CASE STUDY: How Your Site R.A.T.E.S.

By: Richard Peters

I have had the good fortune to not only have been witness to the evolution of the internet but also to have participated in its application in numerous B2B, B2C and C2C market or business scenarios. In both corporate and entrepreneurial environments, I have played key roles strategically and tactically in the development, branding, marketing and operations of numerous web based businesses. Based on this experience, I have developed some guidelines or rating principles I refer to when assessing the viability of a proposed or existing web based business opportunity.

These rating principles are used to identify the strengths and weaknesses of a site. How the site R.A.T.E.S. helps determine the strength of its competitive advantages, vulnerabilities and where to focus improvements in order to ensure the site’s ability to survive and thrive. The degree of emphasis placed on individual rating elements is influenced by the role the site plays in your company or product’s branding strategy and the role of the site as a revenue generator (e.g. generate advertising or provide e-commerce facility to buy /sell products and services) and/or as an information provider. 

 

R.A.T.E.S.(Relevance, Accessibility, Thoroughness, Ease of Use, Social Networking).

1. RELEVANCE: This is a measure of your site’s ability to meet the product and service expectations of your target markets as established through your brand.

Your site is integral to your brand message which is your promise to your customer. Your brand tells them what they can expect from your products and services, and it differentiates your offering from your competitors'. Your brand is derived from who you are, who you want to be and who people perceive you to be.

Your site needs to reinforce and reaffirm your brand message.

2. ACCESSIBILITY: The primary question that needs to be asked:  “Is the information accessible via all the modes of digital delivery currently popular with its target audience(s)?”

There is a plethora of digital delivery options (e.g. smart phones, I pads, I pods etc.) available. Acquaint yourself with those that are popular with your target segments and ensure your site is “friendly” with these favoured technologies.    

3. THOROUGHNESS:  This measure focuses on depth of information rather than breadth. The ability of the site to be “Relevant” will bring brand supporters to your site. The ability of the site to be “Thorough” will bring these users back and reinforce brand loyalty.

I have seen many cases where the site was regarded as an ancillary activity and was not managed as an integral part of the primary product or service branding strategy. The marginalizing of the role of the website exposes the online option as a viable competitive opportunity. I have used this opportunity many times to attack a competitor which otherwise had a very strong offline brand position. 

 

4. EASE OF USE: The ability of a user to be able to quickly and easily source what they need is paramount. How quickly the relevant content can be sourced depends on how intuitive and extensive the structure of the search capabilities of the site are.

The best way to ensure that the site’s search function is optimal is to have the capability to:

·         track or measure the users experience searching the site

·         assess what this information is telling you

·         take whatever steps are necessary to optimize the user experience.

Good analytical tools will provide valuable data regarding the user experience; however, often the underlying causes of the users experience are difficult to discern. Typical research and analysis procedures can take time and be expensive.  Social media/networking can provide a real time capability to assess the users experience and gain insights on what needs to be added or changed.  In other words, if the site is getting strong audience participation and the audience is able to socialize (express opinions, share experiences, ask questions etc.) overtly or subliminally they will provide insights about what is good and bad about the site.  They are also very likely to offer insights regarding the pros and cons of competitive sites.

Often the competitive advantage of one service over another can have more to do with the way information is presented than with the information itself. I have been involved in a number of markets (e.g. law, finance, construction, real estate, healthcare) where the competitors are providing similar if not identical content. Their ability to co-exist and to compete is heavily influenced by how they present their information. Preference for one service provider over another is based on how user friendly or intuitive is the presentation of the information.

The same principle applies to other forms of content. As you learn more about the patterns of usage you start to identify usage habits or preferences among groups or audience segments. This can provide the opportunity to refine or revise how the content is presented so as to improve the efficiency of its use.

Being vigilant about the ease of use and application of the data can also produce new or ancillary revenue opportunities.  
 

 

5. SOCIAL NETWORKING: Competitive environments and user behaviour are highly volatile especially in the fast paced world of the internet.  Whether your site’s primary role is provide an e-commerce capability or information, it is mission critical to keep on top of the selection or sourcing criteria your audience employs. Social media needs to play a major role. These networking tools, properly architected and managed will not only be seen as a significant added value by the users but will also provide a very effective and efficient way to monitor market trends and user preferences. Social media tools also provide you with opportunities to identify the appropriate response(s). It is a very powerful way to get up close and personal with your audience where you can watch, listen, learn and react.

The user centric, unstructured, self- organized nature of how content is managed via social networking enables the user to:

• socialize (discuss, provide opinion, feedback) the structured content that the site provides,
• add new structured content (i.e. share articles and other third party content) they may source and feel is relevant to a topic or discussion
• provide their own bottom-up content using blogs, forums, focused or special interest groups, 1 to 1 discussions
• basically satisfy their need to share, trade ideas or tips, or experience the thrill of being publishers themselves.

All of this makes the site experience more intimate, engaging, timely, relevant and certainly immersive.

I believe social networking or media is an extremely valuable tool for creating and maintaining brand loyalty. I also believe that there is a first strike advantage to this. An effective social media strategy gives the user a sense of empowerment, they see the site as “theirs” and they feel a sense of community or membership.  The organization that is first to step up to the plate and establish this foothold with the user has a significant competitive advantage.

The major caveat is that you, as the service provider, must be ready, willing and able to continue to “feed the appetite” that you create. A critical feature affecting the competitive positioning of a site is having the capability to proactively and reactively respond, in a timely fashion, to changing market conditions, especially as these relate to competitive landscape and user preferences. This is a common area of weakness for many sites and ultimately the vulnerability that leaves an opening for competition.

Other case studies by Richard Peters include:
Anatomy of a Turnaround
Ancillary Business Opportunities
Achieve and Maintain Competitive Advantage
Owning The Client Relationship 

Social Media Becomes Less Important to Teens; Prefer to Shop In-Store Than Online

by Vahe Habeshian  |   

 

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Today's teens, though digital natives, by a wide margin prefer to shop in stores than online, and even their use of what they consider their favorite social networks is decreasing in importance for them, according to the 23rd semi-annual Taking Stock With Teens survey from Piper Jaffray.

The study also indicates improving discretionary spending across various categories: "Our Spring 2012 survey results provide confirmation that we are in the early stages of a clearly defined discretionary spending cycle," said Jeff Klinefelter, director of research and senior research analyst at Piper Jaffray.

"Double-digit increases in spending on a sequential and year-over-year basis for both upper- and average-income teens, and similar strength in spending intentions, signal improved confidence in the overall environment and a willingness to spend more broadly on key categories of interest."

Below, selected findings from the most recent Taking Stock With Teens survey from Piper Jaffray.

Social Networks and Websites

Facebook is still cited by a plurality (33%) of teens as the most important social network, but that's down 9 percentage points from the fall 2012 level of 42%.

Instead, teens give more importance to Twitter and Instagram now than they did six months ago:


When considering social media websites (as opposed to networks), teens ascribe equal importance to YouTube (not cited as a network) and Facebook, followed by Twitter and Instagram.

Still, relative to six months and 12 months earlier, the importance to teens of both Facebook and YouTube has declined, whereas that of Twitter and Instagram seems to be improving.

Asked whether social media has an impact on their purchasing behavior, more than have said it does: 53% of female teens and 52% of male teens.

Shopping
By a large majority, teens prefer to shop in stores rather than online: 78% vs. 17% in the case of female teens, and 75% vs. 19% in the case of males.

Nevertheless, teens do shop online—in similarly large proportions:

Teens' top 4 favorite shopping websites, led by a wide margin by Amazon, remained unchanged from six months earlier:

The following are additional study findings from the portable devices, fashion, beauty and personal care, restaurant, and videogame categories.

Mobile Devices
Teen spending on portable devices continues to accelerate: 86% of teens report that they are likely to purchase a smartphone for their next device, up from 83% last fall and 81% one year ago.

• Apple's iOS gained market share as the most desired operating system, with 51% of teens reporting they are likely to buy an iOS device (compared with  22% for Android).
• Approximately 34% of teen respondents owned an iPhone, up from 17% last spring, driven by the availability of a $49 iPhone 3GS at the launch of the iPhone 4S.
• Also, 40% of teens expect to purchase an iPhone in the next six months, up from 37% last year.

In tablet market, 34% of teens owned a tablet computer, up from 22% last spring. Of those teen tablet owners, 70% owned an iPad, 19% owned an Android-based tablet, and 11% owned a Kindle Fire.

Furthermore, 19% of teens expected to purchase a tablet in the next six months, with 80% of those teens intending to purchase an iPad. 

Fashion
Teens cited improvements in both current fashion spending and intention to spend, across income levels and genders:

• The fashion category accounted for 39% of teen budgets, up from 38% in the fall of 2011 and 37% a year ago.
• Upper-income teens indicated that spending on fashion increased 17% on a sequential basis and 21% year-over-year.
• Average-income teens indicated their spending on fashion increased 18% on a sequential basis, and 15% year-over-year.

Those double-digit increases in fashion spending are the first recorded since the 2003/2004 surveys, when teens across income levels indicated a similar meaningful propensity to spend on the fashion category, Piper Jaffray said.

Strength in spending was broad-based across categories, but spending by male teens in fashion was the highest—historically indicative of a multi-year, dual-gender fashion spending recovery, according to the firm

Food and Restaurants
Teen spending on food and restaurants is at or near the highest level since early 2000:

• Upper-income and average-income survey respondents increased their weekly restaurant spending approximately 10% and 3%, respectively, compared with the fall of last year.
• Taste remained the strongest influence on food and restaurant dining decisions.
• Value also continued to be an important influence on dining decisions and has gained in importance over time, ranking number two in the current survey compared with number five in the spring of 2007.

Videogames

• Teens constitute 33% of videogame players, with videogames accounting for 7% of teen spending.
• Teens are increasingly receptive to downloading games, accessing social networks, and playing games on smartphones and tablets.
• Social networks, tablets, and smartphones are taking increasing eyeball share away from console-based video games.

Beauty and Personal Care

• Beauty spending by upper-income teens increased 8% sequentially and 6% year-over-year. For average-income teens, beauty spending increased 21% sequentially and 18% year-over-year.
• Skin care and cosmetics accounted for a larger share of overall beauty spending, and the beauty spending gap between upper- and average-income teens continues to narrow.
• MAC remained the No. 1 cosmetics brand for upper-income teens, while Cover Girl was once again the No. 1 brand for average-income teens.
• Victoria's Secret remains the preferred fragrance for teens across both income segments, consistent with the past eight surveys.

About the data: The Taking Stock With Teens survey from Piper Jaffray gathered input from approximately 5,600 teens, whose average age was 16.3 years during the latest survey. Teen spending patterns, fashion trends, and brand and media preferences were assessed via visits to geographically diverse high schools in 11 states, and via an online survey of a wider group of teens from 34 states. The survey is conducted in partnership with DECA (an international association of high school students).

Vahe Habeshian is the director of publications at MarketingProfs and a long-time editor. Reach him at vahe@marketingprofs.com
Twitter: @habesh