Kikabink News

A recent MarketingSherpa case study is instructive for anyone selling a high-priced subscription or membership based product or service, and wishes to boost renewals.

MarketingSherpa profiled Corbis, a photo licensing agency, which was having difficulty handling the renewals of its content licenses.

The solution? To introduce a process for identifying licenses about to expire and allow sales representatives to target those account holders with about-to-expire licenses and persuade them to renew. Sounds simple… but Corbis had licenses covering 4 million online images with varying types of licenses as well as varying license periods. Around 7,000-10,000 image licenses were expiring each month. And at the time only about 2.5 percent of those licenses were being renewed.

Corbis developed a renewal program that used automated emails to remind clients that their licenses were about to expire, and gave a prioritized list of account holders to sales reps who could then contact the relevant members. While this is relatively easy to set up in most off-the-shelf membership scripts, it’s not so easy when you’re a large company and need to modify existing technological infrastructure.

Essentially, the steps which Corbis took - and which YOU can model, especially if you’re running an expensive membership program - are as follows:

1. Automate the sending of reminder emails to members whose membership is about to expire;
2. Automate the sending of emails to you (or your staff) about the members with accounts about to expire (e.g. by email). Ideally prioritize account holders based on renewal value or other relevant factors; and
3. Call those clients (in order of priority).

Corbis’ automated email efforts resulted in doubling its online renewal rates – from about 2.5 percent to 4-5 percent. The follow-up calls further boosted renewal rates to 10 percent in some locations.

What I find particularly compelling is the use of follow-up phone calls. So many Internet marketers seem averse to contacting their customers by phone… but if you have members paying, say, a few hundred dollars per month, isn’t it worth it?

Source: MarketingSherpa, “How To Double Renewals with Triggered Emails and Sales Reps: 6 Steps”, MarketingSherpa, November 6, 2008

Today I reproduce an email sent to me by a Kikabink News subscriber (published with his permission).

WARNING: if you are easily offended, don’t read on.

If, on the other hand, you’re ready for a rather confronting article, go ahead. It’s controversial… I don’t necessarily agree… and it’s definitely food for thought (if you think deeply about the underlying ideas)…

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“Websites that Hypnotize Your Prospects… and COMMAND them to buy! Hypnotic Websites, Hypnotic Email Messages, Hypnotic PR… We’ll show you step-by-step how to create marketing that literally tricks your prospects into obeying your every command…

“Steal this”

“Murder your job”…

and the list goes on.

Can you show me any reason other than greed, as to why anyone would tell you they have a way to MAKE people buy your items? Can you tell me why we have to “steal” this or that to make it on the Internet?

What is wrong with the old fashioned way of selling?

Do a sales page and whatever else it takes to bring prospects to you, and if they want, they will buy. Hell, do a 33 page sales page as some do, but do it right and honestly. Would you want someone to sell you something you do not need just because they found a way to MAKE you like it or think you want it?

Here is an example for you and a crude one at that: would you want someone to put a drug in a drink and take advantage of you, against your wishes? Now you may ask, “what has that to do with Internet marketing?” The reason is that in both cases someone is taking advantage of you in a way you would not normally want.

In your right mind you would not want to go anywhere with someone who spiked your drink, just as in your right mind you would not buy something you really don’t need.

And what about the people who tell you to “steal this” from someone.

Why should I have to “steal” anything? I know it’s a gimmick, and the idea is not really to steal anything. But the use of “stealing” still leads people to believe they’re getting something for a cheaper price. And, if you think about it, such language is appealing to that part of people that is negative and greedy.

I don’t need to steal anything and I don’t need to cheat or dupe people into thinking they need to buy from me. This Internet marketing business should be honest, but it is getting worse every day. Why not call it the “IM419 Marketing”. If you don’t know what a “419er” is, go to Google and search on it. You will find out what I am talking about.

Why should anyone have to “trick” “steal, “kill”, “hypnotize”, “lie” and so one to sell a product? All of those words are negative and appeal to the base side of all of us. Do we need to be criminals to participate in the Internet marketing arena?

If a product is good and serves our purposes then we can buy it. We do not need to be browbeaten and lied to. Nor should we be told how to cheat others to sell. A good sales letter of a few pages to a few dozen should do the job. I don’t think anyone should advertise for a company that advocates what these people are saying.

Besides… what happens when someone wakes up and realizes they have been screwed? Refund time and a host of other problems they wouldn’t have experienced had they been honest. If your product is good, then sell it proudly and with honor. If it is bad, then redo it and try again. How much more simple can it be?

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What do you think? Agree? Disagree?

If you’ve been involved in email marketing for any length of time, you’ll probably know that building a responsive subscriber base is a matter of attracting subscribers who are genuinely interested in what you have to offer, and sending them content that compels them to take the kind of action you want them to take.

Do both and you’ll experience relatively low unsubscribe rates, high open rates, high click-through rates and high conversion rates.

Sounds simple… but when it comes to providing the right content… what exactly IS the right content? Is it necessarily articles or sales promotions? Is it both? In what proportion? Should both articles and promotions appear in the same email (as in this newsletter) or should they be sent separately? Or should you send both kinds of emails? And, if so, when should you send each kind?

The answer is, of course, to test what works best with YOUR audience. But before you jump into testing… you need something to test. In general, I recommend modelling yourself on a business that is doing well. We have done that with Kikabink News and Success Accelerator which are both somewhat based on the newsletter + solo promotion model used by direct response marketing companies such as Agora, Inc. Then it’s a matter of surveying readers and testing things to elicit ever improving results.

So what kind of insights are you likely to get when you survey and test? Well, consider a recent MarketingSherpa case study about a pet supply company. The company split-tested sending an email with (a) a promotion (including image and copy) at the top of the email and a link to an article below the promotion, and (b) a link to the article at the top of the email with the promotion below. In both cases the article link was actually a hot-linked title (and an appealing title at that) which led to a page where people would see the (short) article, along with various promotions.

Interestingly, version (b) achieved 7 percent higher click-throughs and 6 percent higher sales conversions than version (a). In other words, not only did the article attract more click-throughs, but people who clicked-through to the article tended to buy more than those who simply responded to the ad.

Now this does NOT mean that all your emails should now contain a link to an article at the top, with a promotion below. There are still many, many variables – the target audience for one and the landing page for another – that impacted on the pet company’s results. But the results do support the idea that email subscribers value non-promotional content… and that if they believe you are giving them something of value by way of a helpful article, they will be more willing to buy from you.

Source: Case Study, “Test Content To Create Best Layout To Boost Email Revenue, Conversions, CTRs”, MarketingSherpa, November 5, 2008

Here’s another of those issues that stirs up lots of opinions: web design. Is the ideal website one that’s attractive or creative? One that includes plenty of images, graphics, photos and videos? Or one that is nothing more than a plain, white page dominated by text?

As Internet marketers, our chief concern is usually not how a website looks for the sake of it. We want a website that sells, or at least gets the maximum number of visitors to take certain desired actions e.g. clicking on a link, opting in to a list, buying something, etc.

Well, in the direct response marketing world, the consensus seems to be that the simpler, more focused - and less complex and distracting - the design, the better.

But what about images? Does a picture tell a thousand words… or do a thousand words tell a thousand words?

Writing in Early To Rise, David Cross reports the findings of a number of eye-tracking tests conducted by Nielsen Norman Group. In these tests, people were asked to perform a variety of tasks on different websites, ranging from ‘open an account’ to ‘buy a black suit with a blue tie.’

While the subjects went about their business, hidden infrared cameras tracked their eye movements. This allowed the researchers to create ‘heat maps’ to depict which parts of each webpage drew the most attention.

The findings led to David Cross concluding that, when it comes to a webpage:

• Banners and ads - and anything that looks like them - are ignored, regardless of their location on a webpage.
• Images are ignored. Those surveyed paid little attention to images, except for looking at faces and private body parts.
• Study participants fixated on text.

According to Cross, for most websites the visual design and layout is secondary to its text content. As such, his advice is to:

1. Make it easy for web visitors to both skim-read and read your text. Break it up with headings, subheadings, bullet points and other such devices.
2. State the most important information in the first two paragraphs of text.
3. Begin with useful information that makes it easy for visitors to understand what you offer and to find what they’re looking for.

On the whole, I find this research - and David Cross’s conclusions and suggestions - compelling. And Cross makes a good point:

“Almost all the websites and e-mail promotions that took Agora Inc., the parent company of Early to Rise, to its first $100 million in online sales were about as un-designed as you could imagine. They were mainly all text and headlines. In fact, Agora’s websites looked - and still look - very similar to the longer direct-mail sales letters you receive in the mail. According to many Web designers, these sites shouldn’t work any more than a bumblebee should be able to fly (because it breaks every rule of aerodynamics). But fly it does.”

And we haven’t even addressed the value of text-heavy webpages for search engine optimization purposes!

However, I urge you not to dismiss the need for good web design. A well designed website does NOT necessarily mean a complex, image-intensive, Flash-driven website. A well designed website may well be one of those plain sites used by Agora Inc.

Good design actually supports the content and coaxes the visitor into performing a particular sequence of desired actions, such as: (1) Read headline, (2) Read sub headline, (3) Read opening paragraph, (4) Read sales copy, (5) Buy product!

Good design also ‘frames’ the content and encourages the visitor to stay on the page. Through a certain combination of colors, the positioning of certain elements, and even the inclusion of an image here and there, it encourages the visitor to perform those desired actions.

And even though minimal attention will seemingly be given to any images - or any other design elements for that matter - that doesn’t mean such images are not integral to creating an overall impression that gets the visitor taking the desired actions.

So while neither images, nor some exotic design, may help (and may actually hinder) website sales… let’s not think that design per se is unimportant or unnecessary.

Source: David Cross, “A Word Is Worth 1000 Pictures”, Early To Rise, October 10, 2008

According to Andy Jenkins, your prospects are all just ‘lazy skeptics’ who read your sales copy with two thoughts upper-most in mind:

“Why should I bother?”

“This can’t possibly be true.”

In other words, they don’t want to do anything they perceive as hard work - whether it’s taking out their wallet or following your home study course - and they don’t believe what you’re saying anyway.

If true… such beliefs surely lie in the way of converting your prospects into customers. So how do you overcome such barriers and get them to buy from you.

Andy Jenkins recommends harnessing your prospect’s inherent laziness and skepticism to your benefit. To do so, you emphasize how EASY it is to take the desired action… and that what you’re offering DOES sound too good to be true (appealing to their latent skepticism) but really isn’t.

Take a look at Andy’s article for how he recommends you do this, but here are two ways you might appeal to/dismiss prospects’ laziness and skepticism respectively:

1. Laziness

Use words such as ‘easy’, ’simple’, ’step by step’, ‘in just 3 steps’, and so on. For example, which of the following appeals to you?

“A weight loss guide”

“An easy-to-follow, step-by-step guide to losing weight”

2. Skepticism

Agree with the prospect (never DISagree with them!) that what you’re offering sounds too good to be true and provide a LOGICAL reason why your solution is an exception to the rule. For example, if you build up the value of a software program to such an extent that it could reasonably be worth hundreds of dollars, but then offer it for just a fraction of the price, a skeptical prospect may wonder if the product really is as good as you say it is. To combat that response, you might use a logical argument that, for example, you wish to ‘beta test’ the product among a select group of people before you formally launch it, or that you are offering the software as-is with no helpdesk support, etc.

Source: Andy Jenkins, “Use Emotion AND Logic to sell MORE”, StomperBlog, October 1, 2008