Apple: How to Succeed by Breaking the Rules

Wired Magazine has a very interesting article on how Apple succeeds by breaking the rules.

• Instead of championing the spirit of cooperation (e.g. open platforms), Apple designs software to work only on their own hardware - and not on anyone else's. iPhone apps only work with iPhone, and OS X work only on Macs.
• While other companies embrace openness (e.g. blogging about their strategies), Apple never talks to the press. They don't blog, and they only announce new products when they are ready to launch. And the strategy seemed to work -- every announcement of Apple is a major news story.
• As seen from Microsoft's antitrust experience, the rule is not to shut out rivals. Yet Apple thrives in hardball tactics where every Mac is preloaded with iTunes which becomes its default music player.
• Apples' focuses on pleasing themselves, not their customers. They've released iMacs without floppy drives, discounted their iPhones 2 months after the release and offered disgruntled customers with $100 gift certificates.
• While other companies coddle their employees, Apple motivates through fear. They key for them is to inspire their employees with their sense of mission

Read the article "How Apple Got Everything Right By Doing Everything Wrong"

Tips to Increase Online Sales: Bluefly.com

If you love designer clothes, then Bluefly.com is the shopping destination for you. Bluefly.com is the discount store selling high end designer products from Fendi, Robert Rodriguez, Jimmy Choo, Prada, Gucci, and all the other big names. Its target audience consist of fashion-conscious, obsessive shoppers.

SmartMoney.com in an interview with Chief Marketing Officer Bradford Matson offers some strategies Bluefly.com uses to improve its sales:

• Uses email marketing to send out special offers, which varies depending on customer characteristics such as first time buyers, dress loves, frequent shoppers. They devise their promotions based on customer segmentation -- it's not a one promotion for all.
• To turn a browser into a first time buyer, they offer a discount on merchandise most popular with new customers such as designer dresses.
• Customers who make a second purchase within 20 days are more likely to become loyal customers, so first time buyers receive a fast follow-up email offering another discount.
• If it's been six months since the customer last purchased, Bluefly.com lures the customer back with a $30 coupon.
• To break shoppers self imposed spending limitations (e.g. you've never spent more than $200), Bluefly.com sends a coupon for $50 off a $250 purchase in the hope of increasing spending
• For every promotion one customer gets, another customer gets a slightly different promotion as Bluefly.com constantly experiments on what types of offers customers best respond to.

Improving Conversion Rate by Changing Product Description Page

InternetRetailer.com reports that the online home improvement retailer PlumberPlus.com saw a "20% increase in conversions and a $10 rise in average purchase price" after changing its product page.

So we looked at a few product pages and compared its present version with that of March 2007's version (via the Wayback Machine). The layout of the product page, at first glance, seems similar, but the new features conveyed more information -- and greater trust -- from the customer. Hence, conversion improved.

Take the product page of this ice maker filter with the present version and the March 2007 version .

• The product description is exactly the same
• In the present version, tabs were added to include Customer Reviews. In some products, another tab called Document is added to allow users to see product documentation. The 2007 version of the page had no customer reviews or documentation
• The huge white space in the 2007 version between the product image and the Add to Cart button was filled up with the Brand, Model, and UPC Numbers, plus Product Review star ranking and invitation to review the product
• Under the Add to Cart button, four new features were added: Ask us about this product; Chat with customer support; Tell a friend; and Printer friendly

The new features tapped the collective power of the consumers. Potential customers love to know how the product is really like, beyond the polish sales copy of the merchant. Is it easy to assemble, looks tacky and cheap, or go beyond expectations?

With the increase in sales conversion, it appears that customers actually love another customer's input about the product. If you are looking to sharpen your product pages and improve conversion, adding the above features may be worth a try.

How to Find Investors for Your Business

Ryan Allis, CEO of marketing and online communications firm iContact Corp., shares some interesting lessons on how to attract investors for your business in his new book "Zero to One Million: How I Built a Company to $1 Million in Sales ... and How You Can, Too."

According to Allis, to increase your chances of venture capitalists investing in your business, you must:

• Venture capital funding is ideal if you are looking to raise $500K and up and you have a business in the following areas: technology, biotechnology, energy or consumer goods space with a potential return greater than $50 million in the next five years
• To maintain a good portion of ownership for your business, yoi need to have a high valuation before you accept the funding.
• Be introduced by someone they know. With thousands of proposals and business plans they receive, you stand a better chance if you have been refered by someone these VCs know and trust. Find other entrepreneurs these venture companies have funded before who can recommend you. Or other investors they've done deals with or lawyers they've worked with in the past. They don't want "unreferred plan" (much like the unsolicited book proposals for publishers).
• VCs generally look at your capacity for entrepreneurial leadership, the ability of your business to attract talent, relevant industry experience of the team, as well as marketing and sales orientation.

Whether you are looking for venture capitalists or angel investors for your business, be sure to have:

• A solid business plan;
• Experienced advisors
• Team with market knowledge that has proven it can execute

What Allis said in his book rings oh-so-true:

"It can be difficult to obtain funding for your business as an aspiring entrepreneur. Many times you'll have to present to dozens of banks and investors before you can find someone willing to fund you. Other times, you'll have to bootstrap the company and grow it organically as your sales grow."