Seek First to Understand....

A lot of small companies merchandise their websites based solely on how they feel. What they feel will sell....what they think looks good. Larger publicly traded companies have to have a little bit more to lean on than pure hunches...they have to move with facts. Simply because if they don’t perform up to par not only are they disappointed in themselves like a small business owner would be as well, but they get ripped by the boss, who got spanked by the CEO who was blasted by the stockholders. It’s a domino spanking…so to speak.

The only saving grace in this situation is loosely referred to as the ‘numbers’. What do the numbers say?? Not after the fact…but before hand…before decisions are made… inventory purchased and placed randomly on a first, second or third tier page. There is something that can be learned from this for small and mid sized companies interested in getting to a higher level. Mistakes will be made...but with a keen understanding of your online consumer behavior your foresight can become closer to 20/20 and less of a shot in the dark.

Now I do understand, numbers can be nerve wrecking….and like a movie they don’t really have your full attention until you start to see a story develop. However while numbers by themselves can be annoying… the stories they tell can be interesting and informative.

On your website, wouldn’t it be interesting to discover if 75% of people who got product to the shopping cart never check out…then you notice they exit the site once the shipping prices are revealed. How much money did you just throw away with that little oops??

Or what if the 2^nd half of the page gets viewed by only 30% of viewers…….yet it contains some of your highest margin items…go figure the gross margin is so low. But hey...Knowledge is power....with the facts in hand you can start taking action...turn these situations around and boost your numbers immediately.

The rest of the good news is getting this type of information is easier and cheaper than ever. Google Analytics is a great free tool that helps you discover what’s going on behind the scenes of your site. There are also a lot of other paid options like webtrends.com and websidestory.com that have sophisticated features and a staff to help you put things in perspective.

Whatever you do.... give your numbers their due diligence early. If you don't neglect them in the planning phase...and they are less likely to turn red at the end of the day.

Say NO More....

I taught a web marketing seminar this Thursday hosted by Fashion Business Inc. located in“lovely,” downtown LA. One of the audience members whom I'll refer to as "George," asked the pointed question "Do retailers get upset when a wholesale company they buy from decides to sell online?"

This is something I’ve been asked time and time again….and something I’ve had to personally address as an Ecommerce project manager. It’s a very rational assumption, and if you’re a smart business person trying to cover all your bases it is definitely a reasonable question to give a thought to. “A Thought” notice the singular tense. I thought of answering that question with one word which would have been “NO," but of course I had to elaborate.

So, Let’s think about this….. I’m a loyal retail buyer, purchasing your product by the hundreds...so why in the world do you feel like you need to open a fabulous online store that will make MY customers drop me like a wet rag and buy from you?. .

The good thing is most retailers aren’t that insecure. Their store is about an experience they create which your product is only a portion of. The essence of a good boutique is the collection….where the buyer produces something where the whole is bigger than the sum of all parts.

Think about Intermix, Scoop, Shopbop. These successful stores’ merchandise mix, marketing and presentation make them successful. Whether or not you decide to sell on line is typically not an invasion on their customer or the sales of a particular product. Between the stresses of running a retail store they really shouldn’t even have time to give a damn. (excuse my french;)

Recently many luxury wholesalers such as Bottega Venata, Gucci and Diane Von Furstenberg have gotten the picture and pulled the veil off of their online stores.

Selling online has become a great branding technique and is also a revenue stream in the sense that transfers you into becoming a multi channel enterprise. In short Ecommerce can be a phenomenal way to strategically grow your business.

We did talk about it quite a bit. "George," understood and followed up with this question. ”What about taking about selling it for like 10% less than other retailers since you have a bigger margin???” My gosh “George,” just wanted it all. Now that my friend is equivalent to launching a website that has your middle finger on the front of it...then sending it to all of your current and prospective accounts. The answer to that question…..is actually four words “no…no and absolutely not.” And I'll say no more about it.

Revenge of the Junk Mail

I get so much junk mail I dread going through it. Credit Card Offers, Coupons, Postcards all trying to sell me one thing or another. You know what I do? I take the whole stack and how ever many I can fit in my shredder I go to work …shredding…shredding…shredding….it literally wears me out…

However, I know as marketers of contemporary fashion we hate to think of anything we send potential clients as junk mail…. they want to hear from us....right? Direct mail is one of the most effective marketing strategies around….especially when you don’t have a potential prospects email address.

But, in more cases than not direct mail can be lost in the shuffle, lost in the mail or immediately placed in the "circular file." (translation...the trash)

So…. how do you get your message read in a sea of riff raf? Here’s a nifty little trick I wish I could take the credit for but I read it in this wonderful little book. “Don’t Worry Make Money, “ by Richard Carlson.

The trick is…Fed Ex it! Fed ex your Press Kit…Catalog or Line Sheets to a potential big account. Who can resist the heavy cardboard of a sleek fed ex envelope? Ripping that little tab….oh what fun! The package literally screams…Open Me and Open Me Now!

I urge you next time you desperately want to get the attention of a big account….go Fed Ex. It’s expensive…but if what’s in the package is worthy…it will pay for itself many times over.

Guaranteed.........

Designer Disrespect

When it comes to life and love why do we always believe our worst reviews?

--- Carrie Bradshaw

I’ve heard endless horror stories from designers ready to pack up and move back to Kansas….rejected from trade shows, bashed in editorials and getting laughed at by buyers. um hum....for real.

I remember one story a prospective client told me about trying to sell her wares to a trendy West Hollywood Boutique. Her excruciating tale described how the buyer did everything short lifting up her Gucci pumps to physically kick out of the store. Ouch.

However, contrary to the ever so common Devils Wears Prada tales I’ve experienced an influx of sweet and helpful people in the fashion industry. Then again I started my career at the Gap…not exactly high fashion. But to be obviously rude there was as good as signing your own pinkslip. It's hard to be a bitch making khakis.

I say this to say it’s difficult to remember everyone big in this industry for the most part was once Very Very small. Giorgio Armani started as a buyer with no formal design training, Ralph Lauren started selling ties, C and C California launched out of a California garage and Anna Sui shipped out of her New York apartment for most of the 1980’s. Everyone whips out their humble beginning for the tear jerker, “I’ve made it,” story. However some of us tend to forget about it until the time is right.

So Designers…don’t believe your worst reviews. Chances are if you would buy your product and you’re not a resident of Outer Space there is a possible market for your collection. Keep your heads up, get the help you need and most importantly no matter what you do never ever stop believing:)

One Step at a Time....

A lot of companies are convinced that if they don't sell everything under the sun they are leaving money on the table. Quite the contrary. Customers appreciate focus. It builds confidence and helps them to think, "You know that great handbag designer?" "She's doing the wallets now." It's a very logical process and simply makes sense for everyone.

If you try to throw everything out at once...potential customers get paralyzed. You risk becoming common... a jack of all trades. The customer starts to think, "We don't even know you." "What's your specialty...your niche?"

By introducing one product or group of products at a time a designer has the opportunity to establish themselves as a competent manufacturer and a recognizable name. Through developing a following and focusing on your skills you can become a well paid specialist instead of a general practitioner.

As examples go Louis Vuitton one of the most successful luxury companies in the world started with luggage, Juicy Couture branded those infamous tracksuits that were so popular we never want to see them again and Diane Von Furstenburg's wrap dress she introduced way back when continues to rake in dough for her as I type. Don't look at where these companies are to gage how you want to launch....look at how they started. That will give you a better vantage point of where to start.

Focus can also help you tremendously from a production and cost perspective...less pattens, less time fewer vendors to manage. Trust me, do it right and people will get it......

So don't let focus frighten you....as Martha Stewart's favorite saying goes..."it's a good thing."

Hard Pressed for Press

Every designer wants press. It’s exciting. I remember when I saw my first client’s editorial in Lucky Magazine. Yippiee…and ironically it was of a bathing suit she happened to name after me. However, even though it was a pretty big picture with her name and website as big as day, I don’t remember an influx of orders after that publication hit. Or really a difference at all.

Hmmm….what happened? Lucky is read by thousands and thousands of potential customers but it seemed like only about 5 had even taken the time to respond. One of which was the designers mother….but I digress.

So it made me wonder. Press is really great…but at the end of the day what does a feature in Elle or a product mention in Marie Claire really mean?

Financially that is....

Over the years I’ve learned that editorial mentions don't necessarily equal cash dividends. You have to make them work, and a big part of that work happens long before the magazine even hits the newsstand.

Here are a few tips on making editorial mentions work for you.....

Use Edits to Build Customer Relationships....

If you’re a designer instead of giving editorial credit to your website, why not give your biggest selling retailer a call??

Tell them you’d like to use their name or website address to send customers to their stores from an upcoming editorial piece. They'll be thrilled!!

On the short term you may have been able to make more money….if you sold the editorial piece at your retail price online. However if your core business is wholesale...you should nurture it. In the long term you’ve just built a bridge that could increase wholesale sales for seasons to come.

Lobby for an InterActive Edit......

If you are directing customers to your Ecommerce site, inquire with editors to see how you may become featured in interactive sections of their mag such as Lucky Magazine’s Lucky Breaks.

I’ve witnessed Lucky Breaks specifically, increase visitors and sales by incredible amounts.

Plus promos like this have the potential to add hundreds of new emails to a marketing database.

When customers have some type of incentive or action step affiliated with the edit you’re likely to receive a much higher response rate.

Don’t discount the .com counterpart...

Being featured in the .com version of a popular mag is typically easier to obtain and can lead to immediate click through’s hence immediate online sales. Make sure your PR person pursues online editors as serious as the offline ones.

So again, Yes…. press works, but only if you give it a running start.

Inspired to Buy

Ok marketing the iphone is not the exact same as marketing fashion. But I admit but do have to take a second to tip my hat to the amazing marketing job those folks have done over there at Apple. Our industry, for the most part isn’t about week long lines and switching networks or the general fiasco that preceded the iphone launch. However one thing that fashion can take from this nifty little gadget and the Apple company in general is the lengths people will go to once they are inspired.

I thought about it a while ago when I was working with one client on how they could gain more business from their existing retailers. I sat there dreaming up incentives, planning a media calendar, magazines they could advertise in, even an itemized budget…. then it occurred to me that for the most part customers don’t really don’t really need all that. People don’t really need a $500 dress, a designer yoga mat or a handbag that is equivalent to the down payment of a Midwestern home.

People just want to be happy…they want to be inspired to find the necessity to buy your product. This is not to say they don’t appreciate quality or a designer’s style acumen and attention to detail. It’s just to say that people are typically looking for a return on investment that is much more emotional than financial.

So no you definitely don’t have to be a self help guru to know you can’t buy happiness…however the average company who aspires for long term success needs to pay attention to the psychological focus of their customers.

Before you launch your next marketing campaign think about what you’re really pushing. Are you a wedding gown company selling a beautiful dress or are you selling girlhood dream of a beautiful bride? Are you a shoe designer selling Italian leather pumps with stiletto heels or are you selling shapely legs that turn mens heads and other women into green eyed monsters.

It’s up to you but trust me whether you decide to target a customer in their hearts or their minds…the pocketbook typically follows.