Web Marketing 102: Dipping a toe online

My post a few months ago entitled Web Marketing 101 has generated a lot of positive feedback, as well as cries for me to fulfill my promise at the end of the post for a subsequent post on Web Marketing 102: Acquiring Customers Online.  One warning: what this blog lacks in frequency (this is my 8th post this year) it makes up for in wordiness (er, "depth"), and I'll no doubt continue the trend here.

A quick overview

Please start by reviewing the post for Web Marketing 101 (that is, if you haven't committed it to memory).  As a summary, the fundamental questions you must answer before you can really start marketing are:

1. Who is your customer?
2. What need(s) are you addressing?
3. How much does it cost to acquire that customer (CPA)?
4. How much is the "lifetime value" of that customer (LTV)?

Now, don't worry if you don't have final answers to those questions.  It takes months just to get your head around them, and you'll spend years trying to perfect the answer.  But, it's essential that you understand the methodology behind these questions.  No matter how good you are at marketing, and how advanced your business is, the answers to these questions are works in progress.

Setting a few things straight

Every customer I talk to--without exception--secretly hopes that if they just put their business online the money will come pouring in.  If you believe that, or are even hoping it in the back of your mind, STOP RIGHT NOW.  Slap yourself silly.  Pour come cold water on your head.  Ask your friend to run over your foot with his car.  Okay, are you feeling the sharp pain of reality yet?  Does it hurt bad?  Good.  Now we can get down to business.

Marketing online is no different than marketing offline, except you are online.  Repeat that a few times.  Some things about being online are advantages: it's interactive, the customer can be in the comfort of their own home, the customer can be miles (even oceans) away, it can be the middle of the night, there's lots of room for pictures and words.  However, these same advantages are also disadvantages: interaction can be overwhelming, the customer isn't face to face with you, the customer might be a little *too* comfortable at home, and all those words and pictures can get in the way of accomplishing what you actually want: sales.

Still, online marketing presents opportunities that no other medium can, and it all starts with one important concept...

Measurability

That's the one word that sums of the advantage of online marketing in my book.  Measurability.  You can measure everything online.  If you put up a billboard on Highway 101 (the big, ugly, famous highway that cuts through Silicon Valley and is near our office), you have no idea how many people see it, how many people really read it, and whether it drives any incremental sales.  Same goes for the yellow pages, or radio, or tv, or newspaper ads. 

You can try to guesstimate by asking customers how they heard about you, or using a separate phone number.  But, the dirty secret that no "offline" advertising company wants you to know is this: you'll never really know whether these ads are making or losing you money.  You simply can't calculate the CPA and LTV of customers you acquire this way.

This is why Google is worth more than CBS, NBC, FOX and Clear Channel (radio) combined.  A lot more, actually.  Because you can measure it, and only pay for the marketing programs that work.  And if you can measure it, you can test and learn, using the scientific method we all learned in 8th grade science class. (Did you have an awesome old teacher like Mr. Carrol, who started class every day by blowing something up just to see what happened?)

You can measure almost everything about online advertising, but you have to be scientific about it.  We won't go any further into this point now, but just remember that if you aren't measuring, then your online advertising is about as effective as a billboard on 101 (I should know, we used to have one).

Where to start

As with anything in your business, you need to start small with online advertising.  I'd strongly encourage you to start with pay-per-click advertising, as opposed to "CPM" based advertising like banner ads.  Google and Yahoo are the best at pay-per-click, and you should start with their basic search advertising product (don't start with Google AdSense!).  Be prepared to spend some serious time trying to get up the learning curve (our research shows it takes about 30 hours of investment to get your first campaign working right on Google or Yahoo).  Which means you should be ready to put a decent amount of money into your test.  If you're looking to spend less than $500 per month, I'd actually encourage you to start with Homestead Searchlight, because we do all the work for you, and the prices start as low as $30 per month.  Regardless of how you start, give it a shot, and know it is going to take some iterations to get it right.

I've got lots more to say on this topic, but this post is already long enough.  I'll be back soon with more on Web Marketing (I guess I'll call that Marketing 103?).  Let me know if you have specific marketing questions I can answer.

--jsk 

Comments

[hales]

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http://www.squidoo.com/onlinebookreviews

[Gary Davis]

Justin, in my case the web has been a neccesity, as I deal in information and advisory services for a small group of international companies. Twelve years ago, when I was searching for a way to establish a web presence I came upon Homestead and frankly was sold on using Homestead for two primary reasons. The first was my perception of the ease of using site builder. It was important to me that I be able to directly control the content on my site. Much of it is of a sensitive nature. My second reason was less objective and had to do with the evangelical nature of, and the intelligence, in your writing. If you will recall, in those days, as now, you use your personal writing skills to full effect. I liked that and still do.
However, at the present, I am enmeshed in a problem using site builder that defies any effort on my part to fix. To compound my problem, I am unable to use the help ticket console on homestead, for inexplicable reasons. The following is a recount of my problem(s). I apologize that this is off topic, but have run out of channels and need deperately to get my web site updated and regain the use of sitebuilder.

My problem is that I am unable to publish anything using sitebuilder. While I am able to ftp new content to my homestead directories, I am not able to use site builder to publish new content or to revise and publish exisiting content(pages). The catch 22 is that I am not able to use the help ticket system. When I enter all pertinent information and press on the send button I end up getting an error page. To compound the catch 22, when I tried calling Homestead's Corporate phone number. I get the ubiquitous recorded menu, offering a menu of choices. When I select the customer service choice, I get a recording instructing me to use the online help ticket system. (The same one I have been trying to use for a week, and that does not produce a "help ticket" and instead, sends me to an error page. I have read here, and elsewhere, that you get personally involved in support issues on occasion. Incidentally, I've uninstalled sitebuilder and subsequently reinstalled it twice. I have uninstalled my virus and MS' firewall, and tried running sitebuilder to no avail. I have also removed all active apps except sitebuilder, (literally uninstalled all apps except sitebuilder and MS Office) to no avail.
May I ask for your assist on this one? I simply need a way to contact your customer support department so I may lay out the problem that I am encountering and get some help in solving it. My name is Gary Davis. My web site is http://www.davisconsultantsasia.com

For a more full description of what I have encountered here is a link to a post on the Homestead Connection thread.
http://www.readybb.com/homesteadconnection/viewtopic.php?p=4727#4727

Thank you

Thank you

[Jeannie Johnston]

It is so nice to see a CEO with a blog. May I please speak to your customer service -- or lack thereof? I have had an open help ticket since the beginning of August and have been unable to find a resolution to my problem. Instead, I've been met with passive sarcasm from you CSR Dottie. I have spent literally thousands of dollars with your company and find it appauling that you do not have customer service telephone support. Thank you for allowing me to vent.

[Justin]

Jeannie,
We do have telephone support! The number is (800) 710-1998 and we talk to several thousand customers every day. Please contact us immediately if you are still having a problem, and email me directly at ceo@homestead.com if you still do not feel your issues has been totally resolved.
--jsk

[M.]

I had a Homestead account with you before. Why is it so difficult to send an email to anyone of your customer service employees if you are not with Homestead anymore? Why is it so difficult to change from Homestead to another company? I wanted my domain switched over to another company, but have become aware that my domain is still under your control. It will expire soon and I need the control to go over to who I'm with now. What is so difficult about that? Why can't you or your people help me with this? I liked Homestead. I had no problem with Homestead. I just couldn't afford having a site with you anymore. The cost of starting up a new business can be great. Can you help me with my problem now or not? I think it is shady how no one can contact you or your employees by email to get help.

[Photosite Member]

Hi, could you comment on Photosite? I believe that this was a product created by Homestead and then sold. Why was it not successful? If it was still in your possession, do you think it have been successful?

[ALAN STAFFORD]

Hello, I'm relatively new to all this.... and have spent considerable time... and money trying to do "things" right. I have hired professionals... assuming they would indeed know how best to proceed.... yet time after time, I find I'm the one who by nature is doing the "leg work".. and following up. I believe that it should not matter whether you spend $1000.00 developing a web site.... or only $449.00... the level of professional service should be equal!! Is that an accurate statement?? Yet, having hired a company to build my site... as well as another independent graphic designer to assist... I found that six weeks after "launching" the site... and seeing the number of visitors increase... as well as the number of "abandoned carts" increase.... I began to investigate what parts of my "marketing" may be lacking. WHAT WAS I DOING WRONG??? I tried to "measure" as you mention here in WEB MARKETING 102.... ONLY to discover that the company hired to build the site.... INADVERTANTLY?? left out... left off the "cart" buttons!! My visitors... potential sales... had absolutely NO chance to complete the transaction!! How does one offset that?? How does a NEWBIE stand a chance... even when he does hire PROS to help??

[Justin]

Alan,
Your plight is the same as many new business owners--websites are too core to your business to trust them to somebody else but seem far too difficult to do yourself. Of course, that's why we created Homestead, to try and have the best of both worlds. We give you a trusted platform to work with that simplifies it as much as possible, then give you experts you can rely on to help you build (or even build it for you) on the platform.

The internet is changing the way small businesses can operate, and many areas you used to have to trust to high-priced professionals (e.g. accounting, orinting, payroll, legal, hr, databases, marketing, etc.) you can now do yourself. My advice is to find a few companies with large numbers of satisfied business customers (e.g. Intuit, VistaPrint, Constant Contact, Homestead, etc.) and try them out (they are usually free to try).
--jsk

[ALAN STAFFORD]

DEAR SIR: WOULD YOU PLEASE EMAIL ME AT THE EMAIL ADDRESS I'VE GIVEN WITHIN THE "POST A COMMENT" CRITERA. I'M NOT SURE YOU TOTALLY UNDERSTOOD MY POSTING OF 09-11-07.... AND WOULD LIKE TO DISCUSS IT WITH YOU FURTHER PLEASE. THANK YOU.....

[Justin]

Alan,
I can't see your email address, but you can email me at ceo@homestead.com and I'll be happy to assist.
--jsk

[Steve Stock]

Any plans to accomodate cctld's in future ?

I was very happy with my trial of your product but cant purchase when you only fully accomoadate gtld's.

[Internet Marketing]

Internet Marketing offer youu to earn highest profit rates you ever heard....There are didfferent type of internet marketing which works at different level of businesses...

http://jeffpaulportal.com

[Sheila Bilyeu]

Dear Homestead staff,
How can I change my billing information; I changed my checking account,so I need to notify you where my new account is. I also can't get on my site from your sit

[Les]

I run a US home base web design business. I have been a client of Homestead since it was free and I have built a couple of dozen web sites for clients, some in Europe. One of my clients is submitting to me information to be added to his web site on a daily basis, and he needs to be able find the information via a page title word search. Are there any plans for software that enables web site visitors to do a name search or page search? Thanks Justin for a great service my business is growing because of Homestead I wish you continued success.

[Diane Bruce]

You have designed a website for a group out of Little rock and Florida calling themselves R & G Rentals with a site name of rentrg.com. It is a scam and as your name is on the website I thought you should know. Diane Bruce.

[Ferdane Kutlar]

Dear Justin Kitch;

I am dr Ferdane Kutlar and I have my own designed webb site called “Art Cappadocia” that I have build some two years ago. I had excellent help and very good experience in that front, however it was not really complete. Sine I have a fulltime faculty position, I do it on the site and it is not functional. I have decided that I had to get help from Design Service that you offer for your customers and I talked to you over the phone. I hate to bring my problem in you attention, but I feel like you have to know this to improve the service in this front. Since I am not familiar to the professional way of web design system it was little slow on my site I but also there was no detailed information anywhere that answers my questions since designers from “ design service” does it and no direct contact with them eighter. I have called several times and tried to everything I could even more on my site, at the mean time I have tried to do it myself so we can make progress. But I am still waiting, and at the end of the they I still do not have my website complete and going. I do request your help in this matter, can you please help me out and make me happy!!!!!!.

Many thanks in advance,

Best regards,
9/09/08
Ferdane Kutlar MD
623 Saw Grass Dr
Martinez GA, 30907

Phone: 706 721 9768 (Work)
706 869 8227 (Home)
E-Mail: FKutlar@comcast.net
Fkutlar: http://webapp.mcg.edu/PROD/ifl.viewfac?CGIemplid=000475

[Glen Merrick]

Hello, wanted to visit your site today and try out your product, however it seems that your site is completely incompatible With Mozilla Firefox 3.01 and Opera 9.5. this is unfortunate because without your support of Firefox and Opera I cannot be a customer as I run Ubuntu linux from home and work and wanted to see if your product was able to create a web site for my church.

In the future should you decide to move away from IE and more towards compatibility I might be interested in using your services.

[search marketing]

Your article is much more informatics for all of the visitor. I am very happy to read it. This is really very nice. Thank you for it.

[seo consultant]

Great post. Blogs are a very natural way to attract links. I’d love to see a post on how to get your company to blog. Particularly if you are dealing with a large, conservative company.

[Search Engine Optimisation]

very useful articles…..I think seo off site more important and power full for geeting free traffic than seo on site, I already implemented for my web……so I am focus on off site optimisation…thanks

[BRENDA HODGES]

YOU ARE THE ISP PROVIDER FOR THIS HORRIBLE SITE: SEVERE ABUSE TO HORSES--PLEASE TAKE THIS HORRIBLE SITE DOWN!
http://www.theimpactors.com/contact.html

[jeff paul scam]

If you're looking to spend less than $500 per month, I'd actually encourage you to start with Homestead Searchlight, because we do all the work for you, and the prices start as low as $30 per month.

[Ined Allen]

Nice to see a CEO so active in playing a part in reaching out and interacting with customers as well as having an understanding of the issues that are most important as a user. I came to check this out because some people who downloaded and embedded the mortgage calculators at www.calculators4mortgages.com at their own website they created mentioned this was useful not only for business but for individuals trying to sell their homes. Tips here can be used not only for big businesses but are transferable to smaller (but big ticket) purchases. Cheers.

[cheryl]

I have Modzilla firefox and have no problems with your products and compatability

[San Diego email marketing]

Very useful article with lots of great information. As a marketer I will be learning and experimenting with these technologies as they continue to evolve Marketing as we know it. On this post I will capture lessons learned, define best practices and provide thoughts and ideas from my experiences.

-faith-