E-Commerce

The green market is booming and FAST. Determining who your audience is, who the market demographic is can't be stressed enough.

Right now, everyone (and I mean everyone) is trying to figure out who these people are and what they want. I've talked a lot about eco-chic and luxury green. But Alex Williams over at The New York Times summed up the 'green movement' and it's complexities succinctly in his article "Buying Into the Green Movement."

Here's my own exploration into the Mainstreaming of the Green Market. Just let me say, that marketers and business executives are scrambling to figure out the "Green" demographic. It's a real mishmash of theory and debate about what is eco-friendly and how to capitalize on this rather new interest by a population driven by consumption. Yes, I AM talking primarily about those of us who reside in the US. 

The market is largely dominated by LOHAS (Lifestyles of Health and Sustainability). They represent a $228.9 billion marketplace for goods and services that focus on the environment, social justice, personal development and sustainable living. This is a rapidly growing group of consumers. They are leading the "green" movement. Any marketing efforts should take this group into account. Most importantly they are looking for and loyal to companies that are committed to being ‘eco’ to the core. Greenwashing isn't something they look for nor will put up with. 

“Naturalites” represent about 25% of all US adults. While this group isn’t driven to purchase eco-friendly products, necessarily, they are very health focused looking for natural and organic consumer goods, especially food. 

To further complicate the green demographic profile, it's also being broken down by how green a person considers themselves to be - ie, what ARE they willing to give up to live an eco-friendly lifestyle?  "Light Green" is now a term being tossed around that represents a certain upscale lifestyle and market approach. People who represent this market are characterized by the following characteristics:

• Drive their SUVs to Whole Foods
• Do not expect companies to be perfect in order to be considered “green”
• Are beyond boycotts
• Drink organic wine after yoga
• Applaud convenience
• Looking for opportunities to reduce their environmental footprint through their everyday decisions
• Are educated and seek information from sources they trust
• Approximate age 35
• 94% women 6% men
• Median household income of $82,000
• 79% college educated
• 70% professional/post professional degree

Okay, there you go. Tip #2. Go get 'em tiger! Use this information and get to know your customers.

All data provided came from the Natural Marketing Institute, Idealbite and Lohas.com.

I get a lot of traffic to this blog for search terms about 'green' and 'eco friendly' marketing.

And, if you read this blog somewhat regularly, you'll know that I'm taking a web site and transitioning it into being 'green' and adding a blog component. It's an ecommerce site and the goal is quite lofty. You can see it in action here!

So, as always in an effort to keep it real and share what works, what doesn't and what's given me good return on my efforts, I'll be posting a daily green marketing tip until…well, whenever I run out of tips.  

Green Marketing Tip Numero Uno: Get your web site listed in directories.

Pay if you have to. It's worth it and probably isn't THAT much anyway. You want to be listed in directories where people who are looking for green information go. You also want other businesses to know about your business. You never know when a joint venture partnership will show up. The idea is to get the conversation started and get links coming into your site from targeted areas on the web.

1. Ethical Junction
2. Eco Street 
3. Redirect Guide
4. Green For Good 
5. Lime 
6. Live Green Or Die 
7. Green Providers Directory
   
8. EcoMall

Okay, there you go! First Green Marketing Tip…take it, use it, enjoy. AND as always, feel free to share and post your own green ideas.

I talk about this all the time - the green market going mainstream. I call it eco chic. Have you checked in with Oprah lately, or seen any one of the many YouTube videos (here’s a friend of mine over at Alive and Well TV) or how about the Home Depot circular advertising their energy saving appliances and the company’s green initiative – Eco Options?

If not, you must be living in a cave. Ah, that could be considered eco-friendly, I suppose. In fact, that would be truly living off the grid. Which brings me to my point.

What is eco-friendly? Is it hard-core living off the grid with composting toilets in a straw-bale house in the middle of nowhere (which is basically anywhere you can’t easily reach a Starbucks)? Or is it luxury living (have you seen the price of furniture that is FSC certified) with a new twist?

Does anyone really know?

I think not. There are a lot of terms floating around. A lot of retailers are looking to cash in on the ‘green movement.’ But is it legit? I mean, are these companies truly looking to be ‘green’ in not only the products they carry but their company mission statement and policies?

Face it, friends. The rush is on to capitalize on the market. Here’s one for you.  Mercedes-Benz has a green car. Yes. It’s true. The E320 Bluetec was named the 2007 World Green Car just last month.

Now, let’s stop and think about this. Mercedes-Benz reeks of luxury. Mercedes-Benz does not reek of self composting toilets. Smells more like luxury market with a twist to me.

There is growing interest in solar, hydro-electric, bio diesel and low impact living but again, how far is too far? What are we willing to give up as consumers and who, exactly, can afford these options? They aren’t cheap. They are supposed to be more cost effective over time but initial outlay is priced above comparable typical heating, cooling and gas efficiency solutions.

What about the health element? Living a green lifestyle IS healthier. There’s no price tag that you can place on optimum health - which brings me to yet another point.

Ever heard the term LOHAS? No, it’s not a Hawaiian word.

LOHAS (Lifestyles of Health and Sustainability) represent a $228.9 billion marketplace for goods and services that focus on the environment, social justice, personal development and sustainable living. This is a rapidly growing group of consumers. A real force to be reckoned with as we say down South. They are leading the "green" bandwagon. Any marketing efforts should take this group into account. And, they are looking for and loyal to companies that are committed to being ‘eco’ to the core.

Then, there are the “Naturalites” and while this group isn’t driven to purchase eco-friendly products, necessarily, they are very health focused looking for natural and organic consumer goods, especially food. “Naturalites” represent about 25% of all US adults.

The biggest point to make here is that the conversation has been started. Green is in. Eco is now chic. The market segments are beginning to be explored. Now, that the seeds of change have been planted, how are you going to participate? What’s your company stance? Will your garden grow "green" from the ground up?

1. The first time a man (or woman) looks at an advertisement, he (or she) does not see it.
2. The second time, he (or she) does not notice it.
3. The third time, he (or she) is conscious of its existence.
4. The fourth time, he (or she) faintly remembers having seen it before.
5. The fifth time, he (or she) reads it.
6. The sixth time, he (or she) turns up his nose at it.
7. The seventh time, he (or she) reads it through and says, "Oh brother!"
8. The eighth time, he (or she) says, "Here's that confounded thing again!"
9. The ninth time, he (or she) wonders if it amounts to anything.
10. The tenth time, he (or she) asks his neighbor if he (or she) has tried it.
11. The eleventh time, he (or she) wonders how the advertiser makes it pay.
12. The twelfth time, he (or she) thinks it must be a good thing.
13. The thirteenth time, he (or she) thinks perhaps it might be worth something.
14. The fourteenth time, he (or she) remembers wanting such a thing a long time.
15. The fifteenth time, he (or she) is tantalized because he cannot afford to buy it.
16. The sixteenth time, he (or she) thinks he will buy it some day.
17. The seventeenth time, he (or she) makes a memorandum to buy it.
18. The eighteenth time, he (or she) swears at his (or her) poverty.
19. The nineteenth time, he (or she) counts his (or her) money carefully.
20. The twentieth time he (or she) sees the ad, he (or she) buys what it is offering.

The list you've just read was written by Thomas Smith of London way back in l885.

How much of this is true today? All of it.

The single most important element of really excellent marketing is commitment to a focused plan and the coolness to hang in long enough to get into a prospect’s unconscious. It’s not easy but once you get in to the unconscious, you’ll find the place where most purchasing decisions are made.

I have long said that “eco friendly” is the way to go. It’s destined to be the next big trend in what Americans purchase.  It’s becoming fashionable to be eco friendly. I like to call it, eco chic.

It’s a marketers dream.

A totally untapped market area, just on the verge of explosion, with the sweet new smell of notoriety beginning to waft up to our collective noses through advertisements of hybrid cars, green building, organic food and clothing…

Ah, just like freshly mowed grass (but, um, not with a gas powered mower, of course)

The guys over at Treehugger figured this out quite a while ago. Online retailers are beginning to see it too.  

But the “search” is slow. By “search” (notice the quotes) I mean good content web sites that rank in the search engines and the actual search terms that are typed into the search engines to find the products and/or services. The two don’t mesh up. But it won't take long until they do.

While this is not unusual and not news that what is served up by the search engines isn’t what people are necessarily looking for, it is unusual for there to be very little competition. The web is so big and broad that rarely does it offer up an opportunity where there is an actual gap waiting to be filled without tons of competition that people actually WANT information on.

Remember, where there is demand, there is always a rush to answer the demand with supply. Competition will get fierce, fast. 

Eco-friendly isn’t new. There are many people into living eco-friendly lifestyles. You can look at it as a sort of underground movement that is just beginning to hit mainstream America – thus, it’s becoming chic, eco chic.

Want to get in on the eco bandwagon?

My advice? Do it. Now.

There's no time like the present and if you or your business is waffling on whether to get involved in supporting eco friendly products and/or services, you'll be left behind as the eco chic market trend moves into full swing.

I'd like to introduce you to Marketing and Merchandising Diva, Mandy Mercado. 

And, no, that's not a whip in her hand.

By day, she's an average online merchandising pro but with a "click" of her mouse and implementation of the Mercado software platform she magically transforms into a sexy, sleek, superdiva - able to add cross-sell items with a single keyboard stroke, able to set up promotions with a mouse click…she's…well…she's Super Mandy!

Mandy is the creation of the Mercado marketing team led by Randi Barshack (VP of Worldwide Marketing) and she's causing quite a stir.

Not only is there a full-fledged comic book of Mandy Mercado's adventures, the campaign includes a metal lunchbox packed with all sorts of sweat treats and a mug that displays the cartoon as hot liquid is added.

Even Mercado partners, CoreMetrics, Omniture and Power Reviews got in on the action. Each with a cameo showing in the comic book of their own superhero creation.

I  caught up with the brains behind the campaign, Randi Barshack, and she shared the inside scoop with me on the why's and how's of this ultra cool campaign. The campaign, Barshack explained,  is a series of 5 comic book episodes. Each one created to go out over the early winter months culminating in the final episode timed perfectly to coordinate with a new Mercado product launch.

You can check out all the episodes by following these links: Episode 1; Episode 2; Episode 3; Episode 4; Episode 5. 

The series with the lunchbox and coffee mug really kept Mercado on the top of the minds of the prospects and current customers who received them. And the feedback, Barshack said, has been very positive. They wanted to create something that was high touch, nostalgic and fun. For example, the lunchbox was filled with all sorts of candy everyone loved as a kid - pop rocks, jaw breakers, m & m's. The mug was sent during the busiest time of the year for online retailers (Christmas) with hot chocolate and a note saying "thought you might need a break right now…"

The timing and the execution of the mailers were coordinated to raise awareness of the new product launch, speak to issues ALL online business owners face and offer up usable information in a quirky and unusual way that was memorable.

All in all, it worked…fabulously. And, while Barshack couldn't give me a specific return on investment, the campaign did do exactly what it was intended to do…create buzz, create a memorable presence in the minds of the 400 or so prospects that received the campaign and open the door to ultimately increase sales.

Served up fresh on this Valentine's Day….it's looking like V-day 2007 might be a lovely day for online marketing.

Here's the breakdown:

• 64% of small business owners in the U.S. believe consumers will be making more purchases online for Valentine's Day 2007.
• 53% of small business owners plan to run special sales and marketing promotions this Valentine's Day, with online marketing beating out traditional print and advertising by a landslide.
• E-mail marketing ranks as the most popular promotional tactic method, cited by 66% of respondents, followed by other online methods, including paid search and banner ads.

And, wondering exactly what it is that people are purchasing? Flowers, food and my favorite…jewelry.

If you are like me, you might be wondering what consumers will spend on these items. Well, I've uncovered a bit of information on that very topic… 

• The average consumer will spend $119.67 on Valentine's Day. (up from from $100.89 last year)
• 2007 Valentine's Day total spending is expected to reach $16.90 billion.
• The average male is expected to spend $156.22, nearly double the $85.08 that the average female will spend.

Data collected from the National Retail Federation's (NRF) 2007 Valentine's Day Consumer Intentions and Actions Survey, conducted by BIGresearch for NRF

E-retailer Greg Shugar knows ties.

And, he should. This attorney gone "tie guy" has made it his mission to bring bargain basement pricing to a niche that is relatively untouched and unexplored - at least until now. I recently caught up with Greg and had the opportunity to ply him with marketing questions about his e-commerce site TheTieBar.com.

            

Q. Can you give a brief synopsis of why you created TheTieBar.com?

I was a practicing attorney for 8 years. I knew that buying new ties to spice up my work wardrobe would always be $50 a shot. This meant that if I wanted just 5 new ties for each day of the week, it would cost me almost as much as an entire new suit. So I asked myself, "why do ties have to cost so damn much?"

As drinkers of Trader Joe's famous Charles Shaw wine ("Two Buck Chuck"), my wife Gina and I knew that there was a demographic out there that believed that good wine didn't have to cost a lot (a bottle of Two Buck Chuck is $2.99).

So could this be true with silk ties as well? After all, was any neckwear label actually showing off how inexpensive their prices were? It seemed like it was the opposite (just like wine) - the more you spend, the better the product. My wife and I then spent almost a year researching everything - factories, construction of a tie, design, style - you name it, we were looking into it. We researched competition. We did it all, and we found that there was an opening to sell an inexpensive tie - but would anyone buy it?

We soon found out that if you put out a good product, regardless of the industry, people will buy it. I invite you to read our testimonials and media coverage (found on our website) to find out just how passionate our customers are about finding an inexpensive necktie.

Q. What's been your experience with eCommerce so far?

Online shoppers are demanding, and they have a very short attention span. If the color isn't exactly what they wanted, they'll let you know. If you don't impress them quickly with your website, they'll leave. With no salespeople, no music in your store, and no good smell permeating in the room, you really have to make a good first impression quickly.

Q. In doing business online it's always an issue of how to actually get not only traffic to your site but targeted traffic that converts. How have you accomplished this?

Our conversion rates on pay-per-click advertising has been very successful. It's important to have the right ad that lets people know where they're about to go to. We make it clear - ties are $15 and we have designs of stripes, paisleys, etc. So if you're looking for a $125 Robert Talbott tie or looking for a SpongeBob tie, we won't have it. Of course, it isn't full-proof, but it's the best we can do.

For organic search results, we are still working on coming up on the higher pages for the more commonly searched terms. But I have found that organic search clickers are more likely to be browsing than shopping.

Q. Are there any marketing strategies that work really well for you?

Our entire business premise is our best marketing strategy - that you can buy a great tie at a low price. Most of our customers hear of us through word of mouth. They hear that we're selling a high quality tie that should retail for $49.99 for just $15.00. They love the idea. They actually email us and call us just to tell us how happy they are to find a place to buy inexpensive but stylish, high-quality ties.

Likewise, each piece of press that we get draws great business to us. Again, it's new people hearing about our business premise, and apparently, they are relieved to find something like us.

Q. Was it your plan from the beginning to capitalize on such a niche category or did you just sort of fall into it?

As I stated before, we knew this niche was open. And it was open for a reason - no one wants to buy a 'cheap' tie. And for the most part, this is true. But when you sell them a luxurious tie at an inexpensive price, then you find your market. Still, I have heard from many people that "your ties can't possibly be nice if they're only $15." To those people, I say, "go shop elsewhere, you bore me."

Q. What makes your site different from other sites that sell similar items?

We worked hard to create personality and character for our website. With respect to the website, nothing was done by accident. We spent days (and lots of money) coming up with the perfect design and theme. The presentation is very professional, and the searching methods are user-friendly.

Most importantly, we listen to our customers. We receive lots of feedback on our website, and when it sounds right, we use it. We also offer users a chance to place each tie up against eight different shirt backgrounds, giving us the same advantage that brick and mortar stores have. We receive lots of positive feedback about this feature. You can take a look at it here.

Q. What are your plans for TheTieBar.com in 2007? (For example, do you hope to grow it into a mega site, add an online community, make a multi-million dollar company, etc.)

We have no big plans. We want to just keep growing the customer base, keep making stylish designs, and continue to grow our brand. Our expansion into pocket squares, cufflinks and shirts has been great, so we're always thinking of new products to add as well. But for now, we're just concentrating on what we have in front of us.

After months of interviews, research and pulling together information from marketing and technology gurus, the book I’ve been writing in conjunction with ProjectThunder (eCommerce Unveiled – Secret Strategies used by Innovative Marketers to turn Web Browsers into Buyers) is officially out!

The press release was sent via PRWeb. The podcast is scheduled and the shopping cart is all set up with the book via the ProjectThunder.com web site. We chose an eBook format for easy, instant access, a topic that needs to be discussed and tips, tools and strategies that actually work.

Since this blog is about innovative marketing techniques, I feel it’s only appropriate to offer a bit of shameless self-promotion and toot my own horn. So, here goes…the book is fabulously written and overflowing with cutting-edge, must-have information and secret strategies. You should go buy it!

Okay, if that didn’t work…well…hmmmm. I guess I could let you read an excerpt. You can get a look at it here: eCommerce Unveiled.

Happy Reading!

Oh, and if you decide you'd like your own version use the coupon code "sonya" (without the quotes) and you can pick up a copy immediately for $29! Enjoy!