catch-22 for marketers when dealing with Millennials. This tricky demographic is thoroughly enmeshed with the digital revolution. It’s already been established that those between the ages of 13 to 18 are heavy users of social media – 81 percent, in fact – leading many marketers to believe that e-commerce should be their preferred avenue for purchasing. If Millennials are spending an extraordinary amount of time online, plugged into social networking sites like Facebook and increasingly Twitter, then making the leap to shopping online seems to be intuitive. The only problem is that it’s just not the case. Business leaders and marketing professionals need to understand this age group is inherently worried about visibility. That includes maintaining a highly manicured Web presence, but it’s far more important to engage in social activities, which include shopping in physical retail stores.

High Volume, Low Conversion
In fact, a study recently conducted by NPD Group revealed 81 percent of Millennials spend their money in physical retail stores. At nearly 33 percent, this group represents one of the largest segment of consumers, but they’re also the least likely to make a purchase. Their conversion rate in stores remains at 57 percent, meaning a little less than half of all Millennials entering a retail location are not going to make a purchase. However, the study also found this demographic is more likely to spend more online than in brick-and-mortar retail locations – $75 and $57 respectively. Moreover, this generation has a propensity for bulk suppliers, as opposed to national retail chains.

Web Commerce Faces New Regulations
FierceRetail recently emphasized the manner in which retail is changing. Government regulations can be seen as a harbinger of the way commerce is heading, as the proposed Marketplace Fairness Act takes aim at online retailers. The legislation would force e-commerce providers making more than $1 million annually to collect state sales tax. This means Web retailers are likely to take a major hit to their bottom line, right?

In actuality, no. According to the legislation, Amazon is exempt, as are Wal-Mart, Target and Macy’s in states with physical retail facilities. Still, the push for regulations that attempt to take greater taxable revenue from e-commerce signals the growing popularity of online shopping platforms. With Millennials in mind, retailers have used social media as resources for marketing campaigns because of the ease to share and disseminate content pertaining to products and services. Moreover, social networks are integral to building a brand’s narrative and awareness. However, there appear to be limits to what businesses can accomplish online with regard to this age group.

With this in mind, marketers have a lot of information about Millennials, but much of it seems contradictory. The key point is the differential in spending online. Do marketers go for the big score with fewer purchases online, or bank on a greater volume at a lower return rate? The answer may depend on whether Millennials can fully emerge from the economic recession with greater spending power.

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Quote of the Day – October 4

Business.com Editorial Staff — Fri, 04 Oct 2013 07:01:00 +0000

“The key to success for everything in business, science and technology is never to follow others.” -Masaru Ibuka

Masaru Ibuka co-founded what is now Sony in 1946 and served as its president and chairman.

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3 Reasons to Prepare Your IT Department for Cloud Computing

Business.com Editorial Staff — Thu, 03 Oct 2013 12:00:34 +0000

Information technology has undergone a dramatic shift during the past year. You’ve probably noticed investment in technology infrastructure like servers and personal computers has slackened as of late in a growing number of corners in the business world. Soon there will be nowhere for traditional IT departments can hide, as cloud computing alleviates many of the disruptions associated with maintaining computing systems, software upgrades and data storage capabilities.

Creating a New Business Model
The New York Times technology blog Bits emphasized the manner in which companies that have invested in cloud technology have outpaced the traditional tech paragons like Microsoft and Dell, leaving these businesses playing a game of catch up with the likes of Amazon and Salesforce. Consequently, many IT departments are left questioning what their function will be as a growing number of businesses seek out cloud computing service providers instead of software and infrastructure. There are several reasons why companies should help transition their IT professionals into a more nuanced role of maintaining existing technology to allow for a more seamless integration of cloud technology.

Saving your company costs: Businesses are no longer restricted by the technology they’ve integrated into their operating systems, as cloud-based software and apps are commonly managed by the companies that produce them. As a result, enterprises don’t have to invest in the personnel necessary to maintain servers and software updates.
Creating a flexible working environment: Companies need to invest in employees that have the analytical skills required for segmenting and understanding big data. Software-as-a-service businesses give their clients the benefit of state-of-the-art technology with greater freedom to choose which services they need. A larger IT support staff can help ensure users of proprietary software and apps understand how to use the technology; yet most companies already have support personnel in place to help address any issues that employees might face in using cloud-based software. More to the point, CMSWire reported companies that invest in infrastructure-as-a-service technologies allows companies to choose what type of processing power they need to analyze data and when they need it. In this way, flexibility keeps costs lower.
Mapping a sustainable business path: While the cloud enables nearly all applications and software to be compatible with all Web browsers, according to The New York Times, IT professionals are no longer required to ensure software can be integrated into existing platforms. As a result, members of the IT department have the responsibility to make sure companies providing cloud-based technology have a common vision of where the business partner is headed. This means IT professionals must work in close collaboration with CEOs and COOs to discuss what their enterprise needs in terms of data storage and software.

Maximize Potential, but Understand Limits
By its nature, the cloud is limited by the data center’s capability for storage, according to the information management magazine. Because so many companies are interested in maximizing the potential for Big Data for marketing, advertising, customer relations and a number of other departments, data centers that support cloud computing are looking to improve on existing models for storing data and processing speed.

However, the benefits of the technology cannot be discounted for enterprises looking to remove roadblocks from their operations. In addition, The New York Times emphasized the importance of big data analytics for attracting customers. When an organization has a firm grasp on massive amounts of data and understands how to apply that information, customers will develop a greater level of trust. As the rate of development of new companies and software increases, IT professionals can serve as a conduit for businesses to understand how innovative cloud computing technology can benefit an organization, providing an elevated level of customer service .

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Quote of the Day – October 3

Business.com Editorial Staff — Thu, 03 Oct 2013 07:01:00 +0000

“The way to get started is to quit talking and begin doing.” -Walt Disney

Disney was an animator, producer and director. He co-founded Walt Disney Productions in 1923.

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Funding Your Startup After the Bank Says No

Mike Postorino — Wed, 02 Oct 2013 15:00:46 +0000

For several years now, walking into a bank looking for a small business loan has been like walking into the desert looking for a drink of water: You might find one, but it’s likely going to be a long walk before you get there.

“We knew that,” said Aidan Augustin, whose start-up company, Feathr, is going on its third year of operation without a dime of help from a bank. “We knew banks would want us to put up collateral and do a lot of things we weren’t going to be comfortable doing, so we didn’t even bother asking them for help.” Instead, Augustin and his college roommate and co-founder, Neal Ormsbe, combined some old-school business funding techniques (tap friends, family and personal savings) with some new-school innovations (enter contests, do crowd-funding, seek grants) to get Feathr crawling and now, finally, walking on its own. “We sort of hopped, skipped and jumped our way around from one funding source to another to get us going,” Augustin said. “Then we started generating some revenue in May, and revenues have kept building up to the point where now we’re self-sustaining.”

Smartphone App

Feathr is a smartphone application designed to improve the experience for people attending conferences. It allows attendees to use their iPhone or Android devices to network with speakers, sponsors, exhibitors and fellow attendees during and after the conference.

“The most valuable thing you get from attending a conference is the connections you make,” Augustin said. “Our application makes it easy.” Augustin came up with the idea during his junior year at the University of Florida. He and Ormsbe, both engineering majors at UF, quit school to devote full-time efforts to building the application and the company’s website, feather.co.

The one hitch in the plan? Finding someone to pick up the living expenses for 20-year-old college dropouts. Neither Augustin nor Ormsbe was old enough for traditional fall-back money sources like IRAs, 401(k)s or annuities, so they started the funding process with the friendliest audience available: family and friends.“I had some money left over from an internship I did that helped us get started,” Augustin said. “Then our families decided they would send us the money for room and board as though we were still in college, but there was going to be a time limit on that.”

Creative Financing

Augustine and Ormsbe tapped into a couple of advisers from the Florida Innovation Hub incubator, who thought the idea had promise. They provided a few months of funding that took the financial pressure off the families. Next up was a visit to the crowd-funding site Indiegogo, where Feathr found enough followers to supply $21,000. A few months later, Augustin and Ormsbe won a lottery for free tickets to the “Launch Festival,” a conference in California for software start-up companies. While at the conference, they entered the “Largest Hack-A-Thon In History” contest sponsored by Barracuda Networks. They beat 130 teams for the top prize: $25,000.

“More funding,” Augustin said. “Plus, we made a lot of contacts at the conference that really helped us move our company forward.” It also led to front-page story in the Orlando Sentinel that “created a lot of buzz about our company,” Augustin said. “It let people know we were still around and that we were doing some good things.” The big funding hit came early this year when members from TiE (The Indus Entrepreneurs), a nonprofit club in Tampa that helps promote entrepreneurs, awarded Feathr $150,000. Feathr added help for customer support and sales, boosting its workforce to nine employees. It also gave Augustin and Ormsbe a chance to settle down and do some long-range planning. At the moment, that strategy doesn’t include visiting any banks.

“After jumping from source to source, we’ve got at least one year of guaranteed life, which gives us a lot of flexibility,” Augustin said. “We are going to go for another, larger round of funding in 2014, but I don’t know if we’ll go to the banks. We’re self-sustaining now, and that feels pretty good.”

(Image: renjith krishnan via freedigitalphotos.net)

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Greening Your Business: 10 Ways to Save Money

Guest Author — Wed, 02 Oct 2013 12:00:17 +0000

With all of the products and services consumers have to select from, it’s never been more important to make your business rise above your competitors. Greening your business is a way to save money – a top priority for most companies with the high amount of business debt many have incurred. Take a look at these easy steps your business can take to save money and decrease its impact on the Earth.

Switch to Post-Consumer Waste.

When feasible, skip paper all together. If you must print, use eco-friendly paper. Many business owners with good intentions look for the recycling symbol on a box of paper, but only PCW (post-consumer waste) paper is made entirely from the paper we’ve put in our recycling bins. Purchase products labeled as 100% PCW so you’re certain the paper you use makes the least impact on our planet. Don’t forget to toss paper scraps into your recycle bin as opposed to sending them off to the landfill.

Power Your Office With Alternative Energy.

Many areas of the United States allow you to sign up to purchase “green power” from your utility provider. This type of power is generated from renewable energy sources like wind and solar power, hydropower, geothermal and plant matter. Your electric bill will increase by a small amount; the money is used to purchase clean energy that’s fed into the electrical grid.

Related: 6 Strategies for Green IT

Think About Your Method of Transportation.

If employees must go out into the field, carpool or contemplate public transportation if it’s available. Invest in hybrid vehicles for your company if your business provides company cars. By trying out these options instead of simply hopping into your car, you’ll reduce the carbon footprint your business makes and to show your commitment to the environment.

Use Compact-Fluorescent or LED Lights.

While both lights have a higher purchase price than incandescent bulbs, they last much longer and use less energy. These forms of bulbs work in most fixtures and each $1 invested in environmentally friendly lighting can save up to $6 in energy costs.

Related: How to Green Your Office

Recycle Outside the Box.

A recent survey tells us that less than 10 percent of businesses in the U.S. recycle. So go ahead and make it a point to recycle all items possible instead of simply tossing them into the trash bin. Next time it comes to buying new office furniture, consider used options. Craigslist has a host of good deals on gently used furniture that would work well in an office space.

These simple greening tips can cut your bills and make your business more attractive to eco-conscious customers. Make sure your website reflects what you are doing. Create a green practices section that shares your efforts to make the planet a better place.

What changes have you made to encourage a more green business?

About the Author:

Megan Totka is the Chief Editor for ChamberofCommerce.com. She specializes on the topic of small business tips and resources. ChamberofCommerce.com helps small businesses grow their business on the web and facilitates connectivity between local businesses and more than 7,000 Chambers of Commerce worldwide.

(Photo Source)

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Quote of the Day – October 2

Business.com Editorial Staff — Wed, 02 Oct 2013 07:01:00 +0000

“You shouldn’t focus on why you can’t do something, which is what most people do. You should focus on why perhaps you can, and be one of the exceptions.” -Steve Case

Case is the former CEO and chairman of AOL. He serves as Chairman of the Startup America Partnership.

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Management 101 – Avoiding Mistakes is As Important As Making the Right Decisions

Guest Author — Tue, 01 Oct 2013 12:00:54 +0000

Many retail and office managers will spend inordinate amounts of time agonizing over important decisions and then ruin their efforts by making a snap decision over a seemingly innocent issue. Here are five actions that managers take that are actually counterproductive when it comes to effectively managing their staff and some steps to avoid the problem in the first place.

Taking Unwarranted Credit for a Subordinate’s Efforts

Hollywood movies may make interoffice politics seem like a constant battle of wills with backbiting and jockeying for position as the main goals of the staff. Reality is considerably different. The vast majority of employees take pride in their work and will not gladly suffer another coworker or a manager taking credit for their efforts.

Managers who engage in or condone this activity will not build a loyal and trusting staff. Instead, they risk breeding a culture that will undercut them at every turn. Similarly, managers who do not accept responsibility for their own poor decisions and shunt the responsibility onto their subordinates will demoralize their staff in a relatively short period of time.

In short, a manager’s job is to use his people to their best advantage. This process entails eliciting ideas, implementing the best ones, giving credit where it is due and accepting responsibility for failures. Whether he realizes it or not, this process is what he is being evaluated on by his superiors.

Making Rules for a Few Bad Apples

Any office or retail location that hires substantial numbers of employees will occasionally let a bad one slip through in the hiring process. Good managers understand this and have developed skills and procedures to deal with these “bad apples” in a direct and individual way. More cowardly managers prefer to avoid confrontation and attempt to enact policies that will stop the unwanted behavior at the cost of alienating the other good employees. It is a recipe for disaster as every employee, including the bad ones, will feel unjustly targeted. In addition, the poorly performing ones rarely recognize that it is their failings that are causing the problem.

Avoiding Decisiveness

While making a decisive choice when it comes to customer service or implementing a project are second nature to location managers, the ability seems to leave them when personnel decisions must be made. One of the most glaring examples of this behavior is keeping poorly performing coworkers on staff for far longer than is necessary.

This fact does not mean that the managers fail to recognize the inability of the coworker to perform well nor that they do not follow company policy in ridding themselves of the subpar performers. Instead, the failing is in not acting soon enough.

Most people, including managers, would sooner “forgive and forget” a transgression than deal with the problem in a head-on manner. Unfortunately, most office and location managers do not have the luxury to take this approach as a problem coworker saps morale, creates a more stressful working environment with their non-productivity and generally diverts resources from more important tasks.

Failure to Follow Through

Employees are generally forced to take a manager at his word. If a manager fails in this regard, the relationship will be strained at best and completely unworkable at worst. Managers must not make promises that they will not or cannot honor just to resolve an immediate situation. If confronted with an unusual situation that doesn’t lend itself to the usual remedies, a manager must fall back to the standard fail-safe position of, “I don’t know but I will have an answer for you shortly.”

This behavior is particularly destructive if a manager promises something that he can’t deliver in order to gain unreasonable productivity from his staff. For example, promising that the staff can go home after a certain goal is met is one way to gain greater effort in a shorter time frame. It is unethical and demoralizing to use that unnaturally productive period to then set further goals. In the simplest form, the answer to this problem is the same as it is in customer service – Under promise and over deliver.

Not Building an Environment of Trust

The entire concept of delegation implies a certain level of trust in the employee by the manager. While it may seem counterintuitive to those who have managed entry-level new hires, allowing employees a certain degree of freedom of action and certain latitude to make mistakes is actually quite good for their morale and productivity in the long run.

While mistakes are bound to happen, a good manager can preempt many of them by monitoring – but not over managing – his new hires carefully. Building a sense of trust is a two-way street. Empowering employees while not smothering them in management “techniques” will also engender a sense of trust by the coworkers in their own managers.

The PEO Solution

Just like any other business activity, managing employees takes experience and practice. Having a resource like a Professional Employer Organization to help with human capital management is also incredibly valuable to location managers. PEOs provide reliable answers to managers in those unusual situations that sometimes occur. They also provide a sturdy framework upon which managers can make informed decisions and avoid the mistakes mentioned above.

About the Author: Carolyn Sokol is founder and President of PEOcompare.com as well as Business Development Director to compareHRIS.com, both of which help match businesses to the right HRIS or outsourced HR provider for their particular needs.

(Image: pat138241 via freedigitalphotos.net)

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Quote of the Day – October 1

Business.com Editorial Staff — Tue, 01 Oct 2013 07:01:00 +0000

“When people are placed in situations slightly above what they expect, they are apt to excel.” -Richard Branson

Sir Richard Branson is the founder and chairman of Virgin Group.

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Crafting Content to Maximize SEO and Customer Engagement

Business.com Editorial Staff — Mon, 30 Sep 2013 12:00:00 +0000

Writing is an exacting art. If you’ve ever tried to feign your way through the process of creating content optimized for websites, it can feel a bit like trying to manage a Phillip’s head screw with a flat head screwdriver. Yes, it’s entirely possible to do, but the effort involved requires a painstakingly slow progress. Moreover, all conventional wisdom goes against it. Creativity certainly has its place in content marketing, but it’s also a practice that makes use of fairly well-defined conventions. While there are many in the marketing industry who tend to eschew ideas that depend on preconceived notions, even the most innovative ideas have a basis in practices that are foundational in one way or another. In fact, the constraints of SEO marketing limit the manner in which writers create content. Consequently, one of the basic premises that content writers should keep in mind is packaging the product in a vehicle that suits whatever a company is trying to market or advertise.

Blogs: Outreach and SEO Tool
Content is truly a resource for companies to educate and engage consumers. But understanding the most compelling packaging is one of the trickier aspects. Is the goal to build a relationship with customers? For the vast majority of companies, the answer is a resounding “Yes,” but it’s also important to remember the essential rules of SEO, meaning your content must be visible for search engines as well.

MarketingSherpa’s case study of an e-commerce website emphasized the importance of not only reaching out to consumers through a platform like a blog but also keeping keywords in mind. The owner of the enterprise used the blog to get consumers to share intimate stories that connected with the products the company sold. In a mutually beneficial relationship, the tool fit the needs of the business and consumers. With greater website traffic, more inbound links and strategic use of keywords, a blog can be incredibly useful for SEO and engaging customers.

Challenging the Conventions
Then again, thinking outside the blogosphere, content marketers have pushed the boundaries of what is recognized as advertising. Comics as a vehicle for managing a brand’s message is undoubtedly clever, as the Content Marketing Institute highlighted. They operate on a level comparable to infographics and memes in that they’re more accessible to the target audience and have the potential to go viral. That means:

Optimize this content so that it can be shared over social media. Networks like Facebook, Pinterest and Twitter are ideal engines that have been the driving force behind the success of memes. If anyone has a Facebook feed that doesn’t have at least one picture of a cat paired with a witty quip, they’ve probably enabled the highest level of privacy settings possible. Even then, there’s no guarantee.
Don’t forget the keywords. Even though comics are often a light-hearted affair, it’s important not to forget the basic rules of SEO. Given the format, marketers have even more room to be clever in their keyword strategy.

Frequently, the product or, more often, services a company provides can be extremely technical or difficult to explain in laymen’s terms. A well-devised comic as part of the overall content strategy can give an enterprise that otherwise might appear humorless a deft, human touch.

For example, the technical aspects of advanced manufacturing might be considered a little dry in some circles. However, these companies will likely want to maintain their role as a thought leader and a credible source of information, meaning their comics can be a bit high-brow, but accessible enough so that viewers can relate to the content. Humor can go a long way to build relationships in a social setting and business is no different.

Keeping content, purpose and packaging aligned can be a difficult task, but it’s necessary to make SEO marketing work.

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