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October 28, 2009

The Power of Testing

"How often have you heard, “Making small, minute changes can dramatically effect a company's Return On Investment (ROI)?” Heard it and done nothing. We're a perfect case in point. We've been on the web running a website for 13+ years and have never tested once. Nothing. Why? Hmmm, not sure - maybe fear? Maybe ignorance? Maybe we were just too comfortable where we were. But after much prodding from a Google Analytics consultant we've recently started working with - we finally took the plunge.

So we embarked on our first multivariate test using Google Website Optimizer to see if some small changes in our site could actually make some big differences. (read about the test results in Google's Official Blog) And after a few months what did we find?

Sheepishly, we found we'd been missing the boat. Something as simple as changing the words on call to action buttons could give us 10%+ increase in customer response rates. Whoa. Say that again? 10%? Who would have thought? With our eyes now open, Catalogs.com is a testing fiend. Currently we're in the midst of two follow up tests and have plans to continually test and refine the visitor performace of our site.
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My advice for ALL companies on the internet … invest in testing. Regardless of whether your company has a strong or weak technology department, it's worth the endeavor into some type of response rate testing. You may find that your current web pages are perfect as they are, but chances are you will be able to improve your response rates through just a few A/B or multivariate tests. And in todays economy, who wouldn't want an extra 5%-10% more sales.


October 27, 2009

Health Insurance Premium Increases – and what you as an Employer Can Do about It

We just got notice that our annual health insurance company has raised the premiums for Catalogs.com about 17%. I was told my insurance consultant that out of hundreds of companies he is representing, ONLY Catalogs.com has the same number of renewals as last year. When I questioned “What do you mean by this?” he went on to tell me that out of hundreds of clients that he is personally servicing, EVERY OTHER COMPANY has had either layoffs or has decided, with our fabulous economy, to stop offering health insurance as an option.

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I was flabbergasted! But in retrospection, maybe I should not have been so surprised. It is quite unfortunate those companies have suffered so much, and that one of the MOST expensive components on P&L’s is employee health insurance.

At Catalogs.com, we decided that it was worth the extra hours and hours involved in obtaining competitive quotes from 8 different health insurance companies, and keeping constant the same percentage that we pay for our employees. We ended up switching plans, offering an HMO that had very low co-pays and excellent prescription benefits, and still keeping the plan affordable for ALL employees. Of course it would have been more profitable to have simply reduced the percentage we pay, but that would NOT have been a good outcome for our employees.

Employers … remember the basics … look out for the well being of your employees, do everything you can to make them healthy and productive … and most importantly, try to be fair and keep them happy. Trust me … it will help you sleep better most nights.

October 23, 2009

10X ROI – And the client is STILL not happy?

Pinch me! Wake me when this nightmare is over! I just simply DON’T GET IT!

True Story … We have had a client (let’s just call them “Mr. I'm Never Happy”) who has been live on Catalogs.com for over three consecutive years.

“Mr. I'm Never Happy” called up and said

“We need to cancel our relationship with Catalogs.com because we are not achieving a high enough ROI (Return on Investment).

We were very surprised and asked “Really, what are you getting.” “Mr. I'm Never Happy” said,

“Well, we are averaging only a 10x ROI.”

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The carpet cleaning crew that night had to pick me up off the floor. For anyone not clearly understanding how to calculate an ROI, it’s simple:

“Mr. I'm Never Happy” spent $1,000.
He received $10,000 (ten thousand) in sales revenue.
“Mr. I'm Never Happy” is still NOT happy.
He wanted to receive and I quote “30x ROI” or $30,000 in sales, having only spent $1,000.

Are they crazy!

Let me “vent” and tell you what else “Mr. I'm Never Happy” received, in addition to 10 X ROI:

1. Increased brand recognition and exposure.
2. Tens of thousands of targeted and qualified visitors directly to his website.
3. He acquired loyal customers that more than likely will have repeat purchases.
4. He benefited from Catalgos.com Search Engine Optimization (SEO)

I apologize for using my blog to vent, but in today’s economic environment where so many companies are struggling to survive, it sickens (and angers) me when corporations get greedy. Ten times ROI (10x) is an extremely respectable rate of return. Simply take a look at your own bank accounts and stock portfolios this year. Have you made $10,000 by ONLY investing $1,000? Wouldn't a person with REALISTIC expectations be jumping for joy?

October 21, 2009

Why Working Women Rock – cover of Time Magazine – and what we really want!

It’s no surprise to me that the Rockefeller Foundation’s recent poll shows that “women have become dominant in our society … women will soon constitute a MAJORITY OF THE WORKFORCE; they earn 57% of college degrees; and they make 75% of buying decision in the home,” as was published in this weeks Time Magazine.

It’s also no surprise to me that women are not as “concerned with equality issues, nor are they patting themselves on the back for their pre-eminence – they are simply dealing with the often bewildering changes and uncertainty in our economy as breadwinners, spouses, mothers and daughters. It’s not the anachronistic battle of the sexes anymore but how we all – women and men – grapple with a new economy and new era.”happiness hands.jpg


Personally, I always grew up with a “working Mom” and one who truly excelled in her career. My own Mom was the 1st female executive, EVER, of Magnavox Corporation in the 1970’s, and was featured on the front cover of a marketing/trade magazine that was the first time, EVER, that a female graced the front cover. We are talking some 30+ years ago! So to me … it is no surprise that working women are excelling in the workforce, and honestly, I am NOT surprised that given the recent economy … working women are now becoming the dominant players.

Women’s lib is no longer the “hot button.” According to Time Magazine, there are more than 145 foundations today designed to empower women around the world, in the belief that this is the greatest possible weapon against poverty and disease (compare this to only ONE major foundation in 1972 – the Ms. Foundation). Look at the recent winners of the Nobel Prize … five women won the Nobel Prizes in the same year for Medicine, Chemistry, Economics, and Literature.

Look at our past election year --- Hillary Clinton, Sarah Palin, Tina Fey and Katie Couric were lead players, not the supporting cast. And we all know that President Obama was raised by a single mother and married a lawyer who outranked and out earned him.

The statistical look back from the 1970’s to today, by Time, is unbelievable:

* Today, 57% of college students are all women, compared to in 1972 it was 43%
* Today, 95 our of 252 (38%) of ALL TV-News correspondents at ABC, CBS and NBC Today, 71% of women with children under age 18 are in the labor force, compared with 47% in 1975.
* Today, 32% of females are layers, compared with 3% in 1970.
* Today, 28% are medical doctors compared to 8% in 1970.


Now, don’t think we’re on level playing ground … because we are NOT yet.

Women have made gains in pay, but STILL lag behind men (in 1972, for every $1 men made, women earned $0.58, whereas in 2008 women earned $0.77 for every $1 men earned).

Are women happier? Does this “NEW” dominance and power bring satisfaction? Not necessarily. According to University of Pennsylvania economist Justin Wolfers, women are now free to wrestle with the same pressures and conflicts that once accounted for greater male unhappiness…. Modern life in a global economy is simply more stressful for everyone but especially for women, who are working longer hours WHILE playing quarterback at home. Equal numbers of men and women report frequent stress in daily life. Something in life must bend.

As for me, at Catalogs.com, let’s see (mother of 3, daughter of 2 parents who are ailing, philanthropist, employer, and CRAZED woman). Am I happy … well, I will buck the trend and disagree with Time Magazine and yell a resounding YES – I’M HAPPY! Though I’m stressed and desperately trying to find the time for my 1 hour deep tissue message that was given to me 14 months ago as a birthday present, I still can say I’m happy. I truly believe, in my heart, that women are more satisfied and feeling better about themselves than they did in the 1970’s. It might be the simple fact that today, we have more choices … we have the ability (or control) to alter our lives … we have more education opportunities …. We have technology that is aiding our efficiencies and improving our multi-tasking roles … we essentially have more tools which lead to more options.

October 02, 2009

Tools For Teaching Contest Closed

Our Tools for Teaching contest has officially ended and we are THRILLED with the results. Almost 1,000 teachers from small towns to big cities have entered.

Now the ominous ??? The task of reading and sorting the essays. From what I have read so far, they are very compelling, many written truly from the heart. What a difficult task the “team” will have here at Catalogs.com, judging and choosing a contest winner from all of these incredible entries.

5 will be lucky winners … stay tuned. Winning announcement will be in late October.

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