marți, 14 aprilie 2015

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


"Inconceivable" Negative Interest Rates on Mortgages in Portugal and Spain, with Italy On Deck

Posted: 14 Apr 2015 11:22 PM PDT

The vast majority of mortgages in Portugal, and a huge number in Italy and Spain are tied to Euribor, the rate it costs European banks to borrow from each other.

If Euribor drops low, enough banks will have to pay borrowers. It has already happened in Spain.

The WAll Street Journal reports Tumbling Interest Rates in Europe Leaves Some Banks Owing Money on Loans to Borrowers.
Tumbling interest rates in Europe have put some banks in an inconceivable position: owing money on loans to borrowers.

At least one Spanish bank, Bankinter SA, the country's seventh-largest lender by market value, has been paying some customers interest on mortgages by deducting that amount from the principal the borrower owes.

Interest rates have been falling sharply, in some cases into negative territory, since the European Central Bank last year introduced measures meant to spur the economy in the eurozone, including cutting its own deposit rate. The ECB in March also launched a bond-buying program, driving down yields on eurozone debt in hopes of fostering lending.

In countries such as Spain, Portugal and Italy, the base interest rate used for many loans, especially mortgages, is the euro interbank offered rate, or Euribor. The rate is based on how much it costs European banks to borrow from each other.

Portugal's central bank recently ruled that banks would have to pay interest on existing loans if Euribor plus any additional spread falls below zero. The central bank, however, said lenders are free to take "precautionary measures" in future contracts. More than 90% of the 2.3 million mortgages outstanding in Portugal have variable rates linked to Euribor.

In Spain, a spokesman for the central bank said it is studying the issue. Bankers in Italy said they are awaiting guidance from their local banking association, because loan contracts don't include any clause on what happens if benchmark rates go below zero.

In Spain, Bankinter has been forced to deduct some clients' mortgage principal payments because an interest-rate benchmark tied to Switzerland's currency has dipped into negative territory.

An executive at another Spanish bank said the lender in recent months has started to put in place an interest-rate floor on thousands of short-term business loans that are tied to short-term variations of Euribor. Two-month Euribor, is at minus 0.004%. For new loans, the bank is increasing the cushion it charges customers above Euribor.

Hundreds of thousands of additional loans would be affected if medium-term Euribor rates enter negative territory, the executive said. The six-month rate is currently at 0.078%.

In Portugal, interest rates on most mortgages are linked to a monthly average of three- and six-month Euribor. Both have been steadily sinking and are hovering just above zero.
Inconceivable Payback



Reflections on the Inconceivable



link if video does not play: Princess Bride.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

France Considers Forcing Google to Disclose Search Algorithm; Too Much Satisfaction!

Posted: 14 Apr 2015 01:18 PM PDT

Too Much Satisfaction!

Heaven forbid consumers actually like something too much.

If they do, they buy it or use it more than they buy or use competing products.  And when that happens, well it must be "unfair" competition.

Lord knows we cannot possibly tolerate too much consumer satisfaction.

So, with that line of thinking Europe to Accuse Google of Illegally Abusing its Dominance.
Google will on Wednesday be accused by Brussels of illegally abusing its dominance of search in Europe, a step that ultimately could force it to change its business model fundamentally and pay hefty fines.

Margrethe Vestager, the EU's competition commissioner, is to say that the US group will soon be served with a formal charge sheet alleging that it breached antitrust rules by diverting traffic from rivals to favour its own services, according to two people familiar with the case.

A decision on charges is to be taken by the college of 28 EU commissioners on Wednesday. Some commissioners are concerned that Ms Vestager has, according to one source, restructured and narrowed the case she inherited from her predecessor Joaquín Almunia. As well as search issues, the investigation has looked at allegations that Google illegally scrapes content from rivals, locks some publishers into using Google search ads, and makes it hard for advertisers to move campaigns to rival search engines.

Almost 20 complainants against Google want the search engine to abide by strict rules that ensure its formula treats its own services — providing results for travel, shopping and maps — no differently from rivals. Google and the commission declined to comment.

On top of the pressure from Brussels, this week Google is also under scrutiny in France where lawmakers are considering an initiative that would force it to hand over its secret formula for ranking websites.

Google supporters feel the commission's volte-face on a settlement reflected politics rather than an independent assessment. No EU antitrust case has ever been extended to three settlement offers, or been revived after complainants were formally warned that their case was about to be rejected.

On top of the pressure from Brussels, this week Google is also under scrutiny in France where lawmakers are considering an initiative that would force it to hand over its secret formula for ranking websites.

The French senate is likely to adopt a bill this week which would allow the country's national telecoms regulator to monitor search engines' algorithms, with sweeping powers to ensure its results are fair and non-discriminatory.

If approved, the proposal would give Arcep, France's telecoms regulator, powers to scrutinise any search engine that had sufficient power to "structure the functioning of the digital economy". Google would be required to provide links to at least three rival search engines on its homepage, and disclose to users the "general principles of ranking".
Requiring Google to disclose its algorithms is tantamount to requiring Google give away its trade secrets and patents for free.

Requiring Google to list other search engines is like requiring Ford dealerships to sell GM autos.

Search Engine Choices 

People can choose from any number of search engines. Here are the Top 15 Search Engines.

I show a selection below. 

  • Bing
  • DuckDuckGo
  • Dogpile
  • LXQuick
  • Yahoo
  • ASK
  • AOL
  • WOW

No Tracking

DuckDuckGo bills itself as the "Search Engine That Does Not Track You".

No tracking is an important issue to some people, not others. If the issue becomes important enough, Google will have to change its model or it will lose traffic to DuckDuckGo.

That is how change should happen, not by EU witch hunts.

By the way, I do not believe Google locks any publishers into using Google search ads. If someone wants to use non-google ads, they are free to do so.

If the results are not as good, well, maybe the higher price of Google ads is worth it.

Why Do People Use Google Search?

Search users use Google for a simple reason: They like it. It does not matter why.

In the eyes of the EU, Google provides too much satisfaction. And the EU will not allow that!

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Experts Confounded: Retail Sales Rise First Time in Four Months, But Weaker Than Expected

Posted: 14 Apr 2015 10:45 AM PDT

The Bloomberg retail sales consensus estimate was for a 1.1% gain. Sales did rise for the first time in four months, but not as much as expected.
Retail sales in March rebounded 0.9 percent after dropping 0.5 percent in February. The market consensus for March was for a 1.1 percent boost. Excluding autos, sales gained 0.4 percent, following no change in February. Expectations were for a 0.6 percent increase. Gasoline sales dipped 0.6 percent after 2.3 percent increase in February. Excluding both autos and gasoline sales rebounded 0.5 percent after declining 0.3 percent in February. Expectations were for a 0.4 percent increase.
Experts Confounded

Please consider U.S. Retail Sales Rise for First Time in Four Months.
U.S. retail sales rose for the first time in four months in March, but the gain wasn't enough to offset weaker spending during the winter months as consumers continued to largely pocket savings from cheaper gasoline prices.

"This outcome confounds all the standard consumer-spending models," J.P. Morgan chief U.S. economist Michael Feroli said in a note to clients. "Job gains, wealth gains, low gas prices and very high consumer sentiment would all point to solid consumer spending increases."

"The rebound we had been waiting for was rather soft and disappointing," Laura Rosner, an economist at BNP Paribas, said in a note to clients.

Paying less at the pump should free up money for U.S. consumers to spend elsewhere. But many are socking that money away, or using it to pay down debt.
Possible Explanations

  1. Consumers did not realize how much the weather has changed for the better.
  2. The standard models  are bogus.
  3. Reports of strong jobs are more myth than reality.

I opt for a combination of two and three.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Spotlight on China: Margin Debt, Trading Accounts, Construction Equipment

Posted: 14 Apr 2015 01:25 AM PDT

In response to my April 1, post China Margin Debt Soars to Record 1 Trillion Yuan; Another Central Bank Sponsored Bubble I received an email from reader Nicolas.

He writes ...
Hello Mish

Happy Monday. I find your output excellent an I hope that you are flattered that you are followed by private banks is Switzerland.

Quick question on your last note; please can you tell me what (Bloomberg/Reuters) code you use for Chinese Margin debt? i.e. where can I cross-reference the Trillion Yuan figure you quote?

Best regards and many thanks,

Nicolas
I certainly was unaware I was followed by banks in Switzerland. Thanks!

The Bloomberg data is from SSE Margin, in Chinese. I asked my friend Chris Puplava at Financial Sense if he was aware of a Bloomberg tracking symbol. We do not believe there is such a symbol for margin.

However, Chris did locate this interesting chart of the Shanghai stock market vs. new accounts that is available on Bloomberg.

Shanghai Stock Index vs. New Accounts



click on chart for sharper image

I get lots of data from readers, and I appreciate it! In regards to China, reader Norman writes ...
Hello Mish,

Thanks for your "straight talk" on important issues impacting our financial lives. You recently sent information concerning China's GDP. A good indicator of growth is found in sales of construction equipment. Construction equipment manufacturer Komatsu lists its equipment orders by location. The numbers speak for themselves concerning growth and China. Keep up the good work!

Norman
Komatsu Orders



click on chart for sharper image

Komatsu is just a single manufacturer. It may not be representative of all such activity and orders. But given the collapse in commodity prices such as iron ore, I suspect it is. If so, this segment of the Chinese economy looks like a disaster.

Those expecting a rebound in Chinese housing or construction are likely mistaken. The new game in town is clearly stock market speculation.

Chinese Growth

My post Reality Check: How Fast is China Growing? Global Recession at Hand is also consistent with the China rapid slowdown thesis.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Damn Cool Pics

Damn Cool Pics


25 Things You Loved As A Kid But Can't Stand As An Adult

Posted: 14 Apr 2015 11:56 AM PDT

Growing up just sucks the fun out of everything.

















15 Years Ago This Is What The MTV Movie Awards Looked Like

Posted: 14 Apr 2015 11:42 AM PDT

The red carpet was a very different place 15 years ago.























​Inbound Lead Generation: eCommerce Marketing's Missing Link - Moz Blog


​Inbound Lead Generation: eCommerce Marketing's Missing Link

Posted on: Tuesday 14 April 2015 — 02:15

Posted by Everett

If eCommerce businesses hope to remain competitive with Amazon, eBay, big box brands, and other online retail juggernauts, they'll need to learn how to conduct content marketing, lead generation, and contact nurturing as part of a comprehensive inbound marketing strategy.

First, I will discuss some of the ways most online retailers are approaching email from the bottom of the funnel upward, and why this needs to be turned around. Then we can explore how to go about doing this within the framework of "Inbound Marketing" for eCommerce businesses. Lastly, popular marketing automation and email marketing solutions are discussed in the context of inbound marketing for eCommerce.

Key differences between eCommerce and lead generation approaches to email

Different list growth strategies

Email acquisition sources differ greatly between lead gen. sites and online stores. The biggest driver of email acquisition for most eCommerce businesses are their shoppers, especially when the business doesn't collect an email address for their contact database until the shopper provides it during the check-out process—possibly, not until the very end.

With most B2B/B2C lead gen. websites, the entire purpose of every landing page is to get visitors to submit a contact form or pick up the phone. Often, the price tag for their products or services is much higher than those of an eCommerce site or involves recurring payments. In other words, what they're selling is more difficult to sell. People take longer to make those purchasing decisions. For this reason, leads—in the form of contact names and email addresses—are typically acquired and nurtured without having first become a customer.

Contacts vs. leads

Whether it is a B2B or B2C website, lead gen. contacts (called leads) are thought of as potential customers (clients, subscribers, patients) who need to be nurtured to the point of becoming "sales qualified," meaning they'll eventually get a sales call or email that attempts to convert them into a customer.

On the other hand, eCommerce contacts are often thought of primarily as existing customers to whom the marketing team can blast coupons and other offers by email.

Retail sites typically don't capture leads at the top or middle of the funnel. Only once a shopper has checked out do they get added to the list. Historically, the buying cycle has been short enough that eCommerce sites could move many first-time visitors directly to customers in a single visit. But this has changed.

Unless your brand is very strong—possibly a luxury brand or one with an offline retail presence—it is probably getting more difficult (i.e. expensive) to acquire new customers. At the same time, attrition rates are rising. Conversion optimization helps by converting more bottom of the funnel visitors. SEO helps drive more traffic into the site, but mostly for middle-of-funnel (category page) and bottom-of-funnel (product page) visitors who may not also be price/feature comparison shopping, or are unable to convert right away because of device or time limitations.

Even savvy retailers publishing content for shoppers higher up in the funnel, such as buyer guides and reviews, aren't getting an email address and are missing a lot of opportunities because of it.

attract-convert-grow-funnel-inflow-2.jpg

Here's a thought. If your eCommerce site has a 10 percent conversion rate, you're doing pretty good by most standards. But what happened to the other 90 percent of those visitors? Will you have the opportunity to connect with them again? Even if you bump that up a few percentage points with retargeting, a lot of potential revenue has seeped out of your funnel without a trace.

I don't mean to bash the eCommerce marketing community with generalizations. Most lead gen. sites aren't doing anything spectacular either, and a lot of opportunity is missed all around.

There are many eCommerce brands doing great things marketing-wise. I'm a big fan of Crutchfield for their educational resources targeting early-funnel traffic, and Neman Tools, Saddleback Leather and Feltraiger for the stories they tell. Amazon is hard to beat when it comes to scalability, product suggestions and user-generated reviews.

Sadly, most eCommerce sites (including many of the major household brands) still approach marketing in this way...

The ol' bait n' switch: promising value and delivering spam

Established eCommerce brands have gigantic mailing lists (compared with lead gen. counterparts), to whom they typically send out at least one email each week with "offers" like free shipping, $ off, buy-one-get-one, or % off their next purchase. The lists are minimally segmented, if at all. For example, there might be lists for repeat customers, best customers, unresponsive contacts, recent purchasers, shoppers with abandoned carts, purchases by category, etc.

The missing points of segmentation include which campaign resulted in the initial contact (sometimes referred to as a cohort) and—most importantly—the persona and buying cycle stage that best applies to each contact.

Online retailers often send frequent "blasts" to their entire list or to a few of the large segments mentioned above. Lack of segmentation means contacts aren't receiving emails based on their interests, problems, or buying cycle stage, but instead, are receiving what they perceive as "generic" emails.

The result of these missing segments and the lack of overarching strategy looks something like this:

My, What a Big LIST You Have!

iStock_000017047747Medium.jpg

TIME reported in 2012 on stats from Responsys that the average online retailer sent out between five and six emails the week after Thanksgiving. Around the same time, the Wall Street Journal reported that the top 100 online retailers sent an average of 177 emails apiece to each of their contacts in 2011. Averaged out, that's somewhere between three and four emails each week that the contact is receiving from these retailers.

The better to SPAM you with!

iStock_000016088853Medium.jpg

A 2014 whitepaper from SimpleRelevance titled Email Fail: An In-Depth Evaluation of Top 20 Internet Retailer's Email Personalization Capabilities ( PDF) found that, while 70 percent of marketing executives believed personalization was of "utmost importance" to their business...

"Only 17 percent of marketing leaders are going beyond basic transactional data to deliver personalized messages to consumers."

Speaking of email overload, the same report found that some major online retailers sent ten or more emails per week!

simplerelevance-email-report-frequency.png

The result?

All too often, the eCommerce business will carry around big, dead lists of contacts who don't even bother reading their emails anymore. They end up scrambling toward other channels to "drive more demand," but because the real problems were never addressed, this ends up increasing new customer acquisition costs.

The cycle looks something like this:

  1. Spend a fortune driving in unqualified traffic from top-of-the-funnel channels
  2. Ignore the majority of those visitors who aren't ready to purchase
  3. Capture email addresses only for the few visitors who made a purchase
  4. Spam the hell out of those people until they unsubscribe
  5. Spend a bunch more money trying to fill the top of the funnel with even more traffic

It's like trying to fill your funnel with a bucket full of holes, some of them patched with band-aids.

The real problems

  1. Lack of a cohesive strategy across marketing channels
  2. Lack of a cohesive content strategy throughout all stages of the buying cycle
  3. Lack of persona, buying cycle stage, and cohort-based list segmentation to nurture contacts
  4. Lack of tracking across customer touchpoints and devices
  5. Lack of gated content that provides enough value to early-funnel visitors to get them to provide their email address

So, what's the answer?

Inbound marketing allows online retailers to stop competing with Amazon and other "price focused" competitors with leaky funnels, and to instead focus on:

  1. Persona-based content marketing campaigns designed to acquire email addresses from high-quality leads (potential customers) by offering them the right content for each stage in their buyer's journey
  2. A robust marketing automation system that makes true personalization scalable
  3. Automated contact nurturing emails triggered by certain events, such as viewing specific content, abandoning their shopping cart, adding items to their wish list or performing micro-conversions like downloading a look book
  4. Intelligent SMM campaigns that match visitors and customers with social accounts by email addresses, interests and demographics—as well as social monitoring
  5. Hyper-segmented email contact lists to support the marketing automation described above, as well as to provide highly-customized email and shopping experiences
  6. Cross-channel, closed loop reporting to provide a complete "omnichannel" view of online marketing efforts and how they assist offline conversions, if applicable

Each of these areas will be covered in more detail below. First, let's take a quick step back and define what it is we're talking about here.

Inbound marketing: a primer

A lot of people think "inbound marketing" is just a way some SEO agencies are re-cloaking themselves to avoid negative associations with search engine optimization. Others think it's synonymous with "internet marketing." I think it goes more like this:

Inbound marketing is to Internet marketing as SEO is to inbound marketing: One piece of a larger whole.

There are many ways to define inbound marketing. A cursory review of definitions from several trusted sources reveals some fundamental similarities :

Rand Fishkin

randfishkin.jpeg

"Inbound Marketing is the practice of earning traffic and attention for your business on the web rather than buying it or interrupting people to get it. Inbound channels include organic search, social media, community-building content, opt-in email, word of mouth, and many others. Inbound marketing is particularly powerful because it appeals to what people are looking for and what they want, rather than trying to get between them and what they're trying to do with advertising. Inbound's also powerful due to the flywheel-effect it creates. The more you invest in Inbound and the more success you have, the less effort required to earn additional benefit."


Mike King

mikeking.jpeg

"Inbound Marketing is a collection of marketing activities that leverage remarkable content to penetrate earned media channels such as Organic Search, Social Media, Email, News and the Blogosphere with the goal of engaging prospects when they are specifically interested in what the brand has to offer."

This quote is from 2012, and is still just as accurate today. It's from an Inbound.org comment thread where you can also see many other takes on it from the likes of Ian Lurie, Jonathon Colman, and Larry Kim.


Inflow

inflow-logo.jpeg

"Inbound Marketing is a multi-channel, buyer-centric approach to online marketing that involves attracting, engaging, nurturing and converting potential customers from wherever they are in the buying cycle."

From Inflow's Inbound Services page.


Wikipedia

wikipedia.jpeg

"Inbound marketing refers to marketing activities that bring visitors in, rather than marketers having to go out to get prospects' attention. Inbound marketing earns the attention of customers, makes the company easy to be found, and draws customers to the website by producing interesting content."

From Inbound Marketing - Wikipedia.


Larry-Kim.jpeg

Larry Kim

"Inbound marketing" refers to marketing activities that bring leads and customers in when they're ready, rather than you having to go out and wave your arms to try to get people's attention."

Via Marketing Land in 2013. You can also read more of Larry Kim's interpretation, along with many others, on Inbound.org.


Hubspot

"Instead of the old outbound marketing methods of buying ads, buying email lists, and praying for leads, inbound marketing focuses on creating quality content that pulls people toward your company and product, where they naturally want to be."

Via Hubspot, a marketing automation platform for inbound marketing.

When everyone has their own definition of something, it helps to think about what they have in common, as opposed to how they differ. In the case of inbound, this includes concepts such as:

  • Pull (inbound) vs. push (interruption) marketing
  • "Earning" media coverage, search engine rankings, visitors and customers with outstanding content
  • Marketing across channels
  • Meeting potential customers where they are in their buyer's journey

Running your first eCommerce inbound marketing campaign

Audience personas—priority no. 1

The magic happens when retailers begin to hyper-segment their list based on buyer personas and other relevant information (i.e. what they've downloaded, what they've purchased, if they abandoned their cart...). This all starts with audience research to develop personas. If you need more information on persona development, try these resources:

Once personas are developed, retailers should choose one on which to focus. A complete campaign strategy should be developed around this persona, with the aim of providing the "right value" to them at the "right time" in their buyer's journey.

noble path of online marketing

Ready to get started?

We've developed a quick-start guide in the form of a checklist for eCommerce marketers who want to get started with inbound marketing, which you can access below.

inbound ecommerce checklist

Hands-on experience running one campaign will teach you more about inbound marketing than a dozen articles. My advice: Just do one. You will make mistakes. Learn from them and get better each time.

Example inbound marketing campaign

Below is an example of how a hypothetical inbound marketing campaign might play out, assuming you have completed all of the steps in the checklist above. Imagine you handle marketing for an online retailer of high-end sporting goods.

AT Hiker Tommy campaign: From awareness to purchase

When segmenting visitors and customers for a "high-end sporting goods / camping retailer" based on the East Coast, you identified a segment of "Trail Hikers." These are people with disposable income who care about high-quality gear, and will pay top dollar if they know it is tested and reliable. The top trail on their list of destinations is the Appalachian Trail (AT).

Top of the Funnel: SEO & Strategic Content Marketing

at-tommy.jpg

Tommy's first action is to do "top of the funnel" research from search engines (one reason why SEO is still so important to a complete inbound marketing strategy).

A search for "Hiking the Appalachian Trail" turns up your article titled "What NOT to Pack When Hiking the Appalachian Trail," which lists common items that are bulky/heavy, and highlights slimmer, lighter alternatives from your online catalog.

It also highlights the difference between cheap gear and the kind that won't let you down on your 2,181 mile journey through the wilderness of Appalachia, something you learned was important to Tommy when developing his persona. This allows you to get the company's value proposition of "tested, high-end, quality gear only" in front of readers very early in their buyer's journey—important if you want to differentiate your site from all of the retailers racing Amazon to the bottom of their profit margins.

So far you have yet to make "contact" with AT Hiker Tommy. The key to "acquiring" a contact before the potential customer is ready to make a purchase is to provide something of value to that specific type of person (i.e. their persona) at that specific point in time (i.e. their buying cycle stage).

In this case, we need to provide value to AT Hiker Tommy while he is getting started on his research about hiking the Appalachian Trail. He has an idea of what gear not to bring, as well as some lighter, higher-end options sold on your site. At this point, however, he is not ready to buy anything without researching the trail more. This is where retailers lose most of their potential customers. But not you. Not this time...

Middle of the funnel: Content offers, personalization, social & email nurturing

at-hiker-ebook.png

On the "What NOT to Pack When Hiking the Appalachian Trail" article (and probably several others), you have placed a call-to-action (CTA) in the form of a button that offers something like:

Download our Free 122-page Guide to Hiking the Appalachian Trail

This takes Tommy to a landing page showcasing some of the quotes from the book, and highlighting things like:

"We interviewed over 50 'thru-hikers' who completed the AT and have curated and organized the best first-hand tips, along with our own significant research to develop a free eBook that should answer most of your questions about the trail."

By entering their email address potential customers agree to allow you to send them the free PDF downloadable guide to hiking the AT, and other relevant information about hiking.

An automated email is sent with a link to the downloadable PDF guide, and several other useful content links, such as "The AT Hiker's Guide to Gear for the Appalachian Trail"—content designed to move Tommy further toward the purchase of hiking gear.

If Tommy still has not made a purchase within the next two weeks, another automated email is sent asking for feedback about the PDF guide (providing the link again), and to again provide the link to the "AT Hiker's Guide to Gear..." along with a compelling offer just for him, perhaps "Get 20% off your first hiking gear purchase, and a free wall map of the AT!"

Having Tommy's email address also allows you to hyper-target him on social channels, while also leveraging his initial visit to initiate retargeting efforts.

Bottom of the funnel: Email nurturing & strategic, segmented offers

Eventually Tommy makes a purchase, and he may or may not receive further emails related to this campaign, such as post-purchase emails for reviews, up-sells and cross-sells.

Upon checkout, Tommy checked the box to opt-in to weekly promotional emails. He is now on multiple lists. Your marketing automation system will automatically update Tommy's status from "Contact" or lead, to "Customer" and potentially remove or deactivate him from the marketing automation system database. This is accomplished either by default integration features, or with the help of integration tools like Zapier and IFTTT.

You have now nurtured Tommy from his initial research on Google all the way to his first purchase without ever having sent a spammy newsletter email full of irrelevant coupons and other offers. However, now that he is a loyal customer, Tommy finds value in these bottom-of-funnel email offers.

And this is just the start

Every inbound marketing campaign will have its own mix of appropriate channels. This post has focused mostly on email because acquiring the initial permission to contact the person is what fuels most of the other features offered by marketing automation systems, including:

  • Personalization of offers and other content on the site.
  • Knowing exactly which visitors are interacting on social media
  • Knowing where visitors and social followers are in the buying cycle and which persona best represents them, among other things.
  • Smart forms that don't require visitors to put in the same information twice and allow you to build out more detailed profiles of them over time.
  • Blogging platforms that tie into email and marketing automation systems
  • Analytics data that isn't blocked by Google and is tied directly to real people.
  • Closed-loop reporting that integrates with call-tracking and Google's Data Import tool
  • Up-sell, cross-sell, and abandoned cart reclamation features
Three more things...
  1. If you can figure out a way to get Tommy to "log in" when he comes to your site, the personalization possibilities are nearly limitless.
  2. The persona above is based on a real customer segment. I named it after my friend Tommy Bailey, who actually did write the eBook Guide to Hiking the Appalachian Trail, featured in the image above.
  3. This Moz post is part of an inbound marketing campaign targeting eCommerce marketers, a segment Inflow identified while building out our own personas. Our hope, and the whole point of inbound marketing, is that it provides value to you.

Current state of the inbound marketing industry

Inbound has, for the the most part, been applied to businesses in which the website objective is to generate leads for a sales team to follow-up with and close the deal. An examination of various marketing automation platforms—a key component of scalable inbound marketing programs—highlights this issue.

Popular marketing automation systems

Most of the major marketing automation systems can be be used very effectively as the backbone of an inbound marketing program for eCommerce businesses. However, only one of them (Silverpop) has made significant efforts to court the eCommerce market with content and out-of-box features. The next closest thing is Hubspot, so let's start with those two:

Silverpop - an IBMⓇ Company

silver-pop.jpeg

Unlike the other platforms below, right out of the box Silverpop allows marketers to tap into very specific behaviors, including the items purchased or left in the cart.

You can easily segment based on metrics like the Recency, Frequency and Monetary Value (RFM) of purchases:

silverpop triggered campaigns

You can automate personalized shopping cart abandonment recovery emails:

silverpop cart abandonment recovery

You can integrate with many leading brands offering complementary services, including: couponing, CRM, analytics, email deliverability enhancement, social and most major eCommerce platforms.

What you can't do with Silverpop is blog, find pricing info on their website, get a free trial on their website or have a modern-looking user experience. Sounds like an IBMⓇ company, doesn't it?

HubSpot

Out of all the marketing automation platforms on this list, HubSpot is the most capable of handling "inbound marketing" campaigns from start to finish. This should come as no surprise, given the phrase is credited to Brian Halligan, HubSpot's co-founder and CEO.

While they don't specifically cater to eCommerce marketing needs with the same gusto they give to lead gen. marketing, HubSpot does have an eCommerce landing page and a demo landing page for eCommerce leads, which suggests that their own personas include eCommerce marketers. Additionally, there is some good content on their blog written specifically for eCommerce.

HubSpot has allowed some key partners to develop plug-ins that integrate with leading eCommerce platforms. This approach works well with curation, and is not dissimilar to how Google handles Android or Apple handles their approved apps.

magento and hubspot

The Magento Connector for HubSpot, which costs $80 per month, was developed by EYEMAGiNE, a creative design firm for eCommerce websites. A similar HubSpot-approved third-party integration is on the way for Bigcommerce.

Another eCommerce integration for Hubspot is a Shopify plug-in called HubShoply, which was developed by Groove Commerce and costs $100 per month.

You can also use HubSpot's native integration capabilities with Zapier to sync data between HubSpot and most major eCommerce SaaS vendors, including the ones above, as well as WooCommerce, Shopify, PayPal, Infusionsoft and more. However, the same could be said of some of the other marketing automation platforms, and using these third-party solutions can sometimes feel like fitting a square peg into a round hole.

HubSpot can and does handle inbound marketing for eCommerce websites. All of the features are there, or easy enough to integrate. But let's put some pressure on them to up their eCommerce game even more. The least they can do is put an eCommerce link in the footer:

hubspot menus

Despite the lack of clear navigation to their eCommerce content, HubSpot seems to be paying more attention to the needs of eCommerce businesses than the rest of the platforms below.

Marketo

Nothing about Marketo's in-house marketing strategy suggests "Ecommerce Director Bob" might be one of their personas. The description for each of their marketing automation packages (from Spark to Enterprise) mentions that it is "for B2B" websites.

marketo screenshot

Driving Sales could apply to a retail business so I clicked on the link. Nope. Clearly, this is for lead generation.

marketo marketing automation

Passing "purchase-ready leads" over to your "sales reps" is a good example of the type of language used throughout the site.

Make no mistake, Marketo is a top-notch marketing automation platform. Powerful and clean, it's a shame they don't launch a full-scale eCommerce version of their core product. In the meantime, there's the Magento Integration for Marketo Plug-in developed by an agency out of Australia called Hoosh Marketing.

magento marketo integration

I've never used this integration, but it's part of Marketo's LaunchPoint directory, which I imagine is vetted, and Hoosh seems like a reputable agency.

Their pricing page is blurred and gated, which is annoying, but perhaps they'll come on here and tell everyone how much they charge.

marketo pricing page

As with all others except Silverpop, the Marketo navigation provides no easy paths to landing pages that would appeal to "Ecommerce Director Bob."

Pardot

This option is a SalesForce product, so—though I've never had the opportunity to use it—I can imagine Pardot is heavy on B2B/Sales and very light on B2C marketing for retail sites.

The hero image on their homepage says as much.

pardot tagline

pardot marketing automationAgain, no mention of eCommerce or retail, but clear navigation to lead gen and sales.

Eloqua / OMC

eloqua-logo.jpeg

Eloqua, now part of the Oracle Marketing Cloud (OMC), has a landing page for the retail industry, on which they proclaim:

"Retail marketers know that the path to lifelong loyalty and increased revenue goes through building and growing deep client relationships."

Since when did retail marketers start calling customers clients?

eloqua integration

The Integration tab on OMC's "...Retail.html" page helpfully informs eCommerce marketers that their sales teams can continue using CRM systems like SalesForce and Microsoft Dynamics but doesn't mention anything about eCommerce platforms and other SaaS solutions for eCommerce businesses.

Others

There are many other players in this arena. Though I haven't used them yet, three I would love to try out are SharpSpring, Hatchbuck and Act-On. But none of them appear to be any better suited to handle the concerns of eCommerce websites.

Where there's a gap, there's opportunity

The purpose of the section above wasn't to highlight deficiencies in the tools themselves, but to illustrate a gap in who they are being marketed to and developed for.

So far, most of your eCommerce competitors probably aren't using tools like these because they are not marketed to by the platforms, and don't know how to apply the technology to online retail in a way that would justify the expense.

The thing is, a tool is just a tool

The key concepts behind inbound marketing apply just as much to online retail as they do to lead generation.

In order to "do inbound marketing," a marketing automation system isn't even strictly necessary (in theory). They just help make the activities scalable for most businesses.

They also bring a lot of different marketing activities under one roof, which saves time and allows data to be moved and utilized between channels and systems. For example, what a customer is doing on social could influence the emails they receive, or content they see on your site. Here are some potential uses for most of the platforms above:

Automated marketing uses

  • Personalized abandoned cart emails
  • Post-purchase nurturing/reorder marketing
  • Welcome campaigns for the newsletter (other free offer) signups
  • Winback campaigns
  • Lead-nurturing email campaigns for cohorts and persona-based segments

Content marketing uses

  • Optimized, strategic blogging platforms, and frameworks
  • Landing pages for pre-transactional/educational offers or contests
  • Social media reporting, monitoring, and publishing
  • Personalization of content and user experience

Reporting uses

  • Revenue reporting (by segment or marketing action)
  • Attribution reporting (by campaign or content)

Assuming you don't have the budget for a marketing automation system, but already have a good email marketing platform, you can still get started with inbound marketing. Eventually, however, you may want to graduate to a dedicated marketing automation solution to reap the full benefits.

Email marketing platforms

Most of the marketing automation systems claim to replace your email marketing platform, while many email marketing platforms claim to be marketing automation systems. Neither statement is completely accurate.

Marketing automation systems, especially those created specifically for the type of "inbound" campaigns described above, provide a powerful suite of tools all in one place. On the other hand, dedicated email platforms tend to offer "email marketing" features that are better, and more robust, than those offered by marketing automation systems. Some of them are also considerably cheaper—such as MailChimp—but those are often light on even the email-specific features for eCommerce.

A different type of campaign

Email "blasts" in the form of B.O.G.O., $10 off or free shipping offers can still be very successful in generating incremental revenue boosts — especially for existing customers and seasonal campaigns.

The conversion rate on a 20% off coupon sent to existing customers, for instance, would likely pulverize the conversion rate of an email going out to middle-of-funnel contacts with a link to content (at least with how CR is currently being calculated by email platforms).

Inbound marketing campaigns can also offer quick wins, but they tend to focus mostly on non-customers after the first segmentation campaign (a campaign for the purpose of segmenting your list, such as an incentivised survey). This means lower initial conversion rates, but long-term success with the growth of new customers.

Here's a good bet if works with your budget: Rely on a marketing automation system for inbound marketing to drive new customer acquisition from initial visit to first purchase, while using a good email marketing platform to run your "promotional email" campaigns to existing customers.

If you have to choose one or the other, I'd go with a robust marketing automation system.

Some of the most popular email platforms used by eCommerce businesses, with a focus on how they handle various Inbound Marketing activities, include:

Bronto

bronto.jpeg

This platform builds in features like abandoned cart recovery, advanced email list segmentation and automated email workflows that nurture contacts over time.

They also offer a host of eCommerce-related features that you just don't get with marketing automation systems like Hubspot and Marketo. This includes easy integration with a variety of eCommerce platforms like ATG, Demandware, Magento, Miva Merchant, Mozu and MarketLive, not to mention apps for coupons, product recommendations, social shopping and more. Integration with enterprise eCommerce platforms is one reason why Bronto is seen over and over again when browsing the Internet Retailer Top 500 reports.

On the other hand, Bronto—like the rest of these email platforms—doesn't have many of the features that assist with content marketing outside of emails. As an "inbound" marketing automation system, it is incomplete because it focuses almost solely on one channel: email.

Vertical Response

verticalresponse.jpeg

Another juggernaut in eCommerce email marketing platforms, Vertical Response, has even fewer inbound-related features than Bronto, though it is a good email platform with a free version that includes up to 1,000 contacts and 4,000 emails per month (i.e. 4 emails to a full list of 1,000).

Oracle Marketing Cloud (OMC)

Responsys (the email platform), like Eloqua (the marketing automation system) was gobbled up by Oracle and is now part of their "Marketing Cloud."

It has been my experience that when a big technology firm like IBM or Oracle buys a great product, it isn't "great" for the users. Time will tell.

Listrak

listrak.jpeg

Out of the established email platforms for eCommerce, Listrak may do the best job at positioning themselves as a full inbound marketing platform.

Listrak's value proposition is that they're an "Omnichannel" solution. Everything is all in one "Single, Integrated Digital Marketing Platform for Retailers." The homepage image promises solutions for Email, Mobile, Social, Web and In-Store channels.

I haven't had the opportunity to work with Listrak yet, but would love to hear feedback in the comments on whether they could handle the kind of persona-based content marketing and automated email nurturing campaigns described in the example campaign above.

Key takeaways

Congratulations for making this far! Here are a few things I hope you'll take away from this post:

  • There is a lot of opportunity right now for eCommerce sites to take advantage of marketing automation systems and robust email marketing platforms as the infrastructure to run comprehensive inbound marketing campaigns.
  • There is a lot of opportunity right now for marketing automation systems to develop content and build in eCommerce-specific features to lure eCommerce marketers.
  • Inbound marketing isn't email marketing, although email is an important piece to inbound because it allows you to begin forming lasting relationships with potential customers much earlier in the buying cycle.
  • To see the full benefits of inbound marketing, you should focus on getting the right content to the right person at the right time in their shopping journey. This necessarily involves several different channels, including search, social and email. One of the many benefits of marketing automation systems is their ability to track your efforts here across marketing channels, devices and touch-points.

Tools, resources, and further reading

There is a lot of great content on the topic of Inbound marketing, some of which has greatly informed my own understanding and approach. Here are a few resources you may find useful as well.


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How to Keep your Site Fast for Mobile-Friendly

Posted on: Monday 13 April 2015 — 02:16

Posted by Zoompf

Cindy Krum recently published a must-read primer on the upcoming Mobile-Friendly changes which I highly recommend checking out before proceeding. Got it? Good. With the mad rush to optimize mobile sites prior to April 21st, it can be very easy to sacrifice performance in the process. Lest we forget, Google has mentioned on multiple occasions that website performance is also a factor in search ranking, first in 2010 for desktop sites and again in 2013 for mobile sites.

In this post I'm going to cover a few high-level best practices to keep in mind during your mobile site (re)design efforts. In addition, I suggest you also peruse Google's excellent documentation on mobile-friendly websites.

Measuring your mobile site performance

The first step to improving your mobile performance is to measure where you're starting. There are a number of excellent free and paid resources to do so, but two of my favorites are Google Chrome's built-in Developer Tools and WebPageTest. For the sake of simplicity, I'll be using Chrome Developer Tools in this article.

Not a developer? Don't worry, using the Chrome tools are real easy:

  1. Open up Chrome (install if necessary)
  2. Hit the little "hamburger" menu (3 stacked lines) in the top-right corner
  3. Select More Tools, then Developer Tools

You'll see a nifty screen with lots of juicy info. Most importantly, at the top there's a drop-down with many different mobile and tablet emulators. Pretty cool.

Now, select a device of interest, say Apple iPhone 6. Enter your site address in the address bar, hit enter and voila! You're now seeing your site rendered as an iPhone 6 would see it. Scroll down to the bottom to see some interesting performance stats like total page load time, size of the page, and the total number of requests. Hit the "Network" tab for a particularly helpful waterfall diagram view, as shown below:

zoompf_iphone6

Now let's get started...

Optimize those images for mobile

According to the HTTP Archive, images on average account for over 60% of your total page content. Pretty intuitive, images rule the web. Go ahead and check your own page with Chrome Developer Tools and you'll likely see similar numbers. When downloading over relatively slow mobile connections speeds, the impact of large images on your site performance can be even more severe.

While it's always a best practice to optimize your site using lossless and lossy image optimization techniques, there's another consideration for mobile: Should you even be downloading that image to begin with? That big, beautiful 1600px wide "hero" image you use on your desktop site might be completely wasted on the smaller display of a phone or tablet, even if that tablet as a high resolution or "retina" screen.

The solution? Consider loading a smaller image just for your mobile users. Be careful, though; there's a "right" and "wrong" way of doing this.

Quick aside: for this example, and your mobile site in general, make sure you're specifying the viewport meta tag in the head section of your page. Basically, this tells the mobile browser you have a responsive mobile site, and not to try to auto-scale a large desktop site down to mobile resolution (ugly!). Additionally if this tag is not present, you will get different results in your Chrome tests below.

The "wrong" way

Responsive design makes heavy use of CSS media queries to style your site differently at the smaller viewport sizes used by mobile devices, so an obvious approach to swap out your images might go something like this:

     

This code displays one image when the screen resolution is wide, and a different/smaller image when the resolution is smaller.

This looks just fine on the rendered page, but there's a big problem: both images get downloaded! To verify, load this sample in Chrome and you'll see something like this:

code_mobile_waterfall

Well that's not good; in fact that's even worse! You are wasting time and bandwidth downloading an image that won't even be shown!

The right way

Instead, consider using the background-image style on a DIV to achieve the same effect, for example:

  

Loading in Chrome tools, you'll now see this:

code_mobile_yes2

Only the mobile image was loaded... much better! Of course, there is one caveat: to use background-image with a DIV, you need to supply the image width and height in the CSS for that class. This can be cumbersome for a lot of images, or images that change size frequently, but if your "hero" images are relatively static in nature, strategic use of this technique could make a significant improvement to your mobile site performance.

Takeaway: Where possible, use the CSS media queries and the background-image style to conditionally render mobile images. This may only make sense for your largest images.

Consider ditching jQuery

What? Did you read that correctly? jQuery is THE library of choice for writing JavaScript, how can you live without it?

jQuery is indeed quite useful, but recall one if its original design goals was to provide a consistent interface that matches the W3C recommended API across wildly diverse browsers with different (and often broken) standards implementations. jQuery let's you avoid writing "if Internet Explorer do this, else do that" code.

BUT, jQuery's unifying interface is much less necessary on mobile. Mobile is dominated by WebKit-derived browsers such as Safari or Chrome, so there are fewer issues to abstract away. And weighing in at a hefty 200 KB, jQuery is still a significant library to download, even with liberal use of caching. Even after you compress and minify jQuery, you are dealing with around 30KB.

But wait, you say; you still want the simplified JavaScript interface jQuery provides? It is pretty nice - so consider Zeptojs instead. While not as fully featured as jQuery, it weighs in at a mere 5 KB in size compressed, roughly 6 times smaller! Since Zepto is largely API compatible with jQuery you shouldn't have to rewrite any code to use it. For most basic JavaScript sites, Zepto is more than sufficient.

Takeaway: Minimize the third party libraries you include, and consider using Zeptojs as an alternative to jQuery if your JavaScript needs are basic.

Review your caching settings

Smart web developers reduce the size of their resources to minimize page load times. Really smart web developers avoid the need to download those resources in the first place. This is where browser caching comes in. If your images, CSS, or JavaScript rarely change, consider caching them. This way your users only download the resource once, and the next time they hit your site the link is already sitting their on their local machine (or phone or tablet), just waiting to be used.

Mobify has a nice primer on setting caching headers, and there are many great free tools that can test your caching settings including the super cool REDbot, WooRank, and our own Zoompf. If you're running an Apache or nginx webserver, consider enabling mod_pagespeed to simplify your caching configuration. If you have a WordPress site, the W3 Total Cache plugin is excellent.

Takeaway: Caching is one of the most effective performance optimizations you can make, and matters more then ever for mobile sites. Review your caching policies and apply caching to your large, infrequently changing libraries and images.

Love animated GIFs? Your browser doesn't!

Animated GIFs have seen quite the resurgence of late, but the format is dated and showing its age. Dating back almost 30 years, animated GIFs are bloated and cumbersome to download, especially when your animated GIF is a short movie clip. Consider using HTML5 video instead of an animated film GIF. All modern browsers support it, and HTML5 videos are typically 10% or less the size of an equivalent animated GIF.

Another option is Imgur. When you upload animated GIFs to Imgur, they will automatically convert the animation into a format they call GIFV. GIFV is essentially just an HTML5 video, but with a significantly optimized size. Imgur manages the hosting of your videos, and optionally serves the file up at GIFV or GIF depending on the capabilities of your users' browser (although most all modern browsers support HTML5 video).

Takeaway: Try and avoid animated GIFs for movie clips or complex animations. Modern video protocols used by HTML5 video and GIFV offer significant performance boosts and reduced download times for your users.

The future: HTTP/2

The web is slowly evolving towards HTTP/2, and not a moment too soon. HTTP/1.1 is over 15 years old and showing signs of its age, especially when it comes to unreliable/intermittent connectivity in mobile devices. HTTP/2 already enjoys widespread browser and server support. While I wouldn't recommend rushing into an HTTP/2 adoption for the April 21st Mobile-Friendly change, future support for this protocol should definitely be on your roadmap. You can read more about HTTP/2 and its future impact on SEO and web performance in my earlier post.

Takeaway: Plan to adopt HTTP/2 on your future roadmap, it's coming!

In closing

Building a responsive, mobile-friendly website is more than tweaking styles and tags to please the Google crawler. There are nuanced, mobile specific considerations that, if ignored, can significantly slow down your mobile site and kill your user experience. Fortunately there are numerous free tools to help you evaluate your mobile site performance, including WebPageTest, Chrome Developer Tools, Google PageSpeed Insights, and Zoompf's Free Report. And of course, make sure to test with Google's own mobile-friendly test tool.

Now...go forth and start optimizing!


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