Monday, March 20, 2017 by Kristen HicksBuilding a business website costs time and money. If your business has managed all right without one so far, it’s easy to make excuses to put off dealing with it. But could that procrastination be hurting you? If you’re still on the fence about whether or not building a website for your business is worth the time and money, here are a few signs that it’s time to take the plunge and get started.
Wednesday, March 15, 2017 by Kristen HicksPricing is one of the most complicated parts of running a business. Items and services don’t have clear intrinsic value; they’re worth whatever people will pay for them. And what people will pay isn’t based on some logical set of standards. When faced with making a decision in the moment, what seems like a good or reasonable deal can be influenced by any number of varied factors. That means there’s a decent chance you could be making more money if you tried a different pricing structure or tested out different price amounts for your product. eCommerce price testing gives you the chance to see if a slight change in how your pricing works could make a big difference in how much money you bring in. But it pays to be careful and strategic in how you do it. Our guide will talk you through some of the best strategies to try and how to go about testing them out.
Different Pricing Strategies to TryTo start, you should pay attention to what research has to tell us about how people make purchasing decisions. Turns out, it’s almost never as simple as the lowest price wins. There are interesting psychological quirks that influence how people view pricing on a level they’re completely unaware of. Consider which of these eight pricing strategies that are backed by science are worth trying for your eCommerce business.
1. Try bundling.Every sale is an achievement, but getting multiple sales in one fell swoop is an even more profitable one. Bundling works by making it easier for customers to make a decision to buy more at once without feeling like they’re doing so. Instead of making five distinct purchasing decisions for related items or extras that they want, they can make a decision once to purchase a package that does it all. The result is the same in terms of what they get and what you make (or it’s at least comparable, bundling should often mean they get a better deal out of buying things together than if they bought them separate), but it feels like they’re getting more for what they’ve spent and they only have to make one decision instead of several, which makes them more likely to convert. Server Density, a website monitoring service, switched from a mix and match pricing model that gave customers the option to pick which of their services they wanted and the number of websites they wanted them for to providing three bundled options. While they saw a slight decrease in conversions for the latter model, the price per purchase was so much higher that they more than doubled their revenue.
2. Round down (or up) to 9.We don’t entirely understand why the power of nine works, but it does. Prices that end in nine consistently do better in testing than lower prices that end in any other number. If you have something on your website that costs $50 now, try making it $49.99 (or even $59). In one test that looked at how the same items of women’s clothing sold at $35 versus $39, people went for the higher price 24% of the time. And further tests have borne out the power of nine again and again. There’s something about the number nine that drives people to buy and if you’re not taking advantage of that information, you could be missing out on more profit.
3. Offer multiple options.This tip comes with a caveat. The research doesn’t just suggest offering multiple options so much as doing so strategically. In a famous example (in conversion specialist circles anyways), The Economist tried out two different pricing structures:
- An online only subscription for $59 and a print + online subscription for $125
- The same online only and print + online subscriptions at the same prices, plus a print only subscription option for $125.
4. Reduce syllables and length.At a glance, does $1,500 or 1500 look higher to you? If you take more than a split second to think about it, they’re obviously the same. But research has found that removing extra characters and syllables in how prices are written works to make amounts seem like less to us, which in turn increases conversions. A simple change to the formatting of your prices could make a difference in how your customers perceive them and whether or not they buy. It’s certainly something worth testing.
5. Use anchoring.As some of the examples shared here have already made clear, a lot of our perceptions of price have to do with comparisons we see. You don’t have total control over the comparisons a prospect can make against other websites, but you can control what they see on your own site. If you put two similar products next to each other on your site with very different pricing, people are more likely to see the one with the lower price as reasonable due to the comparison. This is also backed up by research. A study found that when even real estate professionals were presented with wildly inflated prices for the homes in a neighborhood and asked to name a reasonable price for a sample home nearby, they went much higher than the house was actually worth. You can use the same anchoring principle to potentially raise the perceived value of your own products.
6. Try reframing your pricing.Sometimes the same price expressed a different way can make a big impact. If you sell a subscription product, saying it costs $5 a month could well increase sales versus saying $60 a year. Even though people can do the math to figure out the two amounts are equal, one looks like less at a glance. Even if you don’t have a subscription product, you could try building shipping costs into your product pricing and offering “free” shipping. Even if the cost comes out to the same amount, it can seem to customers like they’re getting a better deal. Consider different possible ways to frame the pricing you offer now. The only way to know if people will respond differently to a new way of looking at your pricing is to test it out.
7. Change your fontThis is by far the simplest suggestion on the list, but one that researchers have found evidence for. Customers perceive prices as being a better value when the font size is small as compared to when it’s large and bold. Something as simple as testing out a different font size and type could pay off in more sales.
8. Simply try a higher price.While all of these psychological tricks could pay off, so could simply bumping up your prices by a little bit. The only way to find out if people are willing to spend more is to charge more and see if your sales drop or stay steady. You can always go back to the old pricing if you find your sales decrease enough to mean a drop in profits. The business eCommerceFuel increased profits by 30% by strategically raising prices. Be careful not to jump too high too fast, and consider starting with a few of your best-selling products rather than raising prices across the board all at once. Then pay close attention to how your sales compare under the new prices versus the old so you know whether or not the market will easily bear the updated price. If it does, then you’ve just increased your profits without doing hardly any work.
How to Test Out Pricing OptionsThe why of eCommerce price testing should now be clear. The what, in terms of different tactics to try has been well covered. What’s left is the how. You’ve got a few options for how to go about setting price tests up.
1. Set up A/B testing.A/B testing is when you launch two different versions of something so you can collect clear data on which works best. It’s commonly used to test out things like CTAs, landing page design, and email headlines. You can also put it to use to see how some of the strategies above work for you. You have to be really careful here, because you don’t want to risk angering customers or losing their trust by offering them two different prices for the same product on different devices or offering one customer a different price than their friend paid for the same thing. But quite a few of the strategies above can be A/B tested without running afoul of that risk. For example, trying out different font sizes and seeing if a change to how you write your numbers makes a difference should both be fine for A/B testing. If you don’t know how to set up an A/B test yet, the trick is really in the technology. You can find a number of different products that make it possible for you to set up A/B testing on your website, and a few are even free, in case you’re not quite ready to commit to a paid tool.
2. Test different strategies at different times.With any testing you do, it’s best to just change one thing at a time in the different versions of your website you release. If you both change the font and switch to a number that ends in nine at the same time, you won’t know which change accounts for any difference in results you see. If you test out each change, one thing at a time, over time you can make the various changes needed to optimize your website to make the most sales and profits. Also be sure to keep in mind other factors that can influence a change in results at different times. If you try a reframing or anchoring strategy in the midst of the holiday season, an increase in sales could have more to do with people buying gifts than with the pricing change.
3. Test different pricing strategies for different products.You don’t want to A/B test actual prices for the reasons described above, so what you can do instead is try out different pricing strategies for different, but similar products. If the product offering is different enough, testing out different prices won’t come with the risk of upsetting customers, but will give you an idea of what price points people are comfortable with. If a higher price works for one product, then you can extend the price increase to your other similar products as well.
4. Analyze results.Data can tell us a lot, but it can be misleading if you don’t always take the time to sit down and really analyze it. For every eCommerce price testing strategy you try, take time to review the results and analyze why they turned out the way they did. And then move onto the next test so you can collect more data and insights into how your customers make their purchasing decisions. Price testing takes time and work and comes with a bit of risk – if your products sell less for a time because the pricing strategy didn’t pay off, you’ll make less for that period. Nonetheless, the insights you learn from your testing can enable you to increase profits in the long run. A little hit tomorrow could help you make a lot more next year. The only way to know how much pricing changes and strategies can pay off for your business is to try them out.
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Sunday, March 5, 2017 by Kristen HicksDo you ever find yourself on a website that’s cluttered, hard to look at, or seems like it was designed in the 90s? Most people find themselves immediately skeptical of any information on a website like that. Whether or not it’s fair, we associate our experience of a website with how trustworthy the company is. 75% of users say they make a judgment about a company’s credibility based on their website. [bctt tweet="75% of users say they make a judgment about a company’s credibility based on their website." username="hostgator"] If the website itself doesn’t appear to be high-quality and well thought out, why would anyone believe the company’s work is any better? Your website is the main face of your business for most of your new prospects. You have to make a first impression that gives them every reason to believe your company is legitimate and trustworthy. That means creating a website that conveys professionalism.
8 Website Issues That Make You Look UnprofessionalIf you don’t want to lose your prospects’ trust the moment they land on your website, you need to avoid letting anything onto your site that looks sloppy or unprofessional. These are a few of the biggest offenders that could be losing you customers.
1. Bad designBad design can mean a lot of different things. It could mean your website’s design looks outdated. It could mean your home page is unattractive due to clutter, or that your navigation is unintuitive. Whether you have the kind of design problem that causes people to click away the moment they see the website, or the kind that makes them give up after a few seconds of not finding what they need, you have a problem. If you’re getting an alright amount of traffic but have high bounce rates or low conversion rates, then a bad design could be the culprit. What to do about it: Hire a designer. Fixing a design problem requires making an investment in a professional that knows how to design a professional-looking website. Spend some time looking for the right person or design firm. Look at samples of their work yourself and ask friends to do so as well. Do the websites they’ve designed before look attractive and professional? If you think your website looks good, yet are still concerned that it doesn’t seem to be doing its job, you may need a UX designer instead of a web designer. They’ll analyze your website in terms of the actions people take (or don’t) and what changes you need to make so that your website successfully urges people toward your goals. A UX project includes user testing, so you can be confident the website you end up with will be well designed to inspire action in your users.
2. Broken linksAny time one of your users lands on a dreaded 404 page, it means they aren’t finding what they need. And if they got to the error page through a link on your website, that disappointment definitely makes you look bad. Broken links are bound to happen over time as websites get updated and pages move, but you should make an active effort to avoid letting any remain on your website for long. Clicking on a link that doesn’t work every once in a while won’t necessarily lose you a prospect forever, but if they encounter multiple broken links? It makes you look sloppy. What to do about it: Find and fix all your broken links. The good news is that fixing broken links is pretty easy. There are free tools out there that will automate the process of finding all the broken links on your site so that all you have to do is go remove the link, or replace it with a URL that works. Make a habit out of looking for broken links every couple of months so you keep your website up to date.
3. Bad writingBad grammar, misspellings, and awkward wording all serve as distractions to someone trying to understand what you’re saying on your website. And worse, they tell your visitors that you couldn’t be bothered to proofread or hire an editor. If you didn’t bother with something as basic as that, they may well wonder what else you’re careless about in your business. But even if the grammar and spelling is mostly okay, you could still need to give your website writing a revisit. If you tried to get your website up without hiring a professional copywriter, then you probably didn’t choose the best wording to get your positioning across and drive action. Your words may be technically correct, but not make a clear case for why your visitors should want to work with you. Replacing your current copy with better wording on your website could quickly make your business more attractive to visitors and increase conversions. What to do about it: Proofread the whole website and consider hiring a copywriter. To start, do a read over of the whole website to look for minor errors and ways to improve the language that you can handle on your own. If your read over convinces you that your whole website needs a copy refresh, then look for a local copywriter or marketing agency to bring in and help you improve the writing across the website. Professional copy that’s both correct and persuasive can make a huge difference to how official your website feels and how good a job it does at convincing people to buy.
4. Outdated contentContent marketing usually consists of a mix of evergreen content and blog posts that are timely. If you wrote a blog post five years ago about a product that’s no longer around or highlighted industry news that’s become outdated, there’s no good reason to keep that information on your website. If someone happens upon your post without context, it could make you look like you don’t know what you’re talking about. What to do about it: Perform a content audit. Once a year or so, go back through all your old content to analyze:
- What content you should scrap.
- What content is fine to keep, but needs an update.
- What content works fine as is.
5. A bad mobile experienceNearly a third of all online shopping now happens on mobile devices. Businesses can no longer get away with not having a mobile-optimized website. If the visitors coming to your site from a mobile device have a bad experience, not only will they leave, but it also makes you look bad. At this point, they know you should know better. What to do about it: Invest in building a mobile version of your website. You already knew you should have a mobile-friendly version of your website, but if you’ve been dragging your feet on it, here’s a good reason to get it done. A website that doesn’t work on mobile makes you look unprofessional and is probably already losing you business. The good news is that if you’re already planning to hire a designer to help you improve your overall design based on our earlier suggestion, they should be able to create a mobile version of your website as part of the overall web design process.
6. Distracting adsNo matter how great your content is, if there are ads surrounding it that are distracting and make the page look cluttered, it will make your website feel cheap and unprofessional. It is possible to have ads on your website without it being a distraction that loses you credibility, but it’s tricky. If your visitors find the ads obnoxious, you’ll lose their attention and trust and the money you stand to make from the ads will come at a big cost. What to do about it: Either scrap them completely, or make sure your design minimizes how distracting they are. If you have a business model that makes it possible to do away with outside ads, then do so. If you need them to keep your website up, then make sure you design each page on your website in a way where the ads don’t detract from the information on the page. A clean design can go a long way toward keeping the ads from seeming like clutter. And whatever you do, make sure no ads are allowed that auto-play audio. Someone sitting in their office, at a library, or in a public place, will pretty much have to click away within seconds if their computer starts playing audio without warning, and many others will choose to out of annoyance. Don’t lose people based on an amateur mistake.
7. Stock imagesEvery website needs images and, we get it, stock images are the easiest option. But using stock photos won’t add much to your website and they may even hurt you. If customers see the same image on your website that they encountered on a less reputable site, that can subconsciously influence how much they trust you. People know stock images when they see them and, frankly, they just make you look lazy. What to do about it: Create original images. Original images take more time and work to create, but they convert 45% higher than stock photos. You can hire a professional photographer, or you can put some work into creating stock photos of your own. Buy some basic equipment, experiment some to get the best lighting, and you should be able to produce better photographs than the ones you find on stock image websites. Your visitors will notice the difference.
8. No httpsWith all the high-profile data hacks that have occurred in recent years, people are reasonably concerned about website security. Any website they hand sensitive information to, like a credit card number, has to earn their trust. The number one thing a business can do to show customers the website is secure is to have that https in the URL field for all pages that ask for sensitive information. Without it, savvy consumers will leave your website to find someone more secure to shop with. If you’re asking for financial information without having https, you’re putting all your customers at risk and giving them every reason not to trust you. What to do about it: Buy an SSL certificate or switch to a web hosting plan that provides one. This is probably the easiest problem to fix on the list. All you need to do is buy an SSL certificate for your website. Some web hosting plans even come with a private SSL included so you might consider if it’s time for a web hosting upgrade instead of buying a certificate outright. When you offer a secure website to your customers, you show them you’re a legitimate business they can trust. It’s a bare minimum for exhibiting the kind of professionalism customers count on. You can’t assume your business website will be perceived as a professional website just because it represents a business. You have to show visitors your professionalism from the moment they land on your website and earn their trust with every step they take once they’re there. That takes work and means putting some real care into how you present yourself on your website. But the trust you earn from your customers – and the profits that leads to –make it all worth it.
Friday, March 3, 2017 by Kristen HicksAt the end of a long day of work, what do you like to do with your time? If you frequently choose to spend your free time creating something, you could be missing an opportunity for extra income. A lot of creative hobbies produce items other people are actually willing to pay for. If you’re into knitting, woodworking, quilting, crafting, or sewing – you could be making things in your free time that you can sell at a profit. It does take some work to build a side business, so you have to be prepared to devote some time to it, but if your side business gets popular enough, you could potentially find yourself making enough to do it full time. If you want to see if your hobby can viably start to make you a profit, here are the steps to take to turn your hobby into a business.
Step 1: Research the market.To start, you want to confirm that there’s an interest for the type of product you’d be selling, and get a feel for the competitive landscape. Spend some time searching the internet for similar products. Use search engines, as well as online marketplaces like Etsy, to find examples of other people selling similar items. Take notes on which brands or sellers seem to be your closest competitors and what they typically charge. Looking at how your potential competition run their businesses can give you ideas on how to run yours. This is the step where you determine whether or not it’s worth turning your hobby into a business. You might find that the common costs for the items you make are too low for the amount of time you put into them. For example, if it takes you 10 hours and $10 in materials to knit a scarf and it looks like most people are selling them for $20 – your return might not make it worth the trouble to start selling your scarves. But if you see people selling them for $50 and seeming to get a good amount of customers (and you know you’d spend your free time knitting anyways), then continuing with the next few steps could pay off.
Step 2: Determine your pricing.Pricing is tough. You need to figure out a price that matches what people are willing to pay, but also makes you enough money to make it worth the trouble of turning your hobby into a business. The research you did in step one should help you with the first part of that equation. Knowing the prices other people charge gives you an idea of what people are willing to pay. You don’t want to be on the low end of that range, and you might be pushing it to aim for the high end. The brands charging the most are probably pretty well established and able to put a lot more time into their marketing. Decide if there’s a price somewhere in the middle that works for you. Consider the cost of materials and the other investments you’ll need to get a business going (more on that in a minute), and how much you’d need to make for your time in order for your profit to feel worth it.
Step 3: Decide on a brand name.Your brand name is the word or phrase people will think of when they think about your products or services. It can be your name, or you can come up with something that communicates what you do. Spend some time brainstorming possibilities and do some Googling to see if any of the names you’re considering are already taken. Ideally, you want to come up with something unique and memorable, that fits your personality.
Step 4: Purchase web hosting and register a domain.It’s 2017 and every business needs a web presence. Investing in a website for your business lets potential customers know you take this seriously. It inspires a level of trust they’re unlikely to feel with a brand that seems less established. Web hosting isn’t free, but you can get a good plan for just a few dollars a month.
Step 5: Build your website.Hiring someone to build a professional looking website will elevate how established your brand looks, but it can get expensive. If you want to keep it simple (and considering that we’re talking about monetizing a hobby here, you probably do), you can find templates and website builders that make it easy to put together a legitimate looking website on your own, for cheap or for free. Since you’ll be selling products through your website, you should make sure to invest in an eCommerce software to use on your website as well. These will let you list products, have a shopping cart on your site, and safely accept payments. Your website will be your brand’s face to the world, so make sure your put one together that you feel good about.
Step 6: Promote.You have your brand, you have your website, and you have your products. Now you need to let people know about them. Promote your new business on your social media profiles and to your friends. Over time, if you decide you want to take your business to the next level, start looking into further marketing methods, like SEO, content marketing, and paid advertising. To start, don’t let all that overwhelm you. It can come later if you decide you want to really grow your business. For now, focus on filling the first orders that come in and making sure your early customers receive stellar customer service. If they’re happy, they’ll do some of your promoting for you. The web has a way of making it sound easy to monetize everything. You know better. If it was easy to make money off a hobby, no one would have day jobs. Be prepared to put some work into this if you want it to pay off. But if you’re willing to spend some extra time in your available hours and invest some money into building a website, you could start profiting off of doing what you love.
Thursday, March 2, 2017 by Kristen HicksThe tech world moves fast and entrepreneurs have every reason to pay attention. Some of the big tech stories of the month may have little to do with your particular industry or business, but others will likely point toward big changes to come that you want to be aware of. Our series on top tech trends to watch can help you stay on top of what’s happening in the tech world month to month. Here’s what you should know about what’s happening in tech in March.
New Products and Projects Announced at MWCA new month means a new tech conference (or sometimes several) and March is no different. Tech companies and enthusiasts have already converged on Barcelona for the Mobile World Congress to survey new releases and products that are expected to make their mark on the world of mobile technology. As you’d expect, many makers of smartphones were there, some of them showing off new smartphone models that consumers can expect to see hitting the market in the coming months. But the mobile industry is growing to include so much more than smartphones. VR headsets and drones were a big part of the show, and discussions around faster internet options, better video streaming, and autonomous cars abounded. Mobile technology has become a huge part of how we all live and do business today. Every business owner should be keeping a close eye on what’s coming in the mobile industry in order to be prepared for how people shop and browse in years to come. Stories and articles from the Mobile World Congress provide a glimpse at what that will be.
- Speaking of tradeshows... HostGator is attending Engage (#EngagePDX) on March 9th in Portland and Social Media Marketing World (#SMMW17) from March 22-24th in San Diego. If you'll be there, come say hi and meet Snappy and the team in person!
Snapchat Launches IPOThe beginning of March brings one of the most anticipated and discussed IPOs of the year. The social media app Snapchat certainly doesn’t appeal to everyone, but the people using it (mostly a young demographic) use it enough for the app to have seen steady growth in ad revenue since its launch. If you're on there, follow us @HostGator! It’s often hard to predict which social media platforms will take off, and more importantly, which will have real staying power. Investors can now weigh in on whether they think the app’s current popularity is a temporary fluke or if they expect it to have the longevity its most popular competitors like Facebook and Twitter have shown.
The Tech Community Gathers at SXSWSXSW is a conference devoted to ideas and creativity, and the conference’s tech industry sessions this year promise to include plenty of both. There are sessions covering topics familiar to anyone who’s been attending or following other tech conferences this year, like self-driving cars, robots, and AI. One of the biggest themes to emerge in this year’s tech sessions is the idea of applying tech to the world’s economic and political problems. Presenters will tackle the role can tech play in addressing issues like poverty, LGBTQ equality, health policy, and immigration. The tech community has always been inclined to think big, and this year’s SXSW tech sessions point to a larger intention to think beyond product ideas and IPOs and apply the industry’s brainpower to issues that touch people around the world. This year’s conference promises to leave attendees with plenty to think about and is likely to drive some of the ideas that shape our world in the months and years to come.
Apple Smart Glasses Set to Debut SoonWhile they haven’t provided a hard release date yet, there’s speculation that the smart glasses Apple is working to develop could be released as early as this month. Apple’s CEO Tim Cook has been vocal in interviews about the company’s commitment to augmented reality. While Google Glass never really took off, if a player as big as Apple is still confident that AR will be the wave of the future (or at least a wave of the future), then there’s at least a strong possibility for the tech to improve and become a part of our lifestyle in the way smartphones did.
Uber Responds to Accusations of SexismWhile much of this month’s tech news is about looking forward, some tech stories point to aspects of the industry where progress has stalled or even seems to be moving backward. One of the biggest stories in tech that took social media by storm late last month was about the public accusations made by a former Uber employee about rampant sexism at the company. News outlets like the New York Times have spoken to others at the company that confirm the woman’s description of a sexist work culture and, in some cases, provided their own anecdotes of similar treatment. The company is taking steps to respond to the accusations, including hiring the well-known attorney Eric Holder to perform an investigation into the issue. While Uber does damage control, other tech companies are starting to find themselves in the crossfire for similar issues. Tesla’s currently being sued by an engineer who says she’s experienced sexism in various forms while working at the company. Whether or not these tech companies (and others who may well face similar accusations in the days to come) will respond in ways their employees and customers deem adequate remains to be seen.
SpaceX Ramps Up Plans to Send People Around the MoonThe possibilities of space tourism continue to look more and more ambitious as Elon Musk tests the limits of what his company can handle. This past week, he announced his intentions to send tourists around the moon by the end of next year – a feat professional astronauts haven’t managed in over 40 years. While limited budgets around the world place limitations on the space exploration that used to fall to government organizations, space tourism may be just the thing to keep people exploring the stars and beyond.
Samsung Galaxy S8 ReleaseSamsung just announced that their new model of the Samsung Galaxy phone will become available to consumers on March 29. After last year’s model was famously recalled due to phones catching fire, people are curious to see what the new Samsung Galaxy model will bring. Details on the features and functions of the phone so far are scant, so consumers and tech insiders alike will have to wait and see what makes the new model different (other than presumably being more fireproof than its predecessor). But you don’t have long to wait - by this time next month the phone will be in the hands of its first customers. March will likely bring some surprises we didn’t foresee, but we expect these stories to be some of the most important for the month. We’ll continue to keep an eye out for interesting and important tech news to bring you next month. Which event are you most excited for in March? Are you attending any tech conferences? Let us know in the comments!