Archive for September, 2010

Update for our readers: after posting this article, I came across news recently that Amazon.ca has reduced the threshold for purchases that incur the shipping fee down to $25, from the original $39 order amount. Chapters-Indigo soon followed suit as well!

At Sydcam Marketing Communications, we’re always on the lookout for new trends in the world of marketing. I recently came across some very interesting research from The NPD Group that I wanted to share with my readers. For those of you that regularly use the internet to purchase items, you may be surprised how quickly this channel of distribution is evolving.

The “early” days of e-commerce

In the early days of the internet (1990’s), e-commerce was rarely thought of as a critical component of a business’ website. Instead, businesses were more focused on building so-called “brochure” type sites that provided information on their products and services, enabling clients to do research in advance of a buying decision.

They would then go to their traditional distribution channels (retail store, 1-800 number, etc.) to complete the purchase. In research completed by this author at that time, many small business owners expressed concern about cannibalizing their existing channels and upsetting their distribution partners by selling online.

Early in the 21^st century, this attitude began to change as businesses realized that clients were clamouring for increased convenience to cope with the time pressures in their busy lives. Selling online was the perfect solution to this problem. Many manufacturers, retailers and wholesalers developed e-commerce portals to meet this need. The common thread with most was they were merely extensions of their existing distribution channels, offering the same products at the same prices (with shipping fees to boot!).

e-Commerce Today

Fast forward to today where attitudes and expectations have again changed dramatically. The NPD Group’s research indicates that Canadian consumers who shop online do so because they expect to pay less – 60% of Canadians polled said they shop online to save money. More than 50% also said they expected online prices to be lower than those found in a store. As well, 71% said they enjoy the convenience of shopping online as it makes price comparisons that much easier.

Interestingly, this heightened price sensitivity is also reflected in Canadians apprehension to paying the shipping and handling costs associated with online shopping. This was sighted in the survey as the number one reason why purchasers didn’t follow through with their online purchases. It was also found that high shipping costs often drove the customer to browse elsewhere for the products and services they wanted.

Taking Action

So what does this all suggest? First and foremost, business owners and marketers should realize that this shift symbolizes an increased sophistication on the part of the consumer. They have finally figured out what we knew all along – that the costs of distribution through the online medium are much lower than through more traditional channels – and they expect that those cost savings should be passed on to them as opposed to padding a business’ bottom line.

What should businesses do with this newfound information? Clearly, operating your online business as a mere extension of your traditional business will not suffice. Instead, your e-commerce strategy needs to be differentiated and focused on “online” specific niches, such as promoting new and innovative products, as well as providing value to customers by using your website to promote clearance sales and special “VIP” events. Providing reasonable and flexible shipping options and their related costs would also go a long way to decreasing consumer apprehension with purchasing from your site.

Roots Canada is an excellent example of a company that has devised a unique strategy for its online/e-commerce channel, using email marketing to leverage the online shopping experience for their customers. I’d love to hear your thoughts on this topic, so feel free to drop me a response with your thoughts to info@sydcamcommunications.com.

Find out more about how Sydcam Marketing Communications can assist you with your e-commerce strategies or with any marketing initiative you want to get off the ground successfully.

If you were no longer there to provide for them, would your family be able to keep their home? Could your children attend college or university? If you answered ‘no’ to either of these questions, it may be time to look at your life insurance coverage.

September has been designated Life Insurance Awareness Month by the Life and Health Insurance Foundation for Education (LIFE). The Foundation is encouraging people to examine their life insurance policies to determine if they are adequately protected.

While your needs may vary, the 2004 Human Life Value Study conducted by LIFE found that the average life value among U.S. citizens was $803,788. A male’s value, meaning the economic value to others, was nearly $1 million, while a female’s value was over $660,000. While the life insurance need is not as high as those values, the average life insurance policy for males in the study was closer to $300,000  while women had $165,245.

Life insurance can be the foundation of a sound financial plan, especially given the continuing need after the death of a breadwinner. Think of it as a safety net should a wage earner die unexpectedly. In addition to that, permanent life insurance may accumulate a cash value that can be accessed while you are still living. While any loans from a policy will accrue interest and diminish the cash value and any subsequent death benefit, the proceeds could be used for any number of reasons.

Life insurance can be one of the most important purchases you make. Take some time during Life Insurance Awareness Month to examine your life insurance needs. Contact us for a free, comprehensive review of your personal program.

Have a great Month!

Although our group has a strong online presence (business blog, Linkedin group, Twitter) we meet regularly at the e-Spot™ to make friends, learn together and exchange referrals.

Our next meeting is on Friday, September 17, 2010 at 8:45 am

Our free business networking group invites you to join us and share referrals. Our business blog offers you an opportunity to promote your own web site.

Members, please be advised that your $5 attendance fee is payable at the door.

NEW for VISITORS only: attendance fee is $10 at the door, until you become regular members. To become a member of this group, please fill out the application form.

To make things easier for you and e-Spot staff, please consider paying $10 or $20 in advance. Your credit can then be used to cover your substitute’s fee, or will be carried over to your next meeting. Receipts will be issued by the e-Spot quarterly.

Boris Mahovac R.G.D.

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The answer to the age-old question of whether to go long or short on your mortgage is unclear yet again.

The popular variable-rate product tied to prime that helped people buy a lot more house with more debt is going up. The prime rate at the major banks, which tracks the Bank of Canada’s rate, is now at 2.75%.

At 2.05%, a variable-rate product today may look as attractive as ever, but the five-year fixed-rate closed mortgage is falling fast. It can now be had for under 4%.

Bank of Montreal senior economist Sal Guatieri does agree that variable-rate products have worked out better than fixed-rate mortgages throughout history, but says the tide may be turning.

Bank of Montreal is forecasting another 25 basis point move in September and says rates will climb another 1.5 percentage points by the end of 2011. If Mr. Guatieri and others are right, by 2012, the variable-rate products out today would clock in at just above 3.75%, if the discounting remains the same.

“If you are still in that variable-rate product then, you’d have to sweat out the next three years because there would still be possibly more increases,” says Mr. Guatieri, who adds his bank sees the overnight rate eventually going to 4% in the following three years. Based on the present gap between the Bank of Canada and prime, that would place the variable-rate product you get today at 6% by around 2015.

Fears of such a scenario are driving people into fixed-rate products again. That, plus new mortgage rules that make it easier to qualify for a mortgage if you go for a fixed-rate product with a term of five years or longer.

For updated rates and more information on the right mortgage for you please visit www.designermortgages.ca/rates.htm or call 1-866-824-8057

Source: Garry Marr, Financial Post • Tuesday, Jul. 27, 2010

As a small business owner trying to grow your business, you often struggle with how best to allocate your time, energy and effort. One aspect that is frequently neglected is completing a thorough and regular assessment of your current practices and activities to ensure they are still effective. From a marketing and sales perspective, you need look at what you are currently doing or planning to do and determine if they are consistent with the needs of the business, the competitive landscape and your overall marketing strategy.

 At Sydcam Marketing Communications, our goal is to help businesses just like yours properly evaluate your marketing and sales efforts, and do so in a cost-effective manner that won’t break your budget. For as little as $199 (plus HST), we can offer you the following:

•  A complete review of all your existing marketing material, including business cards, website and any promotional material (offline and online) you currently use.
• A written report that outlines our key findings and recommendations for improvement.
• A comprehensive rewrite of one (1) of your key marketing pieces (i.e. one webpage, promotional brochure/postcard, tagline, mission statement, email marketing article, blog, etc.), up to a maximum of 1,000 words and one round of revisions, or a creative review of any of your marketing pieces (i.e. logo, website, print or tradeshow material, etc.) from a branding strategy perspective.
• Save 25%* by booking any additional marketing or copywriting work you require at the time of your review (*off our normal hourly rates for each respective service – contact Sydcam for more details).

 Oakville Networking members – Act now and save!

 Attention all Oakville Networking members and guests, book your package today and save!

•  Book by September 15, 2010 and save 15% on the above package (now only $169 + HST).
• Book by September 30, 2010 and save 10% (only $179 + HST).

 To book your package or to find out more, contact Ian Turner at 416-452-6960, or by email at ian@sydcamcommunications.com.

To learn more about Sydcam, please visit us at our website at www.sydcamcommunications.com.