Archive for the ‘Online & Small Business Resources’ Category

The Holiday Birthday… How do you separate??

It’s almost Christmas and yet we’ve been inundated with presents since the 18th due to it being my daughter’s birthday, she just turned 2. My husband and I have a strategy in place (or so we think) to make her birth “day” special and still keep the holiday spirit. On the 18th (we started it last year) we go to pick out the family Christmas Tree… there’s a great tree lot right in our neighborhood, so we don’t have to venture far. This year, Tallyn seemed quite excited about the whole ordeal. We took the tree home, heated up some chili and started to decorate. After all the morning excitement, it was naptime, during which we actively assembled birthday presents to surprise her upon awakening. Our little plan worked and she immediately wanted to ride her new tricycle (fondly found on CraigsList for a steal!) and get messy with her Painting/Chalkboard easel (from Grandma).

Now the tricky part comes in… family from all over the continent then begins to send birthday AND Christmas presents and we (my husband and I) are forced to ‘decide’ which is for which holiday and when does the present opening stop? Toss into the mix her ‘friends’ party (seven 2-3 year olds running around for 2 hours at our house on Sunday) and all the gifts that go with that… which we ended up opening last night since Sunday was much too chaotic. So now she gets 4 days separation between Birthday and Christmas and we are running out of room and wrapping paper…perhaps we are destined to a week of present opening for the next 16+ years… should we be more diligent on the separation of holiday at this early an age?

I fear poor Tallyn will end up one of those horror stories where the birthday and Christmas celebrations get blended into one… I have a co—worker whose 2nd son was born on Christmas day and they’ve had to make a habit of reminding relatives to get him a Birthday present too… his mom almost forgot one year, poor kid. The Holidays are a magical time of year and still Birthdays are the #1 holiday for all of us… we hope to keep the spirit alive for both for our daughter. Are you a ‘Christmas Holiday Birthday Kid’? Or do you have a relative or child that is? How do you separate the celebrations? Have a Merry Christmas and HAPPY Birthday to any and all!

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Archive for the ‘Online & Small Business Resources’ Category

7 Steps to Increase Trust for More Online Sales

Nearly all small businesses face a common challenge.  This challenge is demonstrating to potential customers that your small business is credible, trustworthy and has a track record of success and delivering products and services.  This challenge is typically derived from the fact that when someone gets to a small business website, they often do not have any indication whether they can trust that small business if the shopper wants to buy from that business.

Further complicating matters for small businesses online, is the constant threat of fraud and misuse of personal and financial information that weighs heavily on online users minds.  This fear of shoppers online is real and tangible.  In fact, a  Javelin Strategy & Research study found that the fear of identify theft and online shopping in general cost retailers over $21 billion in lost sales in 2008.

A June 2009 McAfee’s study showed that 92 percent of consumers are concerned about their security when shopping on new or unknown websites. Further, that study found that 63% of shoppers will not purchase from a web site that does not display a  security policy or other indications of trustworthiness.  A 2009 Verisign Security Report also found that nearly 50% of internet users avoid buying online due to concerns that their financial information will be stolen. The report also found that 83% of internet users want assurances that their information will be secure.

These concerns are getting the attention of all types of businesses, including industry giants like Microsoft.  Scott Charney, Microsoft’s Corporate Vice President of Trustworthy Computing, said at the 2009 RSA Security Conference that  “When [shoppers] visit Web sites, they don’t know if that Web site is to be trusted or not. For all of these reasons we need End-to-End Trust.”

Steps for Small Business to Demonstrate Trust

Shoppers concerns with buying online are well documented and the data supports those concerns. The good news is that there are some simple steps that all small businesses can take to demonstrate trust on their website to shoppers:

1. Management/Owner Information:  Be transparent to your shoppers. Prominently display under a Management tab the names of the owners of your business.   Make sure you add some background information on that manager/owner.  You can even include  it in story form.   This information gives shoppers comfort that there is a real person behind your business and makes it more personal.

2. Use Online Video to Virtually Introduce Yourself: A hot new trend is using online videos, through a YouTube clip, that introduces the management of your small business to shoppers and potential customers.  Here are some good tips in this prior post on using videos to build trust and credibility for your small business on your website.

3. Contact Information: Another way to build trust is to clearly and prominently display contact information including phone number and email addresses for customer service and management contacts.  By showing shoppers that they can contact you in case there are any product or service issues, you give them comfort that your business is accessible.

4. Return, Shipping, Customer Service & Data Policies: It is important that you clearly provide a list of your return, shipping, customer service and data protection policies.  It is important enough that small businesses should consider devoting a whole tab or area of their website where shoppers can visit and see what are the policies for your business.  Again the goal here should be the more information about these policies the better.

5. Trust and Validation Marks/Seals:  The 2009 Verisign Security Report found that 86% of online shoppers feel more confident about entering personal and financial information with sites that have some type of security indicators, such as trustmarks.   A few seals provides much of the information that is covered in this post through just one seal that resides on an online store’s website. Look for those seals.

6. Customer Feedback: Show that you can be trusted and also let people know your track record with customers by publishing comments about your product, service and business.

7. Actively Engage Customers: Use social media sites and tools like Twitter, Facebook and a blog to profile your business, create a tangible brand and personality and also engage customers.  These conversations with your customer and the community give shoppers a more complete, in-depth and intimate look into your business.  These conversations and having them like we have covered in previously posts via Twitter and your blog only make your business more credible.

Also one of our favorites, Inc Magazine has a good article on this same topic of online trust and you should check that out too.

If you start using these tips, your business and your website will go a long way to clearly demonstrating trust to shoppers and thereby helping you increase sales.

Please tell us in the comments section below what you look for before you buy online.

*Image from Bill Mullins Blog.

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Archive for the ‘Online & Small Business Resources’ Category

Choosing the Right Smartphone to Manage your Business While you Aren't in the Office

I recently made the decision to move out of the pre-iPhone ages (believe it or not that was only a little over 2 years ago) and get a smartphone that allowed me to better manage my work and personal life while I wasn’t in the office. After I made this decision I started researching the various smartphones on the market and determined that there were some features that I really needed and others that were nice to have but not vital to managing my business while on the go.  I thought that I would share a few of these features to consider the next time you are looking for a new smartphone:

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Archive for the ‘Online & Small Business Resources’ Category

Customer Reviews and Blogs: Do They Matter?

There are a lot of websites and blogs that track the good and bad customer experiences with online sites and service providers.  The general notion is that these past experiences will help predict what future experiences will be.  The concept makes a lot of sense, but it presumes a few things to be true.  I just finished reading SuperFreakonomics, so I think I’m more than qualified to address these issues in a rigorous manner (did I mention that I am a scientist?  Yep, I graduated with a degree in political science, so you’re in good hands):

Sample Issues: The review sites and blogs are very much slanted towards those actually inclined to share their experiences, and those who actually know how to share them.   There is a large bloc of people not interested in telling the world about how they were ripped off by an unknown online seller (it’s called “loss avoidance” and most of us engage in it at some point…see I told you I was a scientist).  The sample of these comments are further vexed by the fact that some people don’t know how to voice their opinions (or which sites to do it with) — so the sample will likely skew towards more positive and be made by those familiar with technology/online industries.

Fraud: This is also a concern, and likely why most ratings skew overly positive…online sellers/service providers rate themselves (via fake accounts or their friends).  It’s not “fraud” in the sense of defrauding someone out of their money, but it’s not honest and defeats the purpose of customer reviews.  It’s similar to how I used to inscribe my own yearbook to make it seem like I had more friends.

Low Visibility/Little Negative Impact:  An online seller isn’t likely to promote their customer reviews unless  they are positive, so it takes a consumer extra effort to research the negative reviews.  And once you do come across those reviews, what do they mean?  If you’re about to save 20% on the new plasma t.v., it’s likely that you’ll take your chances — it’s likely the previous customers were just complainers. 

Time for the anecdotal: My wife bought a new light fixture online.  She receives it and finds out it can’t be used in a bathroom because of a potential fire hazard.  The contacts the owner of the site, he tells her “she should be fine putting it in the bathroom”).  After realizing she is not going to be able to return the item, she threatens to “blog about her experience”.  Of course, she has other things to worry about and in time she moves one — no negative review, no blog posting, no negative effect for the online seller.

Of course, we here at KikScore think we’ve solved the issue, but until we’re ubiquitous, we’ll have to determine whether customer reviews are helpful.  What are your thoughts?

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Is your business a trail adventure?

A favorite route - Apex Trail

Living in Colorado is refreshing and rewarding… and can force one to tackle adventures with a free spirit. The assumption is that if you live in Colorado, you are hitting the slopes every weekend. Well, I’m not a skier, but give me a good pair of trail running shoes, a crisp morning and a trail that winds up a mountain or hillside – now that’s what I call adventure! Will there be the unavoidable tree root to navigate or an elevation change that I wasn’t quite prepared for? Maybe encounter a snake or snow/ice which forces one to slow down and proceed with caution. Starting a business is a similar adventure in putting on those running shoes, climbing up the mountain, yet not certain what you may encounter along the way.

When launching a new business, we are forced to be selective of which trail to tackle first and more importantly to keep track of where we’ve been so as not to make repeat mistakes. The path of a new business needs to be able to react and learn from last weekend’s trail run and plan accordingly for next week’s adventure. My favorite poem, Robert Frost’s The road not takencan be interpreted many ways. In the success of business, we over analyze which can paralyze… How complex should your beta launch be? How are we going to support customer inquiries/issues in a timely manner? What enhancements should we concentrate on? How will we measure success? I can go on…

In trail running, I cannot be afraid to take that challenging trail and have an incredible story to share from my adventure. In starting a business, we need to be brave enough to take that less travelled road that can pave the way for others to follow, which will be our loyal customers.

When in doubt, run uphill! What twists and turns, and unexpected elevation changes have your business taken you on? Share your experience with us.

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Brett Favre and Business

I may be starting something I shouldn’t with this post, as most of us on the KikScore team are ardent professional football fans (except Raj, who likes the Cleveland Browns).  The first 20 minutes of our Monday meetings are consumed with rehashing Sunday games (we get a lot more done during baseball season).  This year my favorite team, the Minnesota Vikings, signed Brett Favre and, in turn, they are having a great season.  So, to the disgust of Mike Collins (my business partner and Green Bay fan), I’m going to write what Business lessons can learn from the Brett Favre acquisition.

Patience:

Everyone assumes that when you come out with a new product or service, it has to have immediate market success, as-is.  But as Nassim Nicholas Taleb makes clear in his book “The Black Swan”, one of the greatest strengths entrepreneurs have is the ability to tinker.  Tinkering with a concept until it suits the market is the whole point of business.  What’s the tie-in to Brett Favre?  Well, his first year in the NFL wasn’t notable.  He was a back-up quarterback for the Atlanta Falcons — and didn’t show any indications of being a future Hall of Famer that he is.  But over time, he changed his work-out methods, how he approached the game and now, at the age of 40, he’s having one of his best years ever (that’s after 20 years of tinkering).

Talent:

Last year, the Vikings had almost every member of the current team.  They lost in the first-round of the playoffs.  Now, who knows how it will end this year, but this year’s team is much different than last year.  The biggest difference is Brett Favre — his experience and talent.  The business lesson is pretty obvious.  You can have all the supporting pieces, but talented leadership (or lack of it) can raise or sink the level of everyone else around him/her.

Brains Over Brawn:

Somewhat related to patience, is the importance of experience/intelligence.  There are a lot of faster, younger players than Brett.  In fact, the Vikings have two younger/faster quarterbacks and they still chose to hire Mr. Favre at $14M/year.  When it comes to business, it may be tempting to promote the new HBS graduate — she knows all the cool Malcom Gladwell terminology and interned at some investment bank (that no longer exists).  But maybe you should look again at the company veteran, the one that knows your product and industry well.

This posting could go on and on…so out of interest of preserving my dignity, I’m going to now end my love-letter to Brett.  Feel free to send any jeers or life-sports lessons.

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Small Business Funding: Tarp Banks, Goldman Sachs or Powerball?

We’ve posted earlier about funding a start-up, talking about whether to get venture or angel investment, or self fund.  So, if you go the self-funding route, small business owners face a question of dipping into their savings or seeking a small business loan.  But is that really a choice for small business owners?

A recent article examined small business lending by the banks that are the Top 22 TARP recipients — which just so happen to be the largest lenders to small businesses.  According to CNN, though TARP was intended to provide liquidity to small businesses as well as large, it’s just not happening.  The top TARP recipients have trimmed back lending to small business by over $8B.  Though the new administration required $15B be set aside for small business lending, that money has gone untouched.

So if a small business can’t get a loan, what about a charitable fund for small business?  Doesn’t exist, right?  Well, maybe not.  For 10,000 businesses, there is a chance for a cool $50k gift card…thanks to Goldman Sachs.  Goldman, with the encouragement Warren Buffet, has created a $500M fund to benefit 10,000 small businesses — providing access much needed liquidity.  Some media outlets are a bit cynical about Goldman’s motivations, but really what does it matter?  Goldman paid back its TARP funds and really didn’t have to create the small business fund. 

If your business can’t get a loan, and doesn’t luck out with the Goldman Sachs free money give-away, there is also the Powerball — with a 1:195M chance to win.  Or, you could do what KikScore is planning — a lemonade stand offering $100k organic lemonade.  It only takes one customer.

Let us know if your business has had any good or bad experience in obtaining a small business loan/credit line.

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Making the Grade

Our entire lives we are graded… from that first math test in elementary school through to cramming for the SAT/ACT’s… not to mention our parents own grade scale (in my house, aka the guilt trip) in determining if our behavior is worthy and success is likely as we venture out into the world. Even in Kindergarten I remember getting the U=Unsatisfactory in conduct because I couldn’t stop talking to my friend Beth during story hour. I remember my first B… It was 5th grade and I was convinced that my teacher was an idiot and I boycotted going back. Thankfully my mom (yes guilt trips can work wonders) convinced me otherwise.

The fact is, we are graded for everything and those ranges still apply to business… at KikScore, we’ve created our own range based upon the multitude of information being analyzed within our scoring model. The algorithm that keeps us math geeks going.  Yet, in the end, it’s still a ‘grade’… how does a consumer know that a site hasn’t hired a ‘front’ that is a false impersonator? Remember Making the Grade from 1984? Don’t be fooled!

I’ve shared below some guidelines to help with the comparison on what each KikScore range means. Merchants will strive for what works for them… but will it make the grade that brings customers??

Positive = KikScore Range 1000-600 (A’s-B’s)
• A merchant that openly shares information about the owners/managers of the company. This equates to full transparency and a desire to have their customers know them.
• A strong financial history shows that the merchant has made sound decisions, which promotes they can be trusted.
• The KikScore seal includes a Customer Feedback section. Merchants who consistently receive positive customer feedback display strong commitment to customer satisfaction.
• Pride in their website in establishing policies that protect consumers and provide highest levels of security

Average = KikScore Range 600-300 (Covers all the C‘s)
• Merchant that shares minimal information about the owners/managers of the company.
• Managers/Owners who have mid-range financial history may indicate that the merchant has made risky decisions over time. This promotes a sense of caution from a potential shopper.
• Minimal concern for consumer protection by establishing minimal policies and limited security within their website

Poor = 300 and below (D on down… or ‘U’ – Ouch)
• None or very little information is shared on the owners/managers of the company
• If information is shared, there is negative financial history (or minimal overall) which may indicate the merchant has made bad decisions over time and a potential indication that they could be shady.
• Negative feedback posted from previous customers indicates that the merchant hasn’t worked to make changes to remedy such customer concerns.
• No policies or security within their website indicates no concern for consumer protection and they are only out to make a profit

It is a Buyer Beware world as Raj shared in a recent post Cyber Monday. With KikScore we strive to provide avenues for merchants to succeed in selling online… but it’s their decision in the end on what to focus on and pave the way for their customer’s experience. Oh, and that B I got back in 5th grade… well, I studied harder and finished the year with an A.

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Why Online Stores Should Blog

We get the question a lot these days about whether small businesses and in particular online stores should have blogs?  Often, the question is asked why should a store owner spend their precious time blogging.  Here are some reasons that an online store should blog:

1. SEO Value: It is no secret that Google and other search engines really like and prefer fresh website content.  A blog is a quick, easy way to continually provide new and fresh content related to your store and your website.  The more posts that you create and publish and then syndicate to various blog search engines like Technorati, MyVenturePad and SocialMedian the better.  Also when you incorporate relevant keywords into posts, that content is spidered by Google and other search engines, and that then helps your overall search results for those keywords.  That is because you are creating more relevant content and website pages related to those keywords for your store.

2.Humanizing Your Store: Shoppers and people in general like to shop and interact with businesses that they can relate to and like.  Use your blog to educate your customers, prospects, the community and the industry on who your business is, your business culture and ideals and the personality of your business.  There are many ways to do that including using videos on your blog to introduce employees as we described previously.  Giving shoppers and your customers a more in depth look at your brand and your business allows customers to create a bond with your business.  This can help drive word of mouth marketing of your store by these customers and shoppers.

3. Another Channel to Feature Products:  Online stores can use a blog to describe and introduce new products or product lines to your customers and the market.  You can also have blog posts that describe a special discount on a product.  Some stores even use their blog to outline special features of their products that may not be obvious.  You can even use a blog to create  your own Frequently Asked Questions for your products which can help reduce your customer service calls and call drivers.

4. Way to Engage Your Customers: Having a blog is a great way to interact with your customers.  Your customers and the greater community can visit your blog, read the posts and then comment on those posts.  When they do, it gives you and your store and opportunity to have a conversation with your customers.  This also has the benefit of giving your customers a forum to discuss your products.  That is a great alternative to your customers not having a forum and then posting negative feedback on a third party website that you do not control.

5.  Linking And Traffic Benefits: If you have a blog, it gives you a great opportunity to link to third party websites. BUT, it also allows other websites to link to your posts and your store.  If you can combine this, with an affirmative strategy on your own where you go out and post comments to other blogs, those bloggers will eventually return the favor and post comments on your store’s blog. For some more context, here is a good post from blogging experts on getting more blog comments. If you are active with other blogs,  those bloggers will often also add links to your site and in some cases they will feature your products and store on their blog.  All of this taken together can really help increase the visibility of your store and drive new traffic. It all begins with your blog!

Now let us note that, having a blog is just one step in your overall marketing, social media and branding strategy.  Combine your blog use with a strategy that uses Twitter and Facebook like we outlined previously here and here and you can really begin to extend the reach of your store to new communities, customers and industry experts that your business never would have reached before.

Let us know if you have any tips for using a blog for your online store.

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Tips for Using Video to Help Your Small Business

It really surprises me that small businesses do not more often use videos and online clips to help them with promoting their business.  Before YouTube, online videos were relatively few and far between.  But with YouTube’s popularity and the explosion of video clip sites, online videos are everywhere. Not only are they everywhere, today these video clips are even easier to upload and circulate.  If you have not seen the wedding video from this summer that went seriously viral, this is one example of how easy it is to get a video uploaded and circulated (this video has had over 32 Million views. Yes, I said million).

So what how can your business start using videos.

1. Introduction Video – Start by have an introductory video on your website.  The introductory video can help you introduce your company to shoppers. An introductory video can also personalize the experience that a website visitor has as they can virtually “meet” the management of your small business.  An introductory video allows potential customers to see who they are about to do business with and can give you a boost of credibility.

2. Product Video – Sometimes it is difficult for website visitors to get a grasp of a product and its key features from a list on a website.  Try a short product video that describes your company’s product.  Use a video where a company representative or owner can narrate a description of a product and also personalize the product experience.  Sometimes a product can be a lot more appealing if the customer hears a passionate voice that is describing the product in detail while that company spokesperson highlights the key product benefits.  Check out KikScore’s product video at the bottom of this previous post.

3. Customer Testimonials – You can also use online videos for short customer testimonials about a product or an experience with your company.  You can then post these testimonial videos in the “Testimonial” section of your company’s website.  When do you get to shoot these customer videos? Use a customer meeting or your next industry conference to shoot a quick video of the customer.  Also it never hurts to ask a customer too.  If you will not be seeing a customer that you know is happy with your product, just ask them if they can record a short video with their video phone and have them send it to you.  The quality may vary, but online video can now be cleaned up very quickly.

4. Educational Videos – These types of videos are underrated but can really be helpful for potential customers.  Take the time to shoot short videos that can contain educational tips for your customers.  You can even use this as an opportunity to have employees or product managers film these tips so they can get some “face time” with your customer community.  Using employees is also a good way to convey your brand to the world by allowing the community to put an employee name to the face of your company.

5. Thought Leadership Videos – There has been a real rise in posting of videos that have been taken from conference speeches or panel sessions.  Next time you are speaking at a conference or an event, make sure the video of your speech gets uploaded to YouTube (provided there are no copyright issues) and then gets posted on your website.  As potential and actual customers start to see you as a thought leader in the industry, your business and management will get even more credibility.

So start using videos today to spread the word about your business.  Tell us in the comments how your company plans to use video in the future.

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