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Building Your Business Online

Building Your Business Online

March 29, 2012 for the St. Catharines Enterprise Centre

Adam White

March 29, 2012
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  1. Disclaimer I’ll be speaking about several service providers to help

    familiarize you with the major players in Canadian e-commerce. Their mention here is not an endorsement from either myself, JMR, the city or nGen. Make no business decisions without doing your homework first.
  2. Disclaimer Other things I am not: a lawyer, a PCI

    certified compliance officer, one of the Dragons’ Den judges, a venture capitalist, or, to my knowledge, a wizard.
  3. Itinerary Online Commerce Web Design & Usability SEO Online advertising

    Social Media Google Analytics Protecting Your Business & Clients
  4. Online pet store driven by venture capitol. Massive initial investments

    in advertising (Superbowl ad), web design, infrastructure (warehouses) and buying out competitors.
  5. In 2000, everyone had heard of Pets.com, their sock puppet

    mascot was well known by the public.
  6. Even without the advertising costs they lost money on nearly

    every sale. Sold products for 1/3rd the price it cost to acquire them. Free shipping on heavy items (cat litter!)
  7. In the .com bubble Pets.com went from Nasdaq IPO to

    liquidation in 268 days. They had brand recognition, but NO idea if they market for their service even existed.
  8. Online shoe store. Founder Nick Swinmurn believed there was a

    market for selling shoes online. How did he get that idea off the ground?
  9. Swinmurn asked local shoe stores if he could take picture

    of the inventory for a storefront he created online. If customers bought the shoes from his website, he’d buy them full price from the retailer.
  10. Swinmurn focused on the customer experience and proving a superior

    shoe shopping service online. This effort was all to answer: is there sufficient demand for the service?
  11. Venture capitol? Warehouses? Distribution partners? Extensive infrastructure? That came later,

    once the idea was sound. If the idea needed to be reworked, he could do so nimbly.
  12. Now the world’s largest online shoe store with gross sales

    in excess of $1B. Purchased by Amazon for $1.2 B in 2009. Reputation as the most consumer-friendly e-business in the world.
  13. Math is math Basic offline business rules still apply when

    you’re working online. You have to have a viable product. You have to have a business plan.
  14. Start small If your product is good and your customer

    service is amazing you’re in a good place. As demand grows your online offerings grow with it. Reduce your initial risk!
  15. Test your ideas Don’t assume the public will use your

    product or service. Do market research. Test a low-overhead version of your idea.
  16. nGen is a member of the Ontario Network of Excellence

    (ONE). Funded by the Ontario government. ONE can help you vet and formulate your online online idea
  17. 1. Fill out a form on the nGen website to

    verify your eligibility. 2. ONE will follow up with you to review your market opportunity and goals. Together you develop a plan of action, opportunities and challenges.
  18. The Reputation Economy The reputation and branding of a business

    online is far more vital than the mechanics of how people pay you. When it comes time to graduate from using system X to system Y, people will follow you.
  19. Strategy over Technology Building reputation requires a content strategy and

    a marketing plan. How are people going to find out about your e-business? What of value are you going to bring them on an ongoing basis? Think about this first.
  20. Types of e-commerce Textbook definitions... B2B, B2C, C2C, C2B, etc.

    We’re going to abstract this down to two* website options: Brochure Transactional
  21. * One could very validly add Advertising to the list

    of web business models here. That is, sites that offer content for free and make money serving ads to the audience. Since we don’t want to be here until 9 PM, we’ll just talk traditional “money for products” commerce.
  22. Brochure Your website promotes your services but any actual exchange

    of money happens either offline or at a fully managed 3rd party online (Amazon, iTunes Store). Fully managed? It’s not your store. You’re a product on their shelves.
  23. Brochure Brochure sites focus on selling the benefit of the

    product and providing customer service. Social media and advertising can factor in heavily. Most websites are of this type.
  24. Transactional Transactional sites have some mechanism by which people can

    pay you online for a product or service. While there are many options for HOW to accept payments, the brunt of the work is on you. You fulfill orders. You issue refunds. You set pricing and inventory.
  25. Transactional Transactional sites have all of the same sales and

    customer service requirements as brochure sites...
  26. Promotional Material Payment Mechanic Catalogue / Inventory Blog Custom website

    Template website Advertising Social media 3rd party e-commerce platform Customized e-commerce software
  27. Promotional Material Payment Mechanic Catalogue / Inventory Blog Custom website

    Template website Advertising Social media 3rd party e-commerce platform Customized e-commerce software Payment Gateway
  28. Blog Blogs are ongoing, dated publications. Stylistically they’re written with

    less formal language than a press release. May feature reader comments and social media sharing tools. Promotional Material
  29. Blog Blogs can be integrated into your website by your

    developer or hosted on free services. Promotional Material
  30. Blog Blogs connect best with consumers when: Promotional Material 1.

    There’s narrative flow which humanizes the ongoing story of the company 2. They’re posted at a regular interval (the size of the interval matters less than the consistency) 3. They’re of singular topics with clear structure (“Top 5 things...”)
  31. Blog Blog posts are “link sharing fodder” for your social

    media profiles. You want to provide strong Calls To Action between your blog and your website / store to direct consumers to that destination. Promotional Material
  32. Template Websites Template sites are sites hosted on free or

    have extremely low cost options. Promotional Material
  33. Template Websites Benefits? Low cost. Easy to use CMS. No

    need for a developer to start out. Lots of templates. Rapid deployment to market. Promotional Material
  34. Template Websites Drawbacks? Limited features to what the service offers.

    Design limitations. Pay to remove the host’s branding. Ultimately, it’s rented space. Switching costs once you grow. Promotional Material
  35. Custom Websites Have the site built by a professional web

    developer with art by a professional designer (which may or may not be from the same company). Promotional Material
  36. Custom Websites Things to ask your developer about: Promotional Material

    References and portfolio. Existing online sites they’ve had a hand in building which you can explore on your own. Confirmation of what they did on those sites (art, functionality).
  37. Custom Websites Things to ask your developer about: Promotional Material

    Is a Content Management System is being used. You should to be able to modify text, images and other day-to-day operational items yourself without having to pay a developer for each change.
  38. Custom Websites Things to ask your developer about: Promotional Material

    Will you have access to the source code? Are you able to take your website, along with the source code for any custom components or artwork, to another developer? Are you locked in?
  39. Custom Websites Things to ask your developer about: Promotional Material

    What are the costs for changes after launch? What hosting arrangements are possible? Is there an ongoing maintenance service available? Will the site be backed up regularly and if so how?
  40. Custom Websites The Custom Design Process Promotional Material A good

    developer should meet with you regularly to discuss site navigation, future content requirements and design. Never write a cheque and let a developer disappear until your site is ready.
  41. Custom Costs Website development costs vary by market and by

    the reputation and past clientele of the developer. No two sites are the same and custom costs will vary depending on what features you prioritize. Ask about best practices for nonstandard features. Promotional Material
  42. Rent or Build? You may switch which e-commerce catalogue /

    inventory / shopping cart system you use as your business scales up. If you’re starting out, determine your appetite for risk. You may want to work on the reputation of the brand and go for a lower upfront cost system initially. Catalogue / Inventory
  43. Rent or Build? You should be able to graph out

    your sales in relation to your eCommerce operating costs. At some point on the curve it becomes prudent to upgrade. Catalogue / Inventory
  44. Hosted service based out of Ottawa. Online store builder, shopping

    cart, inventory control, with customizable design you can match to your website. Built in mobile support. Lots of plug-ins and add-ons SSL / PCI. Catalogue / Inventory Options
  45. Basic Lowest-Tier Pricing Lowest is $26 per month 2.0% transaction

    fee 100 SKUs Unlimited Bandwidth PLUS your Payment Gateway fee Catalogue / Inventory Options
  46. Hosted service based out of the US. Online store builder,

    shopping cart, inventory control, with design templates and in-house designers. SSL / PCI. Catalogue / Inventory Options
  47. Basic Lowest-Tier Pricing Lowest is $19 per month No transaction

    fee 100 SKUs 1 GB Bandwidth PLUS your Payment Gateway fee Catalogue / Inventory Options
  48. Catalogue / Inventory Options Hosted subscription billing system. Recurring billing

    is HARD. Lots of complexity: account holds, credit card declines, cancellation and renewal of accounts.
  49. Catalogue / Inventory Options Basic Lowest-Tier Pricing $69 monthly fee

    1.25% + $0.10 per transaction PLUS your Payment Gateway fee
  50. Payment Gateways? While shopping cart software can walk your customer

    through the sale, they’re not the ones who charge the customer’s credit card. For that, you need a payment gateway.
  51. Merchant Accounts? You may find lower per-transaction costs with a

    traditional bank merchant account, but that may require fees, minimum monthly sales and credit checks. Online payment gateways may have higher per-trans fees but may not require the background checks.
  52. Payment Gateways Payment gateways handle the processing of credit card

    payments. They communicate with Visa, Mastercard, etc. Even if you process cards on-site you NEVER want customers to email you card numbers. Online customers expect to pay online.
  53. Popular and trusted. Offers two options, Standard and Pro. Both

    accept credit cards without the need for a merchant account from a traditional bank. Payment Gateway Options
  54. Website Payments Standard Takes customer off your page to pay

    for items. Payment is processed on PayPal’s website. Service is free, costs are a based on sales (ie: 2.9% + $0.30). Payment Gateway Options
  55. Website Payments Pro PayPal still handles payments but to the

    user it’s seamless. They never leave your website. Service has a subscription cost plus a fee based on sales. Approval required. Payment Gateway Options
  56. $0 to $3,000 $3,000.01+ to $12,000 $12,000.01+ to $125,000 $125,000.01+

    Payment Gateway Options 2.9% + $0.30 2.5% + $0.30 2.2% + $0.30 1.9% + $0.30 Sample Paypal Rates
  57. Payment Gateway Options Canada has far fewer merchant options than

    the US. Several prominent Canadian providers:
  58. Payment Gateway Options Each provider will have different monthly fees,

    per-transaction requirements, minimums and approval processes.
  59. Promotional Material Payment Mechanic Catalogue / Inventory Blog Custom website

    Template website Social media Advertising 3rd party eCommerce platform Customized eCommerce software
  60. Promotional Material Payment Mechanic Catalogue / Inventory Blog Custom website

    Template website Social media Advertising 3rd party eCommerce platform Customized eCommerce software Payment Gateway
  61. Do Paper Prototypes Don’t let a designer or developer go

    ahead and start working before you get the site roughly defined on paper first. Walk through how the site will work. Don’t force your contractors to make assumptions about your product.
  62. Test The Prototypes Follow the paper design with the dev

    and walk through some usage scenarios. Speak your thought process. “so I want to buy an item... first I click here... then...” Test at this stage when it’s less expensive.
  63. Lay Out Your Navigation The type of information you host

    on the site will have design consequences. Work through your site navigation hierarchy on paper (I prefer Post Its) in a collaborative session with your stakeholders and developer.
  64. Wireframes Don’t waste resources by having the creatives provide you

    with fully finished designs before you’ve approved the overall direction. Rough designs, on paper on screen, called wireframes should help you finalize the idea.
  65. “Mobile First” Design Your navigation on your website should be

    easy to understand and explore. A big current trend is for developers to use the constraints of mobile phone screen sizes to help them narrow down which options are REALLY important.
  66. “Mobile First” Design While you don’t necessarily need a mobile-optimized

    version of your website, as a thought experiment this exercise helps to clarify which options to include and which to leave on the cutting room floor.
  67. Do I need mobile access? Yes and no. A popular

    trend in web design is responsive design, in which a website scales appropriately for smaller screen sizes. BostonGlobe.com / BarackObama.com
  68. Do I need mobile access? However if your business has

    a specific mobile use case you may want to have a mobile-specific option available.
  69. Tim Hortons’ mobile site gives you options which are most

    useful within a mobile context. The store finder, balance check and nutritional info are present. News and contests from the full site are not.
  70. Don’t Hinder Mobile In any case, mobile phones are less

    powerful than desktop computers and require design that is mobile-usable. This means Flash, sound, video and animation should only be used for accent, not navigation. Mouse-hover effects similarly won’t work on a touch interface.
  71. Calls to Action From every page on your website there

    should be a clear and easy to find call to action which may be making a purchase, signing up for a list, etc. It is the “above all else, do this” button, and it should always be visible.
  72. SEO

  73. Search Engine Optimization How to improve your organic search results?

    Organic = based purely on relevance Paid = paid (duh)
  74. Warning: Snakeoil Predatory SEO marketers are everywhere and prey on

    ignorance of site owners of how Google works. They may be able to game Google for a time, but how long will their results last? There are no guarantees and potential consequences.
  75. Today’s Google There is no longer a universal “top of

    Google” for a given search term. Google sorts it’s list based on relevance but ALSO the searcher’s geographic location, past user history and linked social media activity.
  76. Today’s Google What YOU see on the top of Google

    (particularly if you’re logged in to your Google account at the time) is not necessarily what someone else sees. Your best measurement of success is actual metrics from your website, not anecdotal searching.
  77. Google Best Practices Your only guaranteed SEO advice comes from

    Google. Follow their best practices guide before ever bringing in paid SEO services. No 3rd party company has any access to manipulate Google’s results.
  78. Google Best Practices Make your content relevant and easy to

    find. Each page should have a singular topic with text organized in a clear hierarchy.
  79. Google Best Practices Google reads a website much like a

    visually impaired person with a screen reader. It doesn’t see images, Flash animation, or text embedded into images. Test your site with a text-only browser: http://www.w3.org/services/html2txt
  80. Google Best Practices Cultivate relevant links with other quality websites.

    A link from one well ranked site to another is a vote of confidence from one to the other.
  81. Google Best Practices Make use of keywords that people are

    actually using to search. IE: Do you service Pelham? Do you mention Pelham? Keywords should always be incorporated into real human readable text.
  82. Dig Deep for Keywords Search is a major driver of

    traffic so you want to ensure that your site can be found. This means you must target the language you use to what people are actually searching for.
  83. Google Insights A free tool to allow you to compare

    search volume patterns across regions, time frames and other criteria. Let’s do it live. Go to: http://www.google.com/insights/search/
  84. Search Engine Advertising Google AdWords Displays ads based on search

    queries or page content. Does not effect organic search results.
  85. Search Engine Advertising Advertising slots are auction-based. An auction is

    run with every click of the search button. Placement is determined by: Bid Amount * Page Relevancy Score
  86. Search Engine Advertising Page Relevancy Score works like Organic Search

    ranking. As in the red shoes example, having a page that’s specifically geared to the keyword you’re targeting can help raise your relevancy and lower your costs.
  87. Search Engine Advertising Ads can be targeted to geographic region,

    language, time of day, and can be budgeted so you can control your costs.
  88. Google Display Network Google Ads also appear on other websites,

    news pages and blogs which opt to display them. This gives you the option of using image ads and targeting specific websites.
  89. Google Display Network Display Network ads are shown based on

    both the keyword relevancy of the website hosting the ad, as well as the user viewing the ad’s past web browsing history.
  90. Let’s Try it Out! We’re going to play with two

    tools to test out ads. The Google Keyword Tool & Traffic Estimator
  91. Keyword Tool Type in any word, phrase or website name.

    Google gives a list of keyword ideas plus data showing how often words are searched and their ad bid competition.
  92. Traffic Estimator Search for a keyword or phrase along with

    what a budget. The results give you an idea of how many searches take place monthly and what position such an investment could potentially get you.
  93. Facebook Advertising Similar setup and process as Google AdWords but

    the ads are socially integrated into Facebook. Facebook’s market of 800 million users can be targeted with more precision because they offer up their demographic information freely.
  94. Facebook Advertising Facebook allows you to promote your businesses’ Facebook

    Page, an individual piece of content from your page, or an external page. Ads are text and images with “Like” buttons and other sharing features.
  95. Facebook Advertising Facebook ads have daily budget allowances. You can

    choose to pay Cost Per Click (CPC) or Cost Per 1,000 Impressions (CPM)
  96. Facebook Advertising Consumers are notified if their friends had interacted

    with the advertiser’s Facebook page, increasing likelihood of similar interactions.
  97. Content Networks Advertising networks exist to serve image ads to

    lifestyle-specific niche sites. You can discover these networks by looking at your competitors, similar niche sites, or via Google.
  98. Online communities of people Social media (Web 2.0) is a

    set of tools and an associated web-based community built for individuals to communicate.
  99. ‣ Share photos and status updates with “friends” in an

    ongoing timeline of your life ‣ #1 destination online ‣ 750 million users. 50% use daily ‣ Ready made tools for businesses
  100. ‣ 140 character status updates broadcast publicly ‣ People choose

    to “follow” other users they find interesting ‣ Updates are real time. “1 hour ago? Who cares.” ‣ Tastemakers and influences
  101. ‣ Your online resume and references ‣ Less public. Users

    expected to leverage existing business connections ‣ Your professional profile. No games. No pictures. No screwin’ around.
  102. ‣ Share short videos ‣ Medium permits unprofessional videography to

    shine ‣ Builds personality in a way that text cannot ‣ Second largest search engine to Google
  103. ‣ Easy mixed-media blogging ‣ Quickly share pictures, videos, text,

    quotes, and music ‣ Users encouraged to re-share items they like ‣ Growing rapidly. Very popular among teenage girls
  104. ‣ Google’s attempt to build a better mousetrap Facebook ‣

    Attempts to solve the Facebook privacy problem that “friend” is too broad. ‣ Tightly integrated into Google’s products.
  105. ‣ Share images from around the web, organized into virtual

    pin boards ‣ Incredible recent growth among young women (wedding planning, home decor)
  106. We tend to explain social media as “media” (as I

    just did) and assume the “social” part is obvious! Eating a sandwich
  107. Social particularities are not obvious to outsiders. ...particularly when the

    society exists only as a flow of text and images.
  108. So how do you as individuals and business people become

    adequately socialized in an online community?
  109. So how do you as individuals and business people become

    adequately socialized in an online community? Immersion!
  110. We learn by acting as a member of the group

    Anthropologists call this participant observation
  111. A book could teach you what a Twitter #hashtag is.

    It can’t teach you how to identify #hashtag jokes. #fail
  112. In isolation... Individual social media interactions seem simple and rather

    banal. This creates the stigma of narcissism and pointlessness.
  113. Why do people share so much on social? Recognition. Appreciation.

    These are our fundamental desires as social beings. There’s nothing new about storytelling like this.
  114. Networks are made for people You’re just an individual user

    like any other, so you have no choice but to act like one. As an organization you don’t get any special privileges.
  115. Networks are made for people You’ll get far more traction

    self- branding yourself as an individual who’s strongly associated with your brand, than the brand alone.
  116. Self Branding Participate as a human being strongly identified with

    your professional life. A large part of your narrative IS your business. The subtext you share should be strongly related to what you do.
  117. Self Branding So if you’re a florist in St. Catharines...

    You should be sharing your passion for plants, weddings, decorating. You should be talking about St. Catharines.
  118. Self Branding You’ll come to be known not because of

    your business, but because of your passions. When your passions align with your business the social media audience comes associate your good reputation with your business.
  119. It’s not your space Social media profiles are space on

    someone else’s website. Since you don’t set the rules, you must learn to communicate as the community does.
  120. You must provide something of value in exchange for the

    imposition on people’s lives. Respect the Implicit Contract
  121. Then the best business use of social media is to

    taste signal as an individual... because that’s what it’s for. Stop fighting this...
  122. At a certain size... Conversations online will happen about your

    brand with you, or without you. At this stage your role becomes one of customer service. Listen for relevant conversations and respond to them publicly.
  123. Context matters Should I follow @yourbusiness on Twitter? I’ll look

    at your profile. How often do you post? How interesting are you? Does you talk or advertise?
  124. I like this business, should I also _____ them on

    Facebook? Look at their page. What’s the value they provide online? Do I want to see their updates regularly? Context matters
  125. Pro Help Your ongoing social media activity is not a

    campaign. You can do both and will likely want pro help to organize and measure a campaign. Goals and ROI metrics are great, but you need to learn what you’re paying for before you get to that stage
  126. Pro Help When a campaign is over, you still need

    to be in the trenches personally leveraging those connections the campaign created.
  127. It takes time... Reputation building using social media tools is

    a marathon, not a sprint. It’s an ongoing public relations exercise, not an advertising campaign.
  128. Google Analytics Free service offered by Google to generate detailed

    statistics about website visitors. Can integrate with AdWords to track performance from advertising campaigns. Also has e-commerce tracking.
  129. Audience Statistics # Visits # Unique Visits # Pageviews Avg

    Pages per Visit Avg Visit Duration Bounce Rate % New Visits Language & Geographic Origin
  130. Traffic Source Statistics % Search Traffic % Referral Traffic %

    Direct Traffic Search Keywords Referring Websites
  131. PIPEDA Personal Information Protection and Electronic Documents Act Collected information

    must be... • Collected for identifiable purposes with consent • Used and disclosed only for that reason • Accurate • Accessible or inspection and correction • Safeguarded
  132. Copyright In Canada people who create original works automatically have

    copyright protection. If you collect user contributions on your website, be explicit with your users about your intentions.
  133. Terms Of Use ..a document hosted on your website detailing

    what you do with information and what your users consent to. Not legally enforceable as a contract, but useful for certain regulations that require you to post notice.
  134. Domain Names Domain names should not violate the trademark of

    another business. Your name should not include the name of another product.
  135. Taxes HST would apply, at the very least, if selling

    within Ontario and regional taxes would likely apply selling to Canada. Not so the US. Consult with the CRA and a tax lawyer.
  136. Jurisdiction You are subject to the laws in the jurisdiction

    in which you sell your products. Privacy regulations cross borders matter if you operate in those territories.
  137. Export Permits Generally if you need one offline to sell

    abroad, you’ll need one online. Check with Foreign Affairs and International Trade Canada
  138. Privacy Policy A document for the sake of your users

    which details how you’ll use their information. You need to establish their trust before they hand over sensitive info.
  139. PCI-DSS If you transmit, process, or store credit card data

    the PCI-DSS applies to you! Over 80% of unauthorized credit card access involves small merchants.
  140. PCI-DSS The credit card provider is only generally liable for

    damages from security breaches IF the retailer was PCI complaint at the time of the breach.
  141. Consequences A breach has both financial and reputation risks. Following

    a breach and any reparations / fines that must be paid, processing fees for the merchant skyrocket.
  142. Basic PCI... Do not store cardholder data unless absolutely necessary.

    Never store verification codes, PINs Only first 6 and last 4 digits of a card can be displayed
  143. Use PCI Complaint Vendors eCommerce services such as PayPal, Shopify,

    Volusion, BeanStream maintain PCI standards. One of the reasons to use these services is that you offload some of the security to the experts.
  144. Avoid Homebrewing e-com This is another good reason to use

    a proven CMS as the basis for your website. The more eyes on security the better. If you’re doing everything in house you had better be thorough.
  145. Questionnaires You will likely be obligated by whatever bank or

    payment gateway you work with to complete yearly PCI- DSS Self Assessment Questionnaires.
  146. SAQ-A This is for vendors who offload all sensitive data

    handling to 3rd parties. 14 Questions Physical Security Req’s Information Security Policy
  147. SAQ-C This is for e-commerce where you do most of

    the credit card handling in- house. 85 Questions Req’s for Securing Sensitive Data Regular Monitoring and Testing