Building Industry Insights

Why Best Buy Might Not Make It

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In the wake of founder Richard Schulze’s sudden departure from Best Buy last week, I shopped there this weekend.

After doing my research online—with the usual frustration that I couldn’t match top reviewed products from CNET within the Best Buy site search—I settled on a new camera that was on sale.  I put it into my shopping cart, intending to buy online and pick-up in store. But then I had a change of heart, and abandoned the shopping cart in favor of the in-store experience, just to make sure I wasn’t missing anything.  I still tend to kick it old school when shopping for major purchases, thinking that the sales reps will know a lot more than I do.

Wrong.

The sales rep not only didn’t try to upsell me on anything, but he didn’t even know about some of the upsell opportunities I had found through my research.  He followed me around like an eager Labrador puppy, trying to be helpful, as I snapped up accessories that I wanted, but he was ultimately pretty clueless and unable to answer questions.

Then I noticed that the online sale price was lower than the price listed in store. I showed the salesperson where I had bookmarked the sale price on my Android phone.

“Oh, yeah, we’ll match that,” I’m assured.

“Match it? It’s yours. This is your site, Best Buy.”

“Oh, yeah, and I mean we’ll match the online company’s pricing.”

The store was his employer.  The website was practically a foreign entity.

That’s a problem.

While unable to help me find accessories to improve my camera experience, the salesperson was, however,  very well trained in selling the extended warranty.

That’s a problem. (Talk about kicking it old school!)

I got an auto email precisely 24 hours after I had abandoned my original shopping cart, asking if they could help me. Not aware of a transaction made in store. Two separate systems.

That’s a problem.

No follow up from Best Buy to help me use my new technology. No links to videos or other cool helpful content.

In the end, Best Buy got the sale, but it’s probably for the last time, after a good decade of complete customer loyalty.

Next time: Amazon.

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Building Industry Insights | The OR-DP POV

Why Is the Building Products Industry so Bad at Lead Nurturing?

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For an industry with a generally long purchase cycle and an incredibly complex route-to-market system, we collectively do a really terrible job of nurturing prospects when they raise their hands.  Does this sound like your marketing department?

  1. You collect leads at trade shows and mail every one the same generic “information” package after the show. You have no idea if anyone ever closed that sales loop
  2.  You have no idea that you get leads from certain publishers related to your advertising and media relations investment.  Or you have no idea who handles them in your department, if anyone.
  3. You have no idea why or how many people have registered at your website, nor if anyone has closed the sales loop.  Nonetheless, you feel compelled to send them all the same enewsletter of things you think they should know about you.
  4. You supply every lead to channel customers and field offices and they never do anything with them.
  5. Your channel customers and field offices say they never do anything with your leads because they’re lame.

Marketers across all industries are stepping up their game to better capitalize on and manage sales leads, according to a survey conducted by marketing automation service provider Eloqua.   Of responding marketing executives across a variety of industries, 88% reported increased their lead analytics activity, with almost three-quarters forming a better understanding of conversion rates.

Two-thirds are digging deeper into the funnel in search of shorter sales cycles and improved sales intelligence.

The biggest hurdle reported—perhaps answering the question in the headline of this article—is a lack of processes.

Yet with the changing the shape and nature of the sales funnel driven by the increase in social media, content marketing and mobile, is it a process you can afford to put off much longer?

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Building Industry Insights | The OR-DP POV

eTail 2012 - 10 Things Building Products Marketers Need to Know

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What’s a nice girl from the building products industry doing at an e-commerce conference?

Simply put: any phenom that brings together everyone from big boxes to independents in a collective shudder is something I need to better understand.   I’ll be sharing what I learned discovered at eTail 2012 in posts over the next few weeks, but here are the 10 most amazing things I learned:

1. Conversion measurement is getting harder to track.  How do you know if someone scanned your email headline and then went back to your website later to take action?  Or if someone has been a quiet fan of your Facebook page, enjoying conversations from afar enough that when it came time to buy, she went to a showroom and chose your brand?

2. By 2017, CMOs will spend more on tech than CIOs.  (Gartner Group data via a Bain Ventures presenter). Which means marketers better get over their fear of tech PDQ.

3. E-commerce is by no means an easy, low-cost venture compared to traditional retailing. Spending on search and keyword advertising is easily five figures a month for considered purchases such as building products. It’s also at least as labor-intensive as a storefront. A presenter from Vintagetub.com noted that 58% of their sales are by phone.

4. Low engagement on emails—low rates on opens and click thrus—can reduce your email deliverability. If no one ever responds to your emails, Internet service providers (ISPs) are increasingly seeing that as a sign of spam.  Email service providers such as Constant Contact, Mail Chimp and Bronto will reject your lists.  Make sure your emails have the right message targeting the right people.  Even unsubscribes are better than apathy.

5. Our industry is not only way behind the curve on managing and converting leads, but also behind the curve in valuing leads. How many brands follow up with trade show leads with any more than a letter and a brochure mailing?  A solid CRM system is the necessary starting point, but even then, what’s the comeback to “our sales reps and/or showrooms never really follow up on the leads?”

6. Email is getting people to Facebook, but Facebook isn’t getting people to opt in for email. And virtually no one is experiencing direct sales from Facebook. Over and over at eTail, presenters said it was a waste to put your product catalog on Facebook.

7. Friends, fans and likes on social media are not great metrics, but they are they are the best we have right now. (See #1)  Still nearly impossible to plot a direct causal link, other than what we’ve known since commerce first began: we buy from people we like.

8. Related: happy people sell product.  The most overlooked sales people are your own employees. “No one ever bought anything from an un-enchanted employee,” said day-three keynoter Guy Kawasaki.

9. Everyone underestimates the time it takes to get things done for online engineering.  Getting two to three major initiatives done per year on your website and customer relationship management is actually a pretty reasonable pace.

10. The slickest CRM and retargeting technology can’t overcome bad copy, cheap images and boring videos. Content rules.

My favorite quote from eTail?  “WTF stands for website, Twitter and Facebook.”

A near perfect metaphor for today’s marketer, IMHO.  Want to learn more? eTail Boston is scheduled for Boston in August.

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Building Industry Insights | The OR-DP POV

AHR Expo Rides the Rising Tide of Energy Efficiency

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If you are actively involved in the HVAC business—whether wet heat, forced air or some creative combination of the two—and chose not to attend AHR Expo 2012 in Chicago last month, you owe yourself a heart-felt apology. You really should have made the scene—no excuses, please (if you didn’t, there’s always AHR Expo 2013 in Dallas).

The beleaguered construction market of recent years has taken a terrible toll on everyone’s marketing budget, and trade shows have been a particularly conspicuous target of sharp spending cuts. More and more decision-makers, potential exhibitors and attendees, are opting to hang onto their cash and stay home with scant regret, convinced there is precious little ROI to be gained spending another four or five days living out of a suitcase in Las Vegas, Orlando, or Wherever.

But while it may be a bitter season for most exhibitions, the annual AHR Expo continues to flourish. You’d think the prospect of spending three days in Chicago in mid-January would be reason enough for all interested parties to just say “no,” but you’d be wrong. In fact, this year’s event broke all the records any trade show covets. According to the AHR Expo’s website, the 2012 event saw…

  • Record visitor attendance: over 39,000 contractors, engineers, distributors, facility managers, manufacturers, reps and other HVACR professionals.
  • Record total attendance: over 58,000 visitors and exhibitor personnel.
  • Record exhibit floor: more than 428,000 net square feet of booth space in two halls at McCormick Place.

Much of the credit for this success goes to ASHRAE, its staff and membership for all the hard work that goes into making a successful exposition of this magnitude year after year after year. But I don’t think it’s especially radical to suggest there’s an even larger, more critical reality at play here, given the enthusiastic crowds at the AHR Expo in recent times.

National phenomenon: It comes down to two words: energy efficiency, and the galvanizing impact this movement is having despite the economy, or perhaps because of it. This impact affects not only on the people who attend the Expo, but also—and more importantly—American society as a whole. After all, absent a vibrant market for energy-efficient products, the number of exhibitors and attendees at the AHR Expo would be far fewer, no matter how hard show organizers worked.

Americans continue to regard the green movement in general with a skeptical eye. But when it comes to saving money on their fuel bills, a critical mass of homeowners are “all in.” A recent article by John K. McIlwain in Urban Land, the online publication of the Urban Land Institute, summed up the trend by quoting an unnamed developer to the effect that energy efficiency has become the “new granite countertop.”

“After all, no one asks what the payback period is for a countertop. Just as items that were once added to a new home or condo for an additional price are now standard, so too are energy-efficient equipment and design becoming standard features expected by the buyer or renter.” (Italics mine.)

The makers, designers, specifiers and installers of heating, ventilating and air conditioning equipment understand this happy reality, and its beneficial resonance on their businesses and their careers. That’s why McCormick Place was humming with activity in late January—at least for the first two days of the AHR Expo—and why it will likely be humming again next January when the show moves to Dallas, and then in 2014 when it returns to New York, New York.

It’s also why if energy efficiency is the core rationale for how you earn your daily bread, you just might want to check out the AHR Expo, one of the very few trade shows these days that isn’t struggling to justify its existence.

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Building Industry Insights | Building Products Marketing Insights | The OR-DP POV