| Top Ten Ways Submerce Helps Cut Direct To Consumer Operational Costs
Using Submerce eBusiness
With the U.S. economy looking bleak for the next couple of quarters,
direct-to-consumer professionals look for ways to cuts costs and
help retain customers without cutting consumer's online experience and
customer service. Submerce answers the call by offering the following
suggestions for any direct-to-consumer professional.
1. Stop Paying Transaction or Commission Fees for Online Sales
If you are paying a monthly hosting and a transaction fee for your
online or direct-to-consumer sales, switch to an eCommerce provider such
as Submerce which offers a flat fee monthly service that
includes unlimited number of transactions. Most eCommerce solution
providers charge anywhere from 1.75% to 5.25% above and beyond what you
are paying your credit card processing fees. For an average winery that
does $40,000 a month in gross sales, that can range from $700 to $2100
in transaction fees alone. With Submerce, your monthly fee would not
exceed $250 for standard eCommerce and $375 with club management. That's
a savings of at least $5400 to $20,000 per annum by switching to
Submerce. By following the philosophy of offering a flat monthly service
fee, Submerce allows predictability of your operational costs. Whereas
a competing service will charge you both a hosting and a transaction
fee, reducing your profit margin for your sales success rather than
reaping the full benefits of your hard work.
2. Renegotiate Your Existing Fulfillment or Shipping Carrier's Fees
Renegotiate your shipping fees with either your shipping carrier or your
fulfillment house. Many wineries have not taking the time to review
their existing rates or discuss options to cut costs with their
fulfillment house or shipping carriers. Fulfillment houses are like cell
phone carriers, they don't want to see you go and if approached, they
may review your current contract and offer ways to reduce shipping
costs. Also remember if your wine club has grown or your number of
shipments has swelled past your original estimated colume, there may be
an opportunity to discuss a new rate based on your new volume.
3. Shop For a New Fulfillment House or Shipping Carrier
If your current shipping carrier or fulfillment house is not willing to
renegotiate, then it's time to start shopping. Many new shipping
companies have launched in the last couple of years and may offer a more
competitive rate to attract your business. If you ship in house, take a
look at your rates and compare them against each other. If you have
been using FedEx, take a look at UPS. If you have a lot of packages
going to California, Nevada and Washington, Submerce recommends calling
Golden State Overnight. We have been receiving positive feedback from
our customers who found that they can save 15-20% on shipping using this
carrier. By using Submerce, it makes it easy to switch carriers, load
and update new shipping rates in just a couple of minutes so your
company can start saving almost immediately.
4. Review and Renogotiate Your Credit Card Processing Contract
Review your current contract with your merchant and credit card
processing company. With the recent turbulence in the banking industry,
many banks have merged which means that you may be stuck with a new rate
that is not competitive. Submerce recommends reviewing your contract at
least once a year and possibly start shopping for a new processor or
merchant bank that will offer a better rate or possibly better customer
service. Just like shipping carriers, if your volume has grown like many
of our customers after they switched to Submerce, you may be eligible
for a better rate. Even a half percent discount can meet thousands of
dollars over a course of a year. By powering your eCommerce site with
Submerce, switching merchant accounts or processors can be done in as
little as a couple of days once your bank has approved your application.
5. Offer New Frequency Options for Wine Club Shipments
If your company has a wine club and is starting to see a trend of
attrition, ask your customers who are canceling for the reason why they
are opting out. Recent customer polls have found that customers who
originally signed up for a monthly shipment no longer want to receive
wine every month, but would be more than happy to get a shipment every
other month. By creating a new club that offers the same wines as a
monthly club on a bi-monthly basis, you will be retaining customers
which is far better than losing them. By using Submerce, creating a new
club can be done in under a minute and moving customers from one club to
another can be done in just a couple of seconds. If a bi-monthly does
keep the customer's attention, offer a quarterly club or place them on
suspension or hold status for 6-8 months. This will allow them to
continue to receive the montly newsletters while also offering them the
continued benefit of wine club discounts.
Submerce can manage this easily through the online application and
allows administrators to set vacations and hold statuses in just a
couple of seconds. By contiunuing their discounts, you will keep the
customers loyal to your brand and to your website. Others may frown on
this, but remember, some sales is better than no sales and extending a
discount even though the customer may not be getting the monthly
shipments consumers see this as a way of your company having some
compassion for loyal customers.
6. Manage Your Own Website
If you have been relying on an outside agency to manage your website
design and maintenance, you have been spending anywhere from $75 to $200
an hour for someone to do work you probably can have anyone on your
staff accomplish. Webmasters have had a long stranglehold on companys'
websites and those days are changing quickly by powering your website
with an eCommerce application that includes content management such as
Submerce. You may have heard the buzz around Content Management Systems
(CMS) as being inflexible and hard to work with, but Submerce has been
hard at work for the past 14 months changing those reputations.
With Submerce v5.3, the software allows more control over your website
with regards to navigation design, page design, product inclusion better
than competing solutions such as eWinery Solutions, IBG and Vin65 .With
Submerce anyone on your staff that has the basic understanding of a word
processing program such as Microsoft Word or Lotus Notes can be
building and maintain a website in just a couple of minutes, allowing
instant changes to content without having to schedule an outside agency
to complete it for you. Got a last minute sale or promotion? Not
a problem. Just log into the Submerce administration panel, make the
content changes, build the promotion and in just a couple of minutes
your site will be ready for the big sale and you just saved an average
of $75 to $200 by doing it yourself.
7. Use Stock Photography
With regards to content, you can cut the costs associated with building
webpages, brochures and collateral materials by using stock photography
than hiring a photographer. Long gone are the days of having to use the
clip art included in your publishing program, over the course of the
past 5-7 years, thousands of royalty free stock image and photography
sites have popped up all over the internet backed by very attractive
pricing models. Sites like
www.shutterstock.com
offer flat monthly fees to gain access to millions of high resolution
images from over a hundred thousand photographers from around the world
online 24/7. So by mixing stock photography with some of your own
images, you can deliver a stunning website, brochure, sales sheet and
more all while cutting your costs to a fraction of purchasing
rights-managed photos that can cost anywhere from $400 to $1200 each.
8. Use Free Mailing List Management and Newsletter Tools
Slash the cost of sending email-based newsletters by switching to
Submerce which allows unlimited mailing list management and the ability
to send targeted email blasts in just a couple of minuties. While 3rd
party mailing list management tools can be very attractive by offering
easy-to-use templates, in the long run these cost you anywhere from $.01
each and on up costing hundreds if not thousands of dollars a year.
Submerce has many customers that send email blasts of their latest
product offerings and promotions about every 2-3 days which attracts
thousands of dollars of revenue per message. By taking the old rule of
5% conversion, that's a lot of customers you need to communicate to and
by not worrying about a per message fee, your company can now tap into
the market of sending targeted messages. Submerce has recently released
their Customer Preferences and Targeting Tools that allows
administrators of a Submerce-powered website to build mailing lists in
just seconds based on query results of their database. Queries such as
"customers within X miles of store", "customers who have purchased a
type of product (red wine) or specific product(s)" can be generated and
turned into a targeted mailing list. Those lists can then be managed and
added to as customer purchasing trends or demographics change over
time. By using Submerce you are not only saving money, your company also
has the tools to send precisely targeted messages rather than blasting
an entire customer list. Doing so will drive customers to opt out or
refrain from purchasing products from your site in the future. Like many
of the Submerce features, mailing lists are great tools as long as they
are used properly and take into consideration of the respect for your
customers' privacy.
9. Create and Manage Your Own Search Engine Optimization
One of the most advertised internet service offerings (beside the
adult-related and low-fee mortgages) is Search Engine Optimization or
SEO for short. Now SEO is very important for any site, but there's very
little black magic or science behind the process that prevents the
average person to program their own keywords and metatags. Now as with
any service, hiring someone will deliver results, just don't fall for
the "I'll make your site the #1 in search results" as they will promise
this to you and your competitor. You'll have to ask yourself how they do
this, right? Well in the end it's a sales pitch and no SEO or SEM
company can guarantee results. By powering your website with Submerce,
you don't have to be an SEO expert or a programmer to get the right
keywords into your website. Submerce offers far better SEO management
tools than the nearest competing service at no additional cost. Once a
customer, Submerce even offers your tips and tricks on how to get your
SEO up to speed and how to manage it after launch. Just one of the many
benefits of becoming a Submerce customer.
Submerce recently brought on a very large, well established website over
from a competing service and within three weeks, the Submerce-powered
version was already pushing the company's internet search ranks up the
chart. This was accomplished by just switching to Submerce and using the
included tools to populate the SEO fields at the site, webpage and
product levels- and without the help of an SEO export.
10. Streamline Work Processes with Automation and IT Outsourcing
Based on a recent study, one of the biggest areas of operational
expenses was on managing internal processes such as lack of data flow
automation or broken systems' integration which also typically leads to
increased cost related to customer service. By switching to Submerce,
your company will not only have access to a robust and scalable solution
today, you will also have access to a system that will grown with your
company- not govern its success. Submerce offers automated systems
integration with many different third party systems such as FedEx, UPS,
Oracle's JD Edwards, SAP, QuickBooks, ShipCompliant, New Vine Logistics
and more are added just about every other month.
By automating these processes, your internal IT staff can focus their
time on tasks that will be a better use of their time. Switching to
Submerce will also allow you to outsource your website hosting by
bringing in Rackspace Managed hosting as part of the Submerce Total
Solution package. Rackspace is a top tier network that offers 100%
network uptime and 24/7 support at no additional cost to you, saving you
thousands of dollars a month staffing the required IT resources needed
to keep your servers running.
By Switching to Submerce, you will not only be able to incorporate the
tTop 10 featured recommendations, you will also be trained on hundreds
of other ideas that will help you streamline your business, boost
sales, provide better customer service, build a more
engaging website and much more. To ensure success, each Submerce
customer has the opportunity to receive hands on training on and consultation by one of our
Submerce Specialists that has the experience and personal commitment to
get your new site up and running in 30 days or less. So what's stopping
you from saving thousands of dollars each month while increasing your
sales? Call Submerce at (707) 255-4393 today.
|