POD: How to gain competitive advantage in a cluttered ecommerce market-

The Indian e-commerce scene has seen a meteoric rise. From a meagre $2.5 Bn in 2009, the number was an unbelievable $14 Bn in 2012. New players have come in and continue coming in everyday, buoyed by an increasing consumer demand and growing confidence in the online shopping model. Apparel seems to be the darling of the e-commerce players with every major player trying to ride on the success of the category online. 

With everything (and everyone) available online, how does a player differentiate itself from another with products/brands/offerings remaining essentially the same. The POD framework tries to answer this question using classic marketing success levers slightly tweaked to make it relevant in the e-commerce space. The model has one (or two) major assumptions. 

a. People can find you when they are looking for. You are visible to them and have a good recall.

b. You offer a decent user experience.

Using advertising and a good UI, any e-comm player can take care of the two challenges stated above. However, there still is a lack of brand loyalty in this space with the consumer trust yet to be established. In this scenario, how does a player now differentiate itself from others?

Lets examine the POD framework-

1. P-  Price-

Need I say more? The online consumer is smart and knows how to get the best bargains. She will check out all the possible websites where the product of her choice is listed and will go after the lowest price. Make no mistakes about that. Lately, there have been a lot of comparison shopping websites who aggregate listings from multiple players and lists the price for any product you search. The consumer will ALWAYS chose the least priced product (we will look at possible exceptions later). The price has to be competitive and should always be smart enough to adjust to market trends.

2. O-  Offers-

In a cluttered market scenario, the consumer has choices at all possible places. Its all about which choice sounds the most attractive. You have to make it sweet- throw in coupons, loyalty bonuses, discounts, freebies, anything that suits you. Remember, the consumer needs to believe that she is getting the best deal online from your website which no other player can offer. Offers not only let you lure consumers away from other online players but also from traditional retail markets. However, you might have to bear in mind to strike a balance so that your brand image is protected and not seen as a discount brand.

3. D- Delivery-

Alright. The consumer has found you, likes your price, delighted by your offers and is ready with her wallet open. Don't lose her now. Delivery is as important as any other element in this framework. While Cash On Delivery is a norm so we will not discuss it, its the delivery time which is very very important. The consumer is willing to wait to get her product but the wait cannot be insane. Anything beyond 4-5 working days and there is a high chance that the consumer will be lured away by competition. Longer delivery waits also lead to lack of acceptance for products on cash on delivery as it gives extra time to consumers to change her mind or find another bargain in the meantime. The mantra here is faster the better.

This explains the POD framework. Any player in the e-comm industry can win by establishing winning position in at least 2 out of these 3 elements. Anything less than that is setting oneself for a failure.

Cheers!

Abhishek

Wassup Economy!

A Close Look on Economic Trends through the Search Glass

A lot is being said these days on India's economic growth and progress. There is a fair amount of negativity in the recent times especially when it comes to macroeconomic patterns. Lets look at these  patterns from an interesting lens- Google search.

Why Google search-

The search box is a reflection of demand. People type in what they are interested in and trying to find more about. From online shopping to bollywood celebrities, its a reflection of what 150 million people in India are looking for. Hence it can estimate and predict the ground reality in many ways. 

Google Trends is a free google tool available online which allows us to look at searched topics and their patterns overtime. Lets look at the demand for key economic indicators in India and see if the economy is really going up or down.

Here we analyse Google trends for the last 10 years and see how economic indicators have progressed over the years. Remember, the number of internet subscribers in India grew more than 3 times over these years and so the hypothesis is searches should also grow three times to be consistent with the expanding user base.

1. Real Estate-

People's interest in buying their homes is a strong indicator of economic progress and new home sales forms a considerable portion in the GDP. Lets see how this stacks up on Google search over the last 10 years-

Searches for "buy house" and related variants showed a peak till about mid 2010 and since then has fallen considerably before showing marginal improvement in 2013 mid. On the other hand searches for "home loans", show a disproportionate fall indicating falling interest levels in buying new homes and properties 

So in the real estate world, things have certainly taken a hit as far as the consumer interest is concerned on Google search. Yet the real estate prices in major cities have shown an increase?

2. Consumer Savings-

In a falling economy, people are hesitant to spend more and tend to go for saving their money rather than spending it on goods and services. Trends for "Fixed Deposits" show an interesting trend where we see a sharp increase in interest over the years. Clearly search trends indicate increasing interest in savings till about start of 2011.

3. Automobile Sales-

Higher the auto sales, more money people have to spend and less hesitant they are to go ahead and splurge it on the machine of their choice. It's no secret that auto sales have taken a hit after the fuel price  hike and falling rupee. It clearly shows on Google search trends where searches for "car prices" shows a sharp decline after 2010-

and an even disproportionate fall in searches for "Car Loans".

4. Jobs and Education-

Unemployment is probably the biggest indicator of a weak economy and there are 2 instances when people look for jobs- When they don't have one or when they want a better one. 

Lets see an instances where people don't have one. Searches for "fresher jobs" grew since 2004 till about 2010 before falling again indicating on a whole more freshers are looking for jobs than ever, maybe a sign of unemployment?

On the other hand, interest in education especially higher education has shown a sharp fall- definitely not a good sign. Here we see trends for "mba" and "education loans".

5. Communication-

Not a direct indicator of economic growth but definitely a key indicator of how our government has performed when it comes to connecting people and developing the communication infrastructure. Searches for mobile phones one, in a country with ever increasing mobile penetration, would assume will show a spike atleast. Well this was true till about 2010 mid but surprisingly this also has shown a sharp decline post that- strange, isn't it?

Broadband penetration in the country is yet to pickup and that is very well reflected in the Google search box-

6. Other spending areas-

One of the biggest ecommerce platform on the internet is travel. Huge amounts of ticket bookings and travel research is done online. Increasing travel patterns also indicate rise in disposable income- overall a good sign for the economy. Overall searches for "air tickets" grew till about 2009 end but since then has shown sharp decline. Yet another sign that all is not well.

To Sum Up

Clearly trends are depressing and so is the mood. Hope things improve soon and we see these demand patterns rise like they should in a developing country like ours. 

Meanwhile, searches for "Salman Khan" keep going higher and higher :)

Disclaimer: The views are completely my own. Actual facts may vary.

How to write an awesome text ad

How to write an awesome text ad?

Text ads are a gateway to your product/brand's communication to an interested audience. In a world where an average internet user is used to seeing thousands of ads daily, how do you take the lead and ensure that you differentiate yourself. After all, every advertiser on Google search has only 35 characters to write their best possible message in a description line.

To unveil the mystery, lets map a users journey when they are searching-

Lets say a user is interested in buying t shirts online, so she goes to Google and types- "buy t shirts online". Here's what she gets-

She sees two sections-

1. Organic search results.

2. Paid search results.

Let's delve into the paid search results a little more-

There is space for a maximum of 3 ads to appear on the top, yet only one appears and then there are 8 ads that appear on the side positions.

Why is the first ad on the top?

Ad position is a function of your bids (maximum sum you are willing to pay for a click) and the quality score. For simplicity, lets assume all advertisers are bidding competitively. Then why is it that only one advertiser manages to appear on the top?

Quality score is a key player in determining ad positions and Click through rates are a key variable in determining quality scores. Hence, a high CTR typically means you are more likely to be chosen by users and hence you have better QS.

Lets dissect the first ad and see how it is different from other ads-

1. 50% discount in the headlines- Please note that no other ad has this offer in the headline. The advertiser has even reinforced the message by stating it twice.

2. Free shipping & COD- Except for a jabong.com ad on the side, no one talks about cash on delivery (even though many have it on their website). 

3. Ads on the sides talk about best price, Latest collection, wide designs, Taste of india etc etc- All qualitative terms which dont tell the user anything. (She might just assume that all websites have good quality of products) Where is the hook?

So, how do you ensure that with the 95 characters you have, you build a text ad so awesome that the users chose you every time and over time you build a competitive advantage at no extra cost?

Tips to build awesome text ads-

1. The Hook-

Biggest reason why anyone would click is the hook. Ask yourself, what is the hook that you have to offer? What is the one thing that will kill the competition and make you the winner? It can be discounts, freebies, cash on delivery, free deliveries, return policy, etc etc. It has to be unique and attractive.

2. Synchronizing with search terms-

Dont show a hair fall shampoo ad to someone who searches for shine shampoo, they will just not click. Its that simple. You have to be extremely specific while showing ads to what the user is typing. The more the better. This is digital and being specific works the best. Remember, the user has a choice.

3. Numbers work-

Numbers stand out. They look different, grab attention and raise curiosity. Always use numbers, whatever you might have. e.g- if your handwash kills 99% germs, use it! 

4. Use extensions-

Extensions are plugins that expand your ad beyond the stipulated space. Use these sitelinks-

a. Social Extensions- Integrate with Google plus and get the power of recommendations from people  right on your search ad.

b. Sitelink Extensions- Use sitelinks to expand your ad and divert traffic to multiple landing pages using one ad.

c. Call/Location Extensions- Integrate phone numbers and location information of your business to give users even more options to reach out to you and get expanded space.

d. Image Extensions (New!) - Look at these two ads, Which one are you more likely to remember? Image ad extensions are great for branding.

5. Custom Display URLs- 

Integrate your display URLs to match closely with what users are searching, this leads to much better reinforcement to the user that they will get exactly what they want if they click.

6. Special Characters-

Use special characters like exclamation mark in the ads to attract more attention. But use them sparingly as they might turn out to be irritating. 

7. Call to Action-

This is a must do. Buy now, Learn more, Find out, Get it now- Call to actions always work and are absolutely critical for the success of text ads.

That's it! Hope you find this useful and create ads so awesome that no one can give them a miss!

Cheers

Abhishek

What do you love by Google

What do you love?

Just came across this beautiful tool by Google called what do you love (www.wdyl.com).

With Google, we always expect awesome things but this one really takes the pie. What do you love is nothing but a collection of all Google products and platforms displaying things about the stuff that you love.

Just goto www.wdyl.com and you see the familiar Google search bar with a heart icon instead of the usual magnifying glass signifying this is not just a normal search but something special.

Just type in what do you love and see the magic! e.g.- I love manchester united and as a true red devils fan, this is what I get

This has everything I can possibly imagine about manchester united-

1. Translate manchester united into 57 languages (in case i need to! )

2. Google trends 

3. 3D logos.

4. Picture search.

5. YouTube on united.

6. Books search on united.

7. Maps search (takes me to united cafe & bar nearby, won't mind that as a fan)

8. Patent search.

9. Alerts.

10. News (very very useful)

11. Blog search.

12. Mobile search.

13. Discussion groups.

14. Gmail

and of course web search, phew!

With this available at my fingertips, do I need to go anywhere else? Great stuff, Google! You surely know it all

Facebook page vs Website

Website vs Facebook Page?

You are ready to venture on the web and are looking for the best possible strategy. You have two options in front of you- both equally tempting-

So what should you go ahead with? A website or a facebook page?

Lets measure the pros and cons of each-

Team Website-

Pros-

1. Fully customizable- 

Do whatever you want, host a game, use gesture control plugins, create sexy layouts and animations and sell stuff. Its all there- possibilities are only limited by your creativity.

2. Reach-

There are 2.4 bn people on the net worldwide, all of them do access websites- so you can effectively reach everyone.

3. Discoverability-

Your website can appear on search results, blogs, reviews etc. You are not only reaching out to more and more people, you are also reaching them better.

4. Brand Image and Credibility-

A website is definitely a better sign of credibility for your brand and company. It shows you are serious to reach out to your consumers in a more customized and brand friendly way.

5. You own the content-

Website is where you have full control, what goes up there has been reviewed by you over and over again. 

Cons-

1. Takes time-

Building a website isn't as simple as an FB page. You need to design everything from scratch to create your own layout, content etc.

2. Updating-

Keeping your content up to date would require constant changes and reviews, you might have to employ people and resources to maintain the website.

3. SEO-

Making a website isnt enough, you would need to invest time and money to make it discoverable through SEO and paid advertising.

Team Facebook page-

Pros-

1. Audience-

There are real people with an indepth historical data of their interests which they have volunteered to give to the world. You can monitor those people and derive millions of inferences. Truly a marketeer's delight!

2. Simplicity-

You can create a FB page in a minute. All you need is a desired page name and some images for your brand (not compulsory again). And its free!

3. Updating-

Simply post and your fans will see your message. Its easy and realtime without any real resources.

4. Interaction-

Reiterating on my first pro- there is real time interaction going on with your fans here- you get to know what they want, when they want and how they want it. There is real time feedback on your products and services too.

Cons-

1. Openness & brand safety-

There is just too much going on there, anyone can write anything on your fb page for the world to see. e.g. - if the fairness cream dosent work its very easy for Ajay to write on your fb page - "Your brand sucks" and your 2 million fan base will see it. If you delete the post, he might repost saying- "You deleted my earlier post". You'd rather stay away from FB in that case. Its known that people give more negative feedback rather than positive.

2. Boring layout-

You can't really do much on FB. Its not a site owned by you and hence you have no real control even if you feel FB layout is boring.

3. Concept not established-

We dont really know what people are looking for when they "like" your FB page or post. Do they like the brand? do they like the post? are they gonna buy stuff from you? Does it impact awareness, consideration or purchase? No one has an answer.

Okay, so now you know pros and cons- how can you have a wholesome digital strategy- The answer dosent really lie in picking one over the other. Simply put- You need both but if I have to pick one, I'd chose a website for reasons highlighted earlier.

1. Create a website- 

Give it your best shot. Make it sexy and people will visit in hoards. What content to put?- You are the best judge. Make it discoverable- Use SEO, SEM, referrals- basically everything in your kitty to get it in shape. It might take time but the results are worth it. Invest right amount of time and resources for it is  your image in front of millions of people.

2. Create an FB page-

Understand your brand- Is it loved? Do people talk good about it? Will people like to talk to you? If yes- then go ahead and create that page. Put tonnes of engaging content and collect those likes and treat it is an extension of your website and your representation on social media. It really is very simple and free!

So the final verdict is - they both go hand in hand and not one over the other.

Cheers

Abhishek

Gesture controlled website by Kerala Tourism

Kerela Tourism- Way to go!

Kerela tourism came up with something really interesting- a gesture controlled website!

How it works?

1. You goto when-it-rains.com on your chrome browser and you'd see this-

2. Click on "Enter" and allow webcam permission when Chrome asks you for permission and there you are!- A website you can control through hand gestures- you can scroll through the pages- up, down, right and left using your hands as a signal. Try it out- its pretty neat!

The webcam picks up signals and gestures and the website operates.

While its a simple implementation of "gesture control technology", the possibilities of this are endless.

1. Imagine signaling your laptop to play the next track while lying down in your bed .
2. Move around and gesture your laptop to change slides while you make that important presentation.
3. Gesture through a YouTube playlist to find the right video.
4. and of course gaming- umpteen possibilities there.

Really excited to see this coming from Kerela tourism- this sure would give them a lot of PR.

Cheers
Abhishek

Digital Marketing- Nothing digital about it!

Digital Marketing- Nothing digital about it!

Very often I meet people (brands/companies) who are really buoyed about "innovating on digital", "trying something new", "experimenting on digital" and so on and so forth. Its really encouraging to see people all set to go and take a leap into this dynamic and ever so changing world of digital marketing.

But the question still lingers in my mind- is digital marketing really about digital or is it about marketing? To answer this question one has to clear his/her mind and put oneself in the shoes of the people we are doing all this for- not you, not me, not your boss (or my boss) but for the people who pay for all of this- the end consumer. 

So what does a typical end consumer want? Does she want to look at your innovations? Does she want to see your ads? Does she want to look at why brand x is better than brand a,b,c? The answer in most cases is No. An end consumer has a need. The need can be to get entertained, to book a ticket, to buy a phone or to simply checkout the photo of her best friend in her social network.

As traditional marketeers, we are used to one way communication. Someone is watching a movie on their TV- shove an ad right there. Someone is reading the morning newspaper for expert comments on last night's cricket game- why not place an ad there! While the traditional mediums allow users with certain degree of freedom to ignore your message (switch channel, turn the page etc). Digital mediums come up with a unique challenges for marketeers- placing the end consumer above all else. Your end consumer can totally go around with her business and can be completely immune to your message, while you burn your money away to glory. But consider a scenario when you solve the need your end consumer has. The consumer will come running to you and you will reap rewards.

So today I am going to talk about the basics or should I call it Marketing- 101 (I am choosing to ignore "digital" consciously). Here is what you can do to cover the basics (or the 4Ps)-

1. Product-

What does your brand have to offer to the end consumer. Is it in-tune with what the consumer wants? Is there enough demand for your product/service online? Do you see the audience on the internet your suitable TG? If the answer to any of these questions is No, you might have to go back to basics and re-look at your offering.




2. Price-

Remember internet increases accessibility. You are discoverable in numerous ways you can and cannot control. You are visible and so are your competitors and alternatives. This gives the end consumer enough incentive to make a decision and often price plays an important factor in the consumers mind especially when differentiation is low/not visible. Hence, it is important to stay sharp- more than ever.

3. Promotion-

The average internet user is used to hundreds and thousands of ads. How many times we login to a website and see 20 banners in a single page? Do you remember any of them? They all are trying to drive one message- constantly trying to promote their product hoping to reach the right audience. Do you want to be the 21st banner on that page? I shouldn't even answer that! Reaching the right audience who are interested in your products and will be interested in it is very very important.

4. Placement-

Congratulations! Your 3Ps have worked. The consumer is looking for you hoping to find you and reward you. Can she reach out to you before your competition reaches out to her? Can she locate your website/social page/video destinations/twitter etc etc. If she can't I wouldn't even recommend any of the previous three Ps.

So its not really digital that I am talking about here, its just plain old marketing 101. Innovations can wait, basics can't.

Cheers,
Abhishek