You can't claim to have lived in New England until you've gotten through a winter. The same could be said for e-commerce sites. Whatever track record you've had the rest of the year, the real proof that your online business is viable comes some time after the holiday crunch. Did you handle the high volumes without sacrificing customer care? Did you not only deliver the goods for current customers but also attract new ones? Did you, your staff and website emerge intact? Is your accountant smiling?
If the answer to these questions is generally "yes," then you should be smiling, too. But here's my advice: Think of the holidays as a stress test for your organization. You won't always be dealing with these kinds of volumes, but the best practices you embrace now will pay dividends the rest of the year.
In that spirit, here are some tips for the holiday season.
Use incentives to keep a steady flow
One of the most important safeguards against getting overwhelmed is to level out the volume spikes that can catch your organization off guard. The steadier the flow of traffic to your site, the better. Conversely, if 90 percent of your customers place their orders on Dec. 22, you're going to look unprepared no matter how much preparation you've made.
Begin by working out a set of incentives that will get your customers buying early. Possibilities include free gift wrapping, free shipping, two-for-one offers, coupon codes for later purchases, and, especially popular in today's economy, merchandise discounts and promotions. Then make sure your customers are aware of the offers by highlighting them on your home page. You can also e-mail your most valued customers, as long as you don't wear out your welcome. Finally, monitor the results to see what your customers are responding to. That knowledge will help you rev up sales during slow periods throughout the year.
Clearly communicate the true cost
The trend in e-commerce sites is to eliminate as many hidden costs as possible. Transparency is especially important during the holiday season, when customers have even less patience for unhappy surprises. Customers report that hidden shipping costs are the most frequent irritant--especially when those costs are unexpectedly high and only appear at the final stages of checkout. That ploy can lead to shopping cart abandonment--the merchandise is at the "register," but the customer has departed.
Instead, let customers know as soon as possible in the process what shipping will cost. Most of us know what it costs to mail a package, so keep those costs in line with customer expectations--or go one better and offer free shipping as an option. Some customers will always want more expedited shipping, but all will appreciate the opportunity to get standard shipping for free. And again, that's true not only during the holidays, but throughout the year.
Take customer support seriously--but let's chat
The time has long passed since the days when an e-commerce site could hide from its customers by not responding to queries. Phone calls are usually best, but not every online company has the resources to handle them, especially during the holiday crunch.
What to do? Resist the urge to bring in people who can answer the phone, but lack the expertise to truly represent your store. A badly handled call is worse than an unanswered one. Instead, consider online chat. The medium isn't as personal as the phone, but skilled representatives can conduct five or 10 chats at once--and customers will quickly recognize whether the people at the other end know what they're doing. Of course, e-mail can also be effective as long as you're diligent about responding quickly--an e-mail black hole is worse than no e-mail at all. And what if you're truly underwater from customer queries? Apologize, get a number and a good time to call--and call back.
Use "heat map" technology to track what clicks
Here's another place the holiday stress test can serve you well in the coming year: tracking what people actually do on your site. Companies like CrazyEgg, and Clickdensity offer services that can show you how people are navigating your website, with the ability to experiment with new designs that are more effective. While the holiday season is no time for a major redesign, you can make quick fixes, and then use this invaluable data to make bigger changes later on.
Improve checkout
One reason people have flocked online for their holiday shopping is that when they're ready to check out, they're always first in line. So make sure you've exceeded customer expectations during those final, crucial mouse clicks. The key is to reduce the number of hoops customers must jump through, while giving them different options to pay. For example, the checkout process should securely retain customer data so that people don't have to re-enter their information with each purchase. You should also offer a variety of payment options so that shoppers can use their preferred payment method, including a buy now, pay later plan, which is especially important in these cash-strapped times.
When your customers check out, they should also feel safe. Over the past few years, many people became online shoppers only after they overcame their fear of making online transactions. Once they had a good experience, they returned online for more. In that sense, every successful online transaction is a win for our industry as a whole. So do your part: Make sure your customers are feeling safe by giving them a truly secure method of paying.
Tuesday, 24 November 2009
Monday, 9 November 2009
What is a Debt Management Plan
The economic downturn has led to debt taking centre stage in the media and news coverage. But debt certainly is nothing new. Consumers often depend on their credit cards, purchase household items with a credit line and take out loans and mortgages. So debt is, for many, simply a part of life.
Traditionally, when debt becomes too difficult to manage, individuals find themselves bankrupt. And while most of us know what bankruptcy is, far fewer of us are fully aware of other alternatives, such as debt management plans.
A debt management plan is, effectively, an informal agreement made between the debtor and the creditors. More of than not, this is negotiated with the assistance of a Debt Management company. The way it works is for the company to establish what you can realistically afford to pay off your debts each month. You must have some form of income and be able to pay at least something. They will take into account your income and living expenses to work out what you can afford to pay off your debts each month and then approach your creditors. Often, the debt management company will attempt to negotiate your outstanding balances down one way or another or to freeze interest. However, because the approach is informal in nature, the creditors are in no way obliged to accept any offer. If your creditors do agree to the offer, you will simply make one monthly payment to your debt management company. They will then divide this accordingly between your creditors for the duration of the debt management plan. This is often five years, at the end of which time your debts are considered to be settled.
Because of this effective timeline of being out of debt, the debt management plan is proving particularly popular. However, if you debts exceed £15000, you’re unlikely to be eligible and may instead have to look into the more formal, legal alternative of the IVA.
Traditionally, when debt becomes too difficult to manage, individuals find themselves bankrupt. And while most of us know what bankruptcy is, far fewer of us are fully aware of other alternatives, such as debt management plans.
A debt management plan is, effectively, an informal agreement made between the debtor and the creditors. More of than not, this is negotiated with the assistance of a Debt Management company. The way it works is for the company to establish what you can realistically afford to pay off your debts each month. You must have some form of income and be able to pay at least something. They will take into account your income and living expenses to work out what you can afford to pay off your debts each month and then approach your creditors. Often, the debt management company will attempt to negotiate your outstanding balances down one way or another or to freeze interest. However, because the approach is informal in nature, the creditors are in no way obliged to accept any offer. If your creditors do agree to the offer, you will simply make one monthly payment to your debt management company. They will then divide this accordingly between your creditors for the duration of the debt management plan. This is often five years, at the end of which time your debts are considered to be settled.
Because of this effective timeline of being out of debt, the debt management plan is proving particularly popular. However, if you debts exceed £15000, you’re unlikely to be eligible and may instead have to look into the more formal, legal alternative of the IVA.
Wednesday, 4 November 2009
Effective Ways During Tight Economy
Tipping in a recession is a dilemma. Do you stick with the 18 to 20 percent formula or retreat to 15 percent? Do you skip an appetizer, a glass of wine or a dessert to lower your dining bill and thus your tip?
It's a subject that millions of diners and travelers are wrestling with.
A lot of people whose income has vanished or shrunk because of layoffs, salary cuts and shrinking fixed incomes have cut back. Instead of going out to dinner every week, they settle for once a month. If they take a trip, they trade down, choosing less-expensive accommodations and restaurants.
As a result, minimum-wage wait staff, bellhops and hotel housekeepers have taken a huge hit, if they're not among the nearly 10 percent of workers who are jobless. There is nothing wrong with cutting back, but give pause when you think about stiffing your waiter or hotel maid to save a few dollars.
"I believe that customers are tipping a smaller percentage of the bill," said Michael Lynn, a professor at Cornell University's School of Hotel Administration. "I base that on anecdotal encounters, lots of things on the Internet - servers say they are making less money." A server quoted in The New York Times put it this way: "In New York, the average tip is 20 percent, though some tip as low as 15 percent and some as high as 30 percent. These days our tips are closer to 17 percent, with a range of 10 to 25 percent.
"This drop in tips registers to $60 less a night. Over five shifts a week that is $300 less per week! But we are working just as hard as we used to, perhaps even harder, trying to get people to forget their troubles for a few hours. ... It's not fair for people to take out their economic troubles on the server. If one cannot afford to tip, then perhaps that person should be ordering less." Lynn, who has done extensive research on tipping, said that "during bad economic times, people become more price-sensitive."
At hotels, Lynn said, only two-thirds of guests normally tip maids, who should get $1 to $2 a night.
In bad times and good, Lynn said, servers can increase their tips by using tested techniques found in Mega Tips, published by Cornell's Center for Hospitality Research and available for free on the Internet (Google "mega tips").
Among Lynn's 14 points (most effective in casual-dining restaurants): Wear something unusual, introduce yourself by name, smile, squat next to the table, repeat customers' orders and write "thank you" on the check.
At hotels, it's hard to miss the bellhop, who usually gets $1 to $2 a bag, unless you are traveling light and politely wave him off. But there is little a housekeeper can do to earn a few extra bucks except to hope that guests remember.
If you are traveling abroad, where there also is a recession, keep in mind that tipping customs vary by country, so consult with your travel agent, a government tourist office or the worldwide tipping chart.
In Europe, many hotels and restaurants add a service charge to your bill, so additional tipping isn't necessary. In Japan, tipping is considered an insult. That feeling is changing, but it's best to inquire about the proper way to reward someone.
Even in a recession, there are no hard and fast rules for tipping. And whether at home or abroad, tipping is a personal matter. But however you feel about tipping, keep in mind that workers at the service end of the business are getting hit as hard as if not harder than anybody. Why not give 'em a break?
It's a subject that millions of diners and travelers are wrestling with.
A lot of people whose income has vanished or shrunk because of layoffs, salary cuts and shrinking fixed incomes have cut back. Instead of going out to dinner every week, they settle for once a month. If they take a trip, they trade down, choosing less-expensive accommodations and restaurants.
As a result, minimum-wage wait staff, bellhops and hotel housekeepers have taken a huge hit, if they're not among the nearly 10 percent of workers who are jobless. There is nothing wrong with cutting back, but give pause when you think about stiffing your waiter or hotel maid to save a few dollars.
"I believe that customers are tipping a smaller percentage of the bill," said Michael Lynn, a professor at Cornell University's School of Hotel Administration. "I base that on anecdotal encounters, lots of things on the Internet - servers say they are making less money." A server quoted in The New York Times put it this way: "In New York, the average tip is 20 percent, though some tip as low as 15 percent and some as high as 30 percent. These days our tips are closer to 17 percent, with a range of 10 to 25 percent.
"This drop in tips registers to $60 less a night. Over five shifts a week that is $300 less per week! But we are working just as hard as we used to, perhaps even harder, trying to get people to forget their troubles for a few hours. ... It's not fair for people to take out their economic troubles on the server. If one cannot afford to tip, then perhaps that person should be ordering less." Lynn, who has done extensive research on tipping, said that "during bad economic times, people become more price-sensitive."
At hotels, Lynn said, only two-thirds of guests normally tip maids, who should get $1 to $2 a night.
In bad times and good, Lynn said, servers can increase their tips by using tested techniques found in Mega Tips, published by Cornell's Center for Hospitality Research and available for free on the Internet (Google "mega tips").
Among Lynn's 14 points (most effective in casual-dining restaurants): Wear something unusual, introduce yourself by name, smile, squat next to the table, repeat customers' orders and write "thank you" on the check.
At hotels, it's hard to miss the bellhop, who usually gets $1 to $2 a bag, unless you are traveling light and politely wave him off. But there is little a housekeeper can do to earn a few extra bucks except to hope that guests remember.
If you are traveling abroad, where there also is a recession, keep in mind that tipping customs vary by country, so consult with your travel agent, a government tourist office or the worldwide tipping chart.
In Europe, many hotels and restaurants add a service charge to your bill, so additional tipping isn't necessary. In Japan, tipping is considered an insult. That feeling is changing, but it's best to inquire about the proper way to reward someone.
Even in a recession, there are no hard and fast rules for tipping. And whether at home or abroad, tipping is a personal matter. But however you feel about tipping, keep in mind that workers at the service end of the business are getting hit as hard as if not harder than anybody. Why not give 'em a break?
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