How to Correct Common User Interface Issues and Improve Conversions

How to Correct Common User Interface Issues and Improve Conversions

Improve Conversion rate

A well designed and user-friendly website can make the difference between a new customer making a purchase and a prospect who immediately bounces. In eCommerce, web design encompasses more than color schemes and cool effects. Successful web design includes a smooth navigation, high image quality, mobile compatibility, and many other factors that contribute to a positive user experience.

Unfortunately, it is easy to overlook important elements or make mistakes in the area of design due to prioritizing how something looks over how it functions.

Below are six of the most common eCommerce design improvements we implement to help increase user engagement and conversion rates.

1. Plan Out Category Navigation and Stick With It

The menu is crucial: it is the first thing visitors see and it ultimately tells them where to go. New visitors spend about ¼ of their attention on the main navigation of a website, so the menu is most often the first impression visitors have of the site. Common design mistakes in the navigation include having too many options, vague category titles, and overall disorganization. When customers aren’t sure where they need to go, they are likely to simply leave the site to search out other options.

The key to a successful navigation is thinking about how the customers shop and planning the catalog structure accordingly. When designing a site catalog, think like a customer and personalize the menu to best answer questions they’re searching for – this means getting them to where they need to be in the least amount of thought and clicks as possible. Avoid overwhelming visitors with choices right off the bat, and limit the primary navigation to as few options as possible. Then utilize attributes and faceted navigation within larger categories to help with filtering.

It’s important to stick with it – adding new product lines or brands can cause a review of the navigation already on the site, and bloat originally simple category structure. Select high-level categories named what customers call your products, to aid in on-site browsing as well as search engine optimization. Always think about what problems the customer is trying to solve, and cater to providing the answer as quickly as possible.

2. Simplify the Checkout Process

As of 2018, an average of 75% of all shopping carts are abandoned. Users abandon their cart for a variety of reasons, sometimes just to see if they’ll receive a coupon code, but most of the time it’s due to user interface mistakes, such as the addition of unnecessary required fields, uncommon fields in the checkout, or unhelpful error messages. A 2012 study conducted by Baymard Institute found that users reported 61 of the top 100 eCommerce sites were asking for “seemingly unnecessary” information. Consider providing shortcuts like autofill options for addresses or allowing customers to check out as a guest.

Because checkout process issues can vary so widely, there is no easy fix. Instead, the first step is to think like a customer (see how that keeps coming up?) and see if there is any unnecessary clutter in the checkout process. Once common sense is checked off, see exactly where potential customers get stuck. Setup the checkout funnel in Google Analytics and pay attention to the Abandoned Carts report in Magento.

Something to keep in mind: the longer the check-out process is, the lower the conversions will be. Keep it short and sweet in order to boost conversions and keep visitors coming back. Magento 1’s native checkout left a lot to be desired, but Magento 2 has a nice checkout process built in.

Finally, if you’re not running a shopping cart abandonment program, do it! https://carts.guru/en/ has become one of our favorite tools, but there are several tools out there specializing in shopping cart abandonment.

3. Use Great Images

Image quality is both technical and qualitative. Low-resolution pics will simply look bad and decrease the credibility of the site. Meanwhile, stock photography that is irrelevant to the brand or products will do little to convince online shoppers to buy from the website.

Go beyond the basics and invest in high-quality images that effectively highlight and differentiate the product and the brand. Customers expect images to add context and meaning. Whenever possible, use real people in photos, display product details in images, and give visitors large, hi-quality photos.

Studies confirm that larger images are more effective than smaller ones in boosting conversions. Though product information may have been pushed below the fold, customers were more concerned with seeing the product clearly when deciding whether to buy. Find that balance between compressing larger images vs sizing down images for the sake of performance. It’s 2018, get a CDN if necessary, but don’t skimp on images.

4. Write Valuable Product Descriptions

Many eCommerce product pages fall victim to the same types of mistakes:

  • Product descriptions that don’t convey the basics
  • Unclear information about the product’s benefits for the buyer
  • No visuals to clearly explain how to use a product

Product descriptions should be clear, concise and credible… sometimes entertaining helps too. They need to be carefully crafted to be descriptive and add value without wasting time. Tips like highlighting the benefits of the product for the customer (as opposed to a focus on features only), adding in sensory adjectives to allow the reader to experience the copy, and making the description scannable by utilizing bullet points or fun icons can pay dividends.

Another reason for creating great product pages is to establish trust. Including customer testimonials or social proof like tweets or Instagram photos that feature the product is a great way to assure customers that it’s as great as the description says.

Target does a great job of this. The screenshot below displays the company using their hashtag #targetstyle to advertise a bathing suit that women have taken photos wearing.

Example of social proof

Not only does this add credibility to the product, but it sparks growth in social media presence as well as building your brand and customer loyalty.

5. Fully Embrace Responsive Design

Mobile traffic accounts for 30% – 40% of the average eCommerce site, and spikes greatly during the holiday shopping season. Responsive templates are pretty much a standard practice these days, and Magento includes a great best practice responsive theme, but just having a responsive site isn’t enough.

The most overlooked aspect of responsive sites is having site content not load well on mobile. Build the catalog and product content so it displays perfectly on phones, tablets, and desktop. Also, prioritize how site elements load on mobile. Desktop-centric features such as rotating banners, interactive social share buttons, and other features shouldn’t always display on mobile at all, or perhaps just not in the same order. For example, display a static banner on mobile instead of a rotating banner to help with performance and accommodate the shorter attention span mobile users often have.

6. Optimize Site Search

Site search can be a catch 22 – sometimes merchants are sold a bill of goods for a 3rd party site search provider and find out later their customers never even use the site search feature. Other times it’s a neglected piece of the site experience that desperately needs some attention. Setup Site Search Tracking in Google Analytics to see how often people are currently utilizing site search, and optimize based on customer demographics. Some sites have a search box just because it’s included in the theme, but it never gets used. In that case, it is best just to ditch it.

Tracking site search will provide insight into how visitors are engaging with your site and allow you to make better-informed decisions on any third party tools that may be needed. If your customers will benefit from an optimized search function, put the effort into building it out as a useful tool – it will be a great resource of data as well.  Use a site search utility that provides values to customers through useful faceted navigation, suggested terms and merchandising capabilities.

Building a Better eCommerce Website

All of these steps help build trust with customers, and they need to be implemented in tandem. Conversion rate optimization is just as much about removing reasons that make people not buy as it is giving them a reason to buy. Mistakes in eCommerce web design don’t just decrease credibilitythey decrease revenue.

Contact us to learn more about successful user interface design or for help optimizing your eCommerce site.

 

3 Common Social Media Mistakes Made in eCommerce and How to Correct Them

3 Common Social Media Mistakes Made in eCommerce and How to Correct Them

Social Media Mistakes

Social media has become a popular marketing tool for eCommerce businesses over the past few years. It’s a great way to connect with customers and share brand information without having to spend money on paid ad campaigns. An article from BigCommerce reports that for online stores, social media is critical for success in eCommerce: “Online stores that have a social presence have 32% more sales on average than stores that don’t.” Social media can boost sales, promote brand identity, and increase trust – but only if used correctly. 

Misusing social media may seem impossible; the bright blue “Tweet” button is easy to use and recycling company phrases seems easy enough to do. However, haphazardly posting content and sharing posts isn’t enough. There are some common social media mistakes that eCommerce merchants make and by learning how to prevent them, social media can become a valuable asset for any merchant.

Below are three common social media mistakes that eCommerce merchants make and methods for prevention.

1. Rarely Interacting With Followers

For social media to be effective, communication needs to be a two-way street. Merchants can’t only post information about themselves such as new product announcements, current sales, etc. and hope that will satisfy followers. Interaction with customers, especially when they have a problem or question, is crucial for success.

Many customers turn to social media when they are having an issue with a product or service to receive fast and courteous assistance. When customers are ignored or receive a delayed reply, it is likely for that customer to unfollow and do further damage on social media by spreading negative comments or reviews. People want to feel that they are being heard, so take their questions and complaints seriously. When running a social media account, make sure an employee is monitoring that account for complaints or questions and are able to take direct action in assisting any customer’s needs in real time. Proactive customer service is important for maintaining repeat customers and for building trust.  

Repeat Customers are Important Customers

Good customer service is not only a good business practice, but it also plays a large role in encouraging repeat customers. If customer needs are met and they have had a meaningful customer experience, it is more likely that they will continue to return in the future.

Trust is Everything

An article by Nextopia states thatTrust impacts buyer decisions at every step of the purchase process. Specifically, trust influences the decision to visit your site, buy your product, promote your brand, and return to the site again. If they don’t trust you, visitors won’t do any of those.” In order to gain that trust, merchants must be credible in all aspects of their business, including social media.

Studies indicate that fast response time on social media builds trust because it demonstrates a certain level of accountability that customers appreciate and view as good customer service. When a customer submits a complaint on social media, they expect it to be handled quickly. An article from Shep Hyken reports that 64% of consumers on Twitter expect a reply within an hour. That means that no matter the issue, don’t make excuses or try to ignore it. Take responsibility, apologize, and make it right with the customer quickly.

2. Not Understanding the Audience

To be successful on social media, it’s critical to understand the customer audience. A common social media mistake made by merchants is posting the wrong type of messaging to the wrong group of people at the wrong time. It’s true that the frequency for posting on social media isn’t always clear. Further, what works for one merchant might not work for another. For new merchants starting out on social, it might be tempting to post every hour in order to reach as many people as possible. Or, it might be difficult to get a post once a week if the staff is busy with other obligations. Ideally, both of these extremes should be avoided.

Posting too often will likely annoy customers and turn them away as they grow tired of seeing repetitive content. On the other hand, posting too little will do the opposite and customers may forget about the business altogether.

To start, try posting unique content at most 1 or 2 times a day. If people are regularly engaging, keep it up or consider increasing the amount. If posts are ignored, try scaling back or consider posting higher-quality content less frequently.

It’s also important to test content and frequency out on different platforms. For example, what works on Twitter may not work on Facebook or Instagram. It’s helpful to do research on the target audience as well to establish which platform is best to spend time efforts. For example, for merchants targeting Millennials or the Gen X generations, statistics from Spredfast show that the two groups are more likely to share content on Facebook.  For those targeting teens, Instagram may be the best platform with 53% of teens saying the image-based platform is the best place to advertise products.

Further, age isn’t the only demographic to study. Pinterest has 200 million active users. Notably, 60% are female. Therefore, merchants looking to target the male population on Pinterest will need to think of a smart strategy for reaching them or consider a different platform.

The type of content posted on certain platforms is worth considering as well. For example, coupons and offers have a history of being successful on Twitter with 84% of Twitter users noting that they use the platform to find deals.

3. Never Establishing a Voice

Finally, the purpose of social media for eCommerce merchants is to connect with customers on a personal level. However, being personal is hard to do if every social media post is robotic. People want to feel that they are connecting with another human being on social media. Customers are not interested in seeing multiple automated posts over and over again. To be personable, it’s crucial to develop a certain tone of voice for the brand on social media. In order to develop a voice, the first step is to figure out what that voice should be. Some companies take a cheeky tone. For example, Wendy’s the humble fast food chain, has received a lot of positive attention after a very noticeable change of voice on Twitter. The company started posting edgy tweets roasting their competition.

It was a gamble that worked for Wendy’s. Many marketers are using an edgy tone to stand out from the crowds of larger competitors with more marketing dollars to spend. Wendy’s noted that their strategy is good-natured and fun but they don’t take themselves too seriously. In an interview with MarketWatch, Ken Kane, chief concept and marketing officer of Wendy’s stated that “We take food quality seriously, but we don’t take ourselves too seriously. That helps guide us to what the line is, what we should be calling out, and what are the types of things we should be staying away from.” Clearly, their 2.7 million followers agree with the updated tone.

While the edgy brand tone worked for Wendy’s, it won’t work for everyone and that approach requires thought, serious wit, and strategy. Professional tones, playful tones, or even masculine or feminine tones all work as well for the correct audiences.

Once a tone is set, there are some key ways to develop tone including reinforcing the brand’s beliefs, monitoring the audience’s responses, and injecting some of the company’s personality into every post. Social media is meant to be more relaxed and playful. Post lighthearted content and avoid having a rigid structure that every post must follow.

However, even though it’s important to be personable and fun on social, keep it professional at all times. Unprofessional accounts warrant unsatisfied customers and in certain cases, may even be subject to viral criticism.

Learning Social Media Takes Time

Creating a social media presence as a business takes time and patience. Though social media mistakes can occur, the key is to recognize those mistakes and then work quickly to correct them and prevent them from occurring again. Mastering social media will not likely happen overnight, but the process is well worth it when taking into account the many ways it can be profitable.

For more information on how to improve your social media efforts, please feel free to contact us or give us a call at (513).469.7042.

5 Simple SEO Tips That Don’t Require a Developer

5 Simple SEO Tips That Don’t Require a Developer

SEO tips

Many merchants understand the importance of SEO – they know they need it, but they aren’t always sure how it works or why they have poor rankings. There are some common technical SEO issues that prevent Magento sites from ranking as high as they should and those issues don’t always require an SEO wizard to fix them. Broken links, long load times, and duplicate content should be addressed immediately in order to rank higher on popular search engines.

Listed below are five simple SEO tips to clean up search engine optimization without requiring outside assistance.

Fix and Redirect 3xx, 4xx, and 5xx Error Issues

Eliminate any redirect chains where one URL redirects to another and another and another. It not only wastes server resources but also slows down page load time. Replace all redirect chains with a single rule that redirects from the target URL to the final URL, and ensure all old indexed URLs are redirecting straight to the new page.

It’s also important to note that catalog management processes shouldn’t be contributing to this issue. If redirect chains are a recurring event, the management of products and categories may need some adjustments in order to fix the problem permanently.

Correct Missing or Low-Scoring Metadata

Resolve any missing or duplicate meta content in page titles and meta descriptions. Templates are fine for defaults, such as “Primary Keyword – Secondary Keyword | Brand Name,” but uniquely written page titles and meta descriptions can improve click-through-rates. Think of it this way: meta descriptions should explain a solution or answer to a question that users are looking for. Those few sentences should accurately advertise the information to the user in a clear and concise manner.

Repair Broken Links

Broken internal and external links do not bode well for any eCommerce merchant. In addition to creating a very poor user experience, too many 404 pages are indicative of a neglected site. Be sure that all internal and outbound links go to functioning URLs and are linking out to highly respected authority sites to increase the relevancy of the web content.

Optimize Images

Page load times are also an important part of the website ranking algorithm. If people have to wait even a few extra seconds, they may leave. Research proves this causes an increased bounce rate that hurts SEO ranking. One of the best ways to clean up the load time is by optimizing images. Resize and compress images before uploading them to Magento. Also, rename images using hyphens instead of spaces or underscores and keep it relevant to the photo topic.

Address Duplicate Content Issues

High-quality content should be found on every single page. Engagement rate should be as high as the amount of time visitors spend reading content. The more time they spend, the more positively it will impact SEO ranking. Delete any duplicate content and make sure the copy is catered to fit the audience’s needs; this commonly means avoiding overcomplicated jargon and shortening content.

These fixes may be simple, but they have a considerable impact on search engine optimization.

Learn more about search engine optimization and your Magento site by contacting InteractOne today.

Helpful Newsletters for Keeping Up with eCommerce Trends

Helpful Newsletters for Keeping Up with eCommerce Trends

Keeping Up with eCommerce Trends

The world of eCommerce is an ever-changing landscape that continues to expand and grow daily. For those in the eCommerce industry whether they are a merchant, a business owner, developer or digital marketer, keeping up with eCommerce trends is crucial. For many, spending precious time on classes, networking, or attending events is difficult to work into busy schedules.

Most eCommerce professionals are running short on time and are merely doing the necessary work required to keep the machine running. For busy professionals, a great way to stay in the know on industry updates is by subscribing to newsletters. Some of the top thought-leaders in eCommerce are cranking out fantastic content at an astounding rate. One of the best – and quickest – ways to brush up on eCommerce trends and learn new tips is to follow the best in the business.

Below is a list of some of the top newsletters available for keeping up with eCommerce trends.

1. Practical eCommerce

A favorite source for all things eCommerce, Practical eCommerce is an excellent resource for all types of online merchants. Practical eCommerce offers articles on analysis and strategy for online merchants. Their favorite topics include Amazon news, SEO tips, advice on reading analytics, marketing help, design trends, payment options, social media, and more.

Sign up here for the Practical eCommerce Monthly Newsletter.

2. The Moz Blog

The Moz blog is arguably the best resource for staying in the know on Search Engine Optimization. The blog and newsletter offer advice and how-tos on everything from simple SEO fixes to Google update announcements and even content strategy. A notable highlight is their WhiteBoard Friday feature. Usually, in the form of a video, Moz offers excellent explainer videos that are beyond helpful. Also, Moz focuses on inbound marketing and SEO tips, tricks, and advice for improving websites and tips for optimizing search, social, content, and brand marketing.

Sign up here for the Moz Blog and Newsletter.

3. Commerce Hero

For merchants and developers in the Magento community, Commerce Hero offers excellent insight into Magento Developer trends and news. Commerce Hero is also an excellent resource for finding and hiring Magento Developers. Founded by Kalen Jordan, a well-known developer in the Magento community, the thought-leader provides plenty of videos featuring other Magento community members on relevant topics such as building a team, re-platforming in eCommerce, and freelancing tips.

Sign up here for the Commerce Hero Newsletter.

4. Magento Monday

A Magento Community Digest, Magento Monday is a news roundup of all things Magento and community-related. Created by Sherrie Rhode, Magento Community Manager, the digest is published every Monday and cultivated from content posted the previous week from developers and agencies around the world. The weekly digest is a great way to read about Magento tips, news, events, from the entire Magento community.

Sign up here for the Magento Monday Community Digest.

5. Skubana

For merchants selling via 3rd party sources, Skubana offers valuable content on everything for multi-channel eCommerce businesses. Skubana is as an Enterprise Resource Planning (ERP) software system with the goal being to act as the “central nervous system” of operations and to unify all the tools needed to run an eCommerce business. The content they produce truly does offer help and assistance with streamlining all aspects of an eCommerce business. Notably, the Skubana team has an eye for multi-channel and 3rd party integration and provides excellent resources for selling on Amazon.

Sign up here for the Skubana Blog and Newsletter.

6. Dotmailer

Dotmailer is an eMail automation platform built for small and medium-sized eCommerce merchants. One of Dotmailer’s selling points is that it was created by marketers, for marketers. Through their content, it’s clear that it is cultivated by talented marketers. Dotmailer discusses all topics and strategy relevant for eCommerce eMail marketing. Notably, Dotmailer delivers valuable benchmark reports. The reports are a great way to evaluate performance against others in the industry.

Sign up here for the Dotmailer blog and newsletter.

7. Hubspot

As one of the most popular inbound marketing and marketing automation platform, Hubspot is a proven resource for all things marketing related. Hubspot offers e-books, guides, free templates, and reports with an endless supply of information. Covering all aspects of inbound marketing to general productivity help, Hubspot is an excellent resource for the eCommerce industry.

Sign up here for the Hubspot blog and newsletter.

8. SEMrush

The robust online marketing intelligence tool, SEMrush creates valuable content on the technical aspects of SEO and PPC. Offering content on SERP updates, PPC best practices, link building, technical fix how-to’s and more SEMrush is an excellent blog and newsletter worth subscribing.

Sign up here for the SEMrush blog and newsletter.

9. CMO.com

CMO by Adobe offers marketing insights, expertise, and strategies aimed at helping CMOs, senior marketers, and their teams deliver standout digital experiences. CMO offers excellent content and examples for managing teams and building successful marketing departments. The marketing resource giant also conducts interviews with marketing leaders across many industries, providing an outlook and insight into other company challenges and successes.

Sign up here for the CMO blog and newsletter.

10. inVision

A creative design resource tool focused on helping to provide better user experiences, inVision is also an excellent resource for keeping up with app and website design trends. For those with an interest in digital design for all types of mediums, inVision provides plenty of creative and helpful content on UX/UI, research, interviews, and business.

Sign up here for the inVision blog and newsletter.

11. Shopify

The popular eCommerce platform, Shopify, is also a fantastic resource for all things eCommerce. Their blog tagline states “Free Business Lessons,” and the team at Shopify provides just that. The blog discusses all types of topics relevant to eCommerce merchants including tips on customer service, entrepreneurial advice, digital marketing, accounting, merchant case studies, strategy for selling online, product layout tips and so much more. Shopify truly delivers when it comes to useful content that isn’t just about their platform.

Sign up here for the Shopify blog and newsletter.

12. Orange Report

For those who are currently not subscribed to our blog and newsletter, the Orange Report, they’re missing out! Our content is curated to assist eCommerce merchants with all aspects of eCommerce from advice on building an in-house eCommerce team to digital marketing strategy tips and even development tricks and news for Magento.

Subscribe to our Orange Report today! 

How to Create Meaningful Customer Experiences in eCommerce

How to Create Meaningful Customer Experiences in eCommerce

Create Meaningful Customer Experiences in eCommerce

As eCommerce continues to grow, discovering new ways to stand out to potential customers is more critical now than ever before. In the process of generating new customers, an age-old marketing truth continues to ring true; never compete on price alone. Some merchants tend to believe that price is the determining factor. In some cases, that probably is true. However, consumer research shows that when comparing products customers rate price as the third-most important factor. So if the price tag is only a small piece of the puzzle, what matters more?

Adobe CEO, Shantanu Narayen provides an answer for what matters more than price to customers: “Consumers are seeking phenomenal experiences. Successful companies recognize that customer experience rises above everything else.” At first, Narayen’s answer might sound counterintuitive. Most people shop online for convenience, and price plays a crucial role in product search and accessibility. However, don’t underestimate the importance of excellent user experience. For example, online retailer, Zappos focused on customer experience above all else which led to a billion-dollar acquisition by Amazon. Business schools around the world teach Zappos case as an example of good business.

It’s clear that delivering a superior customer experience is the best way to stand out and sustain growth even in a competitive environment. But, that may be easier said than done. How can merchants construct a plan to create a digital presence that inspires meaningful customer experiences for eCommerce?

To help answer that question, below are eight ways to create meaningful customer experiences in eCommerce.

1. Build Comprehensive and Interactive Product Page Content

Hopefully, merchants are already aware of the importance of a quality product page. But good means more than just a simple description of product descriptions, price, and product add-on opportunities. Good product pages engage customers and help them build a connection with products.

Merchants can add engagement elements in many ways:

  • Exceptional photography that showcases the product from many angles.
  • Product videos which by the way, are known to increase conversions by up to 85%.
  • User reviews and testimonials that highlight other customers’ positive experiences.

The elements listed above are essential for building a product page designed not just to convert, but engage customers. With the right resources, merchants can even take engagement a step farther. Augmented and Virtual Reality (AR and VR), for example, can help create an immersive shopping experience that is sure to outpace the competition.

2. Optimize The Path to Purchase Process for All Types of Customers

Focusing on the full path to purchase user experience is an opportunity to maximize the impact on all customers. One aspect to take into account is accessibility. Never underestimate, or neglect, customers with disabilities. For example, 285 million people are estimated to be visually impaired worldwide. Providing an equal shopping opportunity to customers shouldn’t be ignored. Target learned an eye-opening lesson when they settled a $6 million class-action lawsuit by blind customers who’d struggled to use the website. Target then agreed to have the site compliant within six months. As is so often the case, merchants end up spending more to modify a website – and in Target’s case, deal with the financial consequences and PR nightmare of a lawsuit – than they would have paid to design it to be accessible from the beginning.

Also, it’s important to note that the Americans with Disabilities Act (ADA) now applies to eCommerce too. The National Law Review issued a warning that “website accessibility lawsuits under ADA are on the rise.” It would be prudent for eCommerce merchants to begin a plan for ADA compliance not only to create a happy user experience for everyone but to avoid painful lawsuits and brand damage.

Another implementation point should be simplicity. Make sure that the website allows customers to find what they’re looking for quickly. Throughout the path to purchase process, subtle design choices from whitespace to call to action buttons should nudge the customer toward the final “complete purchase“ button.

3. Go Beyond the Product Page For In-Depth Content

Don’t assume that the customer’s interest begins or ends with just the product pages. Instead, ensure that the entire website is built to help customers delight in the brand experience, and imagine themselves using the products.

That might include an active company blog to show real-life cases of products. The same space could also be useful for behind-the-scenes footage that lets customers share in the product creation process. The emphasis should be on storytelling, building an emotional connection with customers that will ultimately pay off in more purchases.

4. Create a Feeling of Authenticity

The goal is to generate sales. In the interest of that goal, it’s tempting to cross the line between authentic brand experience and naked salesmanship. Avoid that temptation by emphasizing authenticity as a core brand value. Above all, consistent communication is critical. From the moment customers first hear the brand name to and even after the first conversion, focus on the same brand mantra and message pillars. Relate each message point back to the customer, and their needs and pain points.

The product page optimization tactics mentioned above, such as product stories and testimonials, can build authenticity by creating a consistent account that allows customers to imagine themselves becoming part of it.

5. Streamline the Checkout Process

The checkout process plays a crucial role in offering a superior customer experience. Here, merchants can either make or break a long-term relationship with potential buyers. Customers have noted abandoning carts for many reasons and according to Baynard, “28% of US online shoppers have abandoned an order in the past solely due to a “too long/complicated checkout process.” A study conducted by Barilliance concluded that over 3/4 of shoppers choose to leave the site without completing a purchase. High cart abandonment rates show just how difficult it is to keep customers engaged.

Fortunately, there are ways to combat cart abandonment. With the right steps, merchants can make sure that the checkout process becomes a positive part of the customer experience by implementing the following shopping cart options:

  • Integrate easy payment options, such as Amazon Pay and Klarna delayed payments.
  • Include instant tax calculations based on zip codes, which avoid confusion and dissatisfaction over pricing.
  • Offer a range of shipping options that allow the customer to choose between speed and value.
  • Build a fast-loading shopping cart that loads quickly, without long wait times on mobile or desktop devices.

6. Personalize Communications

Personalization is key to a superior online shopping experience. Almost 90% of consumers say they’re more likely to shop with retailers that deliver personalized experiences. Less than 10% of top-tier retailers say they effectively provide that type of experience.

That doesn’t have to be the case. All communications should be both segmented and customized. As soon as customer information is available, use it to build a more relevant message. That might be as simple as including a first name, or as complex as sending a customized email specifically to a customer segment who has recently purchased a specific product or from a product category.

It’s also advisable to look for ways to go beyond the norm. For example, Zappos regularly upgrades customers from regular to priority shipping. That upgrade is built into the Zappos budget but creates loyalty among consumers who feel like VIPs rather than a number in a CRM.

7. Build a Post-Purchase Relationship

Don’t make the mistake of assuming that when a customer makes a purchase, the end goal has been met. The reality is that the customer journey is really just beginning. The majority of revenue likely comes from repeat customers, which means they deserve special treatment. When merchants deliver excellent post-purchase communications, they optimize their customer loyalty.

Customer relationships should begin when the customer creates an account. After that, customize everything available to fit the customers’ likes and preferences. Custom content allows merchants to greet customers by name, offer personalized promotions, and recommend products based on past purchases.

Put effort into building a relationship, and revenue will begin to maximize. Consider creating custom content such as blog post and tutorials, available only to current customers. The more merchants do to bind customers to their brand emotionally, the more customers will delight in their experience when shopping.

8. Measure Expectations – Then Surpass Them

Finally, never underestimate the power of useful data. Always measure efforts, especially as it relates to creating meaningful relationships. Set a baseline before implementing the measures above to understand the current customer’s expectations.

The key, of course, is not just meeting these expectations but surpassing them. Anytime that merchants can create a wow moment in which they deliver exceptional value for a customer, it is almost a guarantee to build a relationship that ultimately leads to a sale. By exceeding expectations, merchants set themselves apart from the competition.

Getting Started on the Road to Better eCommerce Experiences

In isolation, all of the above are effective tactics for creating meaningful experiences in eCommerce. But to surpass customer expectations and create a superior experience, consider building a combination of them.  In-depth, interactive product pages work great with a streamlined checkout process. Add conscious efforts to build a post-purchase relationship, and build strong emotional connections with customers.

Of course, these efforts requires both a strategic approach and the right tools. We can help in both areas. Our experience in designing beautiful and successful eCommerce websites is perfect for building more meaningful customer relationships. Contact us to start talking about a potential partnership.

Four Reasons Why an eCommerce Blog Increases Sales

Four Reasons Why an eCommerce Blog Increases Sales

eCommerce Blog

Blogs work for businesses of all kinds, mainly when they contain valuable information which helps customers make more informed buying decisions. When done right, blogs increase customer engagement, build trust, and generate leads by driving more traffic to the merchant website. In fact, in a recent post from HubSpot, it was found that businesses that blog 16 or more times a month generate 3.5 times more traffic than those which post 4 or fewer blogs.

The uptick in traffic for B2C businesses is even higher. Specifically, B2C companies that blog 11 or more times a month generate four times as many leads as those that blog 4 or fewer times. Blogs are also a great way to engage with customers beyond the selling and buying relationship. In the same post from HubSpot, almost half of customers say they read blog posts from companies they frequently visited.

An eCommerce Blog Helps Customers Make Critical Purchasing Decisions

A common misconception is that customers do not care about a company blogs. However, a well-constructed blog will humanize a business, engage customers and give them valuable information they need to make a purchase. For example, Inc. points out the perks of an eCommerce blog:

“It is no secret that business blogs do a lot for increasing online traffic to standard website platforms, but they also have several other benefits that specifically benefit e-commerce sites. What is even better is the fact that because many e-commerce sites are not taking advantage of having a business blog, this can be the one aspect that sets a site away from the rest.”

A blog gets the attention of search engines and then by new customers. A new blog might even catch the attention of competitors. If competing merchants haven’t caught on to the value of blogging, now’s a good time to get ahead and create a new valuable space for customers.

An eCommerce blog, that delivers valuable information, helps eCommerce businesses to increase sales in four ways.

Search Engine Optimization

Search engines like Google rank websites based on the value those sites provide to internet users. Because blogs typically contain useful information, they tend to rank well in search engines and therefore improve organic search rankings. Search engines also base rank on the number of pages they can index on a site.  A blog, because it adds more pages, attracts the attention of search engines which results in higher rankings and more site traffic.

Build trust with customers  

Product descriptions and reviews help shoppers decide what products to buy.  However, a blog, goes one step further, by providing valuable information to help customers make more prudent buying decisions.  Because a well-crafted blog emphasizes help rather than sales, it increases the trust customers feel about a company. In other words, the more merchants help customers, the more customers trust companies, and the more likely they’ll be to make purchases.

Be the go-to site to solve problems

Once customers start to realize the value in an eCommerce blog, they’ll be more likely to go back to it the next time they need help. Engagement increases the so-called “stickiness” of a website. The more blog posts, the more problems solved or questions answered will continually attract new and repeat customers. When blogs are well-organized, customers quickly learn they can use it to get the answers they need. That means more repeat traffic and more sales.

Humanize Business

Customers are noting more that they don’t like to buy from businesses. Instead, they want to buy from people.  The more an eCommerce site resembles a trusted friend, the more likely it is that customers will trust a company and want to do business with them. A blog is an excellent way to build trust and humanize a business. Blogs are a great way to create an alternative platform to be creative and add personality to a brand. For example, when companies write in a colloquial, conversational style that customers can easily relate to, the tone can humanize a company. However, the tone of voice will, of course, differ slightly depending on the nature of a business and brand. Simply put, blogs increase the “human factor” by telling relatable stories, offering advice, and bringing customers into the site.

A Blog Shows Companies Care about Their Customers

Lastly, a thoughtful blog shows customers that companies care about more than just profits. With helpful content, companies show they care enough to help customers solve their most pressing problems, save money, and make informed buying decisions. For the merchant, an eCommerce blog drives more site traffic, increases consumer trust, builds loyalty and repeat traffic, and puts a human face on a business.

To learn more about integrating a blog into Magento or more about how SEO marketing services can help boost sales and grow business, contact us today.

The Right Price Model For Your Next Development Project: Fixed-Price vs Time and Material

The Right Price Model For Your Next Development Project: Fixed-Price vs Time and Material

fixed-price vs time and material

When outsourcing web development, choosing the right contractual arrangement is essential. A wrong decision can lead to tough consequences such as a major issue with project budget, quality, and timeline. Many merchants end up experiencing headache after headache without getting their projects completed.

Most development partners offer one of two pricing model options: fixed-price or time and materials. Both models have their pros and cons, and depending on the project, one may make better sense over the other.

The following compares the two pricing models so merchants can better understand the difference between fixed-price vs time and material and why each has their time and place.

The Fixed-Price Model

A fixed-price agreement sets an agreed upon price for the completion of an entire project. There are two characteristics of this project type necessary for it to work. First, the parameters and requirements for the project are clear from the beginning. Second, the process for making scope (requirement) adjustments is very clear. Small or very repeatable projects work well with this model.

Fixed-Price Model Advantages

Organized

Due to fixed-price projects being completed under clear requirements and set deadlines, projects are more organized and easily manageable. Generally, project payment timing is agreed upon ahead of time and based on the percentage of work completed, which requires minimal management from the merchants perspective when expectations are laid out. Further, day-to-day tasks are set from the beginning to ensure delivery and to meet deadlines.

No Surprises

Perhaps the best part of fixed-price budgets is that there is little to no guesswork for pricing. Fixed-price contracts are predictable. With a fixed-price contract, requirements and set deadlines leave little room for surprises. Further, fixed-price contracts are generally budget-friendly. For many smaller eCommerce businesses, knowing the cost ahead of time makes it much easier to complete projects on budget.

Fixed-Price Model Disadvantages

Inflexible

A fixed-price model leaves little room for flexibility which is essential for successful eCommerce development.  Merchants may realize the original plan needs to be revised and edited. With a fixed-price agreement, scope changes can be complicated and costly to manage since they require much more time to review and process.

Quality

Fixed-price development projects, by definition, are done on a budget. The developer or partner must complete the project within a specific timeframe. But even if the project does not have a strict time frame, it still benefits the developer to finish the project quickly to be profitable. Some developers may rush, take shortcuts or agree to projects without understanding the full scope and complexity.

Lastly, if the final result is of subpar quality, business owners will need to pay additional fees to the current developer to fix the project, settle for the current state of the website, or hire a new developer. In fact, many fixed-price projects end up in a state of “abandoned in design.” Often, the scope of work turns out to be much greater than initially estimated and the developer is forced to walk away from the project. Generally, due to not having the resources to fix all the bugs resulting from the shortcuts taken to deliver the agreed-upon scope.

The Time and Materials Model

A time and materials agreement generally involves an estimate from a developer or agency. The budget is not agreed upon ahead of time. Instead, the merchant receives a bill for an hourly rate for the duration scheduled by the developer. The final cost of the project is for how many hours it took the developer to do the work and the cost of any additional materials that were needed.

There are many more advantages associated with the time and material model when building eCommerce websites. Time and material projects are still very custom and the template is not as repeatable as say, for example, building a house.

Time and Material Advantages

Flexibility

Many would agree that a significant advantage of the time and materials model would be the flexibility of the process. As projects progress, objectives and needs often change. Further, when a merchant changes their mind during development, additional features can be improved. In other words, as the scope of the project changes and evolves, the development work can shift with it. For example, features can be added or removed halfway through a project. In general, the developer’s goal is to ensure the client is happy and the project is complete. With time and materials contracts, developers tend to not rush to the finish line hoping the job comes together.

Timeliness

With time and material pricing, merchants do not have to go through an RFP or bidding process. Business owners can quickly interview a developer or agency to discover hourly rates, certifications, and experience. The time and materials approach will help save time and allow most merchants to begin immediately. Further, time and materials contracts should provide detail to include the time spent on each feature. Transparency allows both the merchant and the development partner to stay on the same page and working towards the final goal.  

Cost Savings

Time and material projects tend to deliver more value per feature than fixed-price projects. Due to the enhanced efficiency of the time and materials development process since the change order process does not hinder it.  Also, the quality of the initial code build is often higher on a time and materials project since the development team is not being pushed to cut corners. High quality leads to cost savings over time since there are less bug and performance issues to resolve.

Time and Material Disadvantages

Time Commitment

With a time and materials pricing model, merchants must be willing to be an active participant in the development process. At the beginning of the project, it is crucial to lay out necessary features, the vision of the project and any business issues that will need to be resolving in the final project.

This type of communication provides the developer with a deep understanding of what the client needs to have at least a Minimum Viable Product (MVP) at the end of the project and allows the developer to provide feedback and suggestions for optimizations and functionality that the project could, or should, have. Then, over the course of the project, the developer will send regular updates about the progress of the project and require feedback from the merchant. While this aspect allows for flexibility and transparency, there will be a significant input and commitment expected from the merchant or client.

Budget Changes

With a time and materials pricing model it can be difficult to estimate what the final cost of the development project will be. In some cases, a merchant will require easily implemented features. For others, the project may be much more involved than initially anticipated. Initial estimates may change as additional features need extra development hours.  

Which is the Best Choice or Which Seems Like the Less Risky Option?

Experience has shown us that for many Magento development projects that the time and material pricing model is often the best choice. Many times, fixed-rate contracts lead to a low quality finished product which creates a lower ROI and long-term bug and performance fix costs (technical debt). During the development phase of a project, the client is generally responsible for resolving any unexpected issues that arise that weren’t part of the original scope of work. Further, with a fixed-rate model, the developer makes a more substantial profit with fast completion. Quick completion undoubtedly causes a rushed job and cut corners.

An unknown budget or even one with an investment range may seem daunting. However, if merchants partner with a trustworthy and experienced developer, the developer will provide regular budget updates and even agree to put a hold on work at the end of an hourly limit before project completion. Additionally, the lack of fixed-time constraints means that the developer can provide the best job possible given the agreed upon budget constraints.
 
And then there is the time commitment. It is true that a time and material pricing model does require business owners to be heavily involved. This should be considered a good thing. Involved merchants can be sure that when the final product is complete, it will be exactly as required.

While each pricing model for website development has its pros and cons, the best way to decide between the two is to base it on which one will best suit the needs of the merchant company and the format of the project.

Contact us to learn more about our development processes and how we work with our clients.

Allocating Digital Marketing Budget Funds for Optimal ROI

Allocating Digital Marketing Budget Funds for Optimal ROI

Digital Marketing Budget Allocation

With ever-changing developments in technology, digital marketing is always evolving. Knowing where to allocate marketing funds while proving ROI is a challenge for many merchants. When planning a digital marketing budget for the future, it’s important to examine which strategies will create the best return on investment.  

A challenge that merchants and business owners face is choosing the right people for the job, allocating the right amount of resources for each area, sticking with the plan over the course of its lifespan, and determining whether or not the strategies were successful.

We’ve cultivated some helpful advice for planning a digital marketing budget with tips on how to start planning, ways to start building a budget, how to measure performance, and when to ask for help.

Analyze and Create a Plan

An ROI focused marketing plan should always center around business goals. Make sure these goals are clear-cut and actionable. Further, It’s important to make sure that everyone is on the same page for determining business goals and objectives. As objectives are defined, start to plan specific approaches for each area. Analyze percentages, statistics, and dollar amounts on previous marketing spend, to help visualize what is needed to achieve those goals. Consider what resources are required for each activity to be successful. Keep in mind that in-house efforts still require an investment of time, research, and other resources that may not be immediately clear.

During the planning phase, be realistic about goals and what can be accomplished to achieve them. Create a timeline and break certain aspects of the initiative into manageable stages. For example, decide what needs to be completed for the next quarter, or by the second month of the fiscal year. Take into account the size of business, and the amount of work that can be accomplished in-house.

Measuring Efforts

ROI is an essential metric used to figure out which campaigns and strategies were most successful. By tracking ROI, it is possible to see which areas of marketing are working and which aren’t. When crafting a plan for the next few months, think about which strategies have been most successful in the past. Analyzing past efforts is an excellent opportunity to learn from past mistakes. Using tools like Google Analytics can be helpful to examine trends over a specified time, whether it’s a month, a quarter, or year over year.

Traffic and conversion rates are measurable but how is branding measured? Companies with healthy traffic and hearty conversions over an extended period can likely conclude that branding is doing well also.

Traffic, conversions, and branding all influence one another, and none of them exist well on their own

There are several additional tests and areas for optimization to measure. For example, analyzing the best time to post on social media. Are there certain times of the day or days of the week where customers are more active on social? eMail is another area to monitor. It’s essential to research industry benchmarks and learn when is the best time and day to send eMails. Analyzing key landing pages and performance is necessary as well. Try split-testing landing pages and product pages. While there are plenty of sources out there that claim to know the best answers for these areas, sometimes it just comes down to what works best for a particular business.

Create a Marketing Budget – A Formula For Success

When planning a budget, think about the current size of the company, and its growth trajectory for the future. Look to create a marketing strategy that can be flexible with the growth of the company. Next, scope out competitors in the industry. Think about what is needed to compete, or stay on top. Establish the top priority for the business at the moment.

Keep the target customer top of mind. Different audiences respond differently to marketing efforts, and there is no “one size fits all” marketing plan that will work for every business. There are, however, specific areas that can better structure a marketing plan to make sense in today’s digital world.

Three main categories drive a marketing plan and budget: branding, traffic, and conversions. In an article from The Good on marketing budget allocation, they describe the three critical factors and how they work together. Stating that “If one fails, they all fail, but branding is where the process begins. The more people know and like about you, the easier the rest of the marketing flow will be.” All three are essential when it comes to creating a plan that will accomplish the end goal.

Branding

Branding creates a distinctive style that is apparent throughout all aspects of a digital presence – social media, websites, and advertising. When people mention an industry, well-known brands come to mind first. It’s essential to establish an audience and customer following by providing informative, helpful content, and a deep well of useful resources.

Traffic

Traffic, both paid and organic, is measurable with Google Analytics but can be difficult to increase. An SEO strategy is vital for attracting a steady stream of organic visitors.  While paid traffic requires upfront costs, organic traffic has hidden costs as well. Creating attractive SEO friendly content requires expert care, creativity, and some tech-savvy.

Conversion Rate Optimization

Companies with measurable branding and a steady traffic flow who are unable to turn visitors into conversions are experiencing a problem. It is essential to make the path to purchase or ecommerce shopping experience easy, intuitive, user-friendly, and fast.  Customers require exceptional customer service and reliable products that solve problems.

When To Seek Outside Resources

Even for merchants with digital media pros already on the team, remember they’ll have to take time out of their already-busy work days to invest in a new marketing plan or strategy. To see real, measurable success across the board for digital marketing, merely doing SEO or PPC “on the side” isn’t going to cut it.

Analyze the current team to assist with efforts. Are there enough hands on deck to carry out a marketing plan to its full extent? If not, consider outsourcing efforts to the pros. An experienced digital marketing partner can help in both the planning of a strategy, the execution, and will offer different levels of services depending on what’s required.

Also, there are plenty of tools available to help marketing teams with their efforts. Tools like SEMrush allow merchants to perform competitor analysis. SEMrush can show which keywords competitors are using to drive both paid and organic traffic. A competitor analysis is a great way to learn what others in a particular industry are using and then offers ideas to get ahead. Tools can be helpful, but only if utilized to their full potential. In an article from Neil Patel on marketing budget spend, he discussed how he has seen clients spend a small fortune on tools that weren’t being used to their full potential or not used at all. While marketing tools are great, some are costly. It’s important not to throw money at the problem and hope tools work. Many services offer free trial versions or free versions for small businesses that can grow with a team. Be sure to monitor all tools used and remove any that aren’t helpful or productive.

Another plus for outsourcing marketing efforts to a partner is that they will usually have the knowledge, access to and experience with an array of tools to assist clients. A marketing partner and even third-party tools can help spend time and resources more effectively while automating a lot of marketing efforts.

Contact us to learn more about optimizing a marketing budget or on how to create a new marketing strategy for Search Engine Optimization, Pay-per-click, or Conversion Rate Optimization.

Preventing eMail Unsubscribes

Preventing eMail Unsubscribes

Preventing eMail unsubscribes

Cultivating a robust eMail database is key to successful eMail marketing efforts. In eCommerce, eMail is one of the highest converting marketing channels. In fact, according to the Direct Marketing Association, the ROI of eMail is 3,800%. Further, 72% of customers say they would rather receive promotional material via eMail than any other channel. eMail continues to be valuable for generating sales while delivering strong ROI.   

Monitoring and preventing unsubscribes is critical for continued success for conversions and sales in general. With 38% of customers reporting that receiving special offers is the top reason, they subscribe to an eMail list, keeping subscribers engaged is critical for business.

While some eMail unsubscribers are inevitable, there are proactive methods for preventing eMail unsubscribes to keep customers coming back for more.

Re-think Strategy

When unsubscribe rates are on the rise it’s time to re-think strategy. Generally, there are two main reasons for high unsubscribes rates – frequency and irrelevancy. Consider the frequency of email sends. How often are emails sent?. Is there a dedicated employee on staff managing an eMail campaign calendar? Do they know how many transactional and triggered eMails are currently set up? Has a strategy been put in place for automated eMails? How often are offer eMails sent out? When do new product eMails go out? Are customers receiving multiple eMails per day?

Sending too many eMails will quickly frustrate customers and leave them reluctant to open any eMails. It’s likely that even if they do not unsubscribe, they’ll select all and delete. Cart reminder eMails, special offers or company updates are great to send. However, multiple eMails a day can quickly turn off customers. Re-think strategy on timing and why.

In addition to frequency, relevancy is critical to preventing eMail unsubscribes. Customers join eMail lists because they made a purchase or because they wanted to receive promo offers, discount codes, and awesome content. Target customers with information relevant to their past purchases and interests. Understanding the customer’s needs and interests isn’t just important for eMail, it’s important for branding and growing a customer following in general. Make sure content is relevant to subscribers and remember that they signed up to get more information about sales or to receive a discount code. They did not sign up to have their inbox inundated with several eMails a day with irrelevant content.

Keep Subscribers Engaged

It’s natural for some customers to unsubscribe over time as interests and needs change. It’s nearly impossible to keep every subscriber long-term. There are, however, several strategies to improve eMail retention rates to keep subscribers as long as possible.

Personalized content is vital for eMail marketing. However, that doesn’t just mean making sure to use the subscriber’s first name. One element of personalization, for example, is allowing customer behaviors to trigger specific eMails. For example, when a customer engages with a particular product, they are sent an eMail with a discount offer for that product. Another example could be cart abandonment eMails. When a customer leaves a cart, they should receive a timely reminder eMail to finish the purchase.

Send every eMail for a reason. Try not to send mass quantities of blast type eMails, which are three to four times less effective than personalized eMails. Instead, make sure that each eMail serves a clear purpose tailored to the customer.

Track Unsubscribe Rates

Monitoring analytics is critical for proactive eMail management. If a sudden spike in unsubscribes does happen, having a solid handle on historical data can be extremely valuable. Proactive managers should know what type of content does well with customers, what may fall flat, and how to keep customers engaged. Most importantly, never ignore any unsubscribe rates. Unsubscribe rates can have a massive impact on sales and negatively impact business in several ways.

Why unsubscribe rates matter:

  • High unsubscribe rates can hurt sender reputation
  • They can even impact the ability to hit other customers inboxes
  • Unsubscribes can cause future eMails to hit spam filters
  • They can impact the bottom line since fewer customers are receiving special offers

When merchants have a solid handle on the types of eMail campaigns that are successful, it’s easier to avoid unsubscribes in the first place. By carefully tracking unsubscribe rates, merchants can do something about it before it becomes a problem. Analyzing the type of content sent out, the frequency as well as unsubscribe rates will give a good idea of what content is going to impact subscribers. It’s important to note that unsubscribes do happen. However, merchants can decrease unsubscribe rates and increase the number of long-term subscribers by being proactive and regularly monitoring eMail performance.

Be Proactive and Thoughtful with eMail

Sending genuinely useful and beneficial content is crucial.  Track the types of content that are most interesting to customers. Be sure to monitor which eMails increase open rates. Especially open rates above the industry average. Analyze what topics or offers increase click-through rates. Regular data collection and analysis will help to determine what content is genuinely beneficial to eMail subscribers.

Need assistance with eMail campaign and strategy? Contact us today to learn more about how we can transform your eMail marketing efforts and help you keep your subscribers engaged and converting.

To RFP or Not to RFP?

To RFP or Not to RFP?

Pros and cons for an RFP Process

Finding a new website development agency is never an easy task. Merchants are often running on limited resources, limited employees experienced in web development, and limited time. For those with a lack of knowledge in the field, the procurement process can be particularly daunting. Sometimes It can be a struggle to articulate what technically is required for the project or know what a realistic budget is. Therefore, merchants that put out Requests For Proposals (RFP) often do not fully understand what it is they need. Thus, the request for information in the first place.

The other option is to hire a partner or agency without engaging in a formal RFP process. Merchants who tend to go this route may feel comfortable explaining or requesting technical requirements needed for a new project without engaging in a formal RFP process. Perhaps they’ve worked with a partner before or are heavily involved in the day-to-day management of the website.  Regardless of the method used to hire a new partner and why, the process is essential. A new partner is likely going to play a significant role in the planning, building, and strategy required for a new project. Hiring the best partner for the job is vital.

There are pros and cons for an RFP process vs directly hiring an agency or partner. Understanding each will make it easier to decide what’s best for your business.

The RFP Process

Typically, the RFP process is time-consuming and regimented. When creating an RFP, merchants must request information in a specific, formal format. Meaning that businesses who respond to the RFP are limited in the information they can offer. Responses generally only provide the information requested. In other words, merchants will likely not receive alternative solutions. A lack of guidance can be challenging as frequently, the companies seeking RFPs in the first place are the very businesses who need the extra insight that would come from a scoping, or a get-to-know-your-needs call typical in a non-formal RFP situation.

Further, with an RFP process, it’s difficult for responders to sufficiently explain alternative solutions or offer creative, experienced input for optimizations. As the merchant, hiring an experienced partner that can not only fulfill needs but also provide alternative solutions that could simplify or enhance the project should be the end goal.

Pros of an RFP Process:

  • Receive multiple bids from a variety of partners
  • Learn more about what’s available in the industry
  • Easily review pricing

Cons of an RFP Process:

  • Often a time-consuming process (more responses is not necessarily a good thing)
  • Requires a significant amount of work and planning for the merchant
  • A formal process that often lacks creativity
  • Room for misunderstandings and communication breakdowns
  • Responders may not be technically capable
  • The process can put an exaggerated focus on price (Winner chosen may be based on price alone)

The RFP process often wastes a lot of valuable time for the merchant and rarely generates reliable information. Inexperienced developers win RFPs due to low price quotes alone. For complex eCommerce website development, particularly for large websites, bottom dollar isn’t always the best answer. No matter how tempting it may seem. Merchants end up paying for those decisions in the long run when things break, cost more than expected, or go unfinished due to inexperience.

A Non-Formal Approach

Merchants who already have technical experience or familiarity with eCommerce development often choose to write down their project requirements and skip the formalities of the RFP process. This approach still requires diligent research of the various development partner options. Merchants will need to review the types of services offered as well as particular strengths for each partner and case studies; ensuring they are confident in the agencies ability to perform the work needed.

It’s important not only to review technical capabilities, certifications, and price but also to decide if they’re people who feel like a good personality match. Personality and getting a good feel for how the partner will work is one of the advantages that the non-formal approach has over the RFP process. A large part of hiring a partner is creating a good working business relationship. A great development partner will have your back and be honest when it’s required.   

Pros of Directly Hiring an Agency or Partner:

  • Get the experience required
  • Generates reliable and valuable information
  • A more efficient focus on project requirements
  • Get started on a project faster

Cons of Directly Hiring an Agency or Partner:

  • Seeking new agencies requires a proactive approach
  • Potentially more costly due to experience

The non-formal approach requires a more hands-on approach from merchants vs. an RFP process. Researching and contacting various agencies will require some upfront effort and time. However, the process of getting to know different agencies will offer plenty of value. A new project will often require a certain amount of thoughtful brainstorming and planning. With a direct hire approach, partners will be able to advise and guide merchants through the process while offering solutions that may not have been previously considered.

Making a decision

Regardless of the approach to hiring a partner, it’s critical to do some due diligence when it comes to researching agencies and developers. Merchants often send out RFPs thinking they will gain free knowledge and a very objective view from bidders but don’t realize that the RFP process often hinders agencies in doing good discovery and to quickly focuses management on making a price based decision. For many industries such as non-profit organizations, competitive pricing is an economic necessity. Such is not the case however for Magento eCommerce development. Your agency partner needs to be able to provide a solution that requires a thorough understanding of business requirements. In addition to price, both knowledge and experience need factoring into a final decision.

Experience has shown us that there is often a lack of understanding and communication within the RFP process. Both parties experience wasted time, energy, and resources. Further, agencies regularly win due to pre-existing relationships with the merchant or because of emphasis placed on the final cost instead of the quality and integrity of the project.

While RFPs may seem like a good idea to receive similarly scoped information and quotes, the better solution is to take a highly communicative approach focused on the long-term quality and reliability of the potential partner.

If you are interested in learning more about our Magento eCommerce experience, or how we can help with your project, contact us today!